Laureate Education is proving that profit and purpose aren’t competing goals. The company delivered 13% adjusted EBITDA growth in 2025, while providing $485 million in scholarships, creating value for both investors and students.
Laureate Education (NASDAQ:LAUR) operates a network of higher education institutions across Mexico and Peru, serving nearly 494,000 students.
As a Public Benefit Corporation, the company balances shareholder returns with a mission to transform lives through accessible, high-quality education.
The business focuses on two key markets.
- In Mexico, Laureate runs established campus networks serving traditional students.
- In Peru, the company is rapidly scaling its fully online programs for working adults.
- Both markets offer strong growth potential as Latin America’s middle class expands and workforce skills become increasingly critical.
With a market capitalization of nearly $5 billion, Laureate provides the educational infrastructure that powers Latin America’s workforce transformation, from traditional campus programs to digital learning solutions for working professionals.
Financial Strength: Efficiency, Execution, and Shareholder Focus
Laureate stock combines mature-business stability with innovation-driven upside. The company’s Q3 2025 performance demonstrates this balance:
• Q3 revenue: $400 million—beating guidance with strong enrollment growth
• Adjusted EBITDA: $95 million; margins expanding to 5-7% target range
• Enrollment growth: 5% increase to 494,000 students across both markets
• Free cash flow: 50% conversion rate of adjusted EBITDA
• Capital return: $177 million remaining in buyback authorization; $3 billion returned since 2019
Laureate outperforms all of its peers when evaluated on the basis of fundamental financial data. At 69, its impact score reflects health overall positive impact with a particularly strong performance when it comes to business accountability.
The company raised full-year 2025 guidance after beating Q3 expectations. Management now projects revenue of $1.681 billion to $1.686 billion (up 7-8%) and adjusted EBITDA of $508 million to $512 million (up 13-14%).
The 150-basis-point margin expansion is driven by Mexico’s operational leverage and productivity gains.
Mexico delivered the strongest performance with 21% adjusted EBITDA growth year-to-date and 240-basis-point margin improvement. Peru posted an impressive 21% growth in new enrollment in Q3, although margins faced temporary pressure from expense timing that is expected to reverse in Q4.
Laureate ended September with $241 million in cash and just $102 million in debt—a net cash position of $139 million. This financial flexibility funds both organic growth investments and aggressive share repurchases.
Positive Impact: Sustainable Growth and Educational Inclusion
Laureate demonstrates that scale and sustainability can coexist. The company’s impact extends far beyond its financial returns.
- Laureate invested $485 million in scholarships and discounts in 2024, directly expanding educational access for students who might otherwise lack opportunities.
- Nearly half of Laureate’s students are first-generation college attendees, making higher education a powerful engine for social mobility across Latin America.
- The results demonstrate that the model is effective, as 9 out of 10 job-seeking graduates secure employment within a year.
By aligning education with workforce needs, Laureate creates value for students, employers, and the broader economy. The company’s rapidly growing online programs in Peru address critical skill gaps for working adults who can’t attend traditional campuses.
Students contributed nearly 1 million volunteer hours in 2022, embedding community service into the educational experience.
Laureate also maintains environmental stewardship programs across its campus network, demonstrating a commitment to responsible growth and sustainability.
The Investment Thesis: Multiple Catalysts for Value Creation
Several factors make Laureate an attractive opportunity for investors seeking both returns and impact.
Aggressive capital returns: The Board just authorized a $150 million increase to the stock repurchase program. Since 2019, Laureate has returned over $3 billion to shareholders through buybacks, distributions, and dividends.
Organic expansion runway: Two new campuses opened in 2025—the first since 2019—performing exactly as planned. Two more are slated for 2026-2027, with numerous additional sites identified across Mexico and Peru. Peru’s online programs are scaling rapidly from a small base, offering significant growth potential.
Margin expansion drivers: Mexico’s 240-basis-point year-to-date margin improvement reflects structural productivity gains and operating leverage that compound over time. As Peru’s higher-margin online programs scale, similar dynamics are likely to emerge there.
Resilient markets: Peru’s economy is growing at a rate of 3% annually, driven by mining projects, rising wages, and low inflation. Mexico faces near-term trade uncertainty, but most economists expect activity to rebound in late 2026. Laureate’s value proposition resonates even in softer conditions—Mexico posted 4% intake growth (excluding closures) despite sluggish macro trends.
Why Laureate Belongs in Impact-Focused Portfolios
Laureate Education showcases a compelling model for how private capital can drive social progress while delivering strong returns to shareholders.
The company’s 100 Ziggma Score, steady growth, and expanding profit margins indicate that its business model is working.
With $177 million in remaining buyback authorization, clear organic growth catalysts, and structural margin expansion underway, the stock offers attractive risk-reward at current valuations.
For investors seeking exposure to Latin America’s workforce development trends and educational access, Laureate Education represents an opportunity where doing good and doing well aren’t just compatible; they’re inseparable.