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Laureate Education Inc (LAUR)
NASDAQ:LAUR

Laureate Education (LAUR) AI Stock Analysis

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LAUR

Laureate Education

(NASDAQ:LAUR)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$33.00
▼(-7.02% Downside)
Laureate Education's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust revenue and EBITDA growth. Technical analysis and valuation present mixed signals, with short-term technical weakness and moderate valuation. The absence of a dividend yield may deter some investors.
Positive Factors
Revenue Growth
Exceeding revenue and EBITDA guidance indicates strong market demand and effective business strategies, supporting long-term growth.
Enrollment Growth
Increasing enrollment reflects successful student acquisition and retention strategies, enhancing future revenue potential.
Stock Repurchase Program
Expanding the stock repurchase program demonstrates confidence in financial health and commitment to shareholder value.
Negative Factors
Free Cash Flow Decline
Declining free cash flow growth may limit reinvestment in growth initiatives and affect long-term financial flexibility.
Pricing Pressure
Pricing pressure from online programs could reduce average revenue per student, impacting profitability margins.
Macroeconomic Sluggishness
Economic sluggishness in key markets like Mexico can hinder growth prospects and affect overall financial performance.

Laureate Education (LAUR) vs. SPDR S&P 500 ETF (SPY)

Laureate Education Business Overview & Revenue Model

Company DescriptionLaureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. The company offers a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It provides its services in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.
How the Company Makes MoneyLaureate Education generates revenue primarily through tuition fees paid by students enrolled in its degree programs. The company offers a variety of undergraduate and graduate programs, which are priced based on factors like program type and delivery method (online or on-campus). In addition to tuition, Laureate may also earn revenue from ancillary services such as course materials, student housing, and other fees associated with student enrollment. Key revenue streams include partnerships with institutions that enhance its educational offerings and strategic alliances that may lead to increased enrollment and expanded market reach. Furthermore, Laureate's focus on online education allows it to tap into a broader demographic, including working professionals seeking flexible learning options, which can contribute significantly to its earnings.

Laureate Education Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a mostly positive outlook with strong revenue and EBITDA performance, growth in enrollments, and strategic expansion in stock repurchases. However, challenges such as timing impacts in Peru and economic sluggishness in Mexico were noted.
Q3-2025 Updates
Positive Updates
Strong Third Quarter Revenue and EBITDA
Third quarter revenue was $400 million and adjusted EBITDA was $95 million, both ahead of the guidance provided earlier.
Positive Enrollment Growth
New and total enrollment volumes increased 7% and 6%, respectively, compared to the third quarter of the prior year.
Stock Repurchase Program Expansion
The Board authorized a $150 million increase to the stock repurchase program, highlighting a disciplined approach to capital allocation.
Revenue Growth in Mexico and Peru
On a year-to-date basis, Mexico's revenue grew 8% and adjusted EBITDA increased 21%. Peru's revenue increased 7% with adjusted EBITDA up 5%, both adjusted for timing impacts.
Negative Updates
Impact of Timing on Peru's Revenue and EBITDA
Approximately $26 million of revenue and $23 million in adjusted EBITDA shifted from the first quarter to the second half of the year due to timing differences.
Pricing Pressure from Online Programs in Peru
There is an expected negative price mix impact due to the higher growth rate of fully online programs, which could affect average revenue per student.
Macroeconomic Sluggishness in Mexico
The macroeconomic environment in Mexico is described as sluggish due to U.S. trade policy uncertainties.
Company Guidance
During the Laureate Education Third Quarter 2025 earnings call, the company reported strong financial performance, with revenue reaching $400 million and adjusted EBITDA at $95 million, both surpassing the guidance provided in July. The growth was attributed to improved foreign currency rates and a remarkable 21% increase in Peru's secondary intake, particularly in online programs for working adults. Mexico's primary intake rose by 4%, excluding campus closures. Additionally, the company announced two new campus openings in Monterrey, Mexico, and Lima, Peru, with plans for more in the future. The Board authorized a $150 million increase in the stock repurchase program, reflecting their focus on capital allocation and long-term shareholder value. Full-year 2025 guidance was raised, with expected revenue between $1.681 billion and $1.686 billion, and adjusted EBITDA projected to be between $508 million and $512 million. The fourth quarter is anticipated to benefit from the academic calendar shift, with revenue projected between $521 million and $526 million and adjusted EBITDA between $194 million and $198 million.

