Laureate Education, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a revenue increase of 9% to $400.2 million for the quarter, compared to $368.6 million in the same period of 2024. For the nine-month period, revenues rose by 2% to $1.16 billion from $1.14 billion year-over-year. The growth in revenue was primarily driven by higher average total organic enrollment, which contributed an additional $22 million in the third quarter alone. However, the company faced challenges from foreign currency fluctuations, which negatively impacted revenues by approximately $15.8 million due to the strengthening of the Mexican peso against the U.S. dollar.
Despite the revenue growth, Laureate's operating income for the third quarter decreased slightly to $71.5 million from $72 million in the prior year, reflecting increased operational costs. Direct costs and general administrative expenses rose by $32.1 million, attributed to higher enrollment and operational changes. The company reported a significant decline in net income, which fell by 60% to $34.4 million for the quarter, down from $85.3 million in 2024. This decline was influenced by a substantial tax expense of $34.5 million, compared to a tax benefit of $0.5 million in the previous year, largely due to a discrete tax benefit recorded in 2024.
In terms of operational metrics, Laureate's total enrollment reached approximately 511,400 students across its institutions in Mexico and Peru. The company operates two reportable segments, with revenues from Mexico contributing 52% and Peru 48% to the total for the nine months ended September 30, 2025. The Mexico segment experienced a slight revenue decline of 2%, while the Peru segment saw a 6% increase, despite both segments facing challenges related to intra-year academic calendar timing.
Strategically, Laureate has been focusing on enhancing its educational offerings and expanding its geographic footprint. The company has maintained a robust cash position, with cash and cash equivalents totaling $241 million as of September 30, 2025. Additionally, Laureate announced an increase in its stock repurchase program by $150 million, bringing the total authorization to approximately $177.4 million, which the company plans to finance through free cash flow and available liquidity.
Looking ahead, Laureate Education, Inc. remains optimistic about its growth prospects, driven by the increasing demand for higher education in Mexico and Peru. The company aims to continue expanding its enrollment and enhancing its educational services, despite the competitive landscape and potential economic challenges in the regions it operates.
About LAUREATE EDUCATION, INC.
Laureate Education, Inc. operates a network of higher education institutions in Mexico and Peru, offering undergraduate, graduate, and professional programs across campus, online, and hybrid formats. Focused on career-oriented disciplines like STEM and health sciences, it serves traditional and non-traditional students. The company emphasizes quality, brand reputation, and operational scale to deliver accessible, high-quality education in growing markets with a private-pay business model.
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