Laureate Education delivered a well-received third quarter, as the market responded positively to the company’s 8.6% revenue growth and improved margins in key segments. Management attributed the strong results to double-digit enrollment growth in Peru—particularly in fully online working adult programs—and steady primary intake gains in Mexico, excluding campus closures. CEO Eilif Serck-Hanssen emphasized the importance of new campus launches and expanding digital offerings, noting, "We have a very strong value proposition, which works well in the premium segment, in the value segment as well as a very rapid increase in demand for fully online working adult products."
Is now the time to buy LAUR? Find out in our full research report (it’s free for active Edge members).
Laureate Education (LAUR) Q3 CY2025 Highlights:
- Revenue: $400.2 million vs analyst estimates of $385.9 million (8.6% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.25 vs analyst estimates of $0.23 (8.7% beat)
- Adjusted EBITDA: $94.8 million vs analyst estimates of $86.86 million (23.7% margin, 9.1% beat)
- The company lifted its revenue guidance for the full year to $1.68 billion at the midpoint from $1.62 billion, a 3.8% increase
- EBITDA guidance for the full year is $510 million at the midpoint, above analyst estimates of $494.2 million
- Operating Margin: 17.9%, down from 19.5% in the same quarter last year
- Enrolled Students: 511,400, up 28,100 year on year
- Market Capitalization: $4.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Laureate Education’s Q3 Earnings Call
- Ryan (BMO Capital Markets) asked for details on the sources of revenue strength in Peru, especially considering currency and enrollment dynamics. CEO Eilif Serck-Hanssen explained that improved sentiment, recovery from recession, and strong demand for online products were the main factors.
- Ryan (BMO Capital Markets) followed up on Mexican new enrollment growth, requesting clarity between face-to-face and working adult segments. Serck-Hanssen clarified that Q3 growth was driven mostly by traditional undergraduate students, with working adult momentum concentrated in earlier cycles.
- Lucas Nagano (Morgan Stanley) inquired about the contribution of new campus launches to Mexican enrollment growth. Serck-Hanssen specified that 1 percentage point of the 4% growth came from new campuses, with 3% attributed to existing locations.
- Lucas Nagano (Morgan Stanley) also asked about the impact of fully online mix on average revenue per student in Peru. CFO Rick Buskirk responded that the mix could reduce average revenue by up to 2% as online programs scale, but inflation-indexed pricing remains in place for face-to-face programs.
- No further analyst questions were recorded on the call.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of adoption and revenue contribution from fully online working adult programs in Peru, (2) execution and enrollment trends at new and planned campus locations, and (3) the impact of ongoing macroeconomic changes in both Mexico and Peru on student demand and pricing. Additionally, we’ll track management’s ability to maintain margin expansion amidst these growth initiatives.
Laureate Education currently trades at $31.35, up from $28.87 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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