Grand Canyon Education Q4 Service Revenue Jumps 5.3% to $308.1M, EPS $3.14
Service revenue for Q4 rose 5.3% year-over-year to $308.1 million on 7.1% enrollment growth to 136,239 students, while net income increased 5.9% to $86.7 million. Diluted EPS rose from $2.84 to $3.14 and adjusted EBITDA climbed 5.8% to $123.3 million, supported by off-campus ABSN program gains and improved operating margin of 35.1%.
1. Q4 Revenue and Enrollment Growth
Service revenue for the quarter ended December 31, 2025 reached $308.1 million, up 5.3% from the prior year, driven by a 7.1% increase in total enrollments to 136,239 students. Growth was broad-based across university partners, with Grand Canyon University enrollments rising 7.0% to 131,826 and off-campus classroom and laboratory sites growing 16.6% to 5,738 students.
2. Margin, Income and EPS
Operating income climbed 8.1% to $108.1 million, lifting the operating margin to 35.1% from 34.2% a year earlier. Net income rose 5.9% to $86.7 million, with diluted EPS increasing to $3.14 from $2.84; the effective tax rate rose to 22.4% due to higher state taxes.
3. Program Mix and Site Expansion
Revenue per student dipped slightly due to contract modifications reducing revenue share and a mix shift to lower-tuition online students, partially offset by higher-margin accelerated Bachelor of Science in Nursing programs at off-campus sites. The company opened five new off-campus sites and now operates 47, contributing to accelerated enrollments and revenue diversification.
4. Full-Year Financial Performance
For the year ended December 31, 2025, service revenue climbed 7.1% to $1,106.1 million on the same 7.1% enrollment increase, while revenue per student remained flat due to a leap-year adjustment and contract changes. Adjusted EBITDA and net income followed quarterly trends with moderate margin expansion, reflecting continued scale in core services.