Laureate Education Stock Up 70% as Fund Trims $9 Million Stake Amid $1.7 Billion Revenue Outlook

Core Insights - First Sabrepoint Capital Management reduced its stake in Laureate Education by selling 300,000 shares for an estimated $9.26 million in Q4 2025, reflecting a decrease in the stake's value to $16.84 million, down $8.40 million from the previous period [2][6] Company Overview - Laureate Education reported a total revenue of $1.58 billion and a net income of $203.71 million for the trailing twelve months [4] - The company's stock price as of February 12, 2026, was $33.92, representing a 70.8% increase over the past year, significantly outperforming the S&P 500 by 57.89 percentage points [6] Financial Performance - The company achieved a 9% revenue growth in Q3, reaching $400.2 million, and raised its full-year revenue guidance to as much as $1.686 billion with an Adjusted EBITDA of up to $512 million [9] - New enrollments increased by 7% year-to-date, with a notable 13% rise in Peru, indicating strong demand in core markets [9] Strategic Positioning - Laureate Education operates a diversified portfolio of higher education institutions, focusing on professional and technical degree programs, and serves students primarily in Mexico, Peru, and the United States [7][8] - The company utilizes a multi-channel delivery model to reach a broad student base, positioning itself to capture demand for quality, career-oriented education [8] Cash Flow and Financial Flexibility - In the first nine months, Laureate generated $272.8 million in operating cash flow and ended September with $138.6 million in net cash, while expanding its repurchase authorization by $150 million, indicating strong balance sheet flexibility [10] - The reduced stake now accounts for 6.4% of First Sabrepoint's assets, suggesting a rebalancing strategy rather than a complete exit from the investment [11] Long-term Outlook - The long-term investment thesis for Laureate hinges on continued enrollment growth, currency stability in key markets, and sustained cash conversion, with the potential for disciplined portfolio management following strong stock performance [12]