Grand Canyon Education, Inc. (LOPE) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy LOPE?
Source: SeekingAlpha
Online enrollment growth 8.7% year-over-year. Growth attributed to rolling out 20+ new programs annually, partnerships with over 5,500 employers, strong retention levels, and maintaining competitive tuition pricing.
Hybrid campus enrollment growth 16.6% year-over-year, or 18.7% excluding closed sites and those in teach-out. Growth driven by admitting advanced standing students and offering affordable, efficient prerequisite courses online.
Service revenue $308.1 million for Q4 2025, a 5.3% increase from $292.6 million in Q4 2024. Growth due to a 7.1% increase in university partner enrollments, offset by a slight decline in revenue per student due to contract modifications and tuition mix.
Operating income $108.1 million for Q4 2025, up from $100 million in Q4 2024. Operating margin increased to 35.1% from 34.2% due to higher revenue and contract modifications.
Net income $86.7 million for Q4 2025. Increase attributed to higher enrollments and revenue per student, despite the impact of a government shutdown.
GAAP diluted income per share $3.14 for Q4 2025. Non-GAAP diluted income per share was $3.21, up from $2.95 in Q4 2024, reflecting higher revenue and share repurchases.
CapEx $7.6 million for Q4 2025, representing 2.5% of service revenue. Investments focused on new off-campus classroom and laboratory sites.
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Analyst Views on LOPE
Wall Street analysts forecast LOPE stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 174.720
Low
230.00
Averages
230.00
High
230.00
Current: 174.720
Low
230.00
Averages
230.00
High
230.00
About LOPE
Grand Canyon Education, Inc. is an education services company, which primarily serves colleges and universities. The Company has developed technological solutions, infrastructure and operational processes to provide services to its institutions on a large scale. It provides technology and academic services, which include learning management systems, internal administration, infrastructure, support, program and curriculum, faculty and related training and development, class scheduling and skills and simulation lab sites. It provides counseling services and support, including admissions services, financial aid, counseling services, and field experience counseling. It also provides marketing and communication services that include lead acquisition, digital communication strategies, brand identity, media planning and strategy, video, business intelligence and data science, and market research. Its back-office services include finance and accounting, human resources, audit and procurement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Grand Canyon Education to Report Q1 2026 Earnings
- Earnings Report Schedule: Grand Canyon Education will release its Q1 2026 financial results and full-year outlook after market close on April 30, 2026, which is expected to provide key performance metrics and future growth directions for investors.
- Conference Call Details: The company will host a conference call at 1:30 PM (4:30 PM ET) on the same day to discuss the earnings report in detail, with participants required to dial in at least ten minutes early to ensure seamless access, while journalists are invited to listen only.
- Webcast and Replay: Investors and the general public can access a live webcast of the earnings call, with a replay available approximately two hours after the conclusion of the call, allowing stakeholders who cannot attend in real-time to obtain the information.
- Company Background: Founded in 2008, Grand Canyon Education focuses on providing educational services to 20 university partners, leveraging over 30 years of industry experience to deliver comprehensive support services and technological solutions, enhancing its competitive position in the higher education sector.
See More
Columbia University Student Detained by Federal Agents
- Immigration Enforcement Escalation: A Columbia University student was detained by federal agents early Thursday, marking the latest sign of the Trump administration's nationwide crackdown on immigration, which could raise significant concerns regarding campus safety and student rights.
- Controversial Law Enforcement Procedures: Acting President Claire Shipman stated that federal agents misrepresented their intentions to gain entry into a university-owned residential building under the pretense of searching for a 'missing person', raising questions about the transparency and legality of such enforcement actions.
- Campus Safety Policies: Shipman emphasized that all law enforcement agents are required to possess a judicial warrant or subpoena to enter non-public areas of the campus, a policy designed to protect student privacy and safety while ensuring that law enforcement actions comply with regulations.
- Tense Government-University Relations: Columbia has faced scrutiny from the Education Department for failing to meet federal anti-discrimination laws and was required to pay $200 million to restore federal funding, a series of events that may further strain the relationship between the university and the Trump administration.
See More
Trump Administration Increases Pressure on Student Loan Repayment
- Loan Default Risk: The U.S. Department of Education warns that over 1,800 higher education institutions have student loan default rates exceeding 25%, which could jeopardize their eligibility for federal student aid programs, thereby impacting their financial stability and enrollment appeal.
- Policy Implementation Requirements: The Education Department mandates that colleges prioritize reducing student delinquency rates not only through financial aid offices but also at the institutional leadership level, prompting schools to adopt more proactive measures in student loan management.
- Borrower Dilemma Intensifies: Last year, approximately 10 million borrowers were nearing default, with the Education Department revealing that over 600,000 federal student loan holders face a backlog in applications for affordable repayment plans, highlighting delays in policy execution and the pressures on borrowers.
