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GRAND CANYON EDUCATION, INC. REPORTS FIRST QUARTER 2025 RESULTS

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Grand Canyon Education (NASDAQ: LOPE) reported strong Q1 2025 financial results, with service revenue increasing 5.3% to $289.3 million. Total partner enrollments grew 5.8% to 127,779 students. Operating income rose 4.2% to $88.0 million, while net income increased 5.3% to $71.6 million. Diluted EPS reached $2.52, up from $2.29 in Q1 2024. The company maintains a strong liquidity position with $304.7 million in cash and investments. For full-year 2025, GCE projects service revenue between $1,079.8-$1,099.8 million and adjusted diluted EPS of $8.59-$8.93. The growth was primarily driven by increased partner enrollments, particularly in ABSN programs, despite slight revenue per student decreases due to contract modifications and leap year effects.
Grand Canyon Education (NASDAQ: LOPE) ha riportato solidi risultati finanziari nel primo trimestre 2025, con i ricavi da servizi in aumento del 5,3% a 289,3 milioni di dollari. Le iscrizioni totali presso i partner sono cresciute del 5,8%, raggiungendo 127.779 studenti. L'utile operativo è salito del 4,2% a 88,0 milioni di dollari, mentre l'utile netto è aumentato del 5,3% a 71,6 milioni di dollari. L'EPS diluito ha raggiunto 2,52 dollari, rispetto ai 2,29 dollari del primo trimestre 2024. L'azienda mantiene una solida posizione di liquidità con 304,7 milioni di dollari in contanti e investimenti. Per l'intero anno 2025, GCE prevede ricavi da servizi compresi tra 1.079,8 e 1.099,8 milioni di dollari e un EPS diluito rettificato tra 8,59 e 8,93 dollari. La crescita è stata principalmente trainata dall'aumento delle iscrizioni presso i partner, in particolare nei programmi ABSN, nonostante una leggera diminuzione dei ricavi per studente dovuta a modifiche contrattuali e agli effetti dell'anno bisestile.
Grand Canyon Education (NASDAQ: LOPE) reportó sólidos resultados financieros en el primer trimestre de 2025, con ingresos por servicios que aumentaron un 5,3% hasta 289,3 millones de dólares. Las inscripciones totales de socios crecieron un 5,8%, alcanzando 127,779 estudiantes. El ingreso operativo aumentó un 4,2% hasta 88,0 millones de dólares, mientras que el ingreso neto creció un 5,3% hasta 71,6 millones de dólares. Las ganancias diluidas por acción (EPS) alcanzaron 2,52 dólares, frente a 2,29 dólares en el primer trimestre de 2024. La compañía mantiene una sólida posición de liquidez con 304,7 millones de dólares en efectivo e inversiones. Para todo el año 2025, GCE proyecta ingresos por servicios entre 1,079.8 y 1,099.8 millones de dólares y un EPS diluido ajustado de 8,59 a 8,93 dólares. El crecimiento se debió principalmente al aumento de inscripciones de socios, especialmente en programas ABSN, a pesar de una ligera disminución en los ingresos por estudiante debido a modificaciones contractuales y efectos del año bisiesto.
Grand Canyon Education (NASDAQ: LOPE)는 2025년 1분기 강력한 재무 실적을 보고했으며, 서비스 수익이 5.3% 증가하여 2억 8,930만 달러에 달했습니다. 총 파트너 등록 학생 수는 5.8% 증가한 127,779명이었습니다. 영업이익은 4.2% 상승하여 8,800만 달러를 기록했고, 순이익은 5.3% 증가한 7,160만 달러였습니다. 희석 주당순이익(EPS)은 2024년 1분기 2.29달러에서 2.52달러로 상승했습니다. 회사는 현금 및 투자금 3억 470만 달러로 강력한 유동성 상태를 유지하고 있습니다. 2025년 전체 연도에 대해 GCE는 서비스 수익을 10억 7,980만 달러에서 10억 9,980만 달러 사이, 조정 희석 EPS를 8.59달러에서 8.93달러 사이로 전망합니다. 성장은 주로 ABSN 프로그램을 포함한 파트너 등록 증가에 의해 주도되었으며, 계약 변경 및 윤년 효과로 인해 학생당 수익은 소폭 감소했습니다.
Grand Canyon Education (NASDAQ : LOPE) a annoncé de solides résultats financiers pour le premier trimestre 2025, avec un chiffre d'affaires des services en hausse de 5,3 % à 289,3 millions de dollars. Le nombre total d'inscriptions partenaires a augmenté de 5,8 % pour atteindre 127 779 étudiants. Le résultat d'exploitation a progressé de 4,2 % pour atteindre 88,0 millions de dollars, tandis que le bénéfice net a augmenté de 5,3 % à 71,6 millions de dollars. Le BPA dilué a atteint 2,52 dollars, contre 2,29 dollars au premier trimestre 2024. La société maintient une solide position de liquidité avec 304,7 millions de dollars en liquidités et investissements. Pour l'année complète 2025, GCE prévoit un chiffre d'affaires des services compris entre 1 079,8 et 1 099,8 millions de dollars et un BPA dilué ajusté entre 8,59 et 8,93 dollars. Cette croissance a été principalement portée par l'augmentation des inscriptions partenaires, notamment dans les programmes ABSN, malgré une légère baisse du revenu par étudiant liée à des modifications contractuelles et aux effets de l'année bissextile.
Grand Canyon Education (NASDAQ: LOPE) meldete starke Finanzergebnisse für das erste Quartal 2025, wobei die Serviceerlöse um 5,3 % auf 289,3 Millionen US-Dollar stiegen. Die Gesamtzahl der Partneranmeldungen wuchs um 5,8 % auf 127.779 Studenten. Das Betriebsergebnis stieg um 4,2 % auf 88,0 Millionen US-Dollar, während der Nettogewinn um 5,3 % auf 71,6 Millionen US-Dollar zunahm. Das verwässerte Ergebnis je Aktie (EPS) erreichte 2,52 US-Dollar, gegenüber 2,29 US-Dollar im ersten Quartal 2024. Das Unternehmen verfügt über eine starke Liquiditätsposition mit 304,7 Millionen US-Dollar in bar und Investitionen. Für das Gesamtjahr 2025 prognostiziert GCE Serviceerlöse zwischen 1.079,8 und 1.099,8 Millionen US-Dollar sowie ein bereinigtes verwässertes EPS von 8,59 bis 8,93 US-Dollar. Das Wachstum wurde hauptsächlich durch die gestiegenen Partneranmeldungen, insbesondere in ABSN-Programmen, getrieben, trotz leicht rückläufiger Einnahmen pro Student aufgrund von Vertragsänderungen und Schaltjahreseffekten.
Positive
  • Service revenue increased 5.3% YoY to $289.3 million
  • Partner enrollments grew 5.8% to 127,779 students
  • Net income rose 5.3% to $71.6 million
  • Off-campus classroom sites enrollment increased 12.1%
  • GCU online enrollments grew 7.9% to 101,443 students
  • Strong liquidity position with $304.7 million in cash and investments
Negative
  • Operating margin slightly decreased to 30.4% from 30.8% YoY
  • Ground student enrollments declined to 22,330 from 22,965
  • Revenue per student decreased due to contract modifications
  • Cash and investments decreased by $20.0 million from December 2024

