Grand Canyon Education Q3 service revenue rises on higher university partner enrollments
Overview
Education services provider's Q3 service revenue rose 2.4% yr/yr, driven by higher enrollments
Q3 adjusted EBITDA decreased 3.2%, pretax profit missed
Company approved $355 mln increase to share repurchase program
Outlook
Grand Canyon Education sees Q4 2026 service revenue between $320.5 mln and $321.5 mln
Company expects 2026 service revenue of $1.1607 bln to $1.1617 bln
Company forecasts 2026 adjusted diluted EPS of $10.09 to $10.13
Result Drivers
ENROLLMENT GROWTH - Co said higher university partner enrollments drove Q3 service revenue increase
REVENUE SHIFT - Co said fewer days of revenue for ground students led to shift of revenue from Q3 to Q4, impacting per-student revenue
ONLINE TUITION MIX - Co said revenue per online student declined due to mix shift toward students with lower net tuition rates
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income | $43.01 mln | ||
Q3 Adjusted EBITDA | $73.50 mln | ||
Q3 Pretax Profit | Miss | $53.76 mln | $55.51 mln (3 Analysts) |
Q3 Operating Income | $51.47 mln | ||
Q3 Service revenue | $267.35 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $194.62, about 29.2% above its November 4 closing price of $150.67
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Nov 2 - HealthStream Q3 revenue, adjusted EBITDA beat estimates; raises 2026 outlook
Nov 3 - Duolingo Q3 daily active users accelerated to 29% on gains in every region; shares soar
Nov 3 - Hackett Group Q3 adj EPS beats estimates
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.)