GRAND CANYON EDUCATION, INC. REPORTS FOURTH QUARTER 2025 RESULTS

Core Insights - Grand Canyon Education, Inc. reported a 5.8% increase in adjusted EBITDA to $123.3 million for Q4 2025 compared to $116.6 million in Q4 2024 [1] - The company experienced a net income of $86.7 million for Q4 2025, reflecting a 5.9% increase from $81.9 million in Q4 2024 [1] - For the full year 2025, adjusted EBITDA rose by 8.4% to $368.6 million, while net income decreased by 4.4% to $216.2 million compared to 2024 [2] Financial Performance - Q4 2025 diluted net income per share was $3.14, up from $2.84 in Q4 2024, with adjusted diluted net income per share at $3.21 compared to $2.95 [1] - Service revenue for Q4 2025 was $308.1 million, a 5.3% increase from $292.6 million in Q4 2024, driven by a 7.1% rise in university partner enrollments [1][2] - For the full year 2025, service revenue reached $1,106.1 million, marking a 7.1% increase from $1,033.0 million in 2024 [2] Enrollment Growth - Grand Canyon University (GCU) enrollments increased to 131,826 as of December 31, 2025, a 7.0% rise from the previous year [1] - Off-campus classroom and laboratory site enrollments grew by 16.6% to 5,738, with GCU online enrollments increasing by 8.7% to 107,148 [1] Tax and Operating Income - Income tax expense for Q4 2025 was $25.0 million, a 13.5% increase from $22.1 million in Q4 2024, with an effective tax rate of 22.4% [1] - Operating income for Q4 2025 was $108.1 million, an 8.1% increase from $100.0 million in Q4 2024, with an operating margin of 35.1% [1] Liquidity and Capital Resources - The company's liquidity position decreased by $24.5 million from December 31, 2024, primarily due to cash used for share repurchases and capital expenditures [2] - Unrestricted cash and cash equivalents were $300.1 million as of December 31, 2025, down from $324.6 million in 2024 [2] 2026 Outlook - For Q1 2026, the company expects diluted EPS between $2.70 and $2.73, with service revenue projected between $307.0 million and $308.0 million [3] - Full year 2026 diluted EPS is anticipated to be between $9.55 and $10.16, with service revenue expected between $1,167.5 million and $1,189.0 million [3]