Grand Canyon Education Sees Q2 GAAP EPS $1.56-$1.68 vs $1.68 Est

Grand Canyon Education, Inc. Reports Fourth Quarter 2025 Results and Full Year Outlook 2026

2026 Outlook

Q1 2026:

• Service revenue of between $307.0 million and $308.0 million;
• Operating margin of between 30.0% and 30.3%;
• Effective tax rate of 23.4%;
• Diluted EPS of between $2.70 and $2.73; and 
• 27.0 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $2.76 and $2.79.

Q2 2026:

• Service revenue of between $260.0 million and $264.0 million;
• Operating margin of between 20.1% and 21.3%;
• Effective tax rate of 24.9%;
• Diluted EPS of between $1.56 and $1.68; and
• 26.6 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $1.62 and $1.74.

Q3 2026:

• Service revenue of between $271.5 million and $278.5 million;
• Operating margin of between 21.0% and 23.0%;
• Effective tax rate of 24.9%;
• Diluted EPS of between $1.72 and $1.91; and
• 26.3 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $1.78 and $1.97.

Q4 2026:

• Service revenue of between $329.0 million and $338.5 million;
• Operating margin of between 36.4% and 38.2%;
• Effective tax rate of 24.3%;
• Diluted EPS of between $3.57 and $3.85; and
• 26.0 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $3.63 and $3.91.

Full Year 2026:

• Service revenue of between $1,167.5 million and $1,189.0 million;
• Operating margin of between 27.5% and 28.8%;
• Effective tax rate of 24.3%;
• Diluted EPS between $9.55 and $10.16; and
• 26.5 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.4 million, which equates to a $0.24 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $9.79 and $10.40.