PHOENIX – – November 05, 2026 -- Grand Canyon Education (NASDAQ: LOPE) posted third-quarter 2026 net income of $43.0 million, up 164.3% from $16.3 million a year earlier. Adjusted EBITDA fell 3.2% to $73.5 million from $75.9 million, and adjusted net income dropped to $45.6 million from $49.7 million.
Service revenue rises 2.4% to $267.3 million on 5.2% enrollment growth
Revenue grew $6.2 million year over year. Partner enrollments reached 145,270 at September 30, up from 138,073. Revenue per student slipped slightly, mainly because the Fall semester start date removed six days of ground traditional revenue from the quarter. That shifted $7.5 million into the fourth quarter. A continued mix shift toward online students with slightly lower net tuition rates also weighed on revenue per student.
Revenue from Grand Canyon University (GCU), the largest partner, is now earned under the Amended MSA on tuition and academic-related fees only. The year-earlier quarter was earned under the Original MSA and also included a percentage of ancillary fees from student housing, food service, athletic tickets, arena events, hotel, golf course and apparel operations.
Off-campus sites grow enrollment 12.6% to 7,780 students
Accelerated Bachelor of Science in Nursing (ABSN) students at off-campus classroom and laboratory sites generate significantly higher revenue per student than GCU students. The company cites higher revenue share percentages, higher partner tuition rates and heavier credit loads. Excluding closed or teach-out sites, enrollments at these locations rose 14.1%. The 7,780 total includes 1,680 GCU students, up from 1,325.
GCE opened two sites in the first nine months of 2026 and closed one, leaving 48 sites at September 30.
GCU online enrollment climbs 7.1% while ground enrollment falls 4.1%
Total GCU enrollment rose 5.1% to 139,170. Online enrollment reached 115,520, up from 107,815. Ground enrollment declined to 23,650 from 24,671.
Operating income triples against a litigation-hit comparison quarter
Operating income rose 185.6% to $51.5 million, lifting the operating margin to 19.3% from 6.9%. The prior-year quarter included a litigation settlement. Excluding amortization, non-recurring costs and fixed asset disposals, operating income was $54.7 million at a 20.5% margin. On a comparable adjusted basis, the year-earlier figure was $58.2 million at 22.3%.
Diluted earnings per share were $1.67 versus $0.58. Adjusted diluted EPS was $1.77 versus $1.78.
Effective tax rate falls to 20.0% from 24.9%
Income tax expense nearly doubled to $10.7 million from $5.4 million on higher pre-tax income. The rate was lower because penalties tied to the 2025 litigation settlement were nondeductible. Contributions in lieu of state income taxes lowered the rate by $5.0 million in both quarters.
Nine-month service revenue climbs 5.3% to $840.2 million
Revenue for the nine months rose $42.2 million from $798.0 million. Operating income increased 29.9% to $205.1 million, with the margin widening to 24.4% from 19.8%. Adjusted operating income was $212.5 million at a 25.3% margin, versus $202.3 million at 25.4% a year earlier.
Nine-month net income was $164.2 million, up $34.8 million. Income tax expense was $48.9 million at a 22.9% effective rate, versus 23.0% a year earlier. Excess tax benefits from share-based awards fell to $1.4 million from $2.7 million, reflecting a lower stock price. Restricted stock awards vest in March, so those effects primarily hit the first quarter.