Financial Data and Key Metrics Changes - Grand Canyon Education reported service revenue of $289.3 million for Q1 2025, an increase of $14.6 million or 5.3% compared to $274.7 million in Q1 2024 [21] - Operating income for the three months ended March 31, 2025, was $88 million with an operating margin of 30.4%, compared to $84.5 million and 30.8% for the same period in 2024 [22] - Net income increased by 5.3% to $71.6 million for Q1 2025 compared to $68 million for Q1 2024 [22] Business Line Data and Key Metrics Changes - Online enrollment growth was 7.9% in Q1 2025, exceeding long-term objectives, while hybrid enrollment growth was 16.5% year over year, excluding closed sites [5][11] - New starts from workforce development initiatives increased by 18.2% year over year [8] - Traditional campus enrollments saw a slight decline year over year, but new student registrations for fall 2025 are ahead of last year [10][11] Market Data and Key Metrics Changes - The company continues to address workforce shortages in various industries, including education, healthcare, and technology, which has positively impacted enrollment [8][15] - The company has rolled out 48 new programs since January 1, 2023, contributing to the increase in enrollment [7] Company Strategy and Development Direction - Grand Canyon Education aims to grow by addressing challenges in higher education, such as high tuition rates and student debt [6] - The company plans to expand its traditional campus to 50,000 students and is optimistic about meeting enrollment growth goals [10][11] - The focus remains on building partnerships with employers and educational institutions to enhance program offerings and address labor market needs [19][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that funding for higher education will remain stable, despite concerns about potential cuts [39][41] - The company anticipates continued growth in online and hybrid enrollments, projecting mid to high single-digit growth rates for 2025 [27][29] - There is optimism about margin expansion in the second half of 2025, contingent on enrollment growth in traditional campuses [30] Other Important Information - The effective tax rate for Q1 2025 was 21.6%, down from 22.9% in Q1 2024, primarily due to increased excess tax benefits [25] - The company repurchased 3,395,426 shares at a cost of approximately $68.4 million, with $209.4 million remaining under the share repurchase authorization [25][26] Q&A Session Summary Question: Source of better-than-expected enrollment in Q1 - Management attributed the increase to lead flow and interest in new programs, as well as contracts with school districts and military bases [35][37] Question: Concerns about potential funding cuts - Management believes funding for higher education will remain stable and is not expected to impact the company [39][41] Question: Long-term enrollment targets - The long-term enrollment goal is 7%, with current performance slightly above that at 7.9% [45] Question: M&A considerations - The company prefers building over acquisitions, focusing on internal growth and partnerships [52][55] Question: Converting prerequisite students to ABSN programs - The process involves a significant time frame for students to complete prerequisites before entering ABSN programs, with a goal of having more students in the pipeline [60][62]

Financial Data and Key Metrics Changes - Grand Canyon Education reported service revenue of $289.3 million for Q1 2025, an increase of $14.6 million or 5.3% compared to $274.7 million in Q1 2024 [20] - Operating income for the three months ended March 31, 2025, was $88 million with an operating margin of 30.4%, compared to $84.5 million and 30.8% for the same period in 2024 [21] - Net income increased by 5.3% to $71.6 million for Q1 2025 compared to $68 million for Q1 2024 [21] Business Line Data and Key Metrics Changes - Online enrollment growth was 7.9% in Q1 2025, slightly exceeding long-term objectives, while hybrid enrollment growth, excluding closed sites, was 16.5% [3][10] - New starts from employer partnerships increased by 18.2% year over year, contributing to overall enrollment growth [6] - The hybrid campus saw a year-over-year enrollment increase of 12.1% in Q1 2025 [10] Market Data and Key Metrics Changes - The company continues to address workforce shortages in various industries, including education, healthcare, and technology, which has positively impacted enrollment [6][14] - The company anticipates that total online enrollments will remain in the mid to high single digits year over year throughout 2025, despite pressures from increasing graduation rates [26] Company Strategy and Development Direction - Grand Canyon Education aims to grow by addressing challenges in higher education, such as rising tuition and debt levels, while continuing to roll out new programs [4][5] - The company plans to expand its traditional campus to 50,000 students and is optimistic about growth