Q3 Enrollments Climb at Grand Canyon Education, Masking GAAP Noise

Core Insights - Grand Canyon Education, Inc. (NASDAQ:LOPE) is identified as a strong investment opportunity in the EdTech sector [1] - The company reported Q3 results indicating growth in partner enrollments and off-campus nursing sites, despite one-time items affecting GAAP profit [2] - Service revenue increased due to a 7.9% growth in partner enrollments, primarily driven by Grand Canyon University online and accelerated BSN classroom-and-lab sites [2][3] Financial Performance - Q3 results showed a rise in enrollments, which helped mask the noise in GAAP figures [3] - Management noted contract adjustments with certain universities that reduced GCE's revenue share but eliminated reimbursements for some faculty costs, impacting revenue per student while enhancing efficiency [3] - An operating income hit from a litigation-related reserve was reported, but adjusted margins improved year over year, reflecting strong demand for the company's services across 20 university partners [3] Future Guidance - The company provided Q4 2025 guidance, projecting service revenue between $305 million and $310 million, with diluted EPS expected to be between $3.07 and $3.18 [3] Company Overview - Grand Canyon Education, Inc. is based in Phoenix and operates as a technology-enabled education services provider [4] - The company offers enrollment marketing, learning-management technology, student-support operations, and clinical-site build-outs to universities, notably Grand Canyon University [4]