Laureate Education Reports Financial Results for the Fourth Quarter and Full-Year 2025 and Provides 2026 Outlook

Core Viewpoint - Laureate Education, Inc. reported strong financial performance for 2025, with significant revenue growth and margin expansion, while also increasing its share repurchase authorization by $150 million to a total of $400 million [1][4][13]. Financial Performance Highlights Fourth Quarter 2025 - Reported revenue was $541.4 million, an increase of $118.0 million or 28% compared to Q4 2024; organic constant currency revenue increased by 16% [5][6]. - Operating income rose to $179.5 million from $124.2 million in Q4 2024, an increase of $55.3 million [5][6]. - Net income for Q4 2025 was $171.5 million, up from $93.6 million in Q4 2024, reflecting an increase of $77.9 million [5][6]. - Basic and diluted earnings per share were $1.18 and $1.17, respectively [5][6]. Year Ended December 31, 2025 - Total revenue for the year was $1,701.9 million, a 9% increase from $1,566.6 million in 2024; organic constant currency revenue increased by 8% [9][10]. - Operating income for 2025 was $431.1 million, compared to $374.0 million in 2024 [9][10]. - Net income decreased to $283.8 million from $296.4 million in 2024, primarily due to foreign currency exchange rate impacts [9][10]. - Adjusted EBITDA for 2025 was $518.9 million, up from $450.1 million in 2024 [10]. Enrollment Metrics - New enrollments for FY 2025 increased by 8% compared to FY 2024, with total enrollments up by 5% [8][9]. - In Peru, new enrollments increased by 13% and total enrollments by 7%; in Mexico, new enrollments rose by 5% and total enrollments by 4% [8]. Balance Sheet and Cash Flow - As of December 31, 2025, Laureate had $146.7 million in cash and cash equivalents, with gross debt of $129.1 million, resulting in net cash of $17.6 million [11]. - The company repurchased approximately $217 million of its common stock during 2025, with $31 million remaining under the previous repurchase authorization [12][13]. Outlook for 2026 - For FY 2026, Laureate expects total enrollments to be between 516,000 and 521,000, reflecting a growth of 4%-5% compared to 2025 [14]. - Revenue is projected to be in the range of $1,890 million to $1,905 million, indicating growth of 11%-12% on a reported basis and 6%-7% on an organic constant currency basis [14].