Laureate Education Inc (LAUR)
NASDAQ:LAUR
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Laureate Education
(NASDAQ:LAUR)
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Rating:74Outperform
Price Target:
$38.00
▲(15.47% Upside)
Action:ReiteratedDate:03/10/26
The score is driven primarily by strengthening financial performance (improving growth/profitability and a de-risked balance sheet) and supportive earnings-call guidance for continued revenue, EBITDA, and EPS growth. Offsetting factors are mixed technical signals (negative MACD) and only moderate valuation support (P/E ~17.7 with no dividend yield provided).
Positive Factors
Revenue & Margin Expansion
Sustained revenue growth through 2021–2025 and a record-adjusted EBITDA margin indicate durable operating leverage and improved unit economics. Higher margins support reinvestment, shareholder returns, and resilience across cycles, enhancing long-term cash generation and strategic flexibility.
Negative Factors
Uneven Cash Conversion
OCF and FCF trailing net income suggest working-capital timing, reinvestment demands, or earnings quality variability. Persistent cash conversion gaps can constrain organic funding for campuses and tech investment, increasing reliance on external capital and reducing margin of safety in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Expansion
Sustained revenue growth through 2021–2025 and a record-adjusted EBITDA margin indicate durable operating leverage and improved unit economics. Higher margins support reinvestment, shareholder returns, and resilience across cycles, enhancing long-term cash generation and strategic flexibility.
Read all positive factors
Laureate Education (LAUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.70B
Dividend YieldN/A
Average Volume (3M)2.37M
Price to Earnings (P/E)17.7
Beta (1Y)0.71
Revenue Growth2.01%
EPS Growth-13.82%
CountryUS
Employees31,800
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.76
Shares Outstanding142,743,640
10 Day Avg. Volume1,238,125
30 Day Avg. Volume2,367,106
Financial Highlights & Ratios
PEG Ratio-17.05
Price to Book (P/B)4.19
Price to Sales (P/S)2.92
P/FCF Ratio18.91
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue3.17
Enterprise Value/Gross Profit11.20
Enterprise Value/Ebitda10.33
Forecast
1Y Price Target
$39.63Price Target Upside20.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.11
Revenue Forecast (FY)$1.91B
Laureate Education Business Overview & Revenue Model
Company Description
Laureate 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 deg...
How the Company Makes Money
Laureate Education primarily makes money by charging students tuition and fees for enrollment in its degree programs (undergraduate, graduate, and other academic offerings) delivered across campus-based, online, and hybrid modalities. Revenue is g...
Laureate Education Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive momentum: strong full-year revenue growth, record adjusted EBITDA margin (30.5%), robust enrollment gains (notably in online programs), meaningful capital returns to shareholders, and constructive 2026 guidance including revenue, EBITDA and EPS growth. Offsetting items include a modest deceleration in organic growth due to softer macro conditions in Mexico and capacity constraints in Peru, ongoing mix pressure from scaling lower-priced online programs, near-term seasonality that will depress Q1 profitability, and incremental costs from new campus openings. On balance, the company demonstrated solid operational execution and financial discipline while acknowledging manageable near-term headwinds.Positive Updates
Record Revenue and Margin Expansion
Full year 2025 revenue of $1.702 billion and adjusted EBITDA of $519 million; adjusted EBITDA margin reached a historic high of 30.5% (full-year organic revenue +8%, adjusted EBITDA +13%).
Negative Updates
Slower Organic Growth Outlook
2026 organic (constant currency) revenue guidance of 6%–7% represents a slight deceleration versus 2025 organic growth (~8%), driven by softer macro in Mexico and capacity constraints in Peru; management attributes ~5 points of reported growth to favorable FX.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Margin Expansion
Full year 2025 revenue of $1.702 billion and adjusted EBITDA of $519 million; adjusted EBITDA margin reached a historic high of 30.5% (full-year organic revenue +8%, adjusted EBITDA +13%).
