Nasdaq:LAUR
LAUREATE EDUCATION, INC.
A global leader in higher education offering universities and colleges primarily to international students with strong recent cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Investors may favor Laureate Education for its consistent revenue growth trajectory, expanding from $1.24B in 2022 to $1.70B in 2025, alongside strong profitability improvements. The company's robust cash generation allows for meaningful capital returns via buybacks while maintaining liquidity for strategic expansion or acquisitions.
Bear Case
Concerns arise from the company's substantial accumulated other comprehensive loss of -$305.0M and retained earnings deficit of $416.9M, which could signal historical volatility or accounting complexities. Additionally, heavy reliance on international student inflows creates vulnerability to external shocks that could abruptly reverse recent growth trends.
About LAUREATE EDUCATION, INC.
Laureate Education Inc. is a global provider of higher education through its network of universities and colleges, serving international students primarily in Australia, Europe, Asia, and the Americas. The company operates across multiple continents with a focus on delivering diverse academic programs including health sciences, business, engineering, and liberal arts. Key revenue drivers include tuition fees from a growing international student body and various educational services.
Analysis
Management Discussion
In 2025, the company reported revenue of $1.70B and net profit of $283.8M, reflecting continued growth despite a slight dip from the prior year's $296.4M earnings. Operating cash flow reached $366.2M, supporting substantial share repurchases of $215.2M while maintaining a healthy cash balance of $152.1M at period end.
Industry Overview
The global education services industry is experiencing a shift towards internationalization as domestic markets saturate, creating opportunities for providers with cross-border capabilities. Competition remains intense among traditional universities and online platforms, pressuring margins but rewarding those with scalable models and strong brand recognition.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.24B | $1.48B | $1.57B | $1.70B |
| Cost of Revenue | $907.4M | $1.09B | $1.15B | $1.22B |
| Gross Profit | $334.9M | $394.5M | $419.8M | $482.2M |
| Operating Expenses | $64.9M | $55.7M | $45.8M | $51.1M |
| Operating Income | $270.0M | $338.8M | $374.0M | $431.1M |
| G&A | $64.8M | $52.6M | $45.8M | $51.1M |
| Stock-Based Comp | $8.8M | $7.1M | $7.8M | $13.3M |
| D&A | — | $69.6M | $68.2M | $74.5M |
| Amortization | $0 | $0 | — | — |
| Other OpEx | $144.0K | $3.1M | $0 | $0 |
| Non-Operating Income | $-24.2M | $-84.4M | $40.5M | $-30.2M |
| Interest Expense | $16.4M | $21.0M | — | — |
| Pre-Tax Income | $245.9M | $254.5M | $414.5M | $400.9M |
| Income Tax | $185.4M | $137.6M | $119.0M | $117.3M |
| Continuing Ops | $60.7M | $117.0M | $295.7M | $283.8M |
| Discontinued Ops | $8.3M | $-9.8M | $654.0K | $-32.0K |
| Net Income | $69.0M | $107.3M | $296.4M | $283.8M |
| Minority Interest | $-595.0K | $-323.0K | $-78.0K | $0 |
| Net to Common | $69.6M | $107.6M | $296.5M | $283.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $226.2M | $224.4M | $227.3M | $318.3M |
| Cash & Equivalents | $85.2M | $89.4M | $91.3M | $146.7M |
| Other Current Assets | $141.0M | $135.0M | $136.0M | $171.6M |
| Long-Term Assets | $1.75B | $1.90B | $1.63B | $1.89B |
| PP&E (Net) | — | — | $514.3M | $628.6M |
| Intangibles | $151.6M | $169.2M | $147.9M | $166.2M |
| Goodwill | $583.5M | $661.5M | $563.4M | $637.3M |
| Operating Leases | $389.6M | $371.6M | $292.4M | $335.6M |
| Other LT Assets | $621.3M | $698.9M | $116.8M | $120.3M |
| Total Assets | $1.97B | $2.13B | $1.86B | $2.21B |
| Current Liabilities | $381.4M | $453.2M | $367.9M | $472.9M |
| Accounts Payable | $42.8M | $43.2M | $35.3M | $57.1M |
| Current Leases | $39.0M | $57.5M | $48.2M | $56.0M |
| Deferred Revenue | $51.3M | $69.4M | $64.3M | $80.2M |
| Taxes Payable | $38.7M | $40.2M | $2.4M | $13.2M |
| Other Current Liab | $159.0M | $173.4M | $156.7M | $193.8M |
| Long-Term Liabilities | $815.1M | $723.3M | $535.6M | $544.7M |
| Long-Term Debt | — | — | $59.0M | $73.1M |
| LT Operating Leases | $376.9M | $360.1M | $279.0M | $331.8M |
| Other LT Liab | $306.9M | $222.7M | $61.2M | $60.8M |
| Total Liabilities | $1.20B | $1.18B | $903.5M | $1.02B |
| Shareholders' Equity | $775.8M | $949.1M | $958.5M | $1.19B |
| Paid-In Capital | $2.20B | $1.18B | $1.13B | $1.08B |
| Retained Earnings | $39.2M | $41.9M | $291.6M | $416.9M |
| AOCI | $-442.4M | $-272.1M | $-462.2M | $-305.0M |
| Treasury Stock | $1.03B | $0 | — | — |
| Total L&E | $1.97B | $2.13B | $1.86B | $2.21B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $69.0M | $107.3M | $296.4M | $283.8M |
| Non-Cash Adjustments | $84.6M | $89.1M | $-75.6M | $52.5M |
| Working Capital Changes | $24.6M | $54.4M | $11.9M | $29.9M |
| Cash from Operations | $178.2M | $250.8M | $232.7M | $366.2M |
| Cash from Investing | $30.3M | $-51.9M | $-57.5M | $-102.6M |
| Debt Issuances | $496.3M | $153.8M | $155.1M | $126.2M |
| Debt Repayments | $433.7M | $243.4M | $215.6M | $129.1M |
| Share Buybacks | $282.2M | $0 | $102.1M | $215.2M |
| Cash from Financing | $-461.6M | $-201.9M | $-166.9M | $-222.5M |
| FX Effect | $1.2M | $6.6M | $-7.5M | $12.9M |
| Net Change in Cash | $-251.8M | $3.1M | $957.0K | $54.2M |
| Beginning Cash | $345.6M | $93.8M | $96.9M | $97.9M |
| Ending Cash | $93.8M | $96.9M | $97.9M | $152.1M |
Frequently Asked Questions
How does LAUREATE EDUCATION, INC. make money?
The company derives revenue from its core university operations across Australia, Europe, Asia, and the Americas; supplementary income from corporate training and professional development programs; licensing of educational IP and brand usage; and auxiliary services such as student housing, dining, and transportation.
What are the main risks for LAUR?
Significant exposure to geopolitical instability, trade restrictions, and travel advisories that can disrupt cross-border student mobility; regulatory changes in host countries regarding foreign student visa policies or tuition pricing caps; currency fluctuation impacts on cash flows from international operations; and potential reputational damage affecting recruitment if quality standards or ethical practices are questioned.
What is LAUR's competitive advantage?
Established global footprint with a diverse portfolio of accredited universities providing access to international markets; strong operational efficiency demonstrated by a CFO/Net Income ratio of 1.29 indicating robust cash conversion; and strategic partnerships with international governments and corporations driving steady student enrollment growth.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.