- Household Financial Impact: Research indicates that a median U.S. household of four earning $81,000 could see its monthly bills surge from $36 to $440 due to legislative changes, reflecting the potential negative economic impact of these policy shifts on family finances.
See More
Grand Canyon Education Q4 2025 Earnings Call Highlights
- Online Enrollment Growth: Grand Canyon Education achieved an 8.7% increase in online enrollment and an 18.7% rise in hybrid enrollment in Q4 2025, indicating the company's ongoing ability to meet market demand while exceeding long-term objectives, showcasing its competitive edge in the education sector.
- Strong Financial Performance: The company reported service revenue of $308.1 million for Q4, a 5.3% year-over-year increase, with operating income reaching $108.1 million and a 35.1% operating margin, reflecting not only the company's solid financial health but also providing funding for future investments and expansions.
- Market Expansion Plans: Grand Canyon Education aims to achieve 80 hybrid campuses by 2026, although the pace of new site openings is slowing, the company remains committed to selecting new locations based on market scalability, ensuring sustainable long-term growth.
- Optimistic Future Outlook: Management anticipates mid-to-high single-digit growth in online enrollments for 2026, despite pressures from increased graduations and declining reentries, demonstrating confidence in achieving high single-digit total enrollment growth targets, reflecting adaptability and strategic foresight.
See More
Grand Canyon Education 2026 Financial Outlook
- Q4 Performance: Grand Canyon Education reported a non-GAAP EPS of $3.21 for Q4, beating expectations by $0.02, with revenue of $308.11 million reflecting a 5.3% year-over-year growth, indicating stable growth in the education services sector.
- Q1 2026 Outlook: The company anticipates service revenue between $307 million and $308 million for Q1, with an operating margin of 30.0% to 30.3%, which will support ongoing profitability while maintaining an effective tax rate of 23.4% to optimize tax burdens.
- Full Year 2026 Projections: For the full year, service revenue is expected to range from $1.1675 billion to $1.189 billion, with an operating margin of 27.5% to 28.8%, indicating a healthy financial outlook, and non-GAAP EPS projected between $9.55 and $10.16.
- Non-Cash Amortization Impact: The EPS guidance includes $1.6 million in non-cash amortization of intangible assets, equating to a $0.06 impact on EPS, with adjusted non-GAAP EPS expected between $9.79 and $10.40, demonstrating the company's transparency and financial robustness in managing its fiscal responsibilities.
See More
Grand Canyon Education Set to Release Q4 Earnings
- Earnings Announcement: Grand Canyon Education (LOPE) is set to announce its Q4 2023 earnings on February 18th after market close, with a consensus EPS estimate of $3.19, reflecting an 8.1% year-over-year growth that underscores the company's ongoing growth potential in the education sector.
- Revenue Expectations: Analysts forecast revenue of $307.92 million for the quarter, representing a 5.2% year-over-year increase, driven by the company's expansion in the online education market and the introduction of new courses, showcasing its adaptability to market demands.
- Historical Performance: Over the past two years, Grand Canyon Education has exceeded EPS estimates 88% of the time and revenue estimates 75% of the time, indicating a strong track record of financial performance that bolsters investor confidence in the company's stability and reliability.
- Market Analysis Insights: Despite the solid performance, recent analyst commentary suggests that the stock may need to consolidate for valuations to catch up, which could impact short-term stock performance, prompting investors to closely monitor market developments.
See More
Grand Canyon Education to Report Q1 2026 Earnings
- Earnings Report Schedule: Grand Canyon Education will release its Q1 2026 financial results and full-year outlook after market close on April 30, 2026, which is expected to provide key performance metrics and future growth directions for investors.
- Conference Call Details: The company will host a conference call at 1:30 PM (4:30 PM ET) on the same day to discuss the earnings report in detail, with participants required to dial in at least ten minutes early to ensure seamless access, while journalists are invited to listen only.
- Webcast and Replay: Investors and the general public can access a live webcast of the earnings call, with a replay available approximately two hours after the conclusion of the call, allowing stakeholders who cannot attend in real-time to obtain the information.
- Company Background: Founded in 2008, Grand Canyon Education focuses on providing educational services to 20 university partners, leveraging over 30 years of industry experience to deliver comprehensive support services and technological solutions, enhancing its competitive position in the higher education sector.
See More
Columbia University Student Detained by Federal Agents
- Immigration Enforcement Escalation: A Columbia University student was detained by federal agents early Thursday, marking the latest sign of the Trump administration's nationwide crackdown on immigration, which could raise significant concerns regarding campus safety and student rights.
