GRAND CANYON EDUCATION, INC.

GRAND CANYON EDUCATION, INC._March 31, 2025

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

	For the quarterly period ended March 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from to

Commission File Number: 001-34211

GRAND CANYON EDUCATION, INC.

(Exact name of registrant as specified in its charter)


Delaware		20-3356009
(State or other jurisdiction of Incorporation or organization)		(I.R.S. Employer Identification No.)

2600 W. Camelback Road

Phoenix, Arizona 85017

(Address, including zip code, of principal executive offices)

(602) 247-4400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	LOPE	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large Accelerated Filer ☒		Accelerated Filer ☐
Non-accelerated Filer ☐		Smaller Reporting Company ☐
		Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The total number of shares of common stock outstanding as of May 2, 2025, was 28,374,509.

Table of Contents

GRAND CANYON EDUCATION, INC.

FORM 10-Q

INDEX


	Page
PART I – FINANCIAL INFORMATION	3

Item 1 Financial Statements	3
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3 Quantitative and Qualitative Disclosures About Market Risk	26
Item 4 Controls and Procedures	26

PART II – OTHER INFORMATION	27

Item 1 Legal Proceedings	27
Item 1A Risk Factors	27
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3 Defaults Upon Senior Securities	28
Item 4 Mine Safety Disclosures	28
Item 5 Other Information	28
Item 6 Exhibits	28
SIGNATURES	30

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1.Financial Statements

GRAND CANYON EDUCATION, INC.

Consolidated Income Statements

(Unaudited)


	Three Months Ended
	March 31,
(In thousands, except per share data)	2025		2024
Service revenue	$	289,310	$	274,675
Costs and expenses:
Technology and academic services		41,664		39,125
Counseling services and support		86,822		82,884
Marketing and communication		60,330		55,353
General and administrative		10,366		10,730
Amortization of intangible assets		2,105		2,105
Total costs and expenses		201,287		190,197
Operating income		88,023		84,478
Interest expense		—		(2)
Investment interest and other		3,381		3,729
Income before income taxes		91,404		88,205
Income tax expense		19,786		20,195
Net income	$	71,618	$	68,010
Earnings per share:
Basic income per share	$	2.53	$	2.31
Diluted income per share	$	2.52	$	2.29
Basic weighted average shares outstanding		28,277		29,459
Diluted weighted average shares outstanding		28,469		29,639

The accompanying notes are an integral part of these consolidated financial statements.

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GRAND CANYON EDUCATION, INC.

Consolidated Balance Sheets


	March 31,		December 31,
(In thousands, except par value)	2025		2024
	(Unaudited)
ASSETS:
Current assets
Cash and cash equivalents	$	144,509	$	324,623
Investments		160,144		—
Accounts receivable, net		115,696		82,948
Income tax receivable		—		490
Other current assets		16,087		11,915
Total current assets		436,436		419,976
Property and equipment, net		177,758		176,823
Right-of-use assets		96,059		99,541
Amortizable intangible assets, net		157,857		159,962
Goodwill		160,766		160,766
Other assets		2,572		1,357
Total assets	$	1,031,448	$	1,018,425
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities
Accounts payable	$	24,077	$	26,721
Accrued compensation and benefits		23,251		33,183
Accrued liabilities		34,573		29,620
Income taxes payable		24,076		8,559
Deferred revenue		9,081		—
Current portion of lease liability		13,146		12,883
Total current liabilities		128,204		110,966
Deferred income taxes, noncurrent		28,974		26,527
Other long-term liability		1,398		1,444
Lease liability, less current portion		92,168		95,635
Total liabilities		250,744		234,572
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at March 31, 2025 and December 31, 2024		—		—
Common stock, $0.01 par value, 100,000 shares authorized; 54,176 and 54,090 shares issued and 28,496 and 28,858 shares outstanding at March 31, 2025 and December 31, 2024, respectively		542		541
Treasury stock, at cost, 25,680 and 25,232 shares of common stock at March 31, 2025 and December 31, 2024, respectively		(2,102,760)		(2,024,370)
Additional paid-in capital		340,365		336,736
Accumulated other comprehensive loss		(7)		—
Retained earnings		2,542,564		2,470,946
Total stockholders’ equity		780,704		783,853
Total liabilities and stockholders’ equity	$	1,031,448	$	1,018,425

The accompanying notes are an integral part of these consolidated financial statements.

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GRAND CANYON EDUCATION, INC.

Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended
	March 31,
(In thousands)	2025		2024
Net income	$	71,618	$	68,010
Other comprehensive income, net of tax:
Unrealized losses on available-for-sale securities, net of taxes of $1 and $18 for the three months ended March 31, 2025 and 2024, respectively		(7)		(56)
Comprehensive income	$	71,611	$	67,954

The accompanying notes are an integral part of these consolidated financial statements.

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GRAND CANYON EDUCATION, INC.

Consolidated Statement of Stockholders’ Equity

(In thousands)

(Unaudited)


	Three Months Ended March 31, 2025
									Accumulated
							Additional		Other
	Common Stock			Treasury Stock			Paid-in		Comprehensive		Retained
	Shares	Par Value		Shares	Cost		Capital		Loss		Earnings		Total
Balance at December 31, 2024	54,090	$	541	25,232	$	(2,024,370)	$	336,736	$	—	$	2,470,946	$	783,853
Comprehensive income	—		—	—		—		—		(7)		71,618		71,611
Common stock purchased for treasury	—		—	395		(68,927)		—		—		—		(68,927)
Restricted shares forfeited	—		—	—		—		—		—		—		—
Share-based compensation	86		1	53		(9,463)		3,629		—		—		(5,833)
Balance at March 31, 2025	54,176	$	542	25,680	$	(2,102,760)	$	340,365	$	(7)	$	2,542,564	$	780,704


	Three Months Ended March 31, 2024
									Accumulated
							Additional		Other
	Common Stock			Treasury Stock			Paid-in		Comprehensive		Retained
	Shares	Par Value		Shares	Cost		Capital		Loss		Earnings		Total
Balance at December 31, 2023	53,970	$	540	24,017	$	(1,849,693)	$	322,512	$	(57)	$	2,244,712	$	718,014
Comprehensive income	—		—	—		—		—		(56)		68,010		67,954
Common stock purchased for treasury	—		—	172		(22,558)		—		—		—		(22,558)
Restricted shares forfeited	—		—	4		—		—		—		—		—
Share-based compensation	117		1	55		(7,446)		3,482		—		—		(3,963)
Balance at March 31, 2024	54,087	$	541	24,248	$	(1,879,697)	$	325,994	$	(113)	$	2,312,722	$	759,447

The accompanying notes are an integral part of these consolidated financial statements.

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GRAND CANYON EDUCATION, INC.

Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended
	March 31,
(In thousands)	2025		2024
Cash flows provided by operating activities:
Net income	$	71,618	$	68,010
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation		3,630		3,483
Depreciation and amortization		7,451		6,653
Amortization of intangible assets		2,105		2,105
Deferred income taxes		2,446		1,724
Other, including fixed asset disposals		(207)		(208)
Changes in assets and liabilities:
Accounts receivable from university partners		(32,748)		(32,899)
Other assets		(4,449)		(3,757)
Right-of-use assets and lease liabilities		278		335
Accounts payable		(2,023)		11,970
Accrued liabilities		(5,558)		(51)
Income taxes receivable/payable		16,007		17,328
Deferred revenue		9,081		10,270
Net cash provided by operating activities

SEC Form 10-Q filed by Grand Canyon Education Inc.