LAUR Q2 Deep Dive: Enrollment Growth, Digital Expansion, and New Campus Strategy Drive Outlook

Higher education company Laureate Education (NASDAQ:LAUR) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 5% year on year to $524.2 million. The company’s full-year revenue guidance of $1.62 billion at the midpoint came in 2.2% above analysts’ estimates. Its non-GAAP profit of $0.79 per share was 9.7% above analysts’ consensus estimates.

Is now the time to buy LAUR? Find out in our full research report (it’s free).

StockStory’s Take

Laureate Education’s second quarter results reflected broad-based enrollment growth and continued momentum in its digital and face-to-face programs across Mexico and Peru. Management credited disciplined execution and productivity initiatives for improved operating margins, while highlighting that higher student demand, especially in working adult online programs, contributed to revenue gains. CEO Eilif Serck-Hanssen cited “strong growth in working adult-focused fully online programs” and emphasized the significance of recent campus developments in supporting the company’s expansion strategy.

Looking forward, Laureate’s updated guidance is shaped by ongoing investments in new campus openings and digital learning offerings, especially in high-growth Latin American markets. Management believes that macroeconomic stability in Mexico and Peru, combined with rising middle-class participation in higher education, will support further enrollment gains. Serck-Hanssen noted, “We are broadening our academic portfolio, scaling our digital offering to better serve working adults and strategically expanding our footprint through targeted campus openings in high-growth areas.”

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to robust enrollment trends, efficiency efforts, and digital program expansion, while macroeconomic conditions in Mexico and Peru provided a supportive backdrop for growth.

• Online program momentum: Growth in fully online programs for working adults remained a standout, with management reporting “double-digit” expansion in Peru and continued success in Mexico. This shift toward digital offerings has enabled Laureate to reach new student segments and support enrollment growth without significant increases in physical capacity.
• Campus expansion strategy: Two new campuses—one in Monterrey, Mexico and one in Lima, Peru—are on track to open in September. Management described “robust interest and demand” for both locations, viewing these investments as central to the company’s multi-year growth plan targeting high-demand regions.
• Academic calendar timing impact: CFO Richard Buskirk explained that shifts in class start dates, especially in Peru, moved revenue and expenses between quarters. This seasonality led to higher reported revenue in Q2, with an expected offset in the second half of the year.
• Efficiency initiatives drive margins: The company’s ongoing focus on operational efficiency, including cost controls and campus consolidations, contributed to margin expansion in both core markets. Buskirk indicated this was supported by “productivity gains and revenue flow-through,” especially in Mexico.
• Macroeconomic backdrop supportive: Management noted that both Mexico and Peru are benefiting from improving macroeconomic conditions, including stable inflation, low interest rates, and favorable regulatory trends. Serck-Hanssen suggested these factors position Laureate for sustained growth and resilience against external volatility.

Drivers of Future Performance

Laureate’s outlook for the coming quarters is driven by ongoing digital expansion, new campus launches, and macroeconomic stability in its core markets.

• Digital and blended learning growth: Management expects continued momentum in online and hybrid programs, particularly for working adults in both Mexico and Peru. Expanded digital offerings are seen as critical to reaching new students and maintaining high enrollment growth without major increases in capital expenditures.
• Campus investments support scale: The company’s plan to open one to two new campuses per year, with further locations identified for development, underpins its strategy for sustained revenue and enrollment expansion. Management projects that these investments will require higher capital spending (approximately 5% of revenues), but will also lift long-term growth rates.
• Macroeconomic and regulatory risks: While near-term conditions in Mexico and Peru are favorable, management flagged ongoing monitoring of U.S.-Mexico trade negotiations and local political developments as potential sources of risk. Any negative shifts in these areas could impact the pace of foreign investment and student demand.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be tracking (1) enrollment trends for both young and working adult students, especially as new campuses open; (2) the pace of adoption and revenue impact from expanded digital and online programs in Peru and Mexico; and (3) developments in the regulatory and macroeconomic environment, particularly around U.S.-Mexico trade negotiations. The ability to execute on campus launches and digital scaling will remain key to Laureate’s growth trajectory.

Laureate Education currently trades at $26.57, up from $22.84 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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