Laureate Education Reports $19.6 Million Net Loss in Q1 2025 Amid Revenue Decline

Laureate Education, Inc. reported a net loss of $19.6 million for the first quarter of 2025, a significant increase from a net loss of $10.8 million in the same period last year. The company's revenues decreased by 14% to $236.2 million, down from $275.4 million in the prior year. This decline was primarily attributed to unfavorable foreign currency exchange rates, which reduced revenues by approximately $37.6 million, and a decrease in tuition revenues due to changes in enrollment and academic calendar timing. The company noted that later semester start dates in 2025 compared to 2024 contributed to a revenue drop of about $26 million.

In terms of operational performance, Laureate's direct costs and general administrative expenses decreased by 14% to $249.4 million, driven by the same foreign currency effects that impacted revenues. However, the company experienced an operating loss of $13.2 million, a stark contrast to an operating income of $11.1 million in the previous year. The Peru segment faced a particularly challenging quarter, with revenues down 23% due to similar timing issues in the academic calendar, resulting in an Adjusted EBITDA loss of $38.8 million, an 87% decrease from the prior year.

Laureate's enrollment figures showed a mixed performance, with total enrollment across its institutions in Mexico and Peru reaching approximately 477,000 students. The Mexico segment accounted for 80% of total revenues, while the Peru segment contributed 20%. The company reported an 8% increase in organic enrollment in Mexico, which helped mitigate some revenue losses, while enrollment in Peru increased by 2%. The company continues to focus on expanding its educational offerings and improving student retention to enhance future revenue streams.

Strategically, Laureate is in the process of divesting two subsidiaries that operate K-12 educational programs in Mexico, allowing the company to concentrate on its core higher education business. The company also maintains a stock repurchase program, with approximately $56.1 million remaining under its $100 million authorization. As of March 31, 2025, Laureate had cash and cash equivalents of $109.8 million, which, along with cash flow from operations, is expected to support its liquidity needs for the next 12 months.

Looking ahead, Laureate Education, Inc. anticipates challenges due to ongoing foreign currency fluctuations and competitive pressures in the higher education market. The company plans to continue its focus on organic growth through new program offerings and capacity expansion at existing campuses. However, it acknowledges the potential impact of economic conditions and regulatory changes in Mexico and Peru on its operations and financial performance.