Insights

GCE delivers strong Q1 results with 5.3% revenue growth, rising profitability, and expanding higher-margin enrollment segments.

Grand Canyon Education delivered solid Q1 2025 financial results, with service revenue increasing 5.3% year-over-year to $289.3 million. This growth was primarily driven by a 5.8% increase in partner enrollments to 127,779 students. The company's strategic expansion of off-campus classroom and laboratory sites continues to bear fruit, with these higher-margin enrollments growing 12.1% year-over-year to 5,027 students.

Operating income rose 4.2% to $88.0 million, while operating margin contracted slightly to 30.4% from 30.8%. This modest decline was directly attributed to the additional leap year day in 2024, which added $1.5 million in service revenue in the prior year period.

Net income grew 5.3% to $71.6 million, with diluted EPS rising 10.0% to $2.52 from $2.29 in Q1 2024. The improved bottom-line performance demonstrates effective cost control and benefits from a reduced effective tax rate, which fell to 21.6% from 22.9%.

The company's focus on expanding higher-margin offerings is clear in their site development strategy. They've opened six new sites in 2024 and one in Q1 2025, bringing the total to 46 off-campus locations. This expansion matters because these programs generate significantly higher revenue per student than traditional programs.

Cash position decreased slightly to $304.7 million from $324.6 million at year-end 2024, primarily due to share repurchases and capital expenditures – both positive signals of management's confidence.

Looking ahead, GCE's full-year 2025 guidance projects service revenue between $1,079.8 million and $1,099.8 million, operating margin between 27.3% and 28.0%, and adjusted diluted EPS between $8.59 and $8.93. This outlook reflects continued momentum in their diversified education services model.

PHOENIX, May 6, 2025 /PRNewswire/ -- Grand Canyon Education, Inc. (NASDAQ: LOPE), ("GCE" or the "Company"), is a publicly traded education services company that currently provides services to 22 university partners.  GCE provides a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale.  GCE today announced financial results for the quarter ended March 31, 2025. 

Grand Canyon Education, Inc. Reports First Quarter 2025 Results

For the three months ended March 31, 2025:

  • Service revenue for the three months ended March 31, 2025 was $289.3 million, an increase of $14.6 million, or 5.3%, as compared to service revenue of $274.7 million for the three months ended March 31, 2024. The increase year over year in service revenue was primarily due to an increase in partner enrollments of 5.8% to 127,779 at March 31, 2025 as compared to 120,788 at March 31, 2024. Revenue per student decreased slightly between years primarily due to the additional day for leap year in 2024 which added additional service revenue of $1.5 million as compared to the current year and contract modifications for some of our university partners in which the revenue share percentage was reduced in exchange for us no longer reimbursing the partner for certain faculty costs both of which had the effect of reducing revenue per student partially offset by the service revenue per student for accelerated Bachelor of Science in Nursing ("ABSN") students at off-campus classroom and laboratory sites generating a significantly higher revenue per student than we earn under our agreement with GCU, as these agreements generally provide us with a higher revenue share percentage, the partners have higher tuition rates than GCU and the majority of our partners' students take more credits on average per semester.

  • GCU enrollments increased to 123,773 at March 31, 2025, an increase of 5.8% over enrollments at March 31, 2024. University partner enrollments at our off-campus classroom and laboratory sites were 5,027, an increase of 12.1% over enrollments at March 31, 2024, which includes 1,021 and 650 GCU students at March 31, 2025 and 2024, respectively. Excluding sites closing in 2024 to new enrollments, total enrollments at our off-campus classroom and laboratory sites increased 16.5% between years. We opened six sites in the year ended December 31, 2024 and opened one site in the three months ended March 31, 2025 increasing the total number of these sites to 46 at March 31, 2025, which has also positively impacted the enrollment growth. Enrollments for GCU ground students were 22,330 at March 31, 2025 down from 22,965 at March 31, 2024 due to a small decline in traditional ground students year over year and the continued decline in professional studies students (working adults attending the university's traditional campus at night), partially offset by an increase in ABSN students between years. GCU online enrollments were 101,443 at March 31, 2025, up from 93,987 at December 31, 2024, an increase of 7.9% between years.

  • Operating income for the three months ended March 31, 2025 was $88.0 million, an increase of $3.5 million, or 4.2%, as compared to $84.5 million for the same period in 2024. The operating margin for the three months ended March 31, 2025 and 2024 was 30.4% and 30.8%, respectively. The first quarter operating income and operating margin were negatively impacted on a year over year basis by the additional day for leap year in 2024 which added additional service revenue of $1.5 million as compared to the current year partially offset by contract modifications for some of our university partners in which the revenue share percentage was reduced in exchange for us no longer reimbursing the partner for certain faculty costs both of which had the effect of reducing revenue per student.

  • Income tax expense for the three months ended March 31, 2025 was $19.8 million, a decrease of $0.4 million, or 2.0%, as compared to income tax expense of $20.2 million for the three months ended March 31, 2024. Our effective tax rate was 21.6% during the first quarter of 2025 compared to 22.9% during the first quarter of 2024. The effective tax rate decreased year over year primarily due to an increase in excess tax benefits to $2.7 million as compared to $1.5 million in the three months ended March 31, 2025 and 2024, respectively, partially offset by higher state income taxes.

