LAUREATE EDUCATION, INC.LAUR
LAUREATE EDUCATION, INC. Revenue Disclosure
Revenue
Revenue Recognition
Our revenues primarily consist of tuition revenues from enrolled students. We also generate other revenues from student fees, short courses, and other education-related activities. These other revenues are less material to our overall financial results and have a tendency to trend with tuition revenues. Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. These revenues are recognized net of scholarships and other discounts, refunds and waivers. Laureate's institutions have various billing and academic cycles.
We determine revenue recognition through the five-step model prescribed by ASC Topic 606, Revenue from Contracts with Customers, as follows:
•Identification of the contract, or contracts, with a customer;
•Identification of the performance obligations in the contract;
•Determination of the transaction price;
•Allocation of the transaction price to the performance obligations in the contract; and
•Recognition of revenue when, or as, we satisfy a performance obligation.
We assess collectability on a portfolio basis prior to recording revenue. If a student withdraws from an institution, Laureate's obligation to issue a refund depends on the refund policy at that institution and the timing of the student's withdrawal. Generally, our refund obligations are reduced over the course of the academic term. We record refunds as a reduction of deferred revenue as applicable.
The following table shows the components of Revenues by reportable segment and as a percentage of total net revenue for the years ended December 31, 2025, 2024 and 2023:
| Mexico | Peru | Corporate(1) | Total | ||||||||||||||
| 2025 | |||||||||||||||||
| Tuition | $ | 1,212,172 | $ | 834,512 | $ | — | $ | 2,046,684 | 120 | % | |||||||
| Other | 142,341 | 82,220 | 142 | 224,703 | 13 | % | |||||||||||
| Gross revenue | 1,354,513 | 916,732 | 142 | 2,271,387 | 133 | % | |||||||||||
| Less: Discounts / waivers / scholarships | (477,121) | (92,336) | — | (569,457) | (33) | % | |||||||||||
| Total | $ | 877,392 | $ | 824,396 | $ | 142 | $ | 1,701,930 | 100 | % | |||||||
| 2024 | |||||||||||||||||
| Tuition | $ | 1,121,019 | $ | 726,444 | $ | — | $ | 1,847,463 | 118 | % | |||||||
| Other | 137,085 | 70,689 | 207 | 207,981 | 13 | % | |||||||||||
| Gross revenue | 1,258,104 | 797,133 | 207 | 2,055,444 | 131 | % | |||||||||||
| Less: Discounts / waivers / scholarships | (416,868) | (71,934) | — | (488,802) | (31) | % | |||||||||||
| Total | $ | 841,236 | $ | 725,199 | $ | 207 | $ | 1,566,642 | 100 | % | |||||||
| 2023 | |||||||||||||||||
| Tuition | $ | 1,020,420 | $ | 687,642 | $ | — | $ | 1,708,062 | 115 | % | |||||||
| Other | 133,913 | 68,901 | (22) | 202,792 | 14 | % | |||||||||||
| Gross revenue | 1,154,333 | 756,543 | (22) | 1,910,854 | 129 | % | |||||||||||
| Less: Discounts / waivers / scholarships | (371,722) | (54,844) | — | (426,566) | (29) | % | |||||||||||
| Total | $ | 782,611 | $ | 701,699 | $ | (22) | $ | 1,484,288 | 100 | % | |||||||
(1) Includes the elimination of inter-segment revenues.
Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of accounting in Topic 606. A contract’s transaction price is allocated to each performance obligation identified in the arrangement based on the relative standalone selling price of each distinct good or service in the contract and recognized as revenue when, or as, the performance obligation is satisfied. The primary method used to estimate standalone selling price is the adjusted market assessment approach, under which we evaluate the market and estimate the price that a customer would be willing to pay for the goods and services we provide.
Our performance obligations are primarily satisfied over time during the course of an academic semester or academic year. Laureate's transaction price is determined based on gross price, net of scholarships and other discounts, refunds and waivers. The majority of our revenue is derived from tuition agreements with students, and thus, is recognized over time on a straight-line basis over each academic session. We view the knowledge gained by the student as the benefit which the student receives during the academic sessions. We use the output method to recognize tuition revenue as this method faithfully depicts our performance toward complete satisfaction of the performance obligation. Dormitory/residency revenues, which are included in the Other line item in the table above, are recognized over time throughout the occupancy period using the output method based on the proportional period of time elapsed which faithfully depicts our performance toward complete satisfaction of the performance obligation.
We have elected the optional exemption to not disclose amounts where the performance obligation is part of a contract that has an original expected duration of one year or less. We expect to recognize substantially all revenue on these remaining performance obligations over the next 12 months.
Contract Balances
The timing of billings, cash collections and revenue recognition results in accounts receivable (contract assets) and deferred revenue and student deposits (contract liabilities) on the Consolidated Balance Sheets. We have various billing and academic cycles and begin to recognize student receivables when an academic session starts, although students generally enroll in courses prior to the start of the academic session. Receivables are recognized only to the extent that it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services that will be transferred to the student. We receive advance payments or deposits from our students before revenue is recognized, which are recorded as contract liabilities in deferred revenue and student deposits. Payment terms vary by university with some universities requiring payment in advance of the academic session and other universities allowing students to pay in installments over the term of the academic session.
All of our contract assets are considered accounts receivable and are included within the Accounts and notes receivable balance in the accompanying Consolidated Balance Sheets. Total accounts receivable from our contracts with students were $244,070 and $189,124 as of December 31, 2025 and 2024, respectively. All contract asset amounts are classified as current. Contract liabilities in the amount of $80,161 and $64,340 were included within the Deferred revenue and student deposits balance in the current liabilities section of the accompanying Consolidated Balance Sheets as of December 31, 2025 and 2024, respectively. Substantially all of the contract liability balance at the beginning of the year was recognized into revenue during the year ended December 31, 2025.
Costs to Obtain a Contract
Certain commissions and bonuses earned by third-party agents and our employees are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over the period of benefit which ranges from to four years. We determined the expected period of benefit, by university, as the expected student enrollment period. As of December 31, 2025 and 2024, the asset balances were approximately $11,900 and $10,800, respectively, and the accumulated amortization balances were approximately $7,500 and $6,300, respectively, both of which are included in Deferred costs, net, in the accompanying Consolidated Balance Sheets. The associated operating costs of approximately $2,800 and $2,700, respectively, were recorded in Direct costs in the accompanying Consolidated Statement of Operations for the years ended December 31, 2025 and 2024. We also pay certain commissions and bonuses where the period of benefit is one year or less.
Practical Expedients
We recognize the incremental costs of obtaining a contract with a student as an expense when incurred in instances where the amortization period of the asset that we would have recognized is one year or less.
We have made an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are both imposed on and concurrent with specific revenue-producing transactions and collected by the entity from our customers (e.g., sales, use, value added and excise taxes).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.