Highlights

  • Laureate shows 32.25% one-year basic EPS growth, a P/E of 17.51 and PEG of 0.44.
  • Second quarter net income attributable to Laureate was $137.1 million, against $95.1 million.
  • Second quarter revenues were $615.9 million, up 17%; Adjusted EBITDA was $250.6 million.
  • Laureate's board added $150 million to its repurchase authorization on July 30, 2026.

Laureate Education (NASDAQ:LAUR) shares were trading at USD 36.15 on October 28, 2026, down 3.96%, alongside one-year basic EPS growth of 32.25%, a trailing twelve-month P/E of 17.51 and an expected-basis PEG of 0.44, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the Mexico and Peru higher education operator raised its repurchase authorization to a total of $400 million on February 19, signed a PEN 205 million loan for its Peruvian institution UPN on June 30, and reported second quarter 2026 net income attributable to the company of $137.1 million on July 30.

Laureate Education has its principal executive offices in Miami, Florida, and is incorporated in Delaware. It operates degree-granting higher education institutions in Mexico and Peru, with approximately 501,400 students enrolled at five institutions as of June 30, 2026. Its two reportable segments are Mexico, with two institutions, and Peru, with three. Programs are campus-based, online and hybrid, and essentially all revenues come from private pay sources, as there are no material government-sponsored loan programs in either country.

Growth: Second Quarter Earnings, Revenue and Segment Results

Net income attributable to Laureate was $137.1 million in the second quarter against $95.1 million a year earlier, and $115.5 million for the six months against $75.6 million. Basic and diluted earnings per share were $0.98 against $0.65 for the quarter. For the six months, basic earnings per share were $0.82 against $0.51, and diluted earnings per share were $0.82 against $0.50.

Revenues were $615.9 million against $524.2 million, up 17%. Laureate attributed the $91.7 million increase to a $51.1 million effect from the stronger Mexican peso and Peruvian nuevo sol, $31.8 million from higher average enrollment and $8.9 million from product mix, pricing and timing. Operating income was $223.4 million against $193.3 million.

Mexico revenues were $269.0 million against $217.4 million, up 24%, and Mexico Adjusted EBITDA was $70.6 million against $57.4 million. Peru revenues were $346.9 million against $306.7 million, up 13%, and Peru Adjusted EBITDA was $190.8 million against $167.2 million. Consolidated Adjusted EBITDA, a non-GAAP measure, was $250.6 million against $214.5 million, up 17%.

Valuation: P/E of 17.51, PEG of 0.44 and Cash Generation

The P/E ratio of 17.51 is measured on trailing twelve-month earnings, and the PEG ratio of 0.44 on expected growth. Cash provided by operating activities was $172.9 million for the six months against $131.8 million. Total stockholders' equity was $1,140,807 thousand at June 30, 2026, against $1,187,362 thousand at December 31, 2025.

Share Repurchases, Debt and Liquidity

Laureate bought back 2,237 thousand shares in the second quarter at an average price of $33.80, and capacity under its authorization was $0.2 million at June 30, 2026. The authorization totaled $400 million after the February 19 increase, and on July 30 the board approved a further $150 million increase with no fixed expiration date. Laureate intends to finance repurchases with free cash flow, excess cash and liquidity, including its revolving credit facility.

Cash and cash equivalents were $161.7 million. The revolving credit facility provides up to $155.0 million and matures in September 2028, with $75.0 million outstanding. Lines of credit and notes payable totaled $64.4 million and finance lease obligations were $83.8 million. UPN's PEN 205 million loan carries a fixed rate of 6.45% and matures in July 2033. Capital expenditures were $35.5 million for the six months.

Disclosed Risks and Outlook

Laureate operates outside the United States and lists exchange rate fluctuations, inflation, regulatory change, political instability and tax risks among its challenges. Its first and third quarters are the weaker revenue quarters, as institutions have summer breaks. For the six months, Mexico Adjusted EBITDA on a constant currency basis decreased 11%, which the company attributed primarily to academic calendar timing. Laureate estimated reasonably possible unrecorded losses at up to approximately $20,500 thousand.

On the second quarter call, management raised 2026 guidance. It expects revenues of $1.920 billion to $1.930 billion, Adjusted EBITDA of $593 million to $599 million, adjusted earnings per share of $2.04 to $2.10 and total enrollment of 518,000 to 523,000 students. For the third quarter, it expects revenue of $471 million to $476 million and Adjusted EBITDA of approximately $134 million to $137 million, including a $29 million academic calendar timing effect.