Grand Canyon Education Q2 service revenue rises on higher enrollments

Grand Canyon Education

30/07/2026 21:29

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

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

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

Company press release: ID:nPn6TynXWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
$45.85 mln
 
Q2 Adjusted EBITDA
Beat
$73.40 mln
$68.22 mln (3 Analysts)
Q2 Pretax Profit
Beat
$60.85 mln
$56.61 mln (3 Analysts)
Q2 Operating Income
 
$58.15 mln
 
Q2 Service revenue
 
$264.05 mln
 

Analyst Coverage
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

Reuters Recommended Reads
July 29 - Strategic Education Q2 revenue beats estimates on education technology growth
July 30 - Laureate Education beats Q2 estimates on strong enrollment growth 
July 29 - Coursera Q2 revenue beats estimates, outlook raised

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)