due to its low tuition and debt levels [9] - The focus remains on building rather than acquiring, with an emphasis on workforce development and partnerships with various organizations [52][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that funding for higher education will remain stable, despite concerns about potential cuts from Washington [39][40] - The company is optimistic about enrollment trends and believes it is well-positioned to attract students due to its value proposition [48] - Management anticipates a slight decline in margins in the second quarter due to investments but expects margins to expand in the second half of the year [29] Other Important Information - The effective tax rate for Q1 2025 was 21.6%, a decrease from 22.9% in the previous year, primarily due to increased excess tax benefits [24] - The company repurchased 3,395,426 shares at a cost of approximately $68.4 million, with $209.4 million remaining under its share repurchase authorization [25] Q&A Session Summary Question: Where did the better-than-expected enrollment in Q1 come from? - Management attributed the increase to lead flow and interest in new programs, as well as contracts with school districts and military bases [34][36] Question: Are students worried about potential funding cuts from Washington? - Management believes funding for higher education will remain stable and does not expect it to impact the company [39][40] Question: What are the long-term enrollment targets for different pillars? - The long-term enrollment goal is 7%, with current performance slightly above that at 7.9% [45] Question: What are the expectations for enrollment this year? - Management confirmed that expectations for GCU online starts remain in the mid to high single digits for 2025 [50] Question: Thoughts on M&A? - Management prefers building over acquiring and sees more potential in developing programs directly with companies [52][54] Question: What is the process for converting students in prerequisite programs to ABSN programs? - Management explained that it takes time for students to complete prerequisite courses before entering ABSN programs, and they aim to have more students enrolled in prerequisites to fill slots [58][60]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, including income statements, balance sheets, and cash flows, along with detailed notes on accounting policies and financial figures [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025 and 2024, summarizing the company's financial performance, position, and cash flows | Financial Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Service Revenue** | $289,310 | $274,675 | | **Operating Income** | $88,023 | $84,478 | | **Net Income** | $71,618 | $68,010 | | **Diluted EPS** | $2.52 | $2.29 | | Balance Sheet Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | $1,031,448 | $1,018,425 | | **Total Liabilities** | $250,744 | $234,572 | | **Total Stockholders' Equity** | $780,704 | $783,853 | | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net Cash from Operations** | $67,631 | $84,963 | | **Net Cash used in Investing** | ($169,888) | ($5,260) | | **Net Cash used in Financing** | ($77,857) | ($29,970) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail the company's business model, accounting policies, and specific financial items, including the significant service agreement with Grand Canyon University and intangible assets - GCE is an education services company serving 22 university partners, with Grand Canyon University (GCU) being its most significant partner[23](index=23&type=chunk)[24](index=24&type=chunk) - Under a long-term master services agreement, GCE provides a suite of services to GCU in exchange for **60% of GCU's tuition and fee revenue**[28](index=28&type=chunk) - Revenue from GCU represents a significant concentration of credit risk, accounting for **90.4% of total service revenue in Q1 2025**, up from **89.7% in Q1 2024**[57](index=57&type=chunk) - Amortizable intangible assets of **$157.9 million** as of March 31, 2025, primarily consist of university partner relationships acquired in the Orbis Education acquisition in 2019, which are being amortized over **25 years**[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2025 financial results, detailing revenue and expense drivers, segment performance, liquidity, and capital expenditure plans [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q1 2025 service revenue grew **5.3% to $289.3 million** driven by enrollment growth, while expenses increased across categories, leading to a **5.3% rise in net income** | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Service Revenue** | $289.3M | $274.7M | +5.3% | | **Partner Enrollments** | 127,779 | 120,788 | +5.8% | | **GCU Enrollments** | 123,773 | 117,000 (approx) | +5.8% | | **Off-campus Enrollments** | 5,027 | 4,484 (approx) | +12.1% | - Marketing and communication expenses increased by **9.0% to $60.3 million** due to