Grand Canyon Education ( (LOPE) ) has released its Q4 earnings. Here is a breakdown of the information Grand Canyon Education presented to its investors.
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Grand Canyon Education, Inc. (GCE) is a publicly traded education services company that provides a comprehensive range of support services to 22 university partners, with a focus on technological solutions and infrastructure in the post-secondary education sector.
Grand Canyon Education, Inc. reported its fourth quarter 2024 earnings, highlighting a solid financial performance with a rise in service revenue and net income. The earnings report reflects the company’s continued growth and operational efficiency.
For the fourth quarter of 2024, GCE’s service revenue increased by 5.1% year-over-year to $292.6 million, driven primarily by a 5.0% increase in enrollments at its largest partner, Grand Canyon University (GCU). The company also saw a rise in revenue per student due to its Accelerated Bachelor of Science in Nursing (ABSN) programs, which command higher tuition fees and revenue share percentages. Operating income for the quarter rose by 2.3% to $100 million, although the operating margin slightly decreased to 34.2% from 35.1% the previous year due to impairment charges.
For the full year of 2024, GCE’s service revenue grew by 7.5% to over $1 billion, and net income increased by 10.4% to $226.2 million. The company also announced a $200 million increase in its stock repurchase program, bringing the total authorization to $2.245 billion. Liquidity improved significantly, with cash and cash equivalents rising to $324.6 million by the end of 2024.
Looking ahead to 2025, Grand Canyon Education expects continued growth with service revenue projected between $1.074 billion and $1.097 billion and an operating margin ranging from 27.1% to 27.9%. The company’s management remains optimistic about its strategic initiatives and market position, focusing on expanding enrollment and enhancing service offerings to drive future growth.
