GRAND CANYON EDUCATION, INC. REPORTS SECOND QUARTER 2025 RESULTS
Grand Canyon Education (NASDAQ: LOPE) reported strong Q2 2025 financial results, with service revenue increasing 8.8% to $247.5 million compared to Q2 2024. The company's partner enrollments grew 10.3% to 117,283 students, with GCU enrollments rising 10.5% to 113,435.
Net income rose 19.1% to $41.5 million, with diluted EPS of $1.48. The operating margin improved to 20.9% from 18.8% year-over-year. For full-year 2025, GCE expects service revenue between $1,100.3-$1,107.3 million and adjusted diluted EPS of $8.98-$9.14.
The company's liquidity position strengthened with unrestricted cash and investments reaching $373.9 million, up $49.3 million from December 2024.
Grand Canyon Education (NASDAQ: LOPE) ha riportato solidi risultati finanziari per il secondo trimestre del 2025, con un aumento dei ricavi da servizi dell'8,8% a 247,5 milioni di dollari rispetto al secondo trimestre 2024. Le iscrizioni presso i partner dell'azienda sono cresciute del 10,3% raggiungendo 117.283 studenti, mentre le iscrizioni a GCU sono aumentate del 10,5% a 113.435.
L'utile netto è salito del 19,1% a 41,5 milioni di dollari, con un EPS diluito di 1,48 dollari. Il margine operativo è migliorato al 20,9% rispetto al 18,8% dell'anno precedente. Per l'intero anno 2025, GCE prevede ricavi da servizi compresi tra 1.100,3 e 1.107,3 milioni di dollari e un EPS diluito rettificato tra 8,98 e 9,14 dollari.
La posizione di liquidità dell'azienda si è rafforzata con disponibilità liquide e investimenti non vincolati che hanno raggiunto i 373,9 milioni di dollari, in aumento di 49,3 milioni rispetto a dicembre 2024.
Grand Canyon Education (NASDAQ: LOPE) reportó sólidos resultados financieros en el segundo trimestre de 2025, con ingresos por servicios que aumentaron un 8,8% hasta 247,5 millones de dólares en comparación con el segundo trimestre de 2024. Las inscripciones de socios de la compañía crecieron un 10,3% hasta 117,283 estudiantes, mientras que las inscripciones en GCU aumentaron un 10,5% hasta 113,435.
El ingreso neto subió un 19,1% hasta 41,5 millones de dólares, con una utilidad por acción diluida de 1,48 dólares. El margen operativo mejoró al 20,9% desde el 18,8% interanual. Para todo el año 2025, GCE espera ingresos por servicios entre 1,100.3 y 1,107.3 millones de dólares y una utilidad por acción diluida ajustada de 8,98 a 9,14 dólares.
La posición de liquidez de la compañía se fortaleció con efectivo e inversiones no restringidas que alcanzaron los 373,9 millones de dólares, un aumento de 49,3 millones desde diciembre de 2024.
Grand Canyon Education (NASDAQ: LOPE)는 2025년 2분기 강력한 재무 성과를 보고했으며, 서비스 수익이 2024년 2분기 대비 8.8% 증가한 2억 4,750만 달러를 기록했습니다. 회사의 파트너 등록 학생 수는 10.3% 증가한 117,283명이며, GCU 등록 학생 수는 10.5% 증가한 113,435명입니다.
순이익은 19.1% 증가한 4,150만 달러로 희석 주당순이익(EPS)은 1.48달러입니다. 영업이익률은 전년 동기 대비 18.8%에서 20.9%로 개선되었습니다. 2025년 전체에 대해 GCE는 서비스 수익을 11억 0,030만 달러에서 11억 0,730만 달러 사이로, 조정 희석 EPS를 8.98~9.14달러로 예상하고 있습니다.
회사의 유동성 위치는 2024년 12월 대비 4,930만 달러 증가한 3억 7,390만 달러의 제한 없는 현금 및 투자금으로 강화되었습니다.
Grand Canyon Education (NASDAQ : LOPE) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un chiffre d'affaires de services en hausse de 8,8 % à 247,5 millions de dollars par rapport au deuxième trimestre 2024. Les inscriptions chez les partenaires de la société ont augmenté de 10,3 % pour atteindre 117 283 étudiants, tandis que les inscriptions à GCU ont progressé de 10,5 % pour atteindre 113 435.
