Financial Data and Key Metrics Changes - 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 [20] - Operating income was $18 million with an operating margin of 6.9%, while adjusted operating income was $58.2 million and adjusted operating margin was 22.3%, compared to $50.3 million and 21.1% in Q3 2024 [21] - Net income for Q3 2025 was $16.3 million, with GAAP diluted income per share at $0.58 and adjusted non-GAAP diluted income per share at $1.78, aligning with consensus estimates [22][23] Business Line Data and Key Metrics Changes - Online enrollment growth was 9.6%, with new starts in the mid-single digits, exceeding long-term objectives [3][4] - Traditional campus enrollments were slightly down year over year, while total GCU ground enrollment remained flat [5][6] - Hybrid campus enrollment increased by 17.4% year over year, with a 19.3% increase excluding closed sites [9] Market Data and Key Metrics Changes - The company noted a growing trend of high school graduates opting for online education, with GCU offering 310 fully online programs [4][5] - The number of high school graduates choosing shorter certificate or trade programs is increasing, while those pursuing four or five-year degrees is declining [6][7] Company Strategy and Development Direction - The company is focusing on expanding its program offerings, including new nursing and occupational therapy programs, to meet workforce demands [12][13] - GCU is adapting its marketing strategy to target younger students through social media, moving away from traditional high school partnerships [36][37] - The company aims to maintain a diverse programmatic mix to mitigate risks associated with enrollment fluctuations in specific areas [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued enrollment growth, particularly in online and hybrid programs, despite challenges from military tuition assistance due to a government shutdown [28][30] - The effective tax rate for Q3 2025 was higher than expected, influenced by a Key Tam settlement and increased state taxes [24][30] - The company anticipates ongoing pressures from rising benefit costs and technology services, but expects to maintain strong performance across its business lines [29][30] Other Important Information - The company repurchased 219,369 shares at a cost of approximately $39.5 million in Q3 2025, with $136.4 million remaining under its share repurchase authorization [25][31] - Total unrestricted cash and cash equivalents as of September 30, 2025, were $277 million, with CAPEX for the quarter at approximately $9.7 million [25] Q&A Session Summary Question: Can you frame the size of your nursing programs at GCU and how they differ between pre and post-licensure programs? - Approximately 30% of GCU's students are in healthcare-related programs, including pre-licensure and post-licensure nursing programs, which are diversified across various levels [32][33] Question: Do you market to younger students differently for GCU online? - The company is shifting some marketing efforts from high school partnerships to social media to reach younger students more effectively [36][37] Question: What other programs are sizable and growing at an above nursing program rate? - The company is experiencing growth in education, business programs, and counseling and social work, addressing significant professional shortages in these areas [39][40]