Grand Canyon Education Q2 service revenue rises on higher enrollments
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Outlook
Company sees Q3 2026 service revenue between $268.5 mln and $270.5 mln
Grand Canyon Education expects Q4 2026 diluted EPS between $3.69 and $3.79
Company forecasts full-year 2026 service revenue between $1.165 bln and $1.172 bln
Overview
U.S. education services provider's Q2 service revenue rose 6.7% yr/yr on higher enrollments
Q2 adjusted EBITDA and pretax profit beat analyst expectations
Revenue per student declined slightly due to contract changes and enrollment mix
Result drivers
Enrollment growth - Higher university partner enrollments, including at GCU and off-campus sites, drove service revenue increase
Contract modifications - Revenue per student declined slightly due to contract changes with one partner reducing revenue share percentage
Student mix shift - Continued shift toward students with lower net tuition rates and a decline in higher-paying ground students weighed on revenue per student
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"
Wall Street's median 12-month price target for Grand Canyon Education Inc is $200.00, about 25.5% above its July 29 closing price of $159.31
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
