Shares of Laureate Education Inc. (LAUR) soared 5.14% in Friday's trading session following the release of the company's impressive first-quarter 2025 results and an optimistic outlook for the full year.
The education provider reported robust enrollment growth across its key markets, with new enrollments increasing 8% in Mexico and 6% in Peru year-over-year. This strong performance led the company to raise its full-year 2025 guidance for total enrollments, revenue, and adjusted EBITDA. Laureate now expects total enrollments to be in the range of 491,000 to 495,000 students, reflecting growth of 4% to 5% compared to 2024.
Despite some headwinds from foreign exchange impacts, Laureate's financial results were encouraging. The company reported first-quarter revenue of $236 million, up 10% year-over-year on an organic constant currency basis. Adjusted EBITDA for the quarter increased by 132% to $5 million, albeit from a small base. These results, coupled with the company's strong balance sheet position of $110 million in cash and only $5 million in net debt, have bolstered investor confidence in Laureate's growth trajectory.
The market's positive reaction also reflects Laureate's success in expanding its digital education offerings. The company reported robust double-digit growth in fully online programs, particularly among working adults. With approximately 20% of its student population now enrolled in digital learning, Laureate is well-positioned to capitalize on the growing demand for flexible, accessible higher education options in its markets.
While Laureate acknowledges potential macroeconomic uncertainties, including trade tensions and foreign exchange volatility, particularly in Mexico, the company's resilient business model and strong market position in both Mexico and Peru continue to attract investor interest. As Laureate Education builds on its momentum and executes its growth strategies, the stock's upward movement suggests that investors are optimistic about the company's prospects for the remainder of 2025 and beyond.
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