Laureate Education Reports 5% Revenue Growth in Q2 2025, Operating Income Up 16%

Laureate Education, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 5% to $524.2 million compared to $499.2 million in the same period last year. The growth was primarily driven by higher average organic enrollment, which contributed an additional $32.1 million to revenues. However, this was partially offset by a $24.2 million decline due to unfavorable foreign currency exchange rates, particularly the weakening of the Mexican peso against the U.S. dollar. Operating income for the quarter rose 16% to $193.3 million, up from $166.6 million in the prior year, reflecting improved performance in both the Mexico and Peru segments.

For the first half of 2025, total revenues decreased by 2% to $760.3 million from $774.6 million in the same period of 2024. This decline was largely attributed to a $61.8 million negative impact from foreign currency fluctuations, which outweighed a $46.1 million increase from higher organic enrollment. Operating income for the six-month period increased slightly to $180.1 million, compared to $177.7 million in the previous year. The company reported a net income of $77.9 million, down 34% from $117.5 million in the first half of 2024, primarily due to increased foreign currency losses and changes in tax expenses.

In terms of operational metrics, Laureate's total enrollment across its institutions in Mexico and Peru reached approximately 472,100 students. The company operates five institutions, with revenues from Mexico contributing 53% and those from Peru accounting for 47% of total revenues for the first half of 2025. The company continues to focus on expanding its educational offerings and enhancing student engagement, which are critical for maintaining its competitive position in the higher education market.

Laureate has also made strategic moves, including the planned sale of two subsidiaries operating K-12 educational programs in Mexico, allowing the company to concentrate on its core higher education business. The company maintains a strong liquidity position, with cash and cash equivalents totaling $135.3 million as of June 30, 2025. Additionally, Laureate has a revolving credit facility of up to $155 million, of which $12.5 million was drawn as of the end of the reporting period.

Looking ahead, Laureate Education, Inc. anticipates continued growth driven by increasing demand for higher education in Mexico and Peru, despite the challenges posed by foreign currency fluctuations and competitive pressures. The company remains committed to enhancing its educational offerings and expanding its market presence, while also managing its operational costs effectively to improve profitability.