Grand Canyon Education Reports 8.8% Revenue Growth in Q2 2025

Grand Canyon Education, Inc. (GCE) reported a notable increase in financial performance for the second quarter of 2025, with service revenue reaching $247.5 million, an 8.8% rise from $227.5 million in the same period of 2024. For the first half of 2025, total service revenue was $536.8 million, up 6.9% from $502.1 million year-over-year. The growth in revenue was primarily driven by a 10.3% increase in partner enrollments, totaling 117,283 students as of June 30, 2025, compared to 106,307 in the prior year. Grand Canyon University (GCU), GCE's largest partner, saw enrollments rise by 10.5% to 113,435.

Despite the revenue growth, GCE's costs and expenses also increased, totaling $195.7 million for the second quarter, up from $184.7 million in 2024. The company reported operating income of $51.8 million for the quarter, a 21.3% increase from $42.7 million a year earlier. Net income for the second quarter was $41.5 million, reflecting a 19.1% increase compared to $34.9 million in the same quarter of 2024. The earnings per share for the quarter were $1.48, up from $1.19 in the previous year.

Operationally, GCE expanded its reach by opening two new off-campus classroom and laboratory sites in the first half of 2025, bringing the total to 45. The company also reported a significant increase in enrollments at these sites, which rose by 14.0% year-over-year. However, the revenue per student experienced a slight decline due to contract modifications with some university partners, which reduced the revenue share percentage. GCE is actively working with partners to adjust programs to attract students who may not have completed a bachelor's degree, aiming to counteract enrollment challenges in certain programs.

In terms of financial health, GCE's cash and cash equivalents, along with investments, increased to $373.9 million as of June 30, 2025, up from $324.6 million at the end of 2024. The company generated $191.6 million in cash from operating activities during the first half of 2025, compared to $183.5 million in the same period of 2024. However, cash used in investing activities surged to $198.7 million, primarily due to significant investments in available-for-sale securities. GCE also repurchased $115.7 million worth of its common stock during the first half of 2025, reflecting its ongoing share repurchase program.

Looking ahead, GCE plans to continue expanding its partnerships and introducing new programs, particularly in healthcare and online education. The company anticipates that its cash flow from operations will adequately support ongoing operations and planned capital expenditures for at least the next 24 months. However, GCE acknowledges potential risks, including regulatory challenges and market conditions that could impact future performance.