higher advertising costs to support enrollment growth goals[116](index=116&type=chunk) - Technology and academic services expenses rose **6.5% to $41.7 million**, driven by costs associated with an increased number of off-campus classroom and laboratory sites[114](index=114&type=chunk) - The effective tax rate decreased to **21.6% in Q1 2025** from **22.9% in Q1 2024**, primarily due to higher excess tax benefits from share-based compensation[121](index=121&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity decreased to **$304.7 million** in Q1 2025, primarily due to significant share repurchases and investment activities, partially offset by operating cash flow | (In thousands) | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Cash, cash equivalents and investments** | $304,653 | $324,623 | - Net cash from operating activities decreased to **$67.6 million in Q1 2025** from **$85.0 million in Q1 2024**, mainly due to changes in working capital balances like accounts payable[127](index=127&type=chunk) - Cash used in financing activities increased significantly to **$77.9 million in Q1 2025** from **$30.0 million in Q1 2024**, driven by a higher volume of share repurchases (**$68.4 million in Q1 2025** vs. **$22.6 million in Q1 2024**)[131](index=131&type=chunk)[132](index=132&type=chunk) - Capital expenditures were **$8.9 million in Q1 2025**, consistent with the prior year, and are expected to be **$30.0 to $40.0 million annually**[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure is primarily interest rate risk from its investment portfolio, with no material impact expected from a 10% interest rate change - The company's primary market risk is interest rate risk from its investment portfolio[139](index=139&type=chunk) - GCE manages credit risk by investing in instruments rated **BBB or higher** and does not hold any derivative instruments[138](index=138&type=chunk)[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures are effective as of the end of the quarter[140](index=140&type=chunk) - There were no material changes in the company's internal control over financial reporting during the first quarter of 2025[141](index=141&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in material legal proceedings, including a False Claims Act lawsuit and FTC actions regarding GCU's programs, for which no liability has been accrued - The company is defending a *qui tam* lawsuit under the False Claims Act concerning its enrollment counselor compensation practices, with a trial set for **October 2025**[82](index=82&type=chunk)[85](index=85&type=chunk) - GCE is a party to several legal matters, including a lawsuit from the Federal Trade Commission (FTC) and multiple class actions, alleging misleading representations regarding GCU's graduate programs, non-profit status, and telemarketing activities[87](index=87&type=chunk)[89](index=89&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K have been reported - There have been no material changes to the risk factors disclosed in the **2024 Form 10-K**[143](index=143&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **395,426 shares** at an average price of **$172.96**, with **$231.3 million** remaining under the repurchase authorization | Period (2025) | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January | 150,517 | $167.74 | | February | 117,590 | $181.76 | | March | 127,319 | $171.01 | | **Total Q1** | **395,426** | **$172.96** | - As of March 31, 2025, **$231.3 million** remained available for future purchases under the company's share repurchase program[146](index=146&type=chunk) [Other Items (3, 4, 5, 6)](index=44&type=section&id=Other%20Items%20(3,%204,%205,%206)) This section confirms no defaults on senior securities, no mine safety disclosures, and no new or terminated 10b5-1 trading plans by insiders during the quarter - The company reported no defaults upon senior securities, no mine safety disclosures, and no new or terminated **10b5-1** trading arrangements by insiders during the quarter[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)

Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE Investor Relations Contact: Daniel E. Bachus Chief Financial Officer Grand Canyon Education, Inc. 602-639-6648 Dan.bachus@gce.com GRAND CANYON EDUCATION, INC. REPORTS FIRST QUARTER 2025 RESULTS PHOENIX, AZ., May 6, 2025—Grand Canyon Education, Inc. (NASDAQ: LOPE), ("GCE" or the "Company"), is a publicly traded education services company that currently provides services to 22 university partners. GCE provides a full array of support services in the post-seconda ...

PHOENIX, April 7, 2025 /PRNewswire/ -- Grand Canyon Education, Inc. (Nasdaq:LOPE) announced today that it will report its 2025 first quarter results after market close on Tuesday, May 6, 2025. The Company will host a conference call to discuss the results in more detail at 1:30 P.M. (4:30 P.M. ET) the same day.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 rece ...

