Grand Canyon Education (LOPE) investor relations material

Executive summary

• Service revenue rose 6.7% year-over-year to $264 million for Q2 2026, driven by a 7.6% increase in university partner enrollments to 126,231, with GCU enrollments up 7.5%.

• Net income for Q2 2026 was $45.9 million, up 10.4% from $41.5 million in Q2 2025, with diluted EPS at $1.75, up from $1.48.

• Online enrollments grew in the low single digits; total online enrollment up nearly 8% year-over-year.

• Hybrid campus enrollments rose 18.5% year-over-year, exceeding expectations.

• The company operates as a single education services segment, with GCU as its largest partner, accounting for 89.4% of total service revenue for the six months ended June 30, 2026.

Financial highlights

• Q2 2026 service revenue: $264 million (up 6.7% year-over-year); net income: $45.9 million (up 10.4%); diluted EPS: $1.75; non-GAAP diluted EPS: $1.81, $0.14 above consensus.

• Operating income for Q2 2026 was $58.2 million (22% margin), up from $51.8 million (20.9%).

• Cash, cash equivalents, and investments as of June 30, 2026: $274.5 million.

• Net revenue for Q2 2026 was $45.9 million.

• Adjusted EBITDA for Q2 2026 increased 8.9% to $73.4 million.

Outlook and guidance

• Full-year 2026 adjusted EPS expected to be $0.14 above consensus; second half EPS $0.03 above consensus.

• Revenue expected to decrease by $4M and $6M in Q3 and Q4 2026 due to amended MSA, with offsetting cost reductions.

• Amended Master Services Agreement with GCU, effective July 1, 2026, expected to reduce annual service revenue by ~$20M but have minimal impact on operating income.

• Service revenue guidance for Q3 2026: $268.5M–$270.5M; Q4 2026: $324.0M–$329.0M; full year: $1,165.3M–$1,172.3M.

• CapEx for 2026 expected between $30M and $35M.