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Grand Canyon Education, Inc. Sees Strong Growth in First Quarter 2026

PHOENIX, April 30, 2026 – Grand Canyon Education, Inc. (NASDAQ: LOPE), commonly referred to as GCE, has released its financial results for the first quarter of 2026, showcasing impressive growth compared to the previous year. The education service company, which partners with 20 universities to provide a range of support services, reported a notable increase in revenue and enrollments, reflecting the company's successful operational strategies and market position.

Financial Highlights

For the first quarter ending March 31, 2026, GCE reported service revenue of $308.8 million, representing an increase of $19.5 million, or 6.7%, from $289.3 million during the same period in 2025. This revenue boost is primarily attributed to a 7.1% rise in university partner enrollments, which climbed to a total of 136,884 students.

Despite the positive revenue growth, GCE noted a slight decrease in revenue per student, largely due to contract revisions with some university partners that adjusted revenue-sharing percentages. This was offset by an increase in enrollments and the opening of new educational sites. The company's operating income for Q1 2026 was $95.5 million, up 8.5% from $88.0 million in Q1 2025.

The tax expense for the quarter was reported at $23.1 million, marking a 16.9% increase, reflecting higher state taxes, resulting in an effective tax rate of 23.5%. In terms of net income, GCE achieved $75.3 million, an increase of 5.2% year-over-year, translating to diluted earnings per share (EPS) of $2.80, compared to $2.52 in the previous year.

Enrollment Growth

GCE elucidated that enrollments at Grand Canyon University (GCU) increased significantly, with a total of 132,354 students recorded as of March 31, 2026, which reflects a 6.9% increase. Additionally, enrollments at off-campus classrooms and laboratories surged by 18.6%, further demonstrating the effectiveness of GCE's growth strategy.

The company also reported growth in online enrollments, with 110,406 online students, indicating an 8.8% rise from the previous year. Notably, GCE plans to expand its reach further by opening one to two new educational sites in the latter half of 2026, consistent with its strategy to enhance educational accessibility.

Future Outlook

Looking ahead, GCE's forecast for the second quarter of 2026 anticipates service revenue ranging from $260 million to $264 million, with expected diluted EPS between $1.57 and $1.68. For the entirety of the fiscal year, service revenue is estimated to be between $1.169 billion and $1.189 billion, with an anticipated diluted EPS between $9.69 and $10.26. These optimistic forecasts highlight the company's commitment to maintaining its growth trajectory and addressing the evolving needs of its university partners and students.

Conclusion

Grand Canyon Education, Inc.'s first quarter results signify a robust continuation of growth, both in financial terms and student enrollments. The reported increases reflect GCE's effective operational management and strategic planning in the competitive education services sector. As the company moves forward in 2026, its focus on expanding educational services and enhancing partnerships will be crucial to sustaining growth and meeting the educational demands of its clients. For more information on GCE, visit www.gce.com.