Le bénéfice net a augmenté de 19,1 % pour atteindre 41,5 millions de dollars, avec un BPA dilué de 1,48 dollar. La marge d'exploitation s'est améliorée à 20,9 % contre 18,8 % un an plus tôt. Pour l'année complète 2025, GCE prévoit un chiffre d'affaires de services compris entre 1 100,3 et 1 107,3 millions de dollars et un BPA dilué ajusté de 8,98 à 9,14 dollars.
La position de liquidité de la société s'est renforcée avec une trésorerie et des investissements non restreints atteignant 373,9 millions de dollars, en hausse de 49,3 millions par rapport à décembre 2024.
Grand Canyon Education (NASDAQ: LOPE) meldete starke Finanzergebnisse für das zweite Quartal 2025, wobei die Serviceerlöse im Vergleich zum zweiten Quartal 2024 um 8,8 % auf 247,5 Millionen US-Dollar stiegen. Die Einschreibungen bei den Partnern des Unternehmens wuchsen um 10,3 % auf 117.283 Studierende, während die Einschreibungen bei GCU um 10,5 % auf 113.435 zunahmen.
Der Nettogewinn stieg um 19,1 % auf 41,5 Millionen US-Dollar, mit einem verwässerten Ergebnis je Aktie (EPS) von 1,48 US-Dollar. Die operative Marge verbesserte sich von 18,8 % auf 20,9 % im Jahresvergleich. Für das Gesamtjahr 2025 erwartet GCE Serviceerlöse zwischen 1.100,3 und 1.107,3 Millionen US-Dollar sowie ein bereinigtes verwässertes EPS von 8,98 bis 9,14 US-Dollar.
Die Liquiditätslage des Unternehmens verbesserte sich, wobei die uneingeschränkten Zahlungsmittel und Investitionen auf 373,9 Millionen US-Dollar anstiegen, ein Plus von 49,3 Millionen US-Dollar gegenüber Dezember 2024.
- Partner enrollments increased 10.3% to 117,283 students
- Net income grew 19.1% to $41.5 million in Q2 2025
- Operating margin improved to 20.9% from 18.8% year-over-year
- Liquidity position increased by $49.3 million to $373.9 million
- Off-campus classroom sites grew to 45 locations with 15.4% enrollment growth
- Revenue per student decreased due to contract modifications and mix shift
- Some university partner contracts modified with reduced revenue share percentages
Insights
LOPE posted strong Q2 with 8.8% revenue growth, 21.2% operating income growth, and meaningful margin expansion.
Grand Canyon Education delivered impressive Q2 results with service revenue increasing
The company achieved substantial profitability improvements, with operating income jumping
Net income grew
GCE's cash position strengthened considerably, with unrestricted cash and investments growing to
Looking ahead, management provided solid guidance for Q3, Q4, and full-year 2025, projecting full-year service revenue between
Grand Canyon Education, Inc. Reports Second Quarter 2025 Results
For the three months ended June 30, 2025:
- Service revenue for the three months ended June 30, 2025 was
$247.5 million $20.0 million 8.8% , as compared to service revenue of$227.5 million 10.3% to 117,283 at June 30, 2025 as compared to 106,307 at June 30, 2024. Revenue per student decreased slightly between years primarily due to contract modifications for some of our university partners in which the revenue share percentage was reduced in exchange for us no longer reimbursing these partners for certain faculty costs both of which had the effect of reducing revenue per student and a slight decline year over year in revenue per student for online students due to the continued mix shift to students that have a slightly lower net tuition rate. These decreases were 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 Grand Canyon University ("GCU"), our most significant partner, 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 113,435 at June 30, 2025, an increase of
10.5% over enrollments at June 30, 2024. University partner enrollments at our off-campus classroom and laboratory sites were 4,990, an increase of14.0% over enrollments at June 30, 2024, which includes 1,142 and 746 GCU students at June 30, 2025 and 2024, respectively. Excluding sites closing in 2024 to new enrollments, total enrollments at our off-campus classroom and laboratory sites increased15.4% between years. We opened six sites in the year ended December 31, 2024 and opened two new sites in the six months ended June 30, 2025 while closing two sites in which we stopped recruiting new students in 2024 bringing the total number of these sites to 45 at June 30, 2025, which has also positively impacted the enrollment growth. Enrollments for GCU ground students were 8,579 at June 30, 2025 up from 7,397 at June 30, 2024. GCU online enrollments were 104,856 at June 30, 2025, up from 95,279 at June 30, 2024, an increase of10.1% between years. GCU enrollment declines between March 31 and June 30 of each year as ground traditional enrollment at GCU at June 30 of each year only includes traditional-aged students taking summer school classes, which is a small percentage GCU's traditional-aged student body. - Operating income for the three months ended June 30, 2025 was
$51.8 million $9.1 million 21.2% , as compared to$42.7 million 20.9% and18.8% , respectively. The second quarter operating income and operating margin was positively impacted on a year over year basis 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 which had the effect of reducing operating expenses and revenue per student and$1.1 million - Income tax expense for the three months ended June 30, 2025 was
$13.5 million $1.5 million 12.7% , as compared to income tax expense of$12.0 million 24.5% during the second quarter of 2025 compared to25.5% during the second quarter of 2024. The effective tax rate decreased year over year primarily due to changes in state income taxes. - Net income for the three months ended June 30, 2025 was
$41.5 million $6.6 million 19.1% as compared to$34.9 million $43.2 million $37.3 million - Diluted net income per share was
$1.48 $1.19 $1.53 $1.27 - Adjusted EBITDA increased
15.2% to$67.4 million $58.5 million
For the six months ended June 30, 2025:
- Service revenue for the six months ended June 30, 2025 was
$536.8 million $34.7 million 6.9% , as compared to service revenue of$502.1 million 10.3% to 117,283 at June 30, 2025 as compared to 106,307 at June 30, 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 - Operating income for the six months ended June 30, 2025 was
$139.8 million $12.6 million 9.9% , as compared to$127.2 million 26.0% and25.3% , respectively. The operating income and operating margin for the six months ended June 30, 2025 were positively impacted 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 which had the effect of reducing operating expenses and revenue per student and$1.1 million $1.5 million - Income tax expense for the six months ended June 30, 2025 was
$33.3 million $1.2 million 3.5% , as compared to income tax expense of$32.1 million 22.7% during the six months ended June 30, 2025 compared to23.8% during the six months ended June 30, 2024. The effective tax rate decreased year over year primarily due to an increase in excess tax benefits to$2.7 million $1.5 million - Net income for the six months ended June 30, 2025 was
$113.2 million $10.3 million 10.0% as compared to$102.9 million $116.5 million $107.0 million - Diluted net income per share was
$4.00 $3.48 $4.12 $3.62 - Adjusted EBITDA increased
7.8% to$169.4 million $157.1 million
Liquidity and Capital Resources
Our liquidity position, as measured by cash and cash equivalents and investments increased by
Grand Canyon Education, Inc. Reports Second Quarter 2025 Results and Full Year Outlook 2025
2025 Outlook
Q3 2025:
- Service revenue of between
$258.5 million $260.5 million - Operating margin of between
21.8% and22.2% ; - Effective tax rate of
20.6% ; - Diluted EPS of between
$1.69 $1.74 - 27.9 million diluted shares.
The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
Q4 2025:
- Service revenue of between
$305.0 million $310.0 million - Operating margin of between
35.1% and35.8% ; - Effective tax rate of
22.8% ; - Diluted EPS of between
$3.07 $3.18 - 27.7 million diluted shares.
The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
Full Year 2025:
- Service revenue of between
$1,100.3 million $1,107.3 million - Operating margin of between
27.5% and27.9% ; - Effective tax rate of
22.3% ; - Diluted EPS between
$8.75 $8.90 - 28.0 million diluted shares.
The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of
Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Federal securities laws which includes 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, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on February 19, 2025.
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 Second Quarter 2025 Results
Conference Call
Grand Canyon Education, Inc. will discuss its second quarter 2025 results and full year 2025 outlook during a conference call scheduled for today, August 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: Q2 2025 Grand Canyon Education Inc. Earnings Conference Call. A 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 20 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,
Grand Canyon Education, Inc. Reports Second Quarter 2025 Results
GRAND CANYON EDUCATION, INC. | ||||||||||||
Consolidated Income Statements | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
(In thousands, except per share data) | ||||||||||||
Service revenue | $ | 247,499 | $ | 227,463 | $ | 536,809 | $ | 502,138 | ||||
Costs and expenses: | ||||||||||||
Technology and academic services | 43,134 | 41,001 | 84,798 | 80,126 | ||||||||
Counseling services and support | 83,023 | 78,107 | 169,845 | 160,991 | ||||||||
Marketing and communication | 56,037 | 52,895 | 116,367 | 108,248 | ||||||||
General and administrative | 11,411 | 10,636 | 21,777 | 21,366 | ||||||||
Amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 | ||||||||
Total costs and expenses | 195,710 | 184,744 | 396,997 | 374,941 | ||||||||
Operating income | 51,789 | 42,719 | 139,812 | 127,197 | ||||||||
Interest expense | — | (2) | — | (4) | ||||||||
Investment interest and other | 3,226 | 4,112 | 6,607 | 7,841 | ||||||||
Income before income taxes | 55,015 | 46,829 | 146,419 | 135,034 | ||||||||
Income tax expense | 13,469 | 11,951 | 33,255 | 32,146 | ||||||||
Net income | $ | 41,546 | $ | 34,878 | $ | 113,164 | $ | 102,888 | ||||
Earnings per share: | ||||||||||||
Basic income per share | $ | 1.48 | $ | 1.19 | $ | 4.02 | $ | 3.50 | ||||
Diluted income per share | $ | 1.48 | $ | 1.19 | $ | 4.00 | $ | 3.48 | ||||
Basic weighted average shares outstanding | 27,996 | 29,285 | 28,136 | 29,372 | ||||||||
Diluted weighted average shares outstanding | 28,134 | 29,415 | 28,301 | 29,527 | ||||||||
Grand Canyon Education, Inc. Reports Second Quarter 2025 Results
GRAND CANYON EDUCATION, INC. | ||||||
Consolidated Balance Sheets | ||||||
As of June 30, | As of December 31, | |||||
(In thousands, except par value) | 2025 | 2024 | ||||
ASSETS: | (Unaudited) | |||||
Current assets | ||||||
Cash and cash equivalents | $ | 192,278 | $ | 324,623 | ||
Investments | 181,621 | — | ||||
Accounts receivable, net | 27,699 | 82,948 | ||||
Income taxes receivable | 6,665 | 490 | ||||
Other current assets | 14,218 | 11,915 | ||||
Total current assets | 422,481 | 419,976 | ||||
Property and equipment, net | 179,384 | 176,823 | ||||
Right-of-use assets | 98,477 | 99,541 | ||||
Amortizable intangible assets, net | 155,752 | 159,962 | ||||
Goodwill | 160,766 | 160,766 | ||||
Other assets | 4,147 | 1,357 | ||||
Total assets | $ | 1,021,007 | $ | 1,018,425 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
Current liabilities | ||||||
Accounts payable | $ | 24,353 | $ | 26,721 | ||
Accrued compensation and benefits | 32,789 | 33,183 | ||||
Accrued liabilities | 34,009 | 29,620 | ||||
Income taxes payable | 112 | 8,559 | ||||
Deferred revenue | 14,150 | — | ||||
Current portion of lease liability | 13,577 | 12,883 | ||||
Total current liabilities | 118,990 | 110,966 | ||||
Deferred income taxes, noncurrent | 28,235 | 26,527 | ||||
Other long-term liabilities | 1,550 | 1,444 | ||||
Lease liability, less current portion | 94,256 | 95,635 | ||||
Total liabilities | 243,031 | 234,572 | ||||
Commitments and contingencies | ||||||
Stockholders' equity | ||||||
Preferred stock, | — | — | ||||
Common stock, | 542 | 541 | ||||
Treasury stock, at cost, 25,944 and 25,232 shares of common stock at June 30, 2025 and | (2,150,693) | (2,024,370) | ||||
Additional paid-in capital | 343,852 | 336,736 | ||||
Accumulated other comprehensive gain | 165 | — | ||||
Retained earnings | 2,584,110 | 2,470,946 | ||||
Total stockholders' equity | 777,976 | 783,853 | ||||
Total liabilities and stockholders' equity | $ | 1,021,007 | $ | 1,018,425 | ||
Grand Canyon Education, Inc. Reports Second Quarter 2025 Results
GRAND CANYON EDUCATION, INC. | ||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||
Six Months Ended | ||||||
June 30, | ||||||
(In thousands) | 2025 | 2024 | ||||
Cash flows provided by operating activities: | ||||||
Net income | $ | 113,164 | $ | 102,888 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Share-based compensation | 7,117 | 7,479 | ||||
Depreciation and amortization | 15,260 | 13,581 | ||||
Amortization of intangible assets | 4,210 | 4,210 | ||||
Deferred income taxes | 1,657 | 266 | ||||
Other, including fixed asset disposals | (602) | (457) | ||||
