Phoenix, November 4, 2026 / PRNewswire / – Grand Canyon Education, Inc. (Nasdaq ticker: LOPE, commonly referred to as “GCE” or “the Company”) is a publicly traded education services company that currently provides services to 20 university partners. GCE offers a full range of support services in the field of higher education and has established important technical solutions, infrastructure, and operational processes to provide these services on a large scale. GCE today announced its financial results for the quarter ending September 30, 2026.

Third Quarter 2026 Performance

For the three months ending September 30, 2026:

• Service revenue amounted to $267.3 million, an increase of $6.2 million or 2.4% compared to $261.1 million in the same period of 2025. The company stated that the year-over-year growth in service revenue was mainly due to a 5.2% increase in the number of students enrolled by its university partners, which totaled 145,270 as of September 30, 2026, compared to 138,073 as of September 30, 2025. The company's largest university partner GCU's revenue for the three months ending September 30, 2026, based on the revised MSA, included only tuition fees and academic-related expenses; whereas the revenue for the same three months ending September 30, 2025, based on the original MSA, also included additional fees related to student accommodation, dining services, sports event tickets, venue activities, hotels, golf courses, and clothing business, which were shared according to the agreement. Revenue per student decreased slightly year-over-year, mainly due to the impact of the start time of the fall semester, with the number of days of confirmed revenue from traditional offline students decreasing by 6 days, resulting in approximately $7.5 million of revenue being shifted from the third quarter to the fourth quarter in 2026. The company also mentioned that revenue per online student decreased slightly year-over-year because the student body continued to skew towards those with a slightly lower net tuition rate. These impacts were partially offset by the higher per-student service revenue from the accelerated Bachelor of Science in Nursing program (ABSN) at off-campus classrooms and laboratory teaching sites; the company noted that such agreements typically provide a higher revenue sharing ratio, with partners charging tuition fees higher than GCU, and most of these partners' students earn more credits per semester on average.
• As of September 30, 2026, the number of enrolled students at GCU has increased to 139,170, representing a year-on-year growth of 5.1%. The university partners of the company's off-campus classrooms and laboratory teaching sites enrolled 7,780 students, which is a year-on-year increase of 12.6%, including GCU students who numbered 1,680 and 1,325 as of September 30, 2026, respectively. Excluding the teaching sites that have been closed or are in the final stages of teaching, the total number of enrolled students at off-campus classrooms and laboratories increased by 14.1% year-on-year. Within the nine months ending September 30, 2026, the company opened 2 new teaching sites and closed one site that had stopped enrolling new students in 2025; therefore, as of September 30, 2026, the total number of teaching sites was 48. The number of offline students at GCU was 23,650, a decrease of 4.1% from 24,671 as of September 30, 2025; meanwhile, the number of online students at GCU was 115,520, which is 7.1% higher than 107,815 as of September 30, 2025.
• Operating profit amounted to $51.5 million, an increase of $33.5 million compared to $18 million in the same period of 2025, representing a growth of 185.6%. The operating profit margins for the third quarters of 2026 and 2025 were 19.3% and 6.9%, respectively. Excluding amortization, non-recurring costs, and disposal of fixed assets, the operating profit and operating profit margin for the third quarter of 2026 were $54.7 million and 20.5%, respectively. After excluding amortization, litigation settlements, lease terminations, impairment and other items, severance costs, and disposal of fixed assets, the operating profit and operating profit margin for the third quarter of 2025 were $58.2 million and 22.3%, respectively.
• Income tax expenses amounted to $10.7 million, an increase of $5.3 million compared to $5.4 million in the same period of 2025, representing a growth of 99.5%. The company's effective tax rate was 20.0%, compared to 24.9% in the same period last year. The company stated that the increase in income tax expenses was due to the rise in pre-tax profits, and the settlement of a lawsuit in the third quarter of 2025 was partially offset by a lower effective tax rate. In both 2026 and the third quarter of 2025, donations made in lieu of state income tax had a favorable impact on the effective tax rate, amounting to $5 million each. The higher effective tax rate in the third quarter of 2025 was due to fines related to the lawsuit settlement, which were not deductible before tax.
• Net profit was $43 million, an increase of $26.7 million compared to $16.3 million in the same period of 2025, representing a growth of 164.3%. Adjusted net profits for the third quarters of 2026 and 2025 were $45.6 million and $49.7 million respectively.
• Diluted earnings per share were $1.67 and $0.58 respectively; adjusted diluted earnings per share were $1.77 and $1.78 respectively.
• After adjustment, EBITDA is set at $73.5 million, which represents a decrease of 3.2% compared to $75.9 million in the same period of 2025.

