Grand Canyon Education (LOPE) Q3 2025 earnings summary

Executive summary

• Service revenue for Q3 2025 rose 9.6% year-over-year to $261.1 million, driven by a 7.9% increase in partner enrollments to 138,073, with GCU enrollments up 7.7%.

• Online enrollment grew 9.6% year-over-year, with hybrid enrollments up 19.3% excluding closed/teach-out sites, and new ground traditional enrollments rising in the high single-digits.

• Net income for Q3 2025 was $16.3 million, down 60.8% from $41.5 million in Q3 2024, primarily due to a $35 million litigation settlement reserve.

• Adjusted EBITDA for Q3 2025 increased 14.4% to $75.9 million year-over-year.

• The company expanded to 47 off-campus sites in 2025, opening five new locations.

Financial highlights

• Q3 2025 service revenue: $261.1 million (up 9.6% YoY); nine-month revenue: $798.0 million (up 7.8% YoY).

• Adjusted operating income was $58.2 million (22.3% margin), up from $50.3 million (21.1%) in Q3 2024.

• Net income for Q3 2025 was $16.3 million; adjusted non-GAAP diluted EPS was $1.78, up from $1.48 in Q3 2024.

• Diluted EPS for Q3 2025 was $0.58, down from $1.42 in Q3 2024; as adjusted, diluted EPS was $1.78, up from $1.48.

• CapEx for Q3 was $9.7 million (3.7% of service revenue); unrestricted cash and investments totaled $277 million at quarter-end.

Outlook and guidance

• Full-year 2025 guidance updated to include Q3 results; Q4 guidance reaffirmed, with revenue expected in the top half of the range, excluding a $3 million impact from the government shutdown affecting military tuition assistance.

• Q4 2025 service revenue expected between $305.0 million and $310.0 million, with operating margin of 35.1%–35.8%.

• Q4 2025 diluted EPS guidance is $3.07–$3.18; as adjusted, $3.13–$3.24.

• Full year 2025 service revenue projected at $1,103.0–$1,108.0 million, operating margin 24.0%–24.3%, and diluted EPS $7.66–$7.77; as adjusted, $9.02–$9.13.

• New online enrollments expected to be up mid to high single-digits year-over-year in Q4; hybrid pillar expectations raised due to strong enrollments.