Read all positive updates
Company Guidance
For 2026 Laureate guided to total enrollments of 516,000–521,000 students (growth of 4–5%), revenue of $1.890–$1.905 billion (11–12% reported growth, ~6–7% organic constant‑currency, with roughly 5 percentage points aided by FX), adjusted EBITDA of $583–$593 million (12–14% reported growth, 7–9% organic constant‑currency), and roughly a 50 basis‑point increase in adjusted EBITDA margin at the midpoint (management noted about a 25 bps headwind from new campus investments embedded in that outlook). They expect adjusted EBITDA to unlevered free cash flow conversion of ~50% (reported), introduced adjusted EPS guidance of $1.95–$2.03 (up 13–18% vs. 2025), and for Q1 2026 specifically expect revenue of $261–$265 million and adjusted EBITDA of negative $20–$17 million (with ~$9 million of revenue and related profitability shifted out of Q1 due to calendar timing).Laureate Education Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.70B | 1.57B | 1.48B | 1.24B | 1.09B |
| Gross Profit | 482.18M | 419.76M | 394.51M | 334.91M | 272.21M |
| EBITDA | 522.58M | 537.80M | 378.30M | 350.80M | 54.02M |
| Net Income | 281.63M | 296.47M | 107.59M | 69.57M | 192.45M |
Balance Sheet | |||||
| Total Assets | 2.21B | 1.86B | 2.13B | 1.97B | 2.21B |
| Cash, Cash Equivalents and Short-Term Investments | 146.70M | 91.35M | 89.39M | 85.20M | 324.80M |
| Total Debt | 847.26M | 427.41M | 582.70M | 648.00M | 569.00M |
| Total Liabilities | 1.02B | 903.52M | 1.18B | 1.20B | 1.07B |
| Stockholders Equity | 1.19B | 959.55M | 950.07M | 774.40M | 1.14B |
Cash Flow | |||||
| Free Cash Flow | 263.15M | 160.85M | 194.34M | 125.40M | -206.53M |
| Operating Cash Flow | 366.19M | 232.73M | 250.78M | 178.20M | -156.08M |
| Investing Cash Flow | -102.65M | -57.55M | -52.04M | 30.30M | 2.04B |
| Financing Cash Flow | -222.47M | -166.94M | -201.76M | -461.60M | -2.68B |
Laureate Education Technical Analysis
Negative
32.91
Price Trends
34.00
Negative
33.45
Negative
30.36
Positive
Market Momentum
0.02
Positive
43.83
Neutral
35.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAUR, the sentiment is Negative. The current price of 32.91 is below the 20-day moving average (MA) of 34.25, below the 50-day MA of 34.00, and above the 200-day MA of 30.36, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.83 is Neutral, neither overbought nor oversold. The STOCH value of 35.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAUR.
Laureate Education Risk Analysis
Laureate Education disclosed 35 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $2.21B | 11.89 | 16.30% | 1.88% | 24.23% | 17.56% | |
75 Outperform | $1.84B | 14.05 | 7.66% | 2.99% | 3.74% | -8.40% | |
74 Outperform | $4.70B | 17.67 | 26.41% | ― | 2.01% | -13.82% | |
73 Outperform | $4.56B | 21.44 | 28.22% | ― | 7.05% | -2.63% | |
64 Neutral | $4.78B | 16.28 | 6.53% | 0.65% | 4.13% | 228.37% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
LAUR
Laureate Education
32.91
13.64
70.78%
PRDO
Perdoceo Education
35.38
10.05
39.69%
LOPE
Grand Canyon Education
166.52
-7.59
-4.36%
STRA
Strategic Education
81.19
6.15
8.20%
GHC
Graham Holdings
1,101.85
193.05
21.24%
Laureate Education Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Laureate Education Posts Strong Q4 Results, Expands Buybacks
Positive
Feb 19, 2026
On February 19, 2026, Laureate Education reported that fourth-quarter 2025 revenue rose 28% to $541.4 million and net income climbed to $171.5 million, boosted by higher operating income and academic calendar timing effects. For full-year 2025, re...
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.