Abstract

Laureate Education Inc. will report quarterly results on October 21, 2025 (20260219) Pre-Market; this preview compiles last quarter’s performance, the current quarter forecast, and recent institutional commentary to frame expectations.

Market Forecast

Consensus derived from the company’s forecast data points to revenue of $528.30 million for the current quarter, with year-over-year growth of 28.38%, EBIT of $179.11 million with a year-over-year increase of 49.88%, and EPS of $0.79 with year-over-year growth of 88.09%. The model-implied trajectory suggests margin expansion, but no explicit guidance for gross profit margin or net profit margin was provided; adjusted EPS is forecast at $0.79, up 88.09% year over year. The main business centers on tuition and educational services, which the company has indicated as the core driver in the current seasonally strong quarter. The most promising segment is tuition and educational services, expected to anchor revenue at $528.30 million, supported by 28.38% year-over-year growth in total revenue.

Last Quarter Review

Laureate Education Inc. delivered revenue of $400.22 million last quarter, with a gross profit margin of 20.91%, GAAP net profit attributable to the parent company of $34.49 million, a net profit margin of 8.62%, and adjusted EPS of $0.23, which declined 58.93% year over year. A notable highlight was EBIT of $71.47 million, which modestly declined 0.74% year over year, while revenue growth of 8.58% year over year outpaced internal estimates. Main business dynamics showed tuition and educational services at $477.65 million alongside discounts/waivers/scholarships of -$133.68 million and other revenue of $56.26 million, illustrating net tuition strength despite heavier scholarship deductions.

Current Quarter Outlook (with major analytical insights)

Main Business: Tuition and Educational Services

The current quarter historically aligns with intake and re-enrollment cycles across Laureate Education Inc.’s Latin American universities, lifting tuition revenue and ancillary educational services. The company’s internal forecast framework implies a pronounced revenue step-up to $528.30 million and stronger operating leverage, evidenced by the 49.88% year-over-year growth embedded in EBIT estimates. This setup suggests that yield management and enrollment trends are improving versus the prior quarter, with tuition pricing strategies likely offsetting scholarship intensity observed last quarter. While gross margin detail is not guided this quarter, last quarter’s 20.91% level provides a baseline; given the anticipated EBIT expansion and EPS acceleration, a constructive margin mix is implied. Seasonality, retention initiatives, and higher-value programs should be the main catalysts underpinning tuition and services growth.

Most Promising Business: Net Tuition Growth After Scholarships

Scholarships and waivers represent structural deductions on headline tuition, but net tuition growth is positioned to improve as revenue scales with enrollment expansion and program mix. The forecasted 28.38% year-over-year increase in total revenue suggests that net tuition (tuition and services minus scholarships/waivers) will climb materially, aided by disciplined discount rates around key intake periods. Operational improvements, campus utilization efficiency, and administrative cost controls can deepen operating leverage, which aligns with the nearly 50% year-over-year EBIT growth forecast. This dynamic is strategic for Laureate Education Inc., as it enhances the cash conversion cycle and supports higher-quality earnings reflected in the projected EPS of $0.79, up 88.09% year over year. Monitoring discount rate normalization and student financing availability remains important to confirm sustainability through subsequent quarters.

Stock Price Drivers This Quarter

The equity narrative hinges on whether Laureate Education Inc. can deliver on the sharp year-over-year improvements implied by the EPS and EBIT forecasts while sustaining revenue momentum into subsequent intake cycles. Surprise potential is tied to enrollment quality and program mix shifts, which can influence realized discount rates and margin profile even without explicit gross margin guidance. The last quarter’s 8.58% year-over-year revenue growth, juxtaposed with a 0.74% year-over-year dip in EBIT and a 58.93% drop in adjusted EPS, sets a conservative comparison base; any outperformance on margins this quarter would likely be received positively by the market. Furthermore, execution in the tuition and educational services core, coupled with stable macro backdrops in key geographies, should define sentiment. Conversely, heavier-than-expected scholarship activity or cost inflation across campuses could pressure the translation of revenue growth into earnings.

Analyst Opinions

Recent institutional commentary skews positive: one highlighted note reaffirmed a Buy rating with a $36.00 target, reflecting confidence in margin progression and intake-driven revenue growth. The ratio of bullish to bearish opinions stands at 100% bullish and 0% bearish in the collected period, so this preview reflects the majority view. The bullish stance centers on the sizable year-over-year acceleration projected for EPS and EBIT, interpreting it as evidence of operational leverage across Laureate Education Inc.’s portfolio. Supportive enrollment trends, program mix optimization, and disciplined discounting underpin expectations for improved profitability despite last quarter’s adjusted EPS decline. From a market positioning perspective, the anticipated revenue uplift to $528.30 million, together with a 49.88% rise in EBIT and an 88.09% EPS increase, forms the crux of the constructive outlook heading into October 21, 2025 (20260219) Pre-Market.