Laureate Education’s first quarter results were received positively by the market, as the company surpassed Wall Street’s revenue and profit expectations despite reporting a year-over-year sales decline. Management attributed the quarter’s outcomes to robust enrollment growth in both Mexico and Peru, particularly within fully online programs targeting working adults. CEO Eilif Serck-Hanssen emphasized that the company’s business model remains resilient even amid economic uncertainty, noting, “families tend to prioritize education over other forms of discretionary spending.” The strong demand for digital offerings and higher education’s perceived value were central to the company’s performance this quarter.
Is now the time to buy LAUR? Find out in our full research report (it’s free).
Laureate Education (LAUR) Q1 CY2025 Highlights:
- Revenue: $236.2 million vs analyst estimates of $225.2 million (14.2% year-on-year decline, 4.9% beat)
- Adjusted EBITDA: $5.4 million vs analyst estimates of -$5 million (2.3% margin, significant beat)
- The company slightly lifted its revenue guidance for the full year to $1.57 billion at the midpoint from $1.56 billion
- EBITDA guidance for the full year is $476.5 million at the midpoint, in line with analyst expectations
- Operating Margin: -5.6%, down from 4% in the same quarter last year
- Enrolled Students: 477,000, up 17,600 year on year
- Market Capitalization: $3.36 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 Laureate Education’s Q1 Earnings Call
-
Jeffrey Silber (BMO Capital Markets) asked about potential hesitancy among prospective students due to economic uncertainty, especially in Mexico. CEO Eilif Serck-Hanssen responded that demand from working adults remains robust, and the company expects fall intake trends to mirror last year’s patterns.
-
Mauricio Cepeda (Morgan Stanley) questioned the timing of intake cycles and normalization adjustments. CFO Rick Buskirk clarified that the only normalization was a two-week academic calendar shift in Peru, impacting quarter comparisons but not underlying enrollment growth.
-
Cepeda (Morgan Stanley) also asked about foreign exchange assumptions in guidance. Buskirk explained that management maintained a conservative peso-to-dollar rate given ongoing volatility, even though recent FX movements were more favorable.
-
Yan Banco (BTG Pactual) inquired about the growth and composition of fully digital courses. Serck-Hanssen stated that digital enrollments are growing at three to four times the rate of face-to-face and now account for about 20% of total students.
-
Banco (BTG Pactual) asked about capital allocation and buybacks. Serck-Hanssen confirmed that Laureate aims to return 50% of EBITDA-converted free cash flow to shareholders and is roughly halfway through its current buyback program.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the pace of digital program adoption and its contribution to overall enrollment growth, (2) the margin impact of campus consolidations and operational initiatives in Mexico, and (3) how foreign exchange and macroeconomic developments affect reported results. Progress on shareholder returns and continued expansion in fully online offerings will also be important indicators of execution.
Laureate Education currently trades at $22.56, up from $20.03 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
