GRAND CANYON EDUCATION, INC. REPORTS THIRD QUARTER 2025 RESULTS

PHOENIX, Nov. 5, 2025 /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, 2025.

Grand Canyon Education, Inc. Reports Third Quarter 2025 Results

For the three months ended September 30, 2025:

For the nine months ended September 30, 2025:

Liquidity and Capital Resources

Our liquidity position, as measured by cash and cash equivalents and investments decreased by $47.6 million between December 31, 2024 and September 30, 2025, which was largely attributable to cash expended for investing activities, capital expenditures and share repurchases exceeding our cash provided by operations during the nine months ended September 30, 2025. Our unrestricted cash and cash equivalents and investments were $277.0 million and $324.6 million at September 30, 2025 and December 31, 2024, respectively.

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

2025 Outlook

Q4 2025:

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 $3.13 and $3.24.

Full Year 2025:

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.6 million, $29.2 million reserve for litigation, $1.9 million for lease termination and impairment costs, $0.2 million for severance costs and $0.4 million for loss on disposal of assets, which equates to a $1.36 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $9.02 and $9.13.

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 Third Quarter 2025 Results

Conference Call

Grand Canyon Education, Inc. will discuss its third quarter 2025 results and full year 2025 outlook during a conference call scheduled for today, November 5, 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: Q3 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, Phoenix, AZ 85017, www.gce.com.

Grand Canyon Education, Inc. Reports Third Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Income Statements

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands, except per share data)

Service revenue

261,142

238,291

797,951

740,429

Costs and expenses:

Technology and academic services

44,908

41,955

129,706

122,081

Counseling services and support

84,405

77,166

254,250

238,157

Marketing and communication

59,145

54,526

175,512

162,774

General and administrative

15,149

14,364

36,926

35,730

Reserve for litigation settlement

35,000

—

35,000

—

Lease termination, impairment and other

2,411

—

2,411

—

Amortization of intangible assets

2,105

6,315

Total costs and expenses

243,123

190,116

640,120

565,057

Operating income

18,019

48,175

157,831

175,372

Investment interest and other

3,637

4,154

10,244

11,991

Income before income taxes

21,656

52,329

168,075

187,363

Income tax expense

5,382

10,862

38,637

43,008

Net income

16,274

41,467

129,438

144,355

Earnings per share:

Basic income per share

0.59

1.43

4.62

4.94

Diluted income per share

0.58

1.42

4.60

4.91

Basic weighted average shares outstanding

27,740

29,003

28,002

29,248

Diluted weighted average shares outstanding

27,897

29,164

28,165

29,405

Grand Canyon Education, Inc. Reports Third Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Balance Sheets

As of September 30,

As of December 31,

(In thousands, except par value)

2025

2024

ASSETS:

(Unaudited)

Current assets

Cash and cash equivalents

97,284

324,623

Investments

179,691

—

Accounts receivable, net

122,041

82,948

Income taxes receivable

22,679

490

Other current assets

12,299

11,915

Total current assets

433,994

419,976

Property and equipment, net

180,013

176,823

Right-of-use assets

99,871

99,541

Amortizable intangible assets, net

153,647

159,962

Goodwill

160,766

Other assets

4,501

1,357

Total assets

1,032,792

1,018,425

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities

Accounts payable

19,284

26,721

Accrued compensation and benefits

28,766

33,183

Accrued liabilities

70,539

29,620

Income taxes payable

144

8,559

Deferred revenue

3,801

—

Current portion of lease liability

14,204

12,883

Total current liabilities

136,738

110,966

Deferred income taxes, noncurrent

40,195

26,527

Other long-term liabilities

1,494

1,444

Lease liability, less current portion

96,324

95,635

Total liabilities

274,751

234,572

Commitments and contingencies

Stockholders' equity

Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at

September 30, 2025 and December 31, 2024

—

Common stock, $0.01 par value, 100,000 shares authorized; 54,178 and 54,090 shares issued and 28,004

and 28,858 shares outstanding at September 30, 2025 and December 31, 2024, respectively

542

541

Treasury stock, at cost, 26,174 and 25,232 shares of common stock at September 30, 2025 and

December 31, 2024, respectively

(2,190,582)

(2,024,370)

Additional paid-in capital

347,146

336,736

Accumulated other comprehensive gain

551

—

Retained earnings

2,600,384

2,470,946

Total stockholders' equity

758,041

783,853

Total liabilities and stockholders' equity

1,032,792

1,018,425

Grand Canyon Education, Inc. Reports Third Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Nine Months Ended

September 30,

(In thousands)

2025

2024

Cash flows provided by operating activities:

Net income

129,438

144,355

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

Share-based compensation

10,411

10,855

Depreciation and amortization

23,323

20,707

Amortization of intangible assets

6,315

Deferred income taxes

13,497

(560)

Reserve for litigation settlement

35,000

—

Lease termination, impairment and other

2,411

—

Other, including fixed asset disposals

(444)

(743)

Changes in assets and liabilities:

Accounts receivable from university partners

(39,093)

(37,577)

Other assets

(3,218)

1,239

Right-of-use assets and lease liabilities

576

1,296

Accounts payable

(8,477)

10,710

Accrued liabilities

1,747

Income taxes receivable/payable

(30,604)

(10,623)

Deferred revenue

3,801

6,420

Net cash provided by operating activities

143,006

154,141

Cash flows (used in) provided by investing activities:

Capital expenditures

(27,225)

(27,501)

Additions of amortizable content

(47)

(227)

Purchase of equity investment

(1,000)

—

Loss on equity investment

500

—

Purchases of investments

(224,715)

(48,594)

Proceeds from sale or maturity of investments

46,872

147,619

Net cash (used in) provided by investing activities

(205,615)

71,297

Cash flows used in financing activities:

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

(164,730)

(108,329)

Net cash used in financing activities

(164,730)

(108,329)

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

(227,339)

117,109

Cash and cash equivalents and restricted cash, beginning of period

324,623

146,475

Cash and cash equivalents and restricted cash, end of period

97,284

263,584

Supplemental disclosure of cash flow information

Cash paid for interest

—

Cash paid for income taxes

53,748

51,420

Supplemental disclosure of non-cash investing and financing activities

Purchases of property and equipment included in accounts payable

798

1,604

ROU Asset and Liability recognition

330

6,395

Excise tax on treasury stock repurchases

1,482

815

Grand Canyon Education, Inc. Reports Third 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:

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,

2025

2024

2025

2024

(Unaudited, in thousands)

Net income

16,274

41,467

129,438

144,355

Less: investment interest and other

(3,637)

(4,154)

(10,244)

(11,991)

Plus: income tax expense

5,382

10,862

38,637

43,008

Plus: amortization of intangible assets

2,105

6,315

Plus: depreciation and amortization

8,063

7,126

23,323

20,707

EBITDA

28,187

57,406

187,469

202,394

Plus: contributions in lieu of state income taxes

5,000

4,500

5,000

4,500

Plus: share-based compensation

3,293

3,375

10,411

10,855

Plus: litigation and regulatory costs

36,318

1,017

39,220

4,488

Plus: lease termination, impairment and other

2,411

—

2,411

—

Plus: severance costs

299

—

299

1,133

Plus: loss on fixed asset disposal

392

470

Adjusted EBITDA

75,900

66,325

245,280

223,441

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, reserve for litigation settlement, lease termination costs, impairments 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, 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

Nine Months Ended

September 30,

2025

2024

2025

2024

(Unaudited, in thousands except per share data)

GAAP Net income

16,274

41,467

129,438

144,355

Amortization of intangible assets

2,105

6,315

Reserve for litigation settlement

35,000

—

35,000

—

Lease termination, impairment and other

2,411

—

2,411

—

Severance costs

299

—

299

1,133

Loss on disposal of fixed assets

392

470

Income tax effects of adjustments (1)

(6,796)

(443)

(7,848)

(1,726)

As Adjusted, Non-GAAP Net income

49,685

43,156

166,085

150,148

GAAP Diluted income per share

0.58

1.42

4.60

4.91

Amortization of intangible assets (2)

0.06

0.17

Reserve on litigation settlement (3)

1.05

Lease termination, impairment and other (4)

0.07

0.06

Severance costs (5)

0.01

0.03

Loss on disposal of fixed assets (6)

0.01

0.00

0.01

0.00

As Adjusted, Non-GAAP Diluted income per share

1.78

1.48

5.90

5.11

(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 $0.01 for both of the three months ended September 30, 2025 and 2024, and net of an income tax benefit of $0.05 for both of the nine months ended September 30, 2025 and 2024.

(3)

The reserve for 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.

(4)

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.

(5)

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 and net of an income tax benefit of $0.01 for the nine months ended September 30, 2024.

(6)

The loss on disposal of fixed assets per diluted share is net of an income tax benefit of nil for both the three months ended September 30, 2025 and 2024 and nil for both the nine months ended September 30, 2025 and 2024.

Investor Relations Contact:

Daniel E. Bachus

Chief Financial Officer

Grand Canyon Education, Inc.

602-639-6648

Dan.bachus@gce.com

SOURCE Grand Canyon Education, Inc.