For the nine months up to September 30, 2026:

• Service revenue amounted to $840.2 million, an increase of $42.2 million from $798.0 million in the same period of 2025, representing a growth of 5.3%. The company stated that the year-over-year increase in service revenue was mainly due to a 5.2% increase in the number of students enrolled by its university partners, which totaled 145,270 as of September 30, 2026, compared to 138,073 as of September 30, 2025. The company's largest partner GCU's revenue for the nine months ending September 30, 2026, included income confirmed based on the revised MSA for the three months up to September 30, 2026, which consisted solely of tuition and academic-related fees, as well as income confirmed based on the original MSA for the six months up to June 30, 2026. The latter included not only tuition and academic-related fees but also agreed-upon shares of additional fees related to student accommodation, dining services, sports event tickets, venue activities, hotels, golf courses, and clothing business. In contrast, the service revenue for the nine months ending September 30, 2025, was entirely confirmed based on the original MSA. Revenue per student remained relatively stable year-over-year, mainly because the service revenue per student at off-campus classroom and laboratory teaching sites ABSN was significantly higher than under the agreements with GCU; the company noted that such agreements typically provide a higher revenue share and that the tuition fees of these partners are higher than GCU, and most of these partners' students take on more credits per semester. This growth was offset by a reduction of 6 days in the number of revenue-earning days for traditional on-campus students, resulting in approximately $7.5 million of revenue being shifted from the third quarter to the fourth quarter in 2026. The company also mentioned that revenue per online student decreased slightly year-over-year, as the student base continued to skew towards those with a slightly lower net tuition rate.
• Operating profit amounted to $205.1 million, an increase of $47.3 million or 29.9% compared to $157.8 million in the same period of 2025. The operating profit margins for 2026 and the first nine months of 2025 were 24.4% and 19.8%, respectively. Excluding amortization, non-recurring costs, and disposal of fixed assets, the operating profit and operating profit margin for the first nine months of 2026 were $212.5 million and 25.3%, respectively. After excluding amortization, litigation settlements, lease terminations, impairment and other items, severance costs, and disposal of fixed assets, the operating profit and operating profit margin for the first nine months of 2025 were $202.3 million and 25.4%, respectively.
• Income tax expense amounted to $48.9 million, an increase of $10.3 million from $38.6 million in the same period of 2025, representing a growth of 26.5%. The company's effective tax rate was 22.9%, compared to 23.0% in the same period last year. The company stated that in 2026 and the first nine months of 2025, donations of $5 million made to offset state income taxes had a favorable impact on the effective tax rate. Due to changes in state income taxes, an increase in taxable income, and a reduction in excess tax credits to $1.4 million (compared to $2.7 million in the same period of 2025 due to a decline in stock prices), the effective tax rate remained relatively unchanged year-over-year. The company noted that including excess tax credits and deficiencies in income tax expenses would increase the volatility of income tax provisions, as the excess or deficiency of tax credits arising from stock-based compensation rewards depend on the stock price on the vesting date of the restricted stock. Since the company's restricted stock vests in March each year, the related gains or expenses mainly affect the first quarter of each year.
• Net profit amounted to $164.2 million, an increase of $34.8 million compared to $129.4 million in the same period of 2025, representing a growth of 26.9%. Adjusted net profits for 2026 and the first nine months of 2025 were $170.0 million and $166.1 million, respectively.
• Diluted earnings per share were $6.25 and $4.60 respectively; adjusted diluted earnings per share were $6.47 and $5.90 respectively.
• After adjustment, EBITDA amounted to 257.5 million US dollars, representing a 5.0% increase from 245.3 million US dollars in the same period of 2025.

Liquidity and Capital Resources

The company stated that its liquidity position, measured in cash and cash equivalents as well as investments, decreased by $137.9 million between December 31, 2025, and September 30, 2026. This was mainly due to the fact that cash used for stock repurchases and capital expenditures exceeded the cash generated from operating activities over the nine months ending September 30, 2026. As of September 30, 2026, and December 31, 2025, the company's unrestricted cash and cash equivalents, as well as investments, were $162.1 million and $300.1 million, respectively.

Stock Repurchase Plan

GCE announced today that the board of directors approved an additional $355 million authorization under the existing stock repurchase plan on October 28, 2026, bringing the total cumulative repurchase authorization since the launch of the plan to $2.9 billion. The current expiration date for the board's repurchase authorization is March 1, 2028. As of November 2, 2026, there was still an available amount of $394.5 million remaining under the existing repurchase authorization, including the newly added $355 million. As of November 2, 2026, the company had 25,510,517 outstanding common shares. The plan allows the company to repurchase shares in the public market at the prevailing market price or through private negotiated transactions, in accordance with applicable securities laws and other legal requirements. The level of repurchase activities will depend on market conditions and other investment opportunities. The plan does not require GCE to repurchase a specific number of common shares and can be suspended or terminated at any time. The repurchase plan can be funded using the company's available cash, investments, positive operating cash flows, and revolving credit lines.

Outlook for the Fourth Quarter and the Whole Year of 2026

Fourth quarter of 2026:

• Service revenue is expected to be between $320.5 million and $321.5 million;
• The operating profit margin is expected to be between 36.0% and 36.2%;
• The effective tax rate is expected to be 23.0%;
• The diluted earnings per share are expected to be between $3.57 and $3.61;
• The diluted number of shares is 25.3 million.

The company stated that the diluted earnings per share guidance includes a non-cash amortization of intangible assets amounting to $1.6 million after tax, which has an impact of $0.06 on the diluted earnings per share. Therefore, the adjusted non-GAAP diluted earnings per share are expected to be between $3.63 and $3.67.

