F

Laureate Education, Inc. — Earnings Quality Grade F

LAUR · Consumer Defensive

Major red flags

Revenue
$1.7B
2025
Net Income
$282M
2025
Gross Margin
28.3%
Free Cash Flow
$263M
01

Screening Summary

13
Passed
1
Watch
3
Failed
-2.48
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 52 days, change +8 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 8.6%, CFFO 57.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

!
B2CapEx vs Revenue

CapEx growth 43.3% is >2x revenue growth 8.6%

B3SG&A Ratio

SG&A/Gross Profit = 10.6%, excellent (<30%)

B4Gross Margin

Gross margin 28.3%, change +1.5pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.30. Profits backed by cash

C2Free Cash Flow

FCF $0.3B, FCF/NI = 0.93

C3Accruals Ratio

Accruals ratio = -3.8%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 28% of debt $0.5B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.8B = 68% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.0x. Healthy

D3Soft Asset Growth

Other assets -15.0% vs revenue 8.6%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 13% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.48 (< -2.22). Unlikely manipulator

Portfolio monitoring

Monitor LAUR continuously

The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.

04

Beneish M-Score

Manipulation Probability-2.48
-4.0 Clean-2.22 Grey-1.78 Danger0
1.188
DSRI
AR growing faster than revenue?
0.946
GMI
Gross margin declining?
0.941
AQI
Asset quality deteriorating?
1.086
SGI
Revenue growth rate
1.12
DEPI
Depreciation slowing?
1.027
SGAI
SG&A ratio changing?
-0.0383
TATA
Accruals level
1.079
LVGI
Leverage increasing?
05

Altman Z-Score

2.64
Safe Zone
0 Distress1.102.605.0+ Safe
-0.0701
Liquidity
0.1889
Cumulative profit
0.1865
Operating efficiency
1.1674
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25