Laureate Education Inc (NASDAQ:LAUR) reported financial results for the fourth quarter and full year of 2025, delivering a mixed performance against analyst expectations. The company, which operates higher education institutions in Mexico and Peru, posted strong top-line growth but fell short on a key profitability metric, leading to a muted initial market reaction.
Earnings vs. Estimates: A Split Decision
The fourth-quarter results presented a clear divergence between revenue performance and earnings per share.
- Revenue: Laureate reported Q4 revenue of $541.4 million. This figure surpassed the analyst consensus estimate of approximately $538.9 million.
- Earnings Per Share: The company reported Adjusted EPS of $0.76 for the quarter. This missed the analyst estimate of $0.81.
This split indicates that while student demand and pricing remained robust, translating that revenue into bottom-line profit was more challenging than analysts had anticipated for the quarter. The company noted that its Q4 results were favorably affected by approximately $25 million of intra-year academic calendar timing, which contributed to the revenue beat.
Market Reaction and Shareholder Returns
Following the earnings release, the stock showed modest positive movement in pre-market trading, suggesting investors are balancing the revenue strength against the EPS miss. The company’s firm commitment to returning capital to shareholders was a significant highlight of the announcement. Laureate repurchased approximately $217 million of its common stock during 2025. Furthermore, the Board of Directors approved a $150 million increase to its existing stock repurchase program, raising the total authorization to $400 million. With a strong balance sheet showing net cash of $17.6 million, the company signaled both financial health and a shareholder-friendly capital allocation policy.
Full-Year 2025 Performance and 2026 Outlook
For the full year 2025, Laureate demonstrated solid operational growth. New enrollments increased by 8%, while total enrollments grew by 5%. Revenue reached $1.70 billion, a 9% increase on a reported basis, and Adjusted EBITDA grew 15% to $518.9 million.
Looking ahead, the company provided an outlook for fiscal 2026 that projects continued growth:
- Total Enrollments: Expected to grow 4%-5% to a range of 516,000 to 521,000 students.
- Revenue: Projected to be between $1.89 billion and $1.905 billion, representing growth of 11%-12% on a reported basis.
- Adjusted EBITDA: Forecasted in the range of $583 million to $593 million.
- Adjusted EPS: Expected to be between $1.95 and $2.03 per share.
This company-provided revenue outlook for 2026 is notably higher than the current analyst sales estimate of approximately $1.89 billion, indicating management confidence in its growth trajectory. The Adjusted EPS guidance range also sets a positive year-over-year growth target of 13%-18%.
Key Takeaways from the Report
The earnings release underscores several critical points for Laureate Education. The company is successfully growing its student base in both Mexico and Peru, with particularly strong new enrollment growth of 13% in Peru. Operational efficiency is improving, as evidenced by expanding Adjusted EBITDA margins. Management is prioritizing the return of excess capital to shareholders through an aggressive and expanded buyback program. Finally, the 2026 guidance suggests management expects to maintain this momentum, with forecasts that outpace current analyst expectations for the top line.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the full earnings and estimates data for Laureate Education here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer or solicitation to buy or sell any securities. Investing involves risk, including the potential loss of principal.
