Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $4.78B
• Dividend Yield: N/A
• Average Volume (3M): 939.30K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.83
• Revenue Growth: 2.01%
• EPS Growth: -13.82%
• Country: US
• Employees: 31,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.76
• Shares Outstanding: 142,743,640
• 10 Day Avg. Volume: 981,481
• 30 Day Avg. Volume: 939,301
• PEG Ratio: -17.05
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 18.91
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 11.80
• Enterprise Value/Ebitda: 10.89
• 1Y Price Target: $38.50
• Price Target Upside: 13.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.15
• Revenue Forecast (FY): $1.88B

• Rating: 71 Outperform
• Price Target: $38.00 ▲(12.23% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by improved financial fundamentals (profitability and a de-risked balance sheet) and supportive 2026 guidance for continued growth and margin expansion. Offsetting factors are only neutral near-term technicals, valuation that is not clearly cheap at ~25x earnings, and ongoing watch items around cash conversion and mix/seasonality headwinds discussed on the call.

Positive Factors

De-risked balance sheet / lower leverage

Meaningful debt reduction through 2025 and a stronger equity base materially lower financial risk and increase flexibility. A de-levered balance sheet supports capital returns, campus investment and M&A optionality while reducing refinancing and interest-rate vulnerability over the next 2–6 months.

Sustained enrollment and revenue growth

Consistent student intake and rising total enrollments drive predictable tuition revenue. Scale across markets and growing online cohorts underpin durable top-line momentum, supporting multi-period revenue visibility and capacity to fund margins and reinvestment over the coming academic cycles.

Improving margins, productivity and digital/AI adoption

Sizable margin expansion driven by productivity programs and digital/AI adoption signals structural efficiency gains. These initiatives reduce cost per student and improve retention, yielding sustainable EBITDA upside and operating leverage as enrollment scales over multiple future periods.

Negative Factors

Inconsistent cash conversion

Operating cashflow trailing net income and uneven FCF conversion indicate working-capital timing and reinvestment needs. Persistent cash-conversion gaps can constrain sustained shareholder returns or funding for campus rollouts and raise sensitivity to receipt timing over the next several quarters.

Price/mix headwinds from online scaling and capacity limits

A shift toward lower-priced online enrollments amid limited classroom capacity reduces average revenue per student and compresses pricing power. Until new campus capacity comes online, mix-driven margin pressure may persist and temper organic revenue and margin expansion for multiple quarters.

Modest net cash cushion versus scale

A thin net-cash position after sizable share buybacks and investments leaves limited liquidity buffer against macro shocks or operational swings. Even with low leverage, the small cash cushion reduces optionality and raises vulnerability if cash conversion weakens or macro conditions deteriorate.

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 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 Money

Laureate 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 Financial Statement Overview

Summary

Strong multi-year improvement: steady revenue growth and solid profitability in 2024–2025, alongside meaningful deleveraging by 2025. Offsets include inconsistent cash conversion (operating/FCF trailing net income) and historical volatility (2020–2021), plus some margin data inconsistencies in 2025.

Income Statement

Revenue has grown steadily from 2021–2025 (with solid growth in 2023 and continued gains in 2024–2025), showing improving scale and demand. Profitability is strong in the last two annual periods, with net profit margins holding in the mid-to-high teens and a healthy EBITDA margin in 2025. The main weakness is historical volatility: results were deeply negative in 2020 and operating profitability was weak in 2021, and 2025 shows some margin data inconsistencies (gross and EBIT margin listed as 0.0), which reduces confidence in the precision of margin trend analysis.

Balance Sheet

Leverage has improved meaningfully, with total debt dropping sharply by 2025 and debt-to-equity moving down to a low level versus prior years, indicating reduced balance-sheet risk. Equity has also grown, supporting a stronger capital base. Returns on equity are robust in 2024–2025, consistent with strong profitability. The key drawback is that leverage was notably higher in 2022–2023, so while the trajectory is positive, the business has a recent history of carrying more debt.

Cash Flow

Cash generation is solid in 2022–2025, with operating cash flow and free cash flow both positive and improving in 2025, and free cash flow growth rebounding after a decline in 2024. However, cash conversion is not consistently strong: operating cash flow is less than net income in recent years, and free cash flow is also below net income, suggesting working-capital timing, reinvestment needs, or other cash headwinds. Earlier volatility (negative operating and free cash flow in 2021) also tempers the score.

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

• Technical Analysis Sentiment: Positive
• Last Price: 33.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 33.86 is below the 20-day moving average (MA) of 34.34, below the 50-day MA of 34.32, and above the 200-day MA of 28.59, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 15.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAUR.

Laureate Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	$2.03B	13.47	16.55%	1.88%	24.23%	17.56%
STRA	77 Outperform	$1.77B	15.69	6.76%	2.99%	3.74%	-8.40%
ATGE	73 Outperform	$3.44B	14.15	17.92%	―	12.24%	52.97%
LOPE	73 Outperform	$4.26B	20.33	28.24%	―	7.05%	-2.63%
LAUR	71 Outperform	$4.78B	17.68	26.23%	―	2.01%	-13.82%
GHC	64 Neutral	$4.66B	6.38	17.20%	0.65%	4.13%	228.37%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Laureate Education Corporate Events

Laureate Education Posts Strong Q4 Results, Expands Buybacks

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, revenue increased 9% to $1.7 billion with higher enrollment and adjusted EBITDA of $518.9 million, though net income slipped to $283.8 million due to foreign exchange impacts.

The company highlighted a strong balance sheet with net cash of $17.6 million at year-end 2025, after repurchasing about $217 million of stock and operating with 142.9 million shares outstanding. Laureate’s board approved a $150 million increase to its stock buyback program, lifting total authorization to $400 million, while the 2026 outlook calls for mid‑single‑digit enrollment growth and low‑double‑digit gains in revenue and adjusted EBITDA, underlining continued growth momentum and shareholder returns.

The most recent analyst rating on (LAUR) stock is a Hold with a $36.50 price target. To see the full list of analyst forecasts on Laureate Education stock, see the LAUR Stock Forecast page.