  • Net income for the three months ended March 31, 2025 was $71.6 million, an increase of $3.6 million, or 5.3% as compared to $68.0 million for the same period in 2024. As adjusted net income was $73.3 million and $69.6 million for the first quarters of 2025 and 2024, respectively.

  • Diluted net income per share was $2.52 and $2.29 for the first quarters of 2025 and 2024, respectively. As adjusted diluted net income per share was $2.57 and $2.35 for the first quarters of 2025 and 2024, respectively.

  • Adjusted EBITDA increased 3.4% to $102.0 million for the first quarter of 2025, compared to $98.6 million for the same period in 2024.

Liquidity and Capital Resources

Our liquidity position, as measured by cash and cash equivalents and investments decreased by $20.0 million between December 31, 2024 and March 31, 2025, which was largely attributable to share repurchases, changes in our investment balance and capital expenditures exceeding our cash provided by operations during the three months ended March 31, 2025.  Our unrestricted cash and cash equivalents and investments were $304.7 million and $324.6 million at March 31, 2025 and December 31, 2024, respectively.

Grand Canyon Education, Inc. Reports First Quarter 2025 Results and Full Year Outlook 2025

2025 Outlook

Q2 2025:

  • Service revenue of between $239.0 million and $241.5 million;
  • Operating margin of between 18.8% and 19.4%;
  • Effective tax rate of 24.9%;
  • Diluted EPS of between $1.28 and $1.33; and
  • 28.2 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $1.34and $1.39.

Q3 2025:

  • Service revenue of between $250.5 million and $257.5 million;
  • Operating margin of between 22.0% and 23.2%;
  • Effective tax rate of 24.9%;
  • Diluted EPS of between $1.56 and $1.68; and
  • 28.0 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $1.62 and $1.74.

Q4 2025:

  • Service revenue of between $301.0 million and $311.5 million;
  • Operating margin of between 35.5% and 36.3%;
  • Effective tax rate of 24.1%;
  • Diluted EPS of between $3.00 and $3.17; and
  • 27.8 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $3.06 and $3.23.

Full Year 2025:

  • Service revenue of between $1,079.8 million and $1,099.8 million;
  • Operating margin of between 27.3% and 28.0%;
  • Effective tax rate of 23.7%;
  • Diluted EPS between $8.36 and $8.70; and
  • 28.1 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.5 million, which equates to a $0.23 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $8.59 and $8.93.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of Federal securities laws which include information relating to future events, future financial performance, strategies expectations, competitive environment, regulation, and availability of resources.  These forward-looking statements include, without limitation, statements regarding: proposed new programs; whether regulatory, economic, or business developments or other matters may or may not have a material adverse effect on our financial position, results of operations, or liquidity; projections, predictions, expectations, estimates, and forecasts as to our business, financial and operating results, and future economic performance; and management's goals and objectives and other similar expressions concerning matters that are not historical facts.  Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, the negative of these expressions, as well as statements in future tense, identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved.  Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.  Important factors that could cause our actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements include, but are not limited to: (i) legal and regulatory actions taken against us related to our services business, or against our university partners that impact their businesses and that directly or indirectly reduce the service revenue we can earn under our master services agreements; (ii) the occurrence of any event, change or other circumstance that could give rise to the termination of any of the key university partner agreements; (iii) our ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions or divestitures of, or investments in, new businesses, acquisitions of new properties and new university partners, and expansion of services provided to our existing university partners; (iv) our ability to comply with the extensive regulatory framework applicable to us either directly as a third-party service provider or indirectly through our university partners; (v) our ability to manage risks associated with epidemics, pandemics, or public health crises; (vi) our ability to manage risks resulting from system disruptions, interruptions, or outages associated with our technology platforms or those of third-party service providers; (vii) the ability of our university partners' students to obtain federal Title IV funds, state financial aid, and private financing; (viii) potential damage to our reputation or other adverse effects as a result of negative publicity in the media, in the industry or in connection with governmental reports or investigations or otherwise; (ix) risks associated with changes in applicable federal and state laws and regulations and accrediting commission standards; (x) competition from other education service companies in our geographic region and market sector; (xi) our ability to hire and train new, and develop and train existing employees; (xii) the pace of growth of our university partners' enrollment and its effect on the pace of our own growth; (xiii) fluctuations in our revenues due to seasonality; (xiv) our ability to, on behalf of our university partners, convert prospective students to enrolled students and to retain active students to graduation; and (xv) other risks and uncertainties identified from time to time in documents filed with the Securities and Exchange Commission (the "SEC") by us.

