LOPE · Grand Canyon Education, Inc.

Grand Canyon Education reported strong first quarter 2026 results, with service revenue increasing 6.7% to $308.8 million, driven by a 7.1% rise in university partner enrollments to 136,884. The enrollment growth was led by a 8.8% increase in GCU online enrollments to 110,406, while ground enrollments declined slightly. Operating income grew 8.5% to $95.5 million, with operating margin expanding 50 basis points to 30.9%, reflecting operating leverage. Net income rose 5.2% to $75.3 million, and diluted EPS of $2.80 exceeded the consensus estimate of $2.78. The effective tax rate increased to 23.5% from 21.6% due to higher state taxes and lower excess tax benefits. Adjusted EBITDA increased 8.5% to $110.7 million. The company provided guidance for the remainder of 2026, including Q2 revenue of $260-$264 million and diluted EPS of $1.57-$1.68, and full-year revenue of $1,169.3-$1,189.8 million with diluted EPS of $9.69-$10.26. The guidance reflects continued enrollment growth and margin expansion, though Q2 margins are expected to be lower due to seasonality. Cash and investments totaled $251.7 million at quarter end, down from $300.1 million at year-end 2025 due to share repurchases and capital expenditures.