GRAND CANYON EDUCATION, INC. REPORTS THIRD QUARTER 2026 RESULTS

Quarterly GAAP earnings increased while adjusted net income and adjusted operating margin declined year over year.

Rhea-AI Summary

Grand Canyon Education (NASDAQ: LOPE) reported third-quarter 2026 service revenue of $267.3 million, up 2.4% from the same quarter last year. Net income rose to $43.0 million from $16.3 million, and diluted earnings per share increased to $1.67 from $0.58. Operating margin reached 19.3%, versus 6.9%. Adjusted net income fell to $45.6 million from $49.7 million.

University partner enrollment increased 5.2% to 145,270. A semester-calendar change shifted $7.5 million of revenue from the third quarter to the fourth quarter. Cash and investments totaled $162.1 million at September 30, down from $300.1 million at year-end. The board added $355.0 million to the buyback authorization, leaving $394.5 million available as of November 2. For full-year 2026, the company forecasts revenue of $1,160.7 million–$1,161.7 million and diluted earnings per share of $9.81–$9.85.

23 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 service revenue increased 2.4% year over year to $267.3 million.
• Moderate pointQ3 operating income rose 185.6% to $51.5 million; operating margin increased to 19.3% from 6.9%.
• Moderate pointQ3 net income increased 164.3% year over year to $43.0 million.
• Moderate pointUniversity partner enrollment increased 5.2% year over year to 145,270 at September 30, 2026.
• Moderate pointNine-month adjusted EBITDA, an adjusted earnings measure, increased 5.0% year over year to $257.5 million.
• Moderate pointBuyback authorization increased $355.0 million; $394.5 million remained available November 2, with authorization expiring March 1, 2028.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue outlook is $1,160.7 million–$1,161.7 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 operating margin outlook is 27.6%–27.7%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 diluted EPS outlook is $9.81–$9.85; adjusted earnings per share are expected at $10.09–$10.13.

14 minor points

• Minor pointQ3 diluted earnings per share rose to $1.67 from $0.58 a year earlier.
• Minor pointOff-campus classroom and laboratory enrollment increased 12.6% to 7,780; growth excluding closed or teach-out sites was 14.1%.
• Minor pointQ3 effective tax rate declined to 20.0% from 24.9% a year earlier.
• Minor pointNine-month service revenue increased 5.3% year over year to $840.2 million.
• Minor pointNine-month operating income rose 29.9% to $205.1 million; operating margin increased to 24.4% from 19.8%.
• Minor pointNine-month adjusted operating income rose to $212.5 million from $202.3 million, while adjusted margin slipped to 25.3% from 25.4%.
• Minor pointNine-month net income increased 26.9% year over year to $164.2 million.
• Minor pointNine-month diluted earnings per share increased to $6.25 from $4.60 a year earlier.
• Minor pointNine-month adjusted net income increased to $170.0 million from $166.1 million a year earlier.
• Minor pointNine-month adjusted diluted earnings per share increased to $6.47 from $5.90 a year earlier.
• Minor pointNine-month effective tax rate edged down to 22.9% from 23.0% a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 revenue outlook is $320.5 million–$321.5 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 operating margin outlook is 36.0%–36.2%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Q4 diluted EPS outlook is $3.57–$3.61; adjusted earnings per share are expected at $3.63–$3.67.

Negative

• Moderate pointQ3 adjusted operating income fell to $54.7 million from $58.2 million; adjusted margin fell to 20.5% from 22.3%.
• Moderate pointCash and investments fell to $162.1 million at September 30, 2026, from $300.1 million at December 31, 2025.
• Minor pointQ3 adjusted net income declined to $45.6 million from $49.7 million a year earlier.
• Minor pointQ3 adjusted diluted earnings per share declined to $1.77 from $1.78 a year earlier.
• Minor pointQ3 adjusted EBITDA, an adjusted earnings measure, decreased 3.2% year over year to $73.5 million.