Forward-looking statements speak only as of the date the statements are made.  You should not put undue reliance on any forward-looking statements.  We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.  If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.  This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC.  Understanding the information contained in these filings is important in order to fully understand GCE's reported financial results and our business outlook for future periods.

Grand Canyon Education, Inc. Reports First Quarter 2025 Results

Conference Call

Grand Canyon Education, Inc. will discuss its first quarter 2025 results and full year 2025 outlook during a conference call scheduled for today, May 6, 2025 at 4:30 p.m. Eastern time (ET).  

Live Conference Dial-In:

Those interested in participating in the question-and-answer session should follow the conference dial-in instructions below.  Participants may register for the call here to receive the dial-in numbers and unique PIN to access the call seamlessly. Please dial in at least ten minutes prior to the start of the call.  Journalists are invited to listen only. 

Webcast and Replay:

Investors, journalists and the general public may access a live webcast of this event at: Q1 2025 Grand Canyon Education Inc. Earnings Conference CallA webcast replay will be available approximately two hours following the conclusion of the call at the same link.

About Grand Canyon Education, Inc.

Grand Canyon Education, Inc. ("GCE"), incorporated in 2008, is a publicly traded education services company that currently provides services to 22 university partners.  GCE is uniquely positioned in the education services industry in that its leadership has over 30 years of proven expertise in providing a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale.  GCE provides services that support students, faculty and staff of partner institutions such as marketing, strategic enrollment management, counseling services, financial services, technology, technical support, compliance, human resources, classroom operations, content development, faculty recruitment and training, among others.  For more information about GCE visit the Company's website at www.gce.com.

Grand Canyon Education, Inc., 2600 W. Camelback Road, Phoenix, AZ 85017, www.gce.com

Grand Canyon Education, Inc. Reports First Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Income Statements

(Unaudited)












Three Months Ended




March 31, 




2025


2024


(In thousands, except per share data)








Service revenue


$

289,310


$

274,675


Costs and expenses:








Technology and academic services



41,664



39,125


Counseling services and support



86,822



82,884


Marketing and communication



60,330



55,353


General and administrative



10,366



10,730


Amortization of intangible assets



2,105



2,105


Total costs and expenses



201,287



190,197


Operating income



88,023



84,478


Interest expense





(2)


Investment interest and other



3,381



3,729


Income before income taxes



91,404



88,205


Income tax expense



19,786



20,195


Net income


$

71,618


$

68,010


Earnings per share:








Basic income per share


$

2.53


$

2.31


Diluted income per share


$

2.52


$

2.29


Basic weighted average shares outstanding



28,277



29,459


Diluted weighted average shares outstanding



28,469



29,639


 

GRAND CANYON EDUCATION, INC.

Consolidated Balance Sheets

 



As of March 31, 


As of December 31,

(In thousands, except par value)


2025


2024

ASSETS:



(Unaudited)




Current assets







Cash and cash equivalents


$

144,509


$

324,623

Investments



160,144



Accounts receivable, net



115,696



82,948

Income taxes receivable





490

Other current assets



16,087



11,915

Total current assets



436,436



419,976

Property and equipment, net



177,758



176,823

Right-of-use assets



96,059



99,541

Amortizable intangible assets, net



157,857



159,962

Goodwill



160,766



160,766

Other assets



2,572



1,357

Total assets


$

1,031,448


$

1,018,425

LIABILITIES AND STOCKHOLDERS' EQUITY:







Current liabilities







Accounts payable


$

24,077


$

26,721

Accrued compensation and benefits



23,251



33,183

Accrued liabilities



34,573



29,620

Income taxes payable



24,076



8,559

Deferred revenue



9,081



Current portion of lease liability



13,146



12,883

Total current liabilities



128,204



110,966

Deferred income taxes, noncurrent



28,974



26,527

Other long-term liabilities



1,398



1,444

Lease liability, less current portion



92,168



95,635

Total liabilities



250,744



234,572

Commitments and contingencies







Stockholders' equity







Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding
at March 31, 2025 and December 31, 2024