Group 1 - The company Grand Canyon Education, Inc. (NASDAQ: LOPE) was identified as a bullish investment opportunity in December 2023 due to a trend of increasing enrollment numbers [1] - The growing commitment from students indicates a positive outlook for the company's future performance [1] Group 2 - The investment strategy focuses on acquiring undervalued profitable stocks with strong balance sheets and minimal debt [1] - The approach includes writing calls against positions to generate additional income when opportunities arise [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Financial Data and Key Metrics Changes - Grand Canyon Education reported service revenue of $292.6 million for Q4 2024, an increase of $14.3 million or 5.1% compared to $278.3 million in Q4 2023 [26] - Operating income for Q4 2024 was $100 million with an operating margin of 34.2%, while net income increased 1.4% to $81.9 million compared to $80.7 million in Q4 2023 [27][28] - GAAP diluted income per share for Q4 2024 was $2.84, while adjusted non-GAAP diluted income per share was $2.95, slightly above consensus estimates [29][32] Business Line Data and Key Metrics Changes - Online enrollment growth was 7.1% in Q4 2024, with hybrid growth excluding closed sites at 14.9% [5][14] - The hybrid campus saw a year-over-year enrollment increase of 9.8% in Q4 2024, with expectations for low-to-mid teens growth in 2025 [14] - Traditional campus enrollments were down slightly year-over-year, but there are positive trends for new student registrations for fall 2025 [11][13] Market Data and Key Metrics Changes - GCE's service revenue increase was primarily driven by a 5% increase in GCU enrollments and a 9.8% increase in university partner enrollments at off-campus sites [27] - The company anticipates total online enrollments to grow year-over-year in the mid-to-high single digits throughout 2025 [42] Company Strategy and Development Direction - Grand Canyon Education aims to address workforce challenges by expanding relevant programs and creative delivery models [6][7] - The company plans to grow its traditional campus to 50,000 students and has set a goal of 80 locations for its hybrid programs [12][20] - GCE is focused on producing graduates in high-demand fields such as nursing and education, which aligns with national workforce needs [24][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting enrollment growth goals despite current challenges, citing strong retention rates and relevant program offerings [10][13] - The company anticipates a slight decline in margins in the first half of 2025 due to increased investments but expects margins to expand in the second half [49] - Management highlighted the positive regulatory environment and the potential for increased support from the administration for their educational model [87][96] Other Important Information - The effective tax rate for Q4 2024 was 21.2%, an increase from 19.9% in Q4 2023, primarily due to higher state income taxes [35][50] - The company repurchased 416,497 shares at a cost of approximately $64.8 million in Q4 2024, with an additional 226,258 shares repurchased since then [36][37] Q&A Session Summary Question: Can you discuss demand and conversion initiatives for fall 2025 ground campus intake? - Management noted adjustments to the Discover GCU process have improved conversion rates, leading to significant early registrations for fall 2025 [54][57] Question: What are the academic outcomes for ABSN students? - The reported outcomes are for all ABSN students, with high success rates for those entering the program [60][64] Question: What is the status of the GCU contract? - The GCU contract continues without expiration in July, with discussions about early extension due to positive outcomes [72][74] Question: How many hybrid locations are currently open? - There are currently 45 hybrid sites open, with plans to open six to eight more per year [75] Question: Any impact from changes in the Department of Education? - Management indicated no significant impact, emphasizing the focus on outcomes and the positive reception of their educational model [84][91]

Core Insights - Grand Canyon Education's revenue and earnings growth modestly outpaced analysts' expectations, with adjusted EPS of $2.95 and revenue of $292.6 million [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $2.95, slightly above the expected $2.94, representing a 6.5% increase from $2.77 in Q4 2023 [3] - Revenue reached $292.6 million, exceeding the forecast of $289 million, and showing a 5.1% increase from $278.3 million in the previous year [3] - Net income for the quarter was $81.9 million, up from $80.7 million year-over-year, reflecting a 1.4% increase [3] - Operating margin decreased to 34.2% from 35.1% in the prior year, a decline of 90 basis points [3] Business Overview - Grand Canyon Education provides educational support services, primarily focusing on online and campus-based programs, with a significant partnership with Grand Canyon University [4] - The company is emphasizing technological investments and scalability to enhance service offerings and maintain a competitive edge [4][5] Enrollment and Revenue Drivers - The fourth quarter's revenue growth was driven by increased enrollments and higher revenue per student, with online enrollments growing by 7.1% [6][7] - Traditional enrollments at Grand Canyon University saw a slight decline, with on-campus students decreasing from 25,209 to 24,552 [7] Future Outlook - For Q1 2025, the company projects service revenues between $286.5 million and $287.5 million, with an operating margin expectation of 30% to 30.2% [8] - For the full year 2025, service revenue is forecasted to be between $1.075 billion and $1.097 billion, indicating optimism about continued demand growth [8]

