Grand Canyon Education Reports 5.3% Revenue Growth to $289.3 Million in Q1 2025

Grand Canyon Education, Inc. (GCE) reported a service revenue of $289.3 million for the three months ended March 31, 2025, marking a 5.3% increase from $274.7 million in the same period of the previous year. The growth in revenue was primarily driven by a 5.8% increase in partner enrollments, which rose to 127,779 from 120,788 year-over-year. Notably, enrollments at Grand Canyon University (GCU), GCE's largest partner, also increased to 123,773, while off-campus classroom and laboratory site enrollments grew by 12.1% to 5,027. Despite the overall revenue increase, revenue per student slightly decreased due to factors such as a leap year effect in 2024 and contract modifications with some university partners.

Total costs and expenses for the first quarter of 2025 were $201.3 million, up from $190.2 million in the prior year, leading to an operating income of $88.0 million, compared to $84.5 million in 2024. The increase in expenses was attributed to higher technology and academic service costs, which rose by 6.5% to $41.7 million, and counseling services and support expenses, which increased by 4.8% to $86.8 million. GCE's net income for the quarter was $71.6 million, reflecting a 5.3% increase from $68.0 million in the previous year, with earnings per share rising to $2.53 from $2.31.

In terms of operational developments, GCE expanded its footprint by opening one new off-campus site in the first quarter of 2025, bringing the total to 46 sites. The company continues to focus on enhancing its service offerings, particularly in healthcare-related academic programs, and aims to add more university partners. As of March 31, 2025, GCE provided education services to 22 university partners across the United States. The company also reported a decrease in cash and cash equivalents to $144.5 million from $324.6 million at the end of 2024, largely due to significant share repurchases and capital expenditures.

Looking ahead, GCE anticipates continued growth in enrollments and revenue, although it acknowledges challenges such as fluctuating cohort sizes and competition in the education services market. The company plans to invest in marketing and communication to support its partners' enrollment goals and expects to maintain a focus on expanding its service offerings. GCE's management remains optimistic about its ability to leverage its operational capabilities to meet the evolving needs of its university partners while navigating the complexities of the education sector.