6 minor points

• Minor pointRepurchases and capital expenditures exceeded operating cash generation during the first nine months of 2026.
• Minor pointSemester-calendar timing shifted $7.5 million of revenue from Q3 to Q4 2026, reducing Q3 revenue per student.
• Minor pointOnline revenue per student declined slightly year over year as enrollment shifted toward students with lower net tuition rates.
• Minor pointQ3 income tax expense increased 99.5% year over year to $10.7 million.
• Minor pointNine-month income tax expense increased 26.5% year over year to $48.9 million.
• Minor pointNine-month excess tax benefits declined to $1.4 million from $2.7 million a year earlier.

News Explained

The added authorization permits, but does not require, GCE to repurchase shares: any purchases may be open-market or privately negotiated, are subject to market conditions and other investment opportunities, and the plan may be suspended or discontinued.

Key Figures

Q3 service revenue: $267.3 million, up 2.4% Q3 operating income: $51.5 million, up 185.6% Q3 net income: $43.0 million, up 164.3% +5 more

Q3 service revenue

$267.3 million, up 2.4%

Three months ended September 30, 2026, year over year

Q3 operating income

$51.5 million, up 185.6%

Three months ended September 30, 2026, compared with $18.0 million in 2025

Q3 net income

$43.0 million, up 164.3%

Three months ended September 30, 2026, compared with $16.3 million in 2025

Adjusted diluted EPS

$1.77 vs. $1.78

Third quarters of 2026 and 2025

Adjusted EBITDA

$73.5 million, down 3.2%

Third quarter 2026 compared with the same period in 2025

Full-year service revenue guidance

$1,160.7 million–$1,161.7 million

Full year 2026

Full-year diluted EPS guidance

$9.81–$9.85

Full year 2026

Repurchase authorization increase

$355.0 million

Approved October 28, 2026, under the existing stock repurchase program

Previous Earnings Reports

2 past events · Latest: Jul 30

Same Type 2 events

1. Jul 30

   Q2 earnings

   24h Move

   -3.2%

   Q2 service revenue and enrollments grew, with operating income and net income also higher.

2. Nov 05

   Q3 earnings

   24h Move

   -6.3%

   Prior-year quarter's $35.0 million litigation settlement depressed reported operating income, affecting this year's comparison.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

diluted eps, non-gaap, amortization of intangible assets

3 terms

diluted eps financial

"Diluted EPS of between $3.57 and $3.61"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

non-gaap financial

"as adjusted, non-GAAP diluted income per share of between $3.63 and $3.67"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

amortization of intangible assets financial

"includes non-cash amortization of intangible assets net of taxes"

Amortization of intangible assets is the accounting practice of spreading the purchase cost of non-physical items—like patents, trademarks, or customer lists—over their expected useful life. Investors care because this non-cash charge reduces reported profits and book value over time, affecting earnings trends and valuation, even though it does not immediately change the company’s cash; think of it as paying off a large one-time purchase in small, regular amounts on the books.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PHOENIX, Nov. 4, 2026 /PRNewswire/ -- Grand Canyon Education, Inc. (NASDAQ: LOPE), ("GCE" or the "Company"), is a publicly traded education services company that currently provides services to 20 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 September 30, 2026.

Grand Canyon Education, Inc. Reports Third Quarter 2026 Results

For the three months ended September 30, 2026:

• Service revenue for the three months ended September 30, 2026 was $267.3 million, an increase of $6.2 million, or 2.4%, as compared to service revenue of $261.1 million for the three months ended September 30, 2025.  The increase year over year in service revenue was primarily due to an increase in university partner enrollments of 5.2% to 145,270 at September 30, 2026 as compared to 138,073 at September 30, 2025.  Revenue from GCU, our largest university partner, for the three months ended September 30, 2026, was earned on tuition and academic-related fees under the Amended MSA, whereas revenue for the three months ended September 30, 2025, was earned under the Original MSA and included, in addition to tuition and academic-related fees, the agreed percentage of ancillary fees related to student housing, food service, athletic ticket sales, arena events, hotel, golf course and apparel operations.  Revenue per student slightly decreased between years primarily due to six fewer days of revenue for ground traditional students based on the start date of the Fall semester, resulting in a shift of revenue from the third quarter to the fourth quarter in 2026 which had a $7.5 million impact.  Also, we saw 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 offset by 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 139,170 at September 30, 2026, an increase of 5.1% over enrollments at September 30, 2025. University partner enrollments at our off-campus classroom and laboratory sites were 7,780, an increase of 12.6% over enrollments at September 30, 2025, which includes 1,680 and 1,325 GCU students at September 30, 2026, and 2025, respectively.  Excluding sites that have been closed or are in teach out, total enrollments at our off-campus classroom and laboratory sites increased 14.1% between years.  We opened two new sites in the nine months ended September 30, 2026 and closed one site in which we stopped recruiting new students in 2025, thus the total number of sites were 48 at September 30, 2026.  Enrollments for GCU ground students were 23,650 at September 30, 2026, down 4.1% from 24,671 at September 30, 2025.  GCU online enrollments were 115,520 at September 30, 2026, up from 107,815 at September 30, 2025, an increase of 7.1% between years.
  
  
• Operating income for the three months ended September 30, 2026 was $51.5 million, an increase of $33.5 million, or 185.6%, as compared to $18.0 million for the same period in 2025.  The operating margin for the three months ended September 30, 2026 and 2025 was 19.3% and 6.9%, respectively.  Operating income and operating margin excluding amortization, non-recurring costs and fixed asset disposals for the three months ended September 30, 2026 was $54.7 million and 20.5%, respectively.  Operating income and operating margin excluding amortization, litigation settlement, lease termination, impairment and other, severance and fixed asset disposals for the three months ended September 30, 2025 was $58.2 million and 22.3%, respectively.
  
  
• Income tax expense for the three months ended September 30, 2026 was $10.7 million, an increase of $5.3 million, or 99.5%, as compared to income tax expense of $5.4 million for the three months ended September 30, 2025.  Our effective tax rate was 20.0% during the three months ended September 30, 2026 compared to 24.9% during the three months ended September 30, 2025.  The increase in income tax expense is due to the increase in income before taxes due to the litigation settlement in the third quarter of 2025, partially offset by a lower effective tax rate.  The effective tax rate was favorably impacted by contributions in lieu of state income taxes of $5.0 million for both of the third quarters in 2026 and 2025. The higher effective tax rate in the third quarter of 2025 was due to the nondeductibility of the penalties associated with the litigation settlement.  

• Net income for the three months ended September 30, 2026 was $43.0 million, an increase of $26.7 million, or 164.3% as compared to $16.3 million for the same period in 2025.  As adjusted net income was $45.6 million and $49.7 million for the third quarters of 2026 and 2025, respectively.
  
  
• Diluted net income per share was $1.67 and $0.58 for the third quarters of 2026 and 2025, respectively.  As adjusted diluted net income per share was $1.77 and $1.78 for the third quarters of 2026 and 2025, respectively.
  
  
• Adjusted EBITDA decreased 3.2% to $73.5 million for the third quarter of 2026, compared to $75.9 million for the same period in 2025.

For the nine months ended September 30, 2026:

• Service revenue for the nine months ended September 30, 2026 was $840.2 million, an increase of $42.2 million, or 5.3%, as compared to service revenue of $798.0 million for the nine months ended September 30, 2025.  The increase year over year in service revenue was primarily due to an increase in university partner enrollments of 5.2% to 145,270 at September 30, 2026 as compared to 138,073 at September 30, 2025.  Revenue from GCU, our largest university partner, for the nine months ended September 30, 2026 includes revenue for the 3 months ended September 30, 2026 earned under the Amended MSA including only tuition and academic-related fees plus revenue for the six months ended June 30, 2026 earned under the Original MSA including, in addition to tuition and academic-related fees, the agreed percentage of ancillary fees related to student housing, food service, athletic ticket sales, arena events, hotel, golf course and apparel operations. By contrast, service revenue for the nine months ended September 30, 2025 was entirely earned under the Original MSA. Revenue per student stayed flat between years primarily due to the service revenue per student for 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.  This increase was offset by six fewer days of revenue for ground traditional students based on the start date of the Fall semester, resulting in a shift of revenue from the third quarter to the fourth quarter in 2026 which had a $7.5 million impact.  We also experienced 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.     
  