Laureate Education Financial Statement Overview

Summary
Laureate Education shows consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and high return on equity, indicating financial stability. However, the decline in free cash flow growth suggests potential challenges in cash generation.
Income Statement
Laureate Education has demonstrated consistent revenue growth over the years, with a TTM revenue growth rate of 2.04%. The company maintains healthy margins, with a gross profit margin of 26.75% and a net profit margin of 12.86% in the TTM period. EBIT and EBITDA margins are also strong at 23.31% and 29.89%, respectively. However, there has been a decline in net profit margin compared to the previous year, indicating some pressure on profitability.
Balance Sheet
The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.14 in the TTM period, significantly improved from previous years. Return on equity is robust at 20.18%, indicating efficient use of equity to generate profits. The equity ratio stands at 52.86%, showcasing a stable financial structure with a good balance between debt and equity.
Cash Flow
Cash flow analysis shows a decrease in free cash flow growth by 8.33% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.49, and the free cash flow to net income ratio is 0.69, indicating that the company is generating sufficient cash relative to its net income. The decline in free cash flow growth suggests potential challenges in cash generation.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.58B1.57B1.48B1.24B1.09B1.02B
Gross Profit423.73M419.76M394.51M334.91M272.21M222.46M
EBITDA473.43M537.80M378.30M350.80M54.02M-126.23M
Net Income203.71M296.47M107.59M69.57M192.45M-613.33M
Balance Sheet
Total Assets2.12B1.86B2.13B1.97B2.21B4.97B
Cash, Cash Equivalents and Short-Term Investments246.45M91.35M89.39M85.20M324.80M867.30M
Total Debt438.40M427.41M582.70M648.00M569.00M1.51B
Total Liabilities997.04M903.52M1.18B1.20B1.07B2.71B
Stockholders Equity1.12B959.55M950.07M774.40M1.14B2.28B
Cash Flow
Free Cash Flow240.10M160.85M194.34M125.40M-206.53M184.93M
Operating Cash Flow313.50M232.73M250.78M178.20M-156.08M259.56M
Investing Cash Flow-62.77M-57.55M-52.04M30.30M2.04B573.68M
Financing Cash Flow-152.07M-166.94M-201.76M-461.60M-2.68B-259.00M

Laureate Education Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.49
Price Trends
50DMA
31.69
Positive
100DMA
30.35
Positive
200DMA
26.28
Positive
Market Momentum
MACD
0.94
Negative
RSI
66.88
Neutral
STOCH
85.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAUR, the sentiment is Positive. The current price of 35.49 is above the 20-day moving average (MA) of 33.63, above the 50-day MA of 31.69, and above the 200-day MA of 26.28, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAUR.

Laureate Education Risk Analysis

Laureate Education disclosed 36 risk factors in its most recent earnings report. Laureate Education reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Laureate Education Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$4.11B16.9817.38%12.24%52.97%
77
Outperform
$1.96B17.336.76%2.99%3.74%-8.40%
76
Outperform
$2.07B13.7416.14%1.88%24.23%17.56%
75
Outperform
$5.00B6.8517.20%0.65%4.13%228.37%
74
Outperform
$4.90B23.6527.77%7.05%-2.63%
73
Outperform
$5.23B25.9720.15%2.01%-13.82%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LAUR
Laureate Education
35.49
17.23
94.36%
PRDO
Perdoceo Education
32.14
6.43
24.99%
ATGE
Adtalem Global Education
113.12
18.82
19.96%
LOPE
Grand Canyon Education
175.30
14.17
8.79%
STRA
Strategic Education
83.39
-7.69
-8.44%
GHC
Graham Holdings
1,138.66
276.95
32.14%

Laureate Education Corporate Events

Stock BuybackFinancial Disclosures
Laureate Education Boosts Stock Repurchase by $150 Million
Positive
Oct 30, 2025

On October 30, 2025, Laureate Education reported its financial results for the third quarter and nine months ending September 30, 2025, showing a 9% increase in revenue for the quarter and a 2% rise for the nine months compared to the previous year. Despite a decrease in net income due to unfavorable foreign currency exchange impacts, the company announced a $150 million increase in its stock repurchase authorization, reflecting confidence in its financial stability and commitment to returning capital to shareholders.

The most recent analyst rating on (LAUR) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Laureate Education stock, see the LAUR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025