- Controversial Law Enforcement Procedures: Acting President Claire Shipman stated that federal agents misrepresented their intentions to gain entry into a university-owned residential building under the pretense of searching for a 'missing person', raising questions about the transparency and legality of such enforcement actions.
- Campus Safety Policies: Shipman emphasized that all law enforcement agents are required to possess a judicial warrant or subpoena to enter non-public areas of the campus, a policy designed to protect student privacy and safety while ensuring that law enforcement actions comply with regulations.
- Tense Government-University Relations: Columbia has faced scrutiny from the Education Department for failing to meet federal anti-discrimination laws and was required to pay $200 million to restore federal funding, a series of events that may further strain the relationship between the university and the Trump administration.
See More
Trump Administration Increases Pressure on Student Loan Repayment
- Loan Default Risk: The U.S. Department of Education warns that over 1,800 higher education institutions have student loan default rates exceeding 25%, which could jeopardize their eligibility for federal student aid programs, thereby impacting their financial stability and enrollment appeal.
- Policy Implementation Requirements: The Education Department mandates that colleges prioritize reducing student delinquency rates not only through financial aid offices but also at the institutional leadership level, prompting schools to adopt more proactive measures in student loan management.
- Borrower Dilemma Intensifies: Last year, approximately 10 million borrowers were nearing default, with the Education Department revealing that over 600,000 federal student loan holders face a backlog in applications for affordable repayment plans, highlighting delays in policy execution and the pressures on borrowers.
- Household Financial Impact: Research indicates that a median U.S. household of four earning $81,000 could see its monthly bills surge from $36 to $440 due to legislative changes, reflecting the potential negative economic impact of these policy shifts on family finances.
See More
Grand Canyon Education Q4 2025 Earnings Call Highlights
- Online Enrollment Growth: Grand Canyon Education achieved an 8.7% increase in online enrollment and an 18.7% rise in hybrid enrollment in Q4 2025, indicating the company's ongoing ability to meet market demand while exceeding long-term objectives, showcasing its competitive edge in the education sector.
- Strong Financial Performance: The company reported service revenue of $308.1 million for Q4, a 5.3% year-over-year increase, with operating income reaching $108.1 million and a 35.1% operating margin, reflecting not only the company's solid financial health but also providing funding for future investments and expansions.
- Market Expansion Plans: Grand Canyon Education aims to achieve 80 hybrid campuses by 2026, although the pace of new site openings is slowing, the company remains committed to selecting new locations based on market scalability, ensuring sustainable long-term growth.
- Optimistic Future Outlook: Management anticipates mid-to-high single-digit growth in online enrollments for 2026, despite pressures from increased graduations and declining reentries, demonstrating confidence in achieving high single-digit total enrollment growth targets, reflecting adaptability and strategic foresight.
See More
Grand Canyon Education 2026 Financial Outlook
- Q4 Performance: Grand Canyon Education reported a non-GAAP EPS of $3.21 for Q4, beating expectations by $0.02, with revenue of $308.11 million reflecting a 5.3% year-over-year growth, indicating stable growth in the education services sector.
- Q1 2026 Outlook: The company anticipates service revenue between $307 million and $308 million for Q1, with an operating margin of 30.0% to 30.3%, which will support ongoing profitability while maintaining an effective tax rate of 23.4% to optimize tax burdens.
- Full Year 2026 Projections: For the full year, service revenue is expected to range from $1.1675 billion to $1.189 billion, with an operating margin of 27.5% to 28.8%, indicating a healthy financial outlook, and non-GAAP EPS projected between $9.55 and $10.16.
- Non-Cash Amortization Impact: The EPS guidance includes $1.6 million in non-cash amortization of intangible assets, equating to a $0.06 impact on EPS, with adjusted non-GAAP EPS expected between $9.79 and $10.40, demonstrating the company's transparency and financial robustness in managing its fiscal responsibilities.
See More
Grand Canyon Education Set to Release Q4 Earnings
- Earnings Announcement: Grand Canyon Education (LOPE) is set to announce its Q4 2023 earnings on February 18th after market close, with a consensus EPS estimate of $3.19, reflecting an 8.1% year-over-year growth that underscores the company's ongoing growth potential in the education sector.
- Revenue Expectations: Analysts forecast revenue of $307.92 million for the quarter, representing a 5.2% year-over-year increase, driven by the company's expansion in the online education market and the introduction of new courses, showcasing its adaptability to market demands.
- Historical Performance: Over the past two years, Grand Canyon Education has exceeded EPS estimates 88% of the time and revenue estimates 75% of the time, indicating a strong track record of financial performance that bolsters investor confidence in the company's stability and reliability.
- Market Analysis Insights: Despite the solid performance, recent analyst commentary suggests that the stock may need to consolidate for valuations to catch up, which could impact short-term stock performance, prompting investors to closely monitor market developments.
See More
