GRAND CANYON EDUCATION, INC. REPORTS FOURTH QUARTER 2025 RESULTS

PHOENIX, Feb. 18, 2026 /PRNewswire/ -- Grand Canyon Education, Inc. (NASDAQ: LOPE), ("GCE" or the "Company"), is a publicly traded education services company that currently provides services to 20 university partners. GCE provides a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale. GCE today announced financial results for the quarter ended December 31, 2025.

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results

For the three months ended December 31, 2025:

For the year ended December 31, 2025:

Liquidity and Capital Resources

Our liquidity position, as measured by cash and cash equivalents and investments decreased by $24.5 million between December 31, 2024 and December 31, 2025, which was largely attributable to cash expended for share repurchases and capital expenditures exceeding our cash provided by operations during the year ended December 31, 2025. Our unrestricted cash and cash equivalents and investments were $300.1 million and $324.6 million at December 31, 2025 and 2024, respectively.

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results and Full Year Outlook 2026

2026 Outlook

Q1 2026:

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $2.76 and $2.79.

Q2 2026:

Q3 2026:

Q4 2026:

Full Year 2026:

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.4 million, which equates to a $0.24 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $9.79 and $10.40.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of federal securities laws including information relating to future events, future financial performance, strategies expectations, competitive environment, regulation, and availability of resources. These forward-looking statements include, without limitation, statements regarding: proposed new programs; whether regulatory, economic, or business developments or other matters may or may not have a material adverse effect on our financial position, results of operations, or liquidity; projections, predictions, expectations, estimates, and forecasts as to our business, financial and operating results, and future economic performance; and management's goals and objectives and other similar expressions concerning matters that are not historical facts. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, the negative of these expressions, as well as statements in future tense, identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause our actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements include, but are not limited to: (i) legal and regulatory actions taken against us related to our services business, or against our university partners that impact their businesses and that directly or indirectly reduce the service revenue we can earn under our master services agreements; (ii) the occurrence of any event, change or other circumstance that could give rise to the termination of any of the key university partner agreements; (iii) our ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions or divestitures of, or investments in, new businesses, acquisitions of new properties and new university partners, and expansion of services provided to our existing university partners; (iv) our ability to comply with the extensive regulatory framework applicable to us either directly as a third-party service provider or indirectly through our university partners; (v) our ability to manage risks associated with epidemics, pandemics, or public health crises; (vi) our ability to manage risks resulting from system disruptions, interruptions, or outages associated with our technology platforms or those of third-party service providers; (vii) the ability of our university partners' students to obtain federal Title IV funds, state financial aid, and private financing; (viii) potential damage to our reputation or other adverse effects as a result of negative publicity in the media, in the industry or in connection with governmental reports or investigations or otherwise; (ix) risks associated with changes in applicable federal and state laws and regulations and accrediting commission standards; (x) competition from other education service companies in our geographic region and market sector; (xi) our ability to hire and train new, and develop and train existing employees; (xii) the pace of growth of our university partners' enrollment and its effect on the pace of our own growth; (xiii) fluctuations in our revenues due to seasonality; (xiv) our ability to, on behalf of our university partners, convert prospective students to enrolled students and to retain active students to graduation; and (xv) other risks and uncertainties identified from time to time in documents filed with the Securities and Exchange Commission (the "SEC") by us, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed on February 18, 2026.

Forward-looking statements speak only as of the date the statements are made. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand GCE's reported financial results and our business outlook for future periods.

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results

Conference Call

Grand Canyon Education, Inc. will discuss its fourth quarter 2025 results and full year 2026 outlook during a conference call scheduled for today, February 18, 2026 at 4:30 p.m. Eastern time (ET).

Live Conference Dial-In:

Those interested in participating in the question-and-answer session should follow the conference dial-in instructions below. Participants may register for the call here to receive the dial-in numbers and unique PIN to access the call seamlessly. Please dial in at least ten minutes prior to the start of the call. Journalists are invited to listen only.

