Laureate Education’s fourth quarter reflected strong execution on strategic initiatives, with management highlighting robust student enrollment growth and a continued shift toward online programs as core drivers of performance. The company’s focus on scaling operations in Mexico and Peru, alongside targeted investments in new campus facilities and health science offerings, contributed to improved operating margins. CEO Eilif Serck-Hanssen pointed to the expansion of Laureate’s online education capabilities and the launch of new campuses as key pillars supporting both top-line growth and improved academic outcomes.
Is now the time to buy LAUR? Find out in our full research report (it’s free for active Edge members).
Laureate Education (LAUR) Q4 CY2025 Highlights:
- Revenue: $541.4 million vs analyst estimates of $526.7 million (27.9% year-on-year growth, 2.8% beat)
- Adjusted EPS: $1.15 vs analyst estimates of $0.79 (45.3% beat)
- Adjusted EBITDA: $204.3 million vs analyst estimates of $199.1 million (37.7% margin, 2.6% beat)
- EBITDA guidance for the upcoming financial year 2026 is $588 million at the midpoint, above analyst estimates of $576.9 million
- Operating Margin: 33.2%, up from 29.3% in the same quarter last year
- Enrolled Students: 497,700, up 25,700 year on year
- Market Capitalization: $4.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Laureate Education’s Q4 Earnings Call
- Jeffrey Silber (BMO Capital Markets) asked about the timeline and decision criteria for new campus openings. CEO Eilif Serck-Hanssen explained it typically takes 18–24 months to launch, with a preference for building over buying due to better operating control.
- Silber (BMO Capital Markets) also questioned AI’s potential to disrupt Laureate’s business. Serck-Hanssen said AI is viewed as a positive force, improving retention and learning outcomes while expanding access to quality education.
- Marcelo Santos (JPMorgan) inquired about the deceleration in FX-neutral revenue growth. CFO Richard Buskirk attributed this to softer macro conditions in Mexico and capacity constraints in Peru, but highlighted expected margin expansion and resilient business fundamentals.
- Santos (JPMorgan) also asked about competitive dynamics and pricing in Peru’s online segment. Serck-Hanssen noted robust growth in online programs, with pricing discipline maintained to prioritize volume over price increases for working adults.
- Lucas Nagano (Morgan Stanley) sought clarity on the impact of capacity constraints in Peru on enrollments and pricing. Buskirk responded that while constraints exist, new campus launches should address these issues, maintaining growth momentum.
Catalysts in Upcoming Quarters
As we look toward the next few quarters, our analysts will be monitoring (1) the pace at which Laureate can alleviate campus capacity constraints in Peru through new site launches, (2) the adoption and impact of AI-enabled digital tools on student outcomes and operational efficiency, and (3) the macroeconomic environment in Mexico, especially in relation to USMCA trade developments. The company’s execution on expanding online offerings and managing cost discipline will also be important markers of progress.
Laureate Education currently trades at $33.85, down from $35.10 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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