Financial Data and Key Metrics Changes - Service revenue for Q4 2024 was $292.6 million, an increase of $14.3 million or 5.1% compared to $278.3 million in Q4 2023 [18] - Operating income for Q4 2024 was $100 million with an operating margin of 34.2%, while excluding impairment charges, operating income was $101.9 million, up $4.1 million from $97.8 million in Q4 2023 [19][24] - Net income increased by 1.4% to $81.9 million in Q4 2024 compared to $80.7 million in Q4 2023 [19] Business Line Data and Key Metrics Changes - Online enrollment growth was 7.1% in Q4 2024, with new starts expected to increase in the mid to high single digits for Q1 2025 [3][8] - Ground campus enrollments were slightly down year over year, but GCU plans to grow its traditional campus to 50,000 students [8][9] - Hybrid campus enrollment increased by 9.8% year over year in Q4 2024, with an expected growth rate in the low to mid teens for 2025 [10] Market Data and Key Metrics Changes - New starts from employer partnerships increased by 12.5% year over year in Q4 2024, focusing on industries like education and healthcare [6] - The company has rolled out 148 new programs since the pandemic, directly tied to labor market opportunities [5] Company Strategy and Development Direction - The company aims to address workforce challenges by providing relevant programs and creative delivery models [4] - GCE continues to invest in initiatives for university partners, believing in the untapped potential of the workforce [3] - The company is focused on maintaining low tuition increases, averaging about 1% per year since 2018 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about enrollment growth, citing positive trends in registrations and retention rates [41] - The company anticipates a slight decline in margins in the first half of 2025 due to increased investments but expects margins to expand in the second half [33] - Management highlighted the importance of producing strong outcomes in education to align with regulatory expectations and market needs [65] Other Important Information - The effective tax rate for Q4 2024 was 21.2%, an increase from 19.9% in Q4 2023, primarily due to higher state income taxes [25] - The company repurchased 416,497 shares at a cost of approximately $64.8 million in Q4 2024, with an additional 226,258 shares repurchased since [26] Q&A Session Summary Question: Can you discuss the demand and growth goals for the Grand Campus intake? - Management noted that adjustments to the Discover GCU process have led to a significant increase in conversion rates, with registrations ahead of last year [39][41] Question: What are the academic outcomes for ABSN students? - The outcomes reported are for all ABSN students, with high success rates for those entering the program [42][44] Question: What is the status of the GCU contract? - The GCU contract continues without expiration, with discussions about early extension due to positive outcomes [50][51] Question: How many hybrid locations are currently open? - There are currently 45 hybrid sites open, with plans to open 6 to 8 more per year [52] Question: What are the impacts of regulatory changes on the company? - Management indicated that the focus on outcomes in education aligns well with the company's model, which is producing strong results [56][65] Question: Any updates on the court ruling regarding nonprofit status? - The court ruled in favor of GCU, affirming its nonprofit status, and the case has been remanded back to the Department of Education [67][70] Question: Will the hybrid pillar return to profitability in 2025? - Management expects the hybrid pillar to cross back to profitability in 2025 based on current site margins [71]

