Grand Canyon Education(US:LOPE)2025-11-05 21:05Revenue Performance - Service revenue for Q3 2025 was $261.1 million, an increase of $22.8 million, or 9.6%, compared to $238.3 million in Q3 2024, driven by a 7.9% increase in partner enrollments to 138,073[4] - For the nine months ended September 30, 2025, service revenue was $798.0 million, an increase of $57.6 million, or 7.8%, compared to $740.4 million in the same period in 2024[5] - The company expects service revenue for the full year 2025 to be between $1,103.0 million and $1,108.0 million, with an operating margin between 24.0% and 24.3%[12] - Service revenue for Q3 2025 was $261.1 million, an increase from $238.3 million in Q3 2024, representing a growth of approximately 9.5% year-over-year[21] Enrollment Figures - GCU enrollments increased to 132,486, a 7.7% rise from 123,000 in Q3 2024, while off-campus classroom and laboratory site enrollments rose by 17.4% to 6,912[4] - The liquidity position decreased by $47.6 million from December 31, 2024, to September 30, 2025, with unrestricted cash and cash equivalents at $277.0 million[6] Income and Earnings - Operating income for Q3 2025 was $18.0 million, a decrease of $30.2 million, or 62.6%, from $48.2 million in Q3 2024, with an operating margin of 6.9% compared to 20.2% in the prior year[4] - Net income for Q3 2025 was $16.3 million, down $25.2 million, or 60.8%, from $41.5 million in Q3 2024, with diluted net income per share at $0.58 compared to $1.42[5] - Operating income for the nine months ended September 30, 2025, was $157.8 million, compared to $175.4 million for the same period in 2024, indicating a decrease of about 10%[21] - Net income for the nine months ended September 30, 2025, was $129,438,000, a decrease of 10.3% from $144,355,000 in 2024[26] - Diluted earnings per share (EPS) for Q3 2025 was $0.58, compared to $1.42 in Q3 2024, a decrease of about 59%[21] - Non-GAAP diluted income per share for the nine months ended September 30, 2025, was $5.90, compared to $5.11 in 2024, representing an increase of 15.5%[33] Adjusted Metrics - Adjusted EBITDA for Q3 2025 increased by 14.4% to $75.9 million, up from $66.3 million in Q3 2024[5] - Adjusted operating income for the nine months ended September 30, 2025 was $202.3 million, with an adjusted operating margin of 25.4%, compared to $181.7 million and 24.5% in the same period in 2024[5] - Adjusted EBITDA for the nine months ended September 30, 2025, increased to $245,280,000, up 9.7% from $223,441,000 in 2024[32] Cash and Liquidity - Cash and cash equivalents decreased to $97.3 million as of September 30, 2025, down from $324.6 million as of December 31, 2024[24] - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $143,006,000, compared to $154,141,000 in 2024, reflecting a decrease of 7.2%[26] - Cash and cash equivalents at the end of the period were $97,284,000, a significant decrease from $263,584,000 at the end of the same period in 2024[26] Liabilities and Reserves - Total current liabilities increased to $136.7 million as of September 30, 2025, compared to $111.0 million as of December 31, 2024, representing an increase of approximately 22.2%[24] - The company reported a reserve for litigation settlement of $35.0 million in Q3 2025[21] - The company reported a reserve for litigation settlement of $35,000,000 for the nine months ended September 30, 2025[33] Assets - Total assets as of September 30, 2025, were $1,032.8 million, up from $1,018.4 million as of December 31, 2024, showing a growth of approximately 1.4%[24] Guidance - The diluted EPS guidance for Q4 2025 is projected to be between $3.13 and $3.24, with a non-cash amortization impact of $0.06[8] - Full year 2025 diluted EPS guidance is between $9.02 and $9.13, accounting for a $1.36 impact from various costs including litigation reserves and lease terminations[9]