  
• Operating income for the nine months ended September 30, 2026 was $205.1 million, an increase of $47.3 million, or 29.9%, as compared to $157.8 million for the same period in 2025.  The operating margin for the nine months ended September 30, 2026 and 2025 was 24.4% and 19.8%, respectively.  Operating income and operating margin excluding amortization, non-recurring costs and fixed asset disposals for the nine months ended September 30, 2026 was $212.5 million and 25.3%, respectively.  Operating income and operating margin excluding amortization, litigation settlement, lease termination, impairment and other, severance and fixed asset disposals for the nine months ended September 30, 2025 was $202.3 million and 25.4%, respectively.
  
  
• Income tax expense for the nine months ended September 30, 2026 was $48.9 million, an increase of $10.3 million, or 26.5%, as compared to income tax expense of $38.6 million for the nine months ended September 30, 2025.  Our effective tax rate was 22.9% during the nine months ended September 30, 2026 compared to 23.0% during the nine months ended September 30, 2025.  The effective tax rate for both of the nine months ended September 30, 2026 and 2025 was favorably impacted by the contribution in lieu of state income taxes of $5.0 million.  The effective tax rate stayed relatively flat year over year due to changes in state income taxes, an increase in taxable income and a decrease in excess tax benefits to $1.4 million in the nine months ended September 30, 2026 due to the decline in our stock price as compared to $2.7 million in the nine months ended September 30, 2025.  The inclusion of excess tax benefits and deficiencies as a component of our income tax expense increases the volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the restricted stock awards vest.  Our restricted stock awards vest in March each year so any benefit or expense will primarily impact the first quarter each year. 

• Net income for the nine months ended September 30, 2026 was $164.2 million, an increase of $34.8 million, or 26.9% as compared to $129.4 million for the same period in 2025.  As adjusted net income was $170.0 million and $166.1 million for the nine months ended September 30, 2026 and 2025, respectively.
  
  
• Diluted net income per share was $6.25 and $4.60 for the nine months ended September 30, 2026 and 2025, respectively.  As adjusted diluted net income per share was $6.47 and $5.90 for the nine months ended September 30, 2026 and 2025, respectively.
  
  
• Adjusted EBITDA increased 5.0% to $257.5 million for the nine months ended September 30, 2026, compared to $245.3 million for the same period in 2025.

Liquidity and Capital Resources

Our liquidity position, as measured by cash and cash equivalents and investments decreased by $137.9 million between December 31, 2025 and September 30, 2026, which was largely attributable to cash expended for share repurchases and capital expenditures exceeding our cash provided by operations during the nine months ended September 30, 2026.  Our unrestricted cash and cash equivalents and investments were $162.1 million and $300.1 million at September 30, 2026 and December 31, 2025, respectively.

Share Repurchase Plan

GCE announced today that on October 28, 2026, the Company's Board of Directors approved a $355.0 million increase under its existing stock repurchase program, reflecting an aggregate authorization for share repurchases by the Company since the initiation of the program of $2.9 billion.  The current expiration date on the repurchase authorization by the Board of Directors is March 1, 2028.  As of November 2, 2026, there remained $394.5 million available under the current share repurchase authorization, which includes the increased authorization of $355.0 million.  As of November 2, 2026, the Company had 25,510,517 shares of common stock outstanding.  The plan permits the Company to make purchases in the open market at prevailing market prices or in privately negotiated transactions in compliance with applicable securities laws and other legal requirements.  The level of purchase activity is subject to market conditions and other investment opportunities.  The plan does not obligate GCE to acquire any particular amount of common stock and may be suspended or discontinued at any time.  The repurchase program may be funded using the Company's available cash, investments, positive operating cash flows and revolving line of credit.

Grand Canyon Education, Inc. Reports Third Quarter 2026 Results and Full Year Outlook 2026

Q4 2026:

• Service revenue of between $320.5 million and $321.5 million;
• Operating margin of between 36.0% and 36.2%;
• Effective tax rate of 23.0%;
• Diluted EPS of between $3.57 and $3.61; and
• 25.3 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 $3.63 and $3.67.

