Laureate Education
LAUR Consumer Defensive Education & Training Services
Laureate Education’s revenue for fiscal 2025 (year ended December 2025) was $1.7 billion, up 8.64% from fiscal 2024. In the quarter to June 2026, revenue grew 17.5%, EPS grew 50.8%, free cash flow grew 37.7% and total debt rose 93.9%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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Laureate Education (LAUR) Altman Z-score
Laureate Education's Altman Z-score for fiscal 2025 is 4.53, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.53 | 1.04 |
| FY2024 | 3.49 | 1.27 |
| FY2023 | 2.22 | 0.40 |
| FY2022 | 1.82 | (0.06) |
| FY2021 | 1.89 | 1.12 |
| FY2020 | 0.77 | (0.14) |
| FY2019 | 0.91 | 0.45 |
| FY2018 | 0.46 | (0.16) |
| FY2017 | 0.62 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.07) | — | −0.08 | |
| Retained earnings / total assets | 0.19 | — | 0.26 | |
| EBIT / total assets | 0.20 | — | 0.64 | |
| Market value of equity / total liabilities | 4.88 | — | 2.93 | |
| Sales / total assets | 0.77 | — | 0.77 | |
| Altman Z-score | Safe zone | 4.53 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 2.69 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LOPE Grand Canyon Education, Inc. compare | 17.5× |
| PRDO Perdoceo Education Corporation compare | 6.7× |
| LRN Stride, Inc. compare | 5.8× |
| LAUR Laureate Education | 4.5× |
| CVSA Covista Inc. compare | 4.2× |
| GHC Graham Holdings Company compare | 3.0× |
| TAL TAL Education Group compare | 2.8× |
| EDU New Oriental Education & Technology Group, Inc. compare | 2.4× |
| MH McGraw Hill, Inc. compare | 0.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets