Laureate Education (NASDAQ:LAUR) reported what executives described as a strong fiscal 2025, highlighting revenue growth, margin expansion, and continued capital returns to shareholders, while outlining 2026 guidance that factors in foreign exchange tailwinds, softer macro conditions in Mexico, and ongoing expansion of fully online offerings and campus capacity in Peru.
Fiscal 2025 results and guidance outperformance
President and CEO Eilif Serck-Hanssen said the company delivered “another strong year of performance” in 2025, citing sustained revenue growth and expanding margins. Full-year revenue reached $1.7 billion and Adjusted EBITDA was $519 million, both above the guidance the company provided in October, according to management.
Fourth-quarter seasonality and calendar timing effects
CFO Rick Buskirk emphasized that campus-based higher education is seasonal and that academic calendar timing can affect period-to-period comparisons. In 2025, he said the start of classes—particularly in Peru—began later than in 2024, extending the enrollment cycle into mid-April and beyond the first-quarter cutoff. The company estimated this timing shift moved approximately $25 million of revenue and $21 million of Adjusted EBITDA from earlier in the year into the fourth quarter.
For the fourth quarter, Laureate reported revenue of $541 million and Adjusted EBITDA of $204 million, both ahead of the guidance issued three months earlier, which management said was aided primarily by improved currency rates. Buskirk said that on an organic constant currency basis, and adjusted for the academic calendar shift, fourth-quarter revenue rose 10% year-over-year and Adjusted EBITDA increased 14%.
Reported fourth-quarter net income was $172 million, or $1.17 per share. Adjusted net income was $112 million, or $0.76 per share, which management said represented a 46% increase compared to the prior-year quarter.
Mexico and Peru performance drivers
For full-year 2025, Buskirk said new enrollments increased 8% versus the prior year and total enrollments rose 5%. On an organic constant currency basis, full-year revenue increased 8% and Adjusted EBITDA was up 13%, contributing to a margin improvement of 131 basis points. Management attributed the gains to operating leverage and productivity, noting a 164 basis point margin increase in Mexico.
Mexico: On an organic constant currency basis, new enrollments increased 5% for the year, which management said was led by growth in fully online programs for working adults across both premium and value brands. Total enrollments increased 4% (or 5% on a same-store basis). Full-year revenue growth of 9% was driven by a 6% increase in average total enrollments and 3% price mix. Buskirk said pricing for traditional face-to-face students was in line with inflation. Adjusted EBITDA increased 17%, expanding Mexico’s margin by 164 basis points to 26.1%.
Peru: New enrollments increased 13% and total enrollments rose 7%, driven by double-digit growth in fully online programs serving working adults, management said. Fourth-quarter revenue growth was 22% and adjusted EBITDA increased 49%, which the company attributed primarily to the academic calendar timing. Adjusting for that shift, fourth-quarter revenue grew 8% and adjusted EBITDA increased 16%. For the full year, Peru revenue increased 7%, driven by a 6% increase in average total enrollments. Buskirk noted a price mix impact on average revenue per student due to faster growth in online offerings, which are offered at a lower price point, and said the company expects that mix impact to continue in 2026. Adjusted EBITDA increased 9%, with margin expansion of 54 basis points.
Capital allocation and repurchase authorization
Laureate ended 2025 with $147 million in cash and $129 million in gross debt, resulting in a $18 million net cash position, Buskirk said. The company also announced that its board authorized an additional $150 million increase to the share repurchase program. As of year-end 2025, management said $181 million was available under current authorizations.
Buskirk noted that since 2019, total capital returned to shareholders has exceeded $3 billion through share purchases, cash distributions, and cash dividends.
2026 outlook: FX tailwinds, margin expansion, and investment plans
Management’s 2026 guidance includes reported revenue growth of 11% to 12%, with Serck-Hanssen indicating roughly five points of that growth is attributable to a more favorable foreign exchange environment. For 2026, the company guided to:
- Total enrollments: 516,000 to 521,000 students (4% to 5% growth vs. 2025)
- Revenue: $1.890 billion to $1.905 billion (11% to 12% as-reported; 6% to 7% organic constant currency)
- Adjusted EBITDA: $583 million to $593 million (12% to 14% as-reported; 7% to 9% organic constant currency)
- Adjusted EPS: $1.95 to $2.03 (13% to 18% growth vs. 2025, as reported)
At the midpoint, the company expects approximately 50 basis points of Adjusted EBITDA margin expansion, even with incremental costs tied to new campus openings. Buskirk said the margin outlook includes about a 25 basis point offset from new campus investments that the company expects to absorb within the overall expansion.
For the first quarter of 2026, Laureate guided revenue of $261 million to $265 million and Adjusted EBITDA of negative $20 million to negative $17 million, citing seasonal factors and fixed-cost growth as well as investments in new campuses during a period when classes are largely out of session. The company also expects roughly $9 million of first-quarter revenue and related profitability to shift to later in the year due to calendar timing.
On strategy, Serck-Hanssen highlighted continued investments in campuses and health sciences programs, including new campuses opened in Monterrey, Mexico, and Lima’s Ate district, as well as a new medical school and a new veterinary school. He also emphasized scaling fully online programs—now serving more than 100,000 students—and said the company is deploying AI tools across the student lifecycle, with an aim of improving retention, learning outcomes, and affordability.
In the Q&A, Serck-Hanssen said launching a new campus typically takes 18 to 24 months, and that the company generally prefers building rather than buying based on returns and its established campus “playbook.” He also said the company views AI as beneficial rather than disruptive, emphasizing program development aligned with “tomorrow’s jobs” and the use of AI to improve outcomes and reduce costs.
About Laureate Education (NASDAQ:LAUR)
Laureate Education, Inc (NASDAQ: LAUR) is a leading global network of higher education institutions dedicated to providing undergraduate, graduate and certificate programs to a diverse student body. The company designs and delivers academic offerings through a combination of campus-based and online platforms, focusing on fields such as business, health sciences, engineering, education and hospitality management. By aligning its curriculum with regional workforce needs, Laureate aims to equip students with practical skills and industry insights that support career advancement and lifelong learning.
Through its network, Laureate operates a broad portfolio of universities and colleges, including both longstanding campus institutions and digitally native programs.
