Grand Canyon Education Q1 service revenue rises on higher enrollments

Overview

• Education services provider's Q1 service revenue rose 6.7% yr/yr, driven by higher partner enrollments

• Adjusted EBITDA grew 8.5% yr/yr; net income increased 5.2%

• Revenue per student declined slightly due to contract changes and student mix shift

Outlook

• Company sees Q2 2026 service revenue between $260 mln and $264 mln

• Grand Canyon Education expects Q3 2026 diluted EPS of $1.72 to $1.91

• Company forecasts full-year 2026 service revenue of $1.17 bln to $1.19 bln

Result Drivers

• ENROLLMENT GROWTH - Co said higher university partner enrollments, especially in online and off-campus sites, drove service revenue increase

• REVENUE PER STUDENT - Co said revenue per student declined slightly due to contract modifications and a shift to students with lower net tuition rates

• OFF-CAMPUS NURSING SITES - Higher revenue per student from accelerated nursing programs at off-campus sites partially offset overall revenue per student decline

Company press release: ID:nPn9YNFc3a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "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 $213.00, about 25.8% above its April 29 closing price of $169.26

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

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