Common stock, $0.01 par value, 100,000 shares authorized; 54,176 and 54,090 shares issued
and 28,496 and 28,858 shares outstanding at March 31, 2025 and December 31, 2024, respectively



542



541

Treasury stock, at cost, 25,680 and 25,232 shares of common stock at March 31, 2025 and
December 31, 2024, respectively



(2,102,760)



(2,024,370)

Additional paid-in capital



340,365



336,736

Accumulated other comprehensive loss



(7)



Retained earnings



2,542,564



2,470,946

Total stockholders' equity



780,704



783,853

Total liabilities and stockholders' equity


$

1,031,448


$

1,018,425

 

GRAND CANYON EDUCATION, INC.

Consolidated Statements of Cash Flows

(Unaudited)

 



Three Months Ended



March 31, 

(In thousands)


2025


2024








Cash flows provided by operating activities:







Net income


$

71,618


$

68,010

Adjustments to reconcile net income to net cash provided by operating activities:







Share-based compensation



3,630



3,483

Depreciation and amortization



7,451



6,653

Amortization of intangible assets



2,105



2,105

Deferred income taxes



2,446



1,724

Other, including fixed asset disposals



(207)



(208)

Changes in assets and liabilities:







Accounts receivable from university partners



(32,748)



(32,899)

Other assets



(4,449)



(3,757)

Right-of-use assets and lease liabilities



278



335

Accounts payable



(2,023)



11,970

Accrued liabilities



(5,558)



(51)

Income taxes receivable/payable



16,007



17,328

Deferred revenue



9,081



10,270

Net cash provided by operating activities



67,631



84,963

Cash flows used in investing activities:







Capital expenditures



(8,948)



(8,979)

Additions of amortizable content



(20)



(72)

Purchase of equity investment



(1,000)



Purchases of investments



(159,920)



(19,381)

Proceeds from sale or maturity of investments





23,172

Net cash used in investing activities



(169,888)



(5,260)

Cash flows used in financing activities:







Repurchase of common shares and shares withheld in lieu of income taxes



(77,857)



(29,970)

Net cash used in financing activities



(77,857)



(29,970)

Net (decrease) increase in cash and cash equivalents and restricted cash



(180,114)



49,733

Cash and cash equivalents and restricted cash, beginning of period



324,623



146,475

Cash and cash equivalents and restricted cash, end of period


$

144,509


$

196,208

Supplemental disclosure of cash flow information







Cash paid for interest


$


$

2

Cash paid for income taxes


$

333


$

295

Supplemental disclosure of non-cash investing and financing activities







Purchases of property and equipment included in accounts payable


$

444


$

2,091

ROU Asset and Liability recognition


$


$

25,500

Excise tax on treasury stock repurchases


$

533


$

34

Grand Canyon Education, Inc. Reports First Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Adjusted EBITDA  (Non-GAAP Financial Measure)

Adjusted EBITDA is defined as net income plus interest expense, less interest income and other gain (loss) recognized on investments, plus income tax expense, and plus depreciation and amortization (EBITDA), as adjusted for (i)  contributions to private Arizona school tuition organizations in lieu of the payment of state income taxes; (ii) share-based compensation, and (iii) unusual charges or gains, such as litigation and regulatory reserves, impairment charges and asset write-offs, severance costs, and exit or lease termination costs.  We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance.  We also make certain compensation decisions based, in part, on our operating performance, as measured by Adjusted EBITDA.  All of the adjustments made in our calculation of Adjusted EBITDA are adjustments to items that management does not consider to be reflective of our core operating performance.  Management considers our core operating performance to be that which can be affected by our managers in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period and does not consider the items for which we make adjustments (as listed above) to be reflective of our core performance.

We believe Adjusted EBITDA allows us to compare our current operating results with corresponding historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by variations in capital structures (affecting relative interest expense, including the impact of write-offs of deferred financing costs when companies refinance their indebtedness), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the book amortization of intangibles (affecting relative amortization expense), and other items that we do not consider reflective of underlying operating performance.  We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties as a measure of performance.

