Winners And Losers Of Q3: Laureate Education (NASDAQ:LAUR) Vs The Rest Of The Education Services Stocks

The past six months have been a windfall for Laureate Education’s shareholders. The company’s stock price has jumped 43.4%, hitting $33.67 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Is there a buying opportunity in Laureate Education, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free for active Edge members.

Why Do We Think Laureate Education Will Underperform?

Despite the momentum, we're swiping left on Laureate Education for now. Here are three reasons there are better opportunities than LAUR and a stock we'd rather own.

1. Weak Growth in Enrolled Students Points to Soft Demand

Revenue growth can be broken down into changes in price and volume (for companies like Laureate Education, our preferred volume metric is enrolled students). While both are important, the latter is the most critical to analyze because prices have a ceiling.

Laureate Education’s enrolled students came in at 511,400 in the latest quarter, and over the last two years, averaged 5.3% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability.

2. EPS Trending Down

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Sadly for Laureate Education, its EPS declined by 9% annually over the last five years while its revenue grew by 7.7%. This tells us the company became less profitable on a per-share basis as it expanded.

3. Mediocre Free Cash Flow Margin Limits Reinvestment Potential

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

Laureate Education has shown poor cash profitability over the last two years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 14.1%, lousy for a consumer discretionary business.

Final Judgment

Laureate Education falls short of our quality standards. After the recent rally, the stock trades at 17.2× forward P/E (or $33.67 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are better investments elsewhere. We’d suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce.

Let’s dig into the relative performance of Grand Canyon Education and its peers as we unravel the now-completed Q3 education services earnings season.

A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.

The 7 education services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results.

Weakest Q3: Grand Canyon Education

Founded in 1949, Grand Canyon Education is an educational services provider known for its operation at Grand Canyon University.

Grand Canyon Education reported revenues of $261.1 million, up 9.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

Grand Canyon Education delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 5.7% since reporting and currently trades at $168.07.

Read our full report on Grand Canyon Education here, it’s free for active Edge members.

Best Q3: Lincoln Educational

Established in 1946, Lincoln Educational is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $141.4 million, up 23.6% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Lincoln Educational pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 36.4% since reporting. It currently trades at $24.28.

Adtalem

Formerly known as DeVry Education Group, Adtalem Global Education is a global provider of workforce solutions and educational services.

Adtalem reported revenues of $462.3 million, up 10.8% year on year, exceeding analysts’ expectations by 2%. Still, it was a mixed quarter as it posted full-year revenue guidance meeting analysts’ expectations.

Adtalem delivered the weakest full-year guidance update in the group. As expected, the stock is down 27.5% since the results and currently trades at $102.77.

Read our full analysis of Adtalem’s results here.

Universal Technical Institute

Founded in 1965, Universal Technical Institute is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $222.4 million, up 13.3% year on year. This number surpassed analysts’ expectations by 1.3%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Universal Technical Institute scored the highest full-year guidance raise among its peers. The stock is down 8.5% since reporting and currently trades at $26.99.

Read our full, actionable report on Universal Technical Institute here, it’s free for active Edge members.

Bright Horizons

Founded in 1986, Bright Horizons is a global provider of child care, early education, and workforce support solutions.

Bright Horizons reported revenues of $802.8 million, up 11.6% year on year. This print topped analysts’ expectations by 2.9%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 10.3% since reporting and currently trades at $101.81.

Read our full, actionable report on Bright Horizons here, it’s free for active Edge members.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at education services stocks, starting with Lincoln Educational .

A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.

The 7 education services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Best Q3: Lincoln Educational

Established in 1946, Lincoln Educational is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $141.4 million, up 23.6% year on year. This print exceeded analysts’ expectations by 7.5%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

“As the demand for high-value career-focused training continues to reach new heights across America, Lincoln’s proven expertise, innovative training platforms, and campus development strategies are creating sustained levels of growth,” said Scott Shaw, President and Chief Executive Officer.

Lincoln Educational achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 33.9% since reporting and currently trades at $23.84.

Bright Horizons

Founded in 1986, Bright Horizons is a global provider of child care, early education, and workforce support solutions.