Webcast and Replay:

Investors, journalists and the general public may access a live webcast of this event at: Q4 2025 Grand Canyon Education Inc. Earnings Conference Call. A webcast replay will be available approximately two hours following the conclusion of the call at the same link.

About Grand Canyon Education, Inc.

Grand Canyon Education, Inc. ("GCE"), incorporated in 2008, is a publicly traded education services company that currently provides services to 20 university partners. GCE is uniquely positioned in the education services industry in that its leadership has over 30 years of proven expertise in providing a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale. GCE provides services that support students, faculty and staff of partner institutions such as marketing, strategic enrollment management, counseling services, financial services, technology, technical support, compliance, human resources, classroom operations, content development, faculty recruitment and training, among others. For more information about GCE visit the Company's website at www.gce.com.

Grand Canyon Education, Inc., 2600 W. Camelback Road, Phoenix, AZ 85017, www.gce.com.

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Income Statements

(Unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

(In thousands, except per share data)

Service revenue

308,119

292,573

1,106,070

1,033,002

Costs and expenses:

Technology and academic services

45,354

43,004

175,060

165,085

Counseling services and support

88,400

85,327

342,650

323,484

Marketing and communication

53,692

49,646

229,204

212,420

General and administrative

10,490

10,568

47,416

46,298

Litigation settlement

—

35,000

—

Lease termination, impairment and other

—

1,897

2,411

1,897

Amortization of intangible assets

2,104

8,419

Total costs and expenses

200,040

192,546

840,160

757,603

Operating income

108,079

100,027

265,910

275,399

Investment interest and other

3,697

3,925

13,941

15,916

Income before income taxes

111,776

103,952

279,851

291,315

Income tax expense

25,044

22,073

63,681

65,081

Net income

86,732

81,879

216,170

226,234

Earnings per share:

Basic income per share

3.16

2.86

7.76

7.77

Diluted income per share

3.14

2.84

7.71

7.73

Basic weighted average shares outstanding

27,446

28,677

27,862

29,104

Diluted weighted average shares outstanding

27,608

28,872

28,024

29,271

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Balance Sheets

As of December 31,

(In thousands, except par value)

2025

2024

ASSETS:

(Unaudited)

Current assets

Cash and cash equivalents

111,762

324,623

Investments

188,317

—

Accounts receivable, net

84,278

82,948

Income taxes receivable

2,392

490

Other current assets

13,430

11,915

Total current assets

400,179

419,976

Property and equipment, net

178,957

176,823

Right-of-use assets

96,571

99,541

Amortizable intangible assets, net

151,543

159,962

Goodwill

160,766

Other assets

4,289

1,357

Total assets

992,305

1,018,425

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities

Accounts payable

24,347

26,721

Accrued compensation and benefits

35,199

33,183

Accrued liabilities

32,283

29,620

Income taxes payable

3,355

8,559

Deferred revenue

—

Current portion of lease liability

14,568

12,883

Total current liabilities

109,752

110,966

Deferred income taxes, noncurrent

41,426

26,527

Other long-term liabilities

1,439

1,444

Lease liability, less current portion

92,755

95,635

Total liabilities

245,372

234,572

Commitments and contingencies

Stockholders' equity

Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and

outstanding at December 31, 2025 and December 31, 2024

—

Common stock, $0.01 par value, 100,000 shares authorized; 54,178 and 54,090 shares

issued and 27,393 and 28,858 shares outstanding at December 31, 2025 and December 31, 2024, respectively

542

541

Treasury stock, at cost, 26,785 and 25,232 shares of common stock at December 31, 2025

and December 31, 2024, respectively

(2,291,610)

(2,024,370)

Additional paid-in capital

350,374

336,736

Accumulated other comprehensive gain

511

—

Retained earnings

2,687,116

2,470,946

Total stockholders' equity

746,933

783,853

Total liabilities and stockholders' equity

992,305

1,018,425

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Year Ended

December 31,

(In thousands)

2025

2024

Cash flows provided by operating activities:

Net income

216,170

226,234

Adjustments to reconcile net income to net cash provided by operating activities:

Share-based compensation

13,639

14,225

Depreciation and amortization

31,483

28,135

Amortization of intangible assets

8,419

Deferred income taxes

14,739

(165)

Lease termination, impairment and other

2,411

—

Other, including fixed asset disposals

(154)

1,227

Changes in assets and liabilities:

Accounts receivable from university partners

(1,330)

(4,137)

Other assets

(4,192)

1,170

Right-of-use assets and lease liabilities

671

1,799

Accounts payable

(3,451)

9,664

Accrued liabilities

2,192

4,252

Income taxes receivable/payable

(7,106)

(865)

Net cash provided by operating activities

273,491

289,958

Cash flows (used in) provided by investing activities:

Capital expenditures

(34,843)

(37,248)

Additions of amortizable content

(60)

(412)

Purchase of equity investment

(1,000)

—

Loss on equity investment

500

—

Purchases of investments

(241,723)

(48,594)

Proceeds from sale or maturity of investments

55,532

147,619

Net cash (used in) provided by investing activities

(221,594)

61,365

Cash flows used in financing activities:

Repurchase of common shares and shares withheld in lieu of income taxes

(264,758)

(173,175)

Net cash used in financing activities

(264,758)

(173,175)

Net (decrease) increase in cash and cash equivalents and restricted cash

(212,861)

178,148

Cash and cash equivalents and restricted cash, beginning of period

324,623

146,475

Cash and cash equivalents and restricted cash, end of period

111,762

324,623

Supplemental disclosure of cash flow information

Cash paid for interest

—

Cash paid for income taxes

53,896

65,261

Supplemental disclosure of non-cash investing and financing activities

Purchases of property and equipment included in accounts payable

835

1,065

ROU Asset and Liability recognition

—

7,087

Excise tax on treasury stock repurchases

2,482

1,502

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results

GRAND CANYON EDUCATION, INC.

Adjusted EBITDA (Non-GAAP Financial Measure)

Adjusted EBITDA is defined as net income plus interest expense, less interest income and other gain (loss) recognized on investments, plus income tax expense, and plus depreciation and amortization (EBITDA), as adjusted for (i) contributions to private Arizona school tuition organizations in lieu of the payment of state income taxes; (ii) share-based compensation; and (iii) unusual charges or gains, such as litigation and regulatory costs, impairment charges and asset write-offs, severance costs, and exit or lease termination costs. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance. We also make certain compensation decisions based, in part, on our operating performance, as measured by Adjusted EBITDA. All of the adjustments made in our calculation of Adjusted EBITDA are adjustments to items that management does not consider to be reflective of our core operating performance. Management considers our core operating performance to be that which can be affected by our managers in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period and does not consider the items for which we make adjustments (as listed above) to be reflective of our core performance.

We believe Adjusted EBITDA allows us to compare our current operating results with corresponding historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by variations in capital structures (affecting relative interest expense, including the impact of write-offs of deferred financing costs when companies refinance their indebtedness), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the book amortization of intangibles (affecting relative amortization expense), and other items that we do not consider reflective of underlying operating performance. We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties as a measure of performance.

In evaluating Adjusted EBITDA, investors should be aware that in the future we may incur expenses similar to the adjustments described above. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine, or non-recurring. Adjusted EBITDA has limitations as an analytical tool in that, among other things, it does not reflect:

In addition, other companies, including other companies in our industry, may calculate these measures differently than we do, limiting the usefulness of Adjusted EBITDA as a comparative measure. Because of these limitations, Adjusted EBITDA should not be considered as a substitute for net income, operating income, or any other performance measure derived in accordance with and reported under GAAP, or as an alternative to cash flow from operating activities or as a measure of our liquidity. We compensate for these limitations by relying primarily on our GAAP results and only use Adjusted EBITDA as a supplemental performance measure.