In evaluating Adjusted EBITDA, investors should be aware that in the future we may incur expenses similar to the adjustments described above.  Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine, or non-recurring.  Adjusted EBITDA has limitations as an analytical tool in that, among other things it does not reflect:

  • cash expenditures for capital expenditures or contractual commitments;
  • changes in, or cash requirements for, our working capital requirements;
  • interest expense, or the cash required to replace assets that are being depreciated or amortized; and
  • the impact on our reported results of earnings or charges resulting from the items for which we make adjustments to our EBITDA, as described above and set forth in the table below.

In addition, other companies, including other companies in our industry, may calculate these measures differently than we do, limiting the usefulness of Adjusted EBITDA as a comparative measure.  Because of these limitations, Adjusted EBITDA should not be considered as a substitute for net income, operating income, or any other performance measure derived in accordance with and reported under GAAP, or as an alternative to cash flow from operating activities or as a measure of our liquidity.  We compensate for these limitations by relying primarily on our GAAP results and only use Adjusted EBITDA as a supplemental performance measure.

The following table provides a reconciliation of net income to Adjusted EBITDA, which is a non-GAAP measure for the periods indicated:



Three Months Ended




March 31, 




2025


2024




(Unaudited, in thousands)


Net income


$

71,618


$

68,010


Plus: interest expense





2


Less: investment interest and other



(3,381)



(3,729)


Plus: income tax expense



19,786



20,195


Plus: amortization of intangible assets



2,105



2,105


Plus: depreciation and amortization



7,451



6,653


EBITDA



97,579



93,236


Plus: share-based compensation



3,630



3,483


Plus: litigation and regulatory costs



743



1,870


Plus: loss on fixed asset disposal



16




Adjusted EBITDA


$

101,968


$

98,589


Non-GAAP Net Income and Non-GAAP Diluted Income Per Share

The Company believes the presentation of non-GAAP net income and non-GAAP diluted income per share information that excludes amortization of intangible assets and loss on disposal of fixed assets allows investors to develop a more meaningful understanding of the Company's performance over time.  Accordingly, for the three months ended March 31, 2025 and 2024, the table below provides reconciliations of these non-GAAP items to GAAP net income and GAAP diluted income per share, respectively:



Three Months Ended




March 31, 




2025


2024



(Unaudited, in thousands except per share data)

GAAP Net income



$       71,618



$       68,010


Amortization of intangible assets



2,105



2,105


Loss on disposal of fixed assets



16




Income tax effects of adjustments (1)



(459)



(482)


As Adjusted, Non-GAAP Net income



$       73,280



$       69,633










GAAP Diluted income per share



$           2.52



$           2.29


Amortization of intangible assets (2)



0.05



0.06


Loss on disposal of fixed assets (3)



0.00




As Adjusted, Non-GAAP Diluted income per share



$           2.57



$           2.35


(1)

The income tax effects of adjustments are based on the effective income tax rate applicable to adjusted (non-GAAP) results. 

(2)

The amortization of acquired intangible assets per diluted share is net of an income tax benefit of $0.02 for both of the three months ended March 31, 2025 and 2024, respectively.

(3)

The loss on disposal of fixed assets per diluted share is net of an income tax benefit of nil for the three months ended March 31, 2025.

Investor Relations Contact:
Daniel E. Bachus
Chief Financial Officer
Grand Canyon Education, Inc.
602-639-6648
Dan.bachus@gce.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/grand-canyon-education-inc-reports-first-quarter-2025-results-302447657.html

SOURCE Grand Canyon Education

FAQ

What were LOPE's Q1 2025 earnings per share?

Grand Canyon Education reported diluted earnings per share of $2.52 for Q1 2025, up from $2.29 in Q1 2024. Adjusted diluted EPS was $2.57.

How many university partners does Grand Canyon Education (LOPE) serve in 2025?

Grand Canyon Education provides services to 22 university partners as of Q1 2025.

What is LOPE's revenue guidance for full-year 2025?

Grand Canyon Education projects full-year 2025 service revenue between $1,079.8 million and $1,099.8 million.

How many students were enrolled at Grand Canyon Education's partners as of March 2025?

Total partner enrollments reached 127,779 students as of March 31, 2025, representing a 5.8% increase from 120,788 in March 2024.

What was LOPE's operating margin in Q1 2025?

The operating margin for Q1 2025 was 30.4%, slightly down from 30.8% in Q1 2024.
Grand Canyon Ed Inc

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