10-Q · April 30, 2026
Grand Canyon Education, Inc. reported Q1 2026 results with service revenue of $308.8 million, a 6.7% increase year-over-year. Diluted EPS rose to $2.80, beating consensus estimates of $2.78, while net income was…
Earnings analysis · 10-Q
LOPE earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Grand Canyon Education delivered $267.3 million of revenue and $1.67 of diluted EPS in Q3 2026, with revenue up modestly year over year and operating margin recovering to 19.3% from 6.9%. EPS and revenue missed…
Read full summary
Grand Canyon Education delivered $267.3 million of revenue and $1.67 of diluted EPS in Q3 2026, with revenue up modestly year over year and operating margin recovering to 19.3% from 6.9%. EPS and revenue missed consensus, while EPS declined sequentially from $1.75. Enrollment growth supported the margin recovery, but the expanded repurchase authorization and limited $73.5 million remaining under the existing authorization highlight liquidity and capital-allocation considerations. The 10-Q reports no material changes to the previously disclosed risk factors and provides no quantitative guidance in the supplied filing text.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.67
- Segment
- Online and off-campus enrollment growth were identified as drivers, but the provided 10-Q text does not disclose exact segment revenue amounts.
What stood out
-
Revenue modestly higher sequentially and year over year
Revenue was $267.3 million, up approximately 1.3% from $264 million in Q2 2026 and 2.4% from $261 million in Q3 2025, although it was below the $270.0 million consensus estimate.
-
Operating margin recovered sharply
Operating margin improved to 19.3% from 6.9% in Q3 2025, a 12.4-percentage-point year-over-year recovery, supported by enrollment growth.
-
EPS rebounded year over year but missed estimates
Diluted EPS was $1.67, down 4.6% from $1.75 in Q2 2026 but up substantially from $0.58 in Q3 2025; EPS missed the $1.76 consensus estimate.
-
Online and off-campus enrollment growth
Management identified online and off-campus enrollment growth as contributors to quarterly performance, although the provided filing text does not quantify revenue by segment.
-
Expanded share-repurchase authorization
The board approved a $355.0 million increase to the repurchase authorization on October 28, 2026, bringing aggregate authorization since program inception to $2.9 billion.
-
No material control deficiencies reported
Disclosure controls were concluded effective as of September 30, 2026, and management identified no changes in internal control that materially affected or were reasonably likely to materially affect reporting.
What to watch
-
Aggressive repurchases reduce liquidity
At September 30, 2026, only $73.5 million remained available under the repurchase authorization, while the company had repurchased 1,700,605 shares during the first nine months of 2026. Continued capital returns could constrain liquidity for operations or investment.
-
Additional authorized cash commitment
The repurchase authorization was increased to $428.5 million in October 2026, creating additional potential cash outflows beyond the $73.5 million available at September 30, 2026.
-
New secured credit facility
The company entered into a new revolving credit facility dated September 28, 2026, with related guaranty, security, and pledge agreements. The new secured financing structure may increase financing and covenant exposure, although the provided excerpt does not disclose facility capacity or borrowings.
-
Investment portfolio interest-rate risk
The company invests excess cash in marketable instruments, and stated that a 10% increase or decrease in interest rates would not materially affect future earnings, fair values, or cash flows as of September 30, 2026. Nonetheless, investment income could fall or principal losses could occur if securities are sold before maturity.
-
No new material risk-factor changes
The filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K, so no new filing-level regulatory, litigation, or operating risk update was identified.
Management's outlook
The provided 10-Q excerpt does not include quantitative guidance or an MD&A outlook. Separate November 4, 2026 earnings-release guidance cited Q4 2026 service revenue of $320.5 million-$321.5 million and diluted EPS of $3.57-$3.61, but no prior outlook was provided for comparison.
Earlier filings 4
10-K · February 18, 2026
Grand Canyon Education (LOPE) emphasizes scale with a dominant partner relationship (GCU) and a technology-driven services platform (proprietary Halo LMS and Mosaic AI). Fiscal 2025 showed revenue growth to about…
10-K · February 19, 2025
The 10-K emphasizes Grand Canyon Education’s scale as an education services provider (serving ~127,150 students, including >123,100 at its largest partner, Grand Canyon University) and its technology-driven services…
10-Q · November 6, 2024
Grand Canyon Education reported quarterly service revenue of $238,291 for the three months ended September 30, 2024, up from $221,913 in the year-ago quarter, with operating income of $48,175 (operating margin ~20.2%)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.