Laureate Education, Inc. (NASDAQ: LAUR) is a global higher-education company headquartered in Miami, Florida, that operates and supports universities primarily in Latin America. The company focuses on offering undergraduate and graduate degree programs in fields such as business, engineering, health sciences, and social sciences, serving both on-campus and online students.
Laureate partners with well-known institutions in countries like Mexico and Peru, emphasizing affordable, career-oriented education designed to improve student employability. Over time, the company has streamlined its portfolio to concentrate on key growth markets in Latin America while maintaining a mission of expanding access to quality higher education.
Laureate Education reported revenue of $541.4 million, representing a 28% increase on a reported basis. On an organic constant-currency basis, revenue rose 16%, supported by approximately $25 million of favorable intra-year academic calendar timing.
Operating income improved significantly to $179.5 million, compared with $124.2 million in the fourth quarter of 2024. Net income also increased to $171.5 million, up from $93.6 million a year earlier, mainly due to stronger operating performance and a $56.9 million discrete tax benefit recorded during the quarter.
Adjusted EBITDA reached $204.3 million, compared with $141.1 million in Q4 2024, with about $21 million of favorable impact from academic calendar timing.
For the year ended December 31, 2025, new enrollments grew 8%, while total enrollments increased 5%. Reported revenue rose 9% to $1,701.9 million, and on an organic constant-currency basis, revenue increased 8%.
Operating income improved to $431.1 million, up from $374.0 million in 2024. Net income, however, declined slightly to $283.8 million from $296.4 million, primarily due to unfavorable foreign-exchange effects on intercompany balances.
Adjusted EBITDA for the year totaled $518.9 million, compared with $450.1 million in 2024, reflecting overall stronger operating performance.
Eilif Serck-Hanssen, President and Chief Executive Officer, stated that Laureate had delivered another strong year of performance in 2025, supported by sustained revenue growth and expanding margins. He noted that the company’s strong balance sheet and significant free cash flow had enabled continued investment in its long-term growth strategy, including opening two new campuses and advancing digital and AI capabilities, while returning more than $200 million of excess capital to shareholders through share repurchases. He added that, as the company entered 2026, it continued to see attractive growth opportunities across its local markets and remained focused on executing its growth agenda while returning excess capital to shareholders.
Mr. Serck-Hanssen further expressed deep gratitude to members of the Laureate community for their dedication and commitment to students’ success in 2025. He said that the organization’s more than 30,000 faculty and staff were working together to advance Laureate’s mission of transforming lives and strengthening communities in Mexico and Peru by expanding access to affordable, high-quality education.
Laureate has a strong balance sheet position. As of December 31, 2025, Laureate had $146.7 million of cash and cash equivalents and gross debt of $129.1 million. Accordingly, net cash was $17.6 million as of December 31, 2025.
Laureate repurchased approximately $217 million of its common stock during 2025 under the previously announced stock repurchase programs. As of December 31, 2025, the Company had approximately $31 million of share repurchase authorization remaining on its previously announced stock repurchase program.
As of December 31, 2025, Laureate had 142.9 million total shares outstanding.
Company announced that its board of directors has approved a $150 million increase to the company’s existing share repurchase authorization, expanding the program from $250 million to $400 million.
As of December 31, 2025, Laureate had already repurchased $219 million of shares. Following the new authorization, the company now has approximately $181 million remaining capacity under the program, which has no fixed expiration date.
The company intends to fund future repurchases using free cash flow, excess cash, and available liquidity, including capacity under its Revolving Credit Facility. Share repurchases may be executed periodically through open market purchases, privately negotiated transactions, block trades, or other legally permitted methods, including trading plans established under Rule 10b5-1 of the Securities Exchange Act of 1934.
The board will review the program periodically and retains the flexibility to adjust, suspend, or discontinue it based on market conditions and corporate considerations.
Company expects to maintain strong growth momentum and expand margins in fiscal 2026, based on assumed foreign exchange spot rates.
Total enrollments are projected to range between 516,000 and 521,000 students, representing 4%-5% growth compared with 2025. Revenue is expected to be between $1.89 billion and $1.905 billion, reflecting 11%-12% growth on a reported basis and 6%-7% growth on an organic constant-currency basis.
Adjusted EBITDA is forecast in the range of $583 million to $593 million, implying 12%-14% reported growth and 7%-9% growth on an organic constant-currency basis. Adjusted earnings per share (adjusted EPS) is expected to be between $1.95 and $2.03, representing 13%-18% reported growth year over year.
The company noted that reconciliations of forward-looking non-GAAP measures, including adjusted EBITDA and adjusted EPS, to the most directly comparable GAAP measures are not provided due to insufficient visibility into the specific variables and adjustments required to estimate projected net income without unreasonable effort.
The post Laureate Education Reports Financial Results for the 4Q and Full Year 2025 and Provides 2026 Outlook first appeared on AlphaStreet News.
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