Laureate Education (LAUR) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 performance with full-year revenue of $1.7B, Adjusted EBITDA of $519M, and net income of $284M, all exceeding guidance and reflecting margin expansion.

• Q4 2025 revenue grew 28% to $541M, Adjusted EBITDA up 45% to $204M, and net income reached $172M, aided by favorable FX and academic calendar timing.

• Returned $217M to shareholders via stock repurchases in 2025 and announced a $150M increase in buyback authorization, bringing total capacity to $400M.

• Expanded academic offerings, opened new campuses in Mexico and Peru, and invested in health sciences, digital, and online education.

• Maintained academic quality leadership, with top institutional rankings and recognition for digital marketing and academic excellence.

Financial highlights

• Q4 2025 revenue was $541M and Adjusted EBITDA was $204M, both ahead of guidance, with margin at 37.7%.

• Full-year 2025 revenue was $1.7B (+9%), Adjusted EBITDA $519M (+15%), and Adjusted EBITDA margin reached a record 30.5%.

• Full-year net income was $284M (EPS $1.89–$1.91); adjusted net income was $256M (adjusted EPS $1.72, up 22% YoY).

• Free cash flow for 2025 was $263.5M, up from $178.8M in 2024.

• Ended 2025 with $147M in cash, $129M in gross debt, and a net cash position of $18M.

Outlook and guidance

• 2026 guidance: revenue of $1.890–$1.905B (11–12% reported growth, 6–7% organic constant currency).

• Adjusted EBITDA expected at $583–$593M (12–14% reported growth, 7–9% organic constant currency), with margin expansion of 50 bps.

• Adjusted EPS guidance for 2026: $1.95–$2.03 (13–18% growth YoY).

• Total enrollments projected at 516,000–521,000 (4–5% growth).

• Q1 2026 expected to be seasonally low, with revenue of $261–$265M and negative Adjusted EBITDA due to timing and investments.