Full Year 2026:

• Service revenue of between $1,160.7 million and $1,161.7 million;
• Operating margin of between 27.6% and 27.7%;
• Effective tax rate of 23.0%;
• Diluted EPS between $9.81 and $9.85; and
• 26.0 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.5 million, non-recurring costs net of taxes of $0.8 million, and loss on disposal of fixed assets net of taxes of nil, which equates to a $0.28 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $10.09 and $10.13.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of federal securities laws including 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, 2025, filed on February 18, 2026.

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 Third Quarter 2026 Results

Conference Call

Grand Canyon Education, Inc. will discuss its third quarter 2026 results and full year 2026 outlook during a conference call scheduled for today, November 4, 2026 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: Q3 2026 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, Phoenix, AZ 85017, www.gce.com.

Grand Canyon Education, Inc. Reports Third Quarter 2026 Results

GRAND CANYON EDUCATION, INC. Consolidated Income Statements (Unaudited)
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
(In thousands, except per share data)
Service revenue		$	267,346		$	261,142		$	840,151		$	797,951
Costs and expenses:
Technology and academic services			43,060			44,908			133,735			129,706
Counseling services and support			88,343			84,405			268,272			254,250
Marketing and communication			65,453			59,145			189,403			175,512
General and administrative			16,919			15,149			37,347			36,926
Litigation settlement			—			35,000			—			35,000
Lease termination, impairment and other			—			2,411			—			2,411
Amortization of intangible assets			2,105			2,105			6,315			6,315
Total costs and expenses			215,880			243,123			635,072			640,120
Operating income			51,466			18,019			205,079			157,831
Investment interest and other			2,289			3,637			8,012			10,244
Income before income taxes			53,755			21,656			213,091			168,075
Income tax expense			10,742			5,382			48,878			38,637
Net income		$	43,013		$	16,274		$	164,213		$	129,438
Earnings per share:
Basic income per share		$	1.67		$	0.59		$	6.27		$	4.62
Diluted income per share		$	1.67		$	0.58		$	6.25		$	4.60
Basic weighted average shares outstanding			25,698			27,740			26,197			28,002
Diluted weighted average shares outstanding			25,771			27,897			26,283			28,165

Grand Canyon Education, Inc. Reports Third Quarter 2026 Results

GRAND CANYON EDUCATION, INC. Consolidated Balance Sheets
		As of September 30,			As of December 31,
(In thousands, except par value)		2026			2025
ASSETS:			(Unaudited)
Current assets
Cash and cash equivalents		$	58,760		$	111,762
Investments			103,382			188,317
Accounts receivable, net			114,470			84,278
Income taxes receivable			8,703			2,392
Other current assets			12,400			13,430
Total current assets			297,715			400,179
Property and equipment, net			183,224			178,957
Right-of-use assets			103,671			96,571
Amortizable intangible assets, net			145,228			151,543
Goodwill			160,766			160,766
Other assets			3,887			4,289
Total assets		$	894,491		$	992,305
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities
Accounts payable		$	18,816		$	24,347
Accrued compensation and benefits			29,816			35,199
Accrued liabilities			41,840			32,283
Income taxes payable			68			3,355
Deferred revenue			6,945			—
Current portion of lease liability			15,253			14,568
Total current liabilities			112,738			109,752
Deferred income taxes, noncurrent			42,320			41,426
Other long-term liabilities			1,273			1,439
Lease liability, less current portion			98,758			92,755
Total liabilities			255,089			245,372
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at September 30, 2026 and December 31, 2025			—			—
Common stock, $0.01 par value, 100,000 shares authorized; 54,265 and 54,178 shares issued and 25,726 and 27,393 shares outstanding at September 30, 2026 and December 31, 2025, respectively			543			542
Treasury stock, at cost, 28,539 and 26,785 shares of common stock at September 30, 2026 and December 31, 2025, respectively			(2,572,525)			(2,291,610)
Additional paid-in capital			360,818			350,374
Accumulated other comprehensive (loss) gain			(763)			511
Retained earnings			2,851,329			2,687,116
Total stockholders' equity			639,402			746,933
Total liabilities and stockholders' equity		$	894,491		$	992,305