Changes in assets and liabilities: | ||||||
Accounts receivable from university partners | 55,249 | 49,357 | ||||
Other assets | (4,732) | (749) | ||||
Right-of-use assets and lease liabilities | 379 | 759 | ||||
Accounts payable | (2,605) | 4,986 | ||||
Accrued liabilities | 3,014 | 8,334 | ||||
Income taxes receivable/payable | (14,622) | (14,344) | ||||
Deferred revenue | 14,150 | 7,216 | ||||
Net cash provided by operating activities | 191,639 | 183,526 | ||||
Cash flows used in investing activities: | ||||||
Capital expenditures | (17,561) | (17,933) | ||||
Additions of amortizable content | (28) | (170) | ||||
Purchase of equity investment | (1,000) | — | ||||
Loss on equity investment | 500 | — | ||||
Purchases of investments | (191,666) | (48,594) | ||||
Proceeds from sale or maturity of investments | 11,007 | 46,708 | ||||
Net cash used in investing activities | (198,748) | (19,989) | ||||
Cash flows used in financing activities: | ||||||
Repurchase of common shares and shares withheld in lieu of income taxes | (125,236) | (68,695) | ||||
Net cash used in financing activities | (125,236) | (68,695) | ||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (132,345) | 94,842 | ||||
Cash and cash equivalents and restricted cash, beginning of period | 324,623 | 146,475 | ||||
Cash and cash equivalents and restricted cash, end of period | $ | 192,278 | $ | 241,317 | ||
Supplemental disclosure of cash flow information | ||||||
Cash paid for interest | $ | — | $ | 4 | ||
Cash paid for income taxes | $ | 44,476 | $ | 44,220 | ||
Supplemental disclosure of non-cash investing and financing activities | ||||||
Purchases of property and equipment included in accounts payable | $ | 1,302 | $ | 1,713 | ||
ROU Asset and Liability recognition | $ | — | $ | 9,439 | ||
Excise tax on treasury stock repurchases | $ | 1,087 | $ | 422 | ||
Grand Canyon Education, Inc. Reports Second 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
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 | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
(Unaudited, in thousands) | (Unaudited, in thousands) | |||||||||||
Net income | $ | 41,546 | $ | 34,878 | $ | 113,164 | $ | 102,888 | ||||
Plus: interest expense | — | 2 | — | 4 | ||||||||
Less: investment interest and other | (3,226) | (4,112) | (6,607) | (7,841) | ||||||||
Plus: income tax expense | 13,469 | 11,951 | 33,255 | 32,146 | ||||||||
Plus: amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 | ||||||||
Plus: depreciation and amortization | 7,809 | 6,928 | 15,260 | 13,581 | ||||||||
EBITDA | 61,703 | 51,752 | 159,282 | 144,988 | ||||||||
Plus: share-based compensation | 3,487 | 3,996 | 7,117 | 7,479 | ||||||||
Plus: litigation and regulatory costs | 2,159 | 1,601 | 2,902 | 3,471 | ||||||||
Plus: severance costs | — | 1,133 | — | 1,133 | ||||||||
Plus: loss on fixed asset disposal | 62 | 44 | 78 | 44 | ||||||||
Adjusted EBITDA | $ | 67,411 | $ | 58,526 | $ | 169,379 | $ | 157,115 | ||||
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, severance costs 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 and six months ended June 30, 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 | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
(Unaudited, in thousands except per share data) | ||||||||||||
GAAP Net income | $ | 41,546 | $ | 34,878 | $ | 113,164 | $ | 102,888 | ||||
Amortization of intangible assets | 2,105 | 2,105 | 4,210 | 4,210 | ||||||||
Severance costs | — | 1,133 | — | 1,133 | ||||||||
Loss on disposal of fixed assets | 62 | 44 | 78 | 44 | ||||||||
Income tax effects of adjustments(1) | (531) | (837) | (974) | (1,282) | ||||||||
As Adjusted, Non-GAAP Net income | $ | 43,182 | $ | 37,323 | $ | 116,478 | $ | 106,993 | ||||
GAAP Diluted income per share | $ | 1.48 | $ | 1.19 | $ | 4.00 | $ | 3.48 | ||||
Amortization of intangible assets (2) | 0.05 | 0.05 | 0.11 | 0.11 | ||||||||
Severance costs (3) | — | 0.03 | — | 0.03 | ||||||||
Loss on disposal of fixed assets (4) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||
As Adjusted, Non-GAAP Diluted income per share | $ | 1.53 | $ | 1.27 | $ | 4.12 | $ | 3.62 | ||||
(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 |
(3) | The severance costs per diluted share is net of an income tax benefit of |
(4) | The loss on disposal of fixed assets per diluted share is net of an income tax benefit of nil for both of the three months ended June 30, 2025 and 2024 and nil for both of the six months ended June 30, 2025 and 2024. |
Investor Relations Contact:
Daniel E. Bachus
Chief Financial Officer
Grand Canyon Education, Inc.
602-639-6648
Dan.bachus@gce.com
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SOURCE Grand Canyon Education, Inc.
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