Revenue: As of FY2026 Q2, the actual value is USD 264.05 M, beating the estimate of USD 261.8 M.

EPS: As of FY2026 Q2, the actual value is USD 1.75, beating the estimate of USD 1.68.

EBIT: As of FY2026 Q2, the actual value is USD 60.85 M.

Grand Canyon Education, Inc. reported its second quarter and six-month results for 2026, showing year-over-year growth across key metrics driven by increased university partner enrollments.

Second Quarter 2026 Financial Highlights

Service revenue for the three months ended June 30, 2026, was $264.0 million, an increase of 6.7% compared to $247.5 million for the same period in 2025. Operating income for the second quarter of 2026 was $58.2 million, an increase of 12.3% from $51.8 million in 2025. The operating margin improved to 22.0% in Q2 2026 from 20.9% in Q2 2025. Net income for the three months ended June 30, 2026, was $45.9 million, an increase of 10.4% compared to $41.5 million in 2025. Adjusted EBITDA increased by 8.9% to $73.4 million for Q2 2026, up from $67.4 million in Q2 2025. Income tax expense was $15.0 million, an increase of 11.4% from $13.5 million in 2025. The effective tax rate for Q2 2026 was 24.7%, slightly up from 24.5% in Q2 2025, primarily due to higher state income taxes.

Six Months Ended June 30, 2026 Financial Highlights

Service revenue for the six months ended June 30, 2026, was $572.8 million, an increase of 6.7% compared to $536.8 million for the same period in 2025. Operating income for the six months ended June 30, 2026, was $153.6 million, an increase of 9.9% from $139.8 million in 2025. The operating margin for the six-month period improved to 26.8% in 2026 from 26.0% in 2025. Net income for the six months ended June 30, 2026, was $121.2 million, an increase of 7.1% compared to $113.2 million in 2025. Adjusted EBITDA increased by 8.7% to $184.1 million for the six months ended June 30, 2026, compared to $169.4 million in 2025. Income tax expense was $38.1 million, an increase of 14.7% from $33.3 million in 2025. The effective tax rate for the six-month period was 23.9% in 2026, up from 22.7% in 2025, due to higher state income taxes and a decrease in excess tax benefits.

Operational Metrics (Enrollments)

Total university partner enrollments increased by 7.6% to 126,231 at June 30, 2026, up from 117,283 at June 30, 2025. Grand Canyon University (GCU) enrollments increased by 7.5% to 121,921 at June 30, 2026, compared to June 30, 2025. Enrollments at off-campus classroom and laboratory sites were 5,829, a 16.8% increase over June 30, 2025. GCU ground student enrollments were 8,910 at June 30, 2026, a 3.9% increase from 8,579 at June 30, 2025. GCU online enrollments reached 113,011 at June 30, 2026, a 7.8% increase from 104,856 at June 30, 2025.

Liquidity and Capital Resources

Unrestricted cash and cash equivalents and investments stood at $274.5 million at June 30, 2026, a decrease of $25.6 million from $300.1 million at December 31, 2025. Net cash provided by operating activities for the six months ended June 30, 2026, was $196.855 million, up from $191.639 million for the same period in 2025.

2026 Outlook

For Q3 2026, service revenue is projected to be between $268.5 million and $270.5 million, with an operating margin between 19.5% and 20.0%. The Full Year 2026 outlook anticipates service revenue between $1,165.3 million and $1,172.3 million, and an operating margin between 28.0% and 28.2%. The effective tax rate for the full year is expected to be 23.2%.