Laureate Education (LAUR) Q4 2024 earnings summary

Executive summary

• Achieved record operating results in 2024, with historic high margins, net income of $296.4M, and over $100M returned to shareholders, ending the year nearly net debt-free.

• Largest higher education provider in Mexico and Peru, maintaining top academic quality and five-star QS Stars ratings for employability, online learning, inclusiveness, and social impact.

• Revenue grew 6% as reported and 7% in constant currency to $1.567B, with Adjusted EBITDA reaching $450M and a 28.7% margin.

• Net income benefited from a one-time tax benefit and unrealized FX gain.

• New and total enrollments increased 5% year-over-year, with strong growth in both Mexico and Peru.

Financial highlights

• Q4 2024 revenue was $423M and Adjusted EBITDA was $141M, both up 10% and 14% year-over-year on an organic constant currency basis.

• Full year 2024 revenue reached $1.567B, Adjusted EBITDA $450M (28.7% margin), and net income $296M (EPS $1.92–$1.93).

• Adjusted net income for 2024 was $208.5M, with adjusted EPS of $1.35.

• Free cash flow for 2024 was $160.8M–$178.8M.

• Net debt at year-end was $10.7M–$11M, with $91M in cash and $102M in gross debt.

Outlook and guidance

• 2025 guidance: total enrollments of 489,000–495,000 (4–5% growth), revenue of $1.545–$1.570B (flat to down 1% as-reported, 6–7% growth constant currency).

• Adjusted EBITDA expected at $467M–$477M (4–6% as-reported growth, 11–13% constant currency), with margin expansion of ~150 basis points and ~50% conversion to unlevered free cash flow.

• Q1 2025 guidance: revenue $221M–$226M, Adjusted EBITDA between -$7M and -$4M due to seasonality.

• Foreign currency headwinds expected in 2025 due to Mexican Peso volatility, but local currency growth and margin expansion anticipated.