Bright Horizons reported revenues of $802.8 million, up 11.6% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue and adjusted operating income estimates.

The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $101.62.

Weakest Q3: Grand Canyon Education

Founded in 1949, Grand Canyon Education is an educational services provider known for its operation at Grand Canyon University.

Grand Canyon Education reported revenues of $261.1 million, up 9.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

Grand Canyon Education delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $165.90.

Read our full analysis of Grand Canyon Education’s results here.

Adtalem

Formerly known as DeVry Education Group, Adtalem Global Education is a global provider of workforce solutions and educational services.

Adtalem reported revenues of $462.3 million, up 10.8% year on year. This print topped analysts’ expectations by 2%. More broadly, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

Adtalem had the weakest full-year guidance update among its peers. The stock is down 29% since reporting and currently trades at $100.72.

Read our full, actionable report on Adtalem here, it’s free for active Edge members.

Universal Technical Institute

Founded in 1965, Universal Technical Institute is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $222.4 million, up 13.3% year on year. This result surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Universal Technical Institute achieved the highest full-year guidance raise among its peers. The stock is down 10.8% since reporting and currently trades at $26.30.

Read our full, actionable report on Universal Technical Institute here, it’s free for active Edge members.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Bright Horizons and the rest of the education services stocks fared in Q3.

A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.

The 7 education services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Bright Horizons

Founded in 1986, Bright Horizons is a global provider of child care, early education, and workforce support solutions.

Bright Horizons reported revenues of $802.8 million, up 11.6% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.

Interestingly, the stock is up 10.1% since reporting and currently trades at $101.62.

Best Q3: Lincoln Educational

Established in 1946, Lincoln Educational is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $141.4 million, up 23.6% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Lincoln Educational pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 33.9% since reporting. It currently trades at $23.84.

Weakest Q3: Grand Canyon Education

Founded in 1949, Grand Canyon Education is an educational services provider known for its operation at Grand Canyon University.

Grand Canyon Education reported revenues of $261.1 million, up 9.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

Grand Canyon Education delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $165.90.

Read our full analysis of Grand Canyon Education’s results here.

Strategic Education

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education is a career-focused higher education provider.

Strategic Education reported revenues of $319.9 million, up 4.6% year on year. This number beat analysts’ expectations by 1.7%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Strategic Education had the slowest revenue growth among its peers. The stock is up 7.6% since reporting and currently trades at $80.46.

Read our full, actionable report on Strategic Education here, it’s free for active Edge members.

Laureate Education

Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education is a global network of higher education institutions.

Laureate Education reported revenues of $400.2 million, up 8.6% year on year. This print surpassed analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates.

The stock is up 17.2% since reporting and currently trades at $33.84.

Read our full, actionable report on Laureate Education here, it’s free for active Edge members.

What Happened?

Shares of higher education company Grand Canyon Education jumped 2.9% in the afternoon session after the company announced a $300 million increase to its stock repurchase program and its partner, Grand Canyon University (GCU), received formal recognition of its non-profit status from the U.S. Department of Education. 

The expanded buyback program, which brought the total authorization to $2.545 billion, signaled management's confidence in the company's value. Separately, the government's decision on GCU's non-profit status ended a long-running legal dispute. This recognition was expected to allow the university to access more private scholarships, government grants, and relief funds. It also opened the door for more partnerships with school districts and hospitals while significantly cutting down on legal costs previously spent battling for the designation.

The shares closed the day at $165.27, up 2.4% from previous close.

Is now the time to buy Grand Canyon Education? Access our full analysis report here.

What Is The Market Telling Us

Grand Canyon Education’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 2.8% on the news that the company announced a $300 million increase to its stock repurchase program. The expanded buyback program, which increased the total authorization to $2.545 billion, signaled management's confidence in the company's value.

Grand Canyon Education is up 2.1% since the beginning of the year, but at $165.24 per share, it is still trading 25.1% below its 52-week high of $220.55 from October 2025. Investors who bought $1,000 worth of Grand Canyon Education’s shares 5 years ago would now be looking at an investment worth $1,787.