The following table provides a reconciliation of net income to Adjusted EBITDA, which is a non-GAAP measure for the periods indicated:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

(Unaudited, in thousands)

Net income

86,732

81,879

216,170

226,234

Less: investment interest and other

(3,697)

(3,925)

(13,941)

(15,916)

Plus: income tax expense

25,044

22,073

63,681

65,081

Plus: amortization of intangible assets

2,104

8,419

Plus: depreciation and amortization

8,160

7,428

31,483

28,135

EBITDA

118,343

109,559

305,812

311,953

Plus: contributions in lieu of state income taxes

—

5,000

4,500

Plus: share-based compensation

3,228

3,370

13,639

14,225

Plus: litigation and regulatory costs

1,266

1,715

40,486

6,203

Plus: lease termination, impairment and other

—

1,897

2,411

1,897

Plus: severance costs

—

299

1,133

Plus: loss on fixed asset disposal

471

941

102

Adjusted EBITDA

123,308

116,572

368,588

340,013

Non-GAAP Net Income and Non-GAAP Diluted Income Per Share

The Company believes the presentation of non-GAAP net income and non-GAAP diluted income per share information that excludes amortization of intangible assets; the litigation settlement; lease termination costs, impairments and other costs; severance costs; and loss on disposal of fixed assets allows investors to develop a more meaningful understanding of the Company's performance over time. Accordingly, for the three months and years ended December 31, 2025 and 2024, the table below provides reconciliations of these non-GAAP items to GAAP net income and GAAP diluted income per share, respectively:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

(Unaudited, in thousands except per share data)

GAAP Net income

86,732

81,879

216,170

226,234

Plus: Amortization of intangible assets

2,104

8,419

Plus: Litigation settlement

—

35,000

—

Plus: Lease termination, impairment and other

—

1,897

2,411

1,897

Plus: Severance costs

—

299

1,133

Plus: Loss on disposal of fixed assets

471

941

102

Less: Income tax effects of adjustments (1)

(577)

(856)

(8,775)

(2,580)

As Adjusted, Non-GAAP Net income

88,730

85,055

254,465

235,205

GAAP Diluted income per share

3.14

2.84

7.71

7.73

Plus: Amortization of intangible assets (2)

0.06

0.23

0.22

Plus: Litigation settlement (3)

1.03

Plus: Lease termination, impairment and other (4)

0.05

0.07

0.05

Plus: Severance costs (5)

0.01

0.03

Plus: Loss on disposal of fixed assets (6)

0.01

0.00

0.03

0.00

As Adjusted, Non-GAAP Diluted income per share

3.21

2.95

9.08

8.04

(1)

The income tax effects of adjustments are based on the effective income tax rate applicable to adjusted (non-GAAP) results. The tax effect for the reserve for litigation was 17.43% for the year ended December 31, 2025, due to non-deductible components.

(2)

The amortization of acquired intangible assets per diluted share is net of an income tax benefit of $0.02 for both of the three months ended December 31, 2025 and 2024, and net of an income tax benefit of $0.07 and $0.06 for the years ended December 31, 2025 and 2024, respectively.

(3)

The litigation settlement per diluted share is net of an income tax benefit of $0.22 for the year ended December 31, 2025.

(4)

The lease termination, impairment and other per diluted share is net of an income tax benefit of $0.01 for the three months ended December 31, 2024, and net of an income tax benefit of $0.02 and $0.01 for the years ended December 31, 2025 and 2024, respectively.

(5)

The severance costs per diluted share is net of an income tax benefit of $0.00 and $0.01 for the years ended December 31, 2025 and 2024, respectively.

(6)

The loss on disposal of fixed assets per diluted share is net of an income tax benefit of nil for both of the three months ended December 31, 2025 and 2024, and net of an income tax benefit of $0.01 and $0.00 for the years ended December 31, 2025 and 2024, respectively.

Investor Relations Contact:

Daniel E. Bachus

Chief Financial Officer

Grand Canyon Education, Inc.

602-639-6648

[email protected]

SOURCE Grand Canyon Education, Inc.