Loading...
•
Jun 30
Grand Canyon Education Q2 2025 Earnings Report
Grand Canyon Education reported strong second quarter 2025 results, with significant increases in service revenue, net income, and diluted EPS, driven by robust partner enrollment growth.
Key Takeaways
Grand Canyon Education, Inc. delivered a strong second quarter in 2025, with service revenue increasing by 8.8% year-over-year to $247.5 million. Net income rose by 19.1% to $41.5 million, and diluted EPS reached $1.48. The growth was primarily fueled by a 10.3% increase in partner enrollments, reaching 117,283.
Service revenue for Q2 2025 increased by 8.8% to $247.5 million, up from $227.5 million in Q2 2024.
Net income for the quarter grew by 19.1% to $41.5 million, compared to $34.9 million in the prior year.
Diluted EPS for Q2 2025 was $1.48, a significant increase from $1.19 in Q2 2024.
Total partner enrollments rose by 10.3% to 117,283 at June 30, 2025, compared to 106,307 at June 30, 2024.
Grand Canyon Education
Grand Canyon Education
Grand Canyon Education Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.com Forward Guidance
Grand Canyon Education provided a positive outlook for Q3 and Q4 2025, as well as the full year 2025, projecting continued growth in service revenue, operating margin, and diluted EPS.
Positive Outlook
- Q3 2025 service revenue is projected to be between $258.5 million and $260.5 million.
- Q3 2025 diluted EPS is expected to be between $1.69 and $1.74.
- Q4 2025 service revenue is projected to be between $305.0 million and $310.0 million.
- Full Year 2025 service revenue is expected to be between $1,100.3 million and $1,107.3 million.
- Full Year 2025 diluted EPS is projected to be between $8.75 and $8.90.
Challenges Ahead
- The diluted EPS guidance includes non-cash amortization of intangible assets, which will have a negative impact on reported EPS.
- Potential legal and regulatory actions against the company or its university partners could adversely affect service revenue.
- Risks associated with managing strategic initiatives, including potential acquisitions or divestitures, could impact financial performance.
- Changes in applicable federal and state laws, regulations, and accrediting commission standards could negatively affect operations.
- Competition from other education service companies may impact growth and market share.