Laureate Education, Inc. (NASDAQ: LAUR) reported fourth‑quarter and full‑year 2025 results that show strong top‑line growth but a modest earnings miss. Q4 revenue rose 28% to $541.4 million, while adjusted EBITDA climbed 45% to $204.3 million. Full‑year revenue reached $1.702 billion, up 9% from 2024, and adjusted EBITDA increased to $518.9 million. Net income for the year was $283.8 million, slightly below the prior year’s $296.4 million, largely due to foreign‑currency effects.
The revenue beat consensus estimates by $12.7 million to $541.4 million, exceeding the $528.69 million consensus and $538.9 million range. The 28% quarter‑over‑quarter increase was driven by robust demand in Laureate’s core Mexico and Peru markets, which together accounted for 100% of revenue, with Mexico contributing 52% and Peru 48%. Enrollment growth—new enrollments up 8% and total enrollments up 5%—supported the revenue lift, reflecting continued demand for Laureate’s programs.
Adjusted earnings per share of $0.76 missed consensus estimates of $0.78 to $0.81, a miss of $0.02 to $0.05 or 2.6% to 6.2%. The miss reflects higher operating costs and the impact of foreign‑currency fluctuations, which weighed on profitability despite the revenue beat. GAAP EPS of $1.17 beat the $0.79 consensus, underscoring the company’s ability to generate cash flow even as earnings per share fell short of expectations.
Margin expansion was evident, with adjusted EBITDA margin rising to 30.5% for the year from 28.5% in 2024, and Q4 margin reaching 37.7% from 34.2% in Q4 2024. The improvement is attributed to operational efficiencies, a favorable mix of higher‑margin programs, and scale benefits as enrollment grew. However, the slight dip in net income highlights the ongoing impact of currency headwinds on the bottom line.
Management raised its 2026 outlook, projecting revenue growth of 7‑8% and adjusted EBITDA growth of 13‑14%, with margin expansion of roughly 150 basis points. The company also increased its share‑repurchase program by $150 million, bringing total authorized buybacks to $400 million. "Laureate delivered another strong year of performance in 2025, with sustained revenue growth and expanding margins. Our robust balance sheet and significant free cash flow generation enabled us to continue investing in our long‑term growth strategy, including the opening of two new campuses and further innovation in digital and AI capabilities, while returning more than $200 million of excess capital to shareholders through share repurchases," said President and CEO Eilif Serck‑Hanssen.
"As we enter 2026, we continue to see attractive growth opportunities across our local markets and remain focused on executing our growth agenda while continuing to return excess capital to shareholders," added Serck‑Hanssen. The guidance signals confidence in continued demand and operational leverage, while the increased buyback program reflects a commitment to shareholder returns.
Investors responded favorably to the results, with market sentiment reflecting the revenue beat and optimistic outlook outweighing the modest earnings miss.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.