Laureate Education (LAUR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 9% year-over-year to $400.2 million, with adjusted EBITDA of $94.8–$95 million, both exceeding guidance, driven by strong enrollment growth in Mexico and Peru, especially in online programs and favorable FX.

• Net income for Q3 2025 was $34–$34.5 million, down from the prior year due to a discrete tax benefit and higher costs.

• New enrollments rose 4–7% in Mexico (excluding campus closures) and 13–21% in Peru, with total enrollments up 5–8%.

• Opened new campuses in Mexico and Peru, with further expansion planned.

• Stock repurchase program increased by $150 million, with $71 million repurchased YTD and $177 million remaining authorized.

Financial highlights

• Q3 2025 revenue was $400–$400.2 million, up 6–9% year-over-year; adjusted EBITDA was $94.8–$95 million, up 3–4%.

• Net income for Q3 was $34–$34.5 million; adjusted net income was $36.7–$37 million, with adjusted EPS at $0.25.

• Year-to-date revenue reached $1,160.5–$1,161 million, up 2–8%; adjusted EBITDA was $314.7–$315 million, up 2–13%.

• Free cash flow for the nine months was $236.7–$237 million, up $76 million year-over-year.

• Cash and cash equivalents at $241 million as of September 30, 2025; net cash position of $138.6–$139 million.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1,681–$1,686 million (7–8% growth); adjusted EBITDA guidance increased to $508–$512 million (13–14% growth).

• Q4 2025 revenue expected at $521–$526 million; adjusted EBITDA at $194–$198 million.

• Adjusted EBITDA margin expected to expand by 1.5 points in 2025, led by Mexico.

• Adjusted EBITDA to unlevered free cash flow conversion projected at 50%.

• Total enrollments projected at 494,000, up 5% from 2024.