Financial Performance - The company recorded $1,033 million in service revenue for the year ended December 31, 2024, reflecting a significant contribution from university partners' tuition and fee revenue [354]. - Total service revenue for 2024 reached $1,033,002, an increase of 7.5% from $960,899 in 2023 [361]. - Operating income improved to $275,399 in 2024, up 10.5% from $249,256 in 2023 [361]. - Net income for 2024 was $226,234, representing a 10.4% increase compared to $204,985 in 2023 [361]. - Cash and cash equivalents increased significantly to $324,623 in 2024, up 121.5% from $146,475 in 2023 [370]. - Total assets grew to $1,018,425 in 2024, a rise of 9.5% from $930,463 in 2023 [359]. - Total liabilities increased to $234,572 in 2024, up 10.4% from $212,449 in 2023 [359]. - Basic earnings per share rose to $7.77 in 2024, compared to $6.83 in 2023, marking a 13.8% increase [361]. - Cash flows from operating activities improved to $289,958 in 2024, an increase of 19.0% from $243,662 in 2023 [370]. - Retained earnings increased to $2,470,946 in 2024, up from $2,244,712 in 2023, reflecting a growth of 10.1% [359]. Taxation - The effective income tax rate was reduced to 22.3% for the year ended December 31, 2024, due to contributions to private Arizona school tuition organizations [56]. - The total income tax expense for the year ended December 31, 2024, was $65,081, an increase from $54,690 in 2023, representing a rise of approximately 19% [454]. - The effective income tax rate for 2024 was 22.3%, compared to 21.1% in 2023, indicating an increase of 1.2 percentage points [455]. - The Company has no non-income tax related matters where exposure is considered probable as of December 31, 2024, and 2023 [444]. - The Company had accrued $0 in interest and $0 in penalties related to unrecognized tax benefits for both 2024 and 2023 [457]. - Unrecognized tax benefits increased to $14,626 million in 2024 from $13,631 million in 2023, indicating a rise in uncertain tax positions [457]. Investments and Assets - The company has no derivative financial instruments or investments as of December 31, 2024, indicating a conservative approach to market risk management [344]. - The company has not made any investments as of December 31, 2024, which may limit potential future income from investments [345]. - The company had investments of $0 as of December 31, 2024, down from $98,031 million in 2023, after selling all investments in Q3 2024 [426]. - As of December 31, 2024, the company reported deferred content assets of $658 million, net of amortization, compared to $746 million in 2023 [385]. - The company evaluates the recoverability of long-lived assets for impairment whenever events indicate that the carrying amount may not be recoverable [386]. - Total property and equipment net value increased to $176,823 million in 2024 from $169,699 million in 2023, with depreciation expense totaling $27,760 million for 2024 [428]. Student Retention and Revenue Sources - The management emphasizes the importance of retaining active students to graduation, which is critical for sustaining revenue growth [15]. - The company retains 60% of Grand Canyon University's tuition and fee revenue as part of a long-term master services agreement [382]. - The company generated 88.9% of total service revenue from its most significant university partner for the year ended December 31, 2024 [417]. - The company anticipates fluctuations in revenues due to seasonality, which may impact overall financial performance [15]. - The company has faced challenges related to capacity constraints and system disruptions that could affect student retention [11]. Legal Matters - The trial for the False Claims Act matter is scheduled for October 2025, following unsuccessful attempts to reach a settlement [436]. - The Company intends to defend itself vigorously in various legal proceedings, including those related to marketing practices and consumer protection statutes [440]. - The Company has not accrued any liability associated with ongoing legal proceedings, as it cannot estimate a range of loss based on available information [443]. Share Repurchase and Equity - The Company repurchased common shares costing $173,175 in 2024, compared to $137,124 in 2023 [370]. - The Board of Directors approved a $200,000 increase under its existing stock repurchase program, bringing the total authorization for share repurchases to $2,245,000 [448]. - The Company repurchased 1,142 shares of common stock at an aggregate cost of $165,405 during the year ended December 31, 2024, with $99,648 remaining available under the repurchase authorization as of December 31, 2024 [449]. - The Company reported basic weighted average shares outstanding of 29,104 for the year ended December 31, 2024, down from 29,991 in 2023, indicating a decrease of approximately 3% [446]. - Diluted weighted average shares outstanding for 2024 were 29,271, compared to 30,147 in 2023, reflecting a decrease of about 3% [446]. Compensation and Employee Benefits - Share-based compensation expense included in operating expenses for 2024 was $14,225 million, up from $13,204 million in 2023 [465]. - The Company plans to make a matching contribution of approximately $3,092 million to its 401(k) Plan for the year ended December 31, 2024 [466]. - The Company granted 117, 136, and 189 shares of common stock as restricted stock awards in fiscal years 2024, 2023, and 2022, respectively [460]. - Total unrecognized share-based compensation cost related to unvested restricted stock awards was approximately $30,345 million as of December 31, 2024 [462]. - The Company withheld 55, 56, and 52 shares of common stock in lieu of taxes at a cost of $7,446 million, $6,331 million, and $4,625 million during the years ended December 31, 2024, 2023, and 2022, respectively [460].