Throughout 2026:

• Service revenue is expected to be between $1.1607 billion and $1.1617 billion;
• The operating profit margin is expected to be between 27.6% and 27.7%;
• The effective tax rate is expected to be 23.0%;
• The diluted earnings per share are expected to be between $9.81 and $9.85;
• The diluted number of shares is 26 million.

The company stated that the diluted earnings per share guidance includes non-cash amortization of intangible assets amounting to $6.5 million after tax, non-recurring costs of $800,000 after tax, and a loss on disposal of fixed assets of zero after tax, which collectively have an impact of $0.28 on the diluted earnings per share. Therefore, the adjusted diluted earnings per share excluding GAAP are expected to be between $10.09 and $10.13.

Forward-looking statements

This press release contains “forward-looking statements” as defined by the Federal Securities Laws, including information related to future events, future financial performance, strategies, expectations, competitive environment, regulation, and the availability of resources. Such forward-looking statements include, but are not limited to: new projects to be launched; whether regulatory, economic, or business developments, or other matters, may have a material adverse effect on the company’s financial condition, operating results, or liquidity; forecasts, estimates, expectations, and projections regarding the company’s business, financial, and operating results, as well as future economic performance; and non-historical factual matters such as management’s objectives and intentions. Words such as “may,” “should,” “be able to,” “will,” “predict,” “potential,” “continue,” “expect,” “estimate,” “future,” “intend,” “plan,” “believe,” “estimate,” and their negative forms, as well as expressions using the future tense, are used to identify forward-looking statements.

The company stated that forward-looking statements should not be regarded as guarantees of future performance or results, nor is it certain that such performance or results will be achieved when or if they will be achieved at all. Forward-looking statements are based on information available at the time of making the statements, or on management's judgment of future events at that time in good faith, and are subject to risks and uncertainties. Actual performance or results may differ significantly from what is expressed or implied in the forward-looking statements.Important factors that may lead to significant differences in actual performance or results include, but are not limited to: legal and regulatory actions related to the company's service business, or actions targeting its university partners that affect their business and thereby directly or indirectly reduce the service revenue that the company can obtain under the main service agreement; any events, changes, or other circumstances that may lead to the termination of key university partner agreements; the company's ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions, divestitures, or investments in new businesses, acquisition of new properties and new university partners, as well as the ability to expand services to existing university partners; the company's ability to comply with extensive regulatory frameworks either directly as a third-party service provider or indirectly through university partners; the company's ability to manage risks related to epidemics, pandemics, or public health crises; the company's ability to manage risks related to interruptions, failures, or downtime of its technical platforms or those of third-party service providers; the ability of university partner students to obtain federal Chapter 4 student aid funds, state financial support, and private financing; potential damage to the company's reputation or other adverse effects from negative publicity in media, industry reports, government reports, or investigations; risks related to changes in applicable federal and state laws, regulations, and certification committee standards; competition from other educational service companies in the same region and market area; the company's ability to recruit and train new employees, as well as to develop and train existing employees; the growth rate of university partner enrollments and its impact on the company's own growth rate; seasonal fluctuations in revenue; and the company's ability to convert potential students into registered students on behalf of university partners and to retain active students until graduation.Other risks and uncertainties also include the information disclosed from time to time by the company in documents submitted to the U.S. Securities and Exchange Commission (SEC), including its 10-K annual report for the fiscal year ending December 31, 2025, which was submitted on February 18, 2026.

The company states that forward-looking statements reflect only the circumstances as of the date they are made, and investors should not rely excessively on any such statements. Except as required by securities laws, the company has no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or other factors that may affect the forward-looking information. Even if the company updates one or more forward-looking statements, it should not be inferred that the company will make further updates to these or other forward-looking statements. This press release should be read in conjunction with other press releases, reports, and documents submitted by the company to SEC in order to fully understand the financial performance disclosed in GCE and the business outlook for future periods.

Teleconference

Grand Canyon Education will hold a teleconference at 4:30 p.m. Eastern Time on November 4, 2026, to discuss its third-quarter results for 2026 and the outlook for the entire year of 2026.

The company stated that those interested in participating in the Q&A session should follow the instructions for joining the teleconference. Participants can register in advance to obtain a dial-in number and a dedicated PIN code. The company recommends dialing in at least 10 minutes before the meeting begins. Media reporters are only allowed to observe the session.

Investors, journalists, and the public can listen to this event through live web broadcasting. The replay will be available at the same link about two hours after the meeting concludes.

About Grand Canyon Education

Grand Canyon Education, Inc. ( GCE) was established in 2008 and is a listed education services company that currently provides services to 20 university partners. The company states that it has a unique position in the education services industry, with management possessing over 30 years of mature experience in providing comprehensive support services in the field of higher education. It has also established important technical solutions, infrastructure, and operational processes to provide high-quality services on a large scale. GCE offers support services to students, teachers, and staff of partner institutions, including marketing, strategic admissions management, consulting services, financial services, technology, technical support, compliance, human resources, classroom operations, content development, teacher recruitment, and training, among others.

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