Grand Canyon Education, Inc. Reports Third Quarter 2026 Results

GRAND CANYON EDUCATION, INC. Consolidated Statements of Cash Flows (Unaudited)
		Nine Months Ended
		September 30,
(In thousands)		2026			2025
Cash flows provided by operating activities:
Net income		$	164,213		$	129,438
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation			10,445			10,411
Depreciation and amortization			25,804			23,323
Amortization of intangible assets			6,315			6,315
Deferred income taxes			1,291			13,497
Litigation settlement			—			35,000
Lease termination, impairment and other			—			2,411
Other, including fixed asset disposals			48			(444)
Changes in assets and liabilities:
Accounts receivable			(30,192)			(39,093)
Other assets			1,682			(3,218)
Right-of-use assets and lease liabilities			(412)			576
Accounts payable			(6,372)			(8,477)
Accrued liabilities			1,420			70
Income taxes receivable/payable			(9,598)			(30,604)
Deferred revenue			6,945			3,801
Net cash provided by operating activities			171,589			143,006
Cash flows provided by (used in) investing activities:
Capital expenditures			(29,608)			(27,225)
Additions of amortizable content			(186)			(47)
Purchase of equity investment			—			(1,000)
Loss on equity investment			100			500
Purchases of investments			(57,352)			(224,715)
Proceeds from sale or maturity of investments			141,134			46,872
Net cash provided by (used in) investing activities			54,088			(205,615)
Cash flows used in financing activities:
Repurchase of common shares and shares withheld in lieu of income taxes			(278,327)			(164,730)
Revolving Credit Facility issuance costs			(352)			—
Net cash used in financing activities			(278,679)			(164,730)
Net decrease in cash and cash equivalents and restricted cash			(53,002)			(227,339)
Cash and cash equivalents and restricted cash, beginning of period			111,762			324,623
Cash and cash equivalents and restricted cash, end of period		$	58,760		$	97,284
Supplemental disclosure of cash flow information
Cash paid for interest		$	—		$	—
Cash paid for income taxes		$	53,929		$	53,748
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment included in accounts payable		$	1,676		$	798
ROU Asset and Liability recognition		$	7,100		$	330
Excise tax on treasury stock repurchases		$	2,588		$	1,482

Grand Canyon Education, Inc. Reports Third Quarter 2026 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 costs, non-recurring costs, 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						Nine Months Ended
		September 30,						September 30,
		2026			2025			2026			2025
		(Unaudited, in thousands)							(Unaudited, in thousands)
Net income		$	43,013		$	16,274		$	164,213		$	129,438
Less: investment interest and other			(2,289)			(3,637)			(8,012)			(10,244)
Plus: income tax expense			10,742			5,382			48,878			38,637
Plus: amortization of intangible assets			2,105			2,105			6,315			6,315
Plus: depreciation and amortization			8,776			8,063			25,804			23,323
EBITDA			62,347			28,187			237,198			187,469
Plus: contributions in lieu of state income taxes			5,000			5,000			5,000			5,000
Plus: share-based compensation			3,391			3,293			10,445			10,411
Plus: litigation and regulatory costs			1,622			36,318			3,764			39,220
Plus: non-recurring costs			1,095			—			1,095			—
Plus: lease termination, impairment and other			—			2,411			—			2,411
Plus: severance costs			—			299			—			299
Plus: loss on fixed asset disposal			12			392			46			470
Adjusted EBITDA		$	73,467		$	75,900		$	257,548		$	245,280

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, litigation settlement, non-recurring costs, lease termination, impairment and other costs, 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 nine months ended September 30, 2026 and 2025, the table below provides reconciliations of these non-GAAP items to GAAP net income and GAAP diluted income per share, respectively:

		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2026			2025			2026			2025
	(Unaudited, in thousands except per share data)
GAAP Net income		$	43,013		$	16,274		$	164,213		$	129,438
Plus: Amortization of intangible assets			2,105			2,105			6,315			6,315
Plus: Non-recurring costs			1,095			—			1,095			—
Plus: Litigation settlement			—			35,000			—			35,000
Plus: Lease termination, impairment and other			—			2,411			—			2,411
Plus: Severance costs			—			299			—			299
Plus: Loss on disposal of fixed assets			12			392			46			470
Less: Income tax effects of adjustments (1)			(642)			(6,796)			(1,710)			(7,848)
As Adjusted, Non-GAAP Net income		$	45,583		$	49,685		$	169,959		$	166,085
GAAP Diluted income per share		$	1.67		$	0.58		$	6.25		$	4.60
Plus: Amortization of intangible assets (2)			0.07			0.06			0.19			0.17
Plus: Non-recurring costs (3)			0.03			-			0.03			-
Plus: Litigation settlement (4)			-			1.05			-			1.05
Plus: Lease termination, impairment and other (5)			-			0.07			-			0.06
Plus: Severance costs (6)			-			0.01			-			0.01
Plus: Loss on disposal of fixed assets (7)			0.00			0.01			0.00			0.01
As Adjusted, Non-GAAP Diluted income per share		$	1.77		$	1.78		$	6.47		$	5.90

(1)	The income tax effects of adjustments are based on the effective income tax rate applicable to adjusted (non-GAAP) results.  The tax effect for the reserve for litigation was 16.49% for both the three and nine months ended September 30, 2025, due to non-deductible components.
(2)	The amortization of acquired intangible assets per diluted share is net of an income tax benefit of $0.02 and $0.01 for the three months ended September 30, 2026 and 2025, respectively, and net of an income tax benefit of $0.06 and $0.05 for the nine months ended September 30, 2026 and 2025, respectively.
(3)	The non-recurring costs per diluted shares is net of an income tax benefit of $0.01 for both the three and nine months ended September 30, 2026.
(4)	The litigation settlement per diluted share is net of an income tax benefit of $0.21 and $0.20 for the three and nine months ended September 30, 2025, respectively.
(5)	The lease termination, impairment and other per diluted share is net of an income tax benefit of $0.02 for both the three and nine months ended September 30, 2025.
(6)	The severance costs per diluted share is net of an income tax benefit of nil for the three and nine months ended September 30, 2025, respectively.
(7)	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 September 30, 2026 and 2025 and nil for both of the nine months ended September 30, 2026 and 2025.

Contact:
Lori Browning
Interim Chief Financial Officer
Grand Canyon Education, Inc.
602-639-6622
Lori.Browning@gce.com 

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SOURCE Grand Canyon Education, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Grand Canyon Education's third-quarter 2026 earnings?

Grand Canyon Education earned $43.0 million, or $1.67 per diluted share, in the third quarter of 2026, compared with $16.3 million and $0.58 a year earlier. Adjusted net income was $45.6 million, or $1.77 per diluted share, versus $49.7 million and $1.78 a year earlier.

How much did Grand Canyon Education increase its share buyback authorization?

The board approved a $355.0 million increase on October 28, 2026. As of November 2, $394.5 million remained available, including that increase. The authorization expires March 1, 2028.

How did Grand Canyon Education's amended GCU services agreement change third-quarter revenue?

Third-quarter 2026 revenue from GCU was earned on tuition and academic-related fees under the amended services agreement. Third-quarter 2025 revenue under the original agreement also included an agreed percentage of ancillary fees, including student housing, food service and other operations.

What assumptions and adjustments underpin Grand Canyon Education's 2026 earnings guidance?

The outlook assumes a 23.0% effective tax rate for both Q4 and full-year 2026, with 25.3 million and 26.0 million diluted shares, respectively. Q4 adjusted earnings exclude $1.6 million of after-tax intangible-asset amortization, a $0.06 per-share impact. Full-year adjustments include $6.5 million of after-tax amortization and $0.8 million of after-tax non-recurring costs, totaling a $0.28 per-share impact.