Grand Canyon Education, Inc. 10-Q

Item 1. Financial Statements GRAND CANYON EDUCATION, INC. Consolidated Income Statements (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, (In thousands, except per share data) 2025 2024 2025 2024 Service revenue $ 261,142 ​ $ 238,291 ​ $ 797,951 ​ $ 740,429 Costs and expenses: ​ ​ ​ Technology and academic services 44,908 ​ 41,955 ​ 129,706 ​ 122,081 Counseling services and support 84,405 ​ 77,166 ​ 254,250 ​ 238,157 Marketing and communication 59,145 ​ 54,526 ​ 175,512 ​ 162,774 General and administrative 15,149 ​ 14,364 ​ 36,926 ​ 35,730 Reserve for litigation settlement ​ 35,000 ​ ​ — ​ ​ 35,000 ​ ​ — Lease termination, impairment and other ​ 2,411 ​ ​ — ​ ​ 2,411 ​ ​ — Amortization of intangible assets 2,105 ​ 2,105 ​ 6,315 ​ 6,315 Total costs and expenses 243,123 ​ 190,116 ​ 640,120 ​ 565,057 Operating income 18,019 ​ 48,175 ​ 157,831 ​ 175,372 Investment interest and other 3,637 ​ 4,154 ​ 10,244 ​ 11,991 Income before income taxes 21,656 ​ 52,329 ​ 168,075 ​ 187,363 Income tax expense 5,382 ​ 10,862 ​ 38,637 ​ 43,008 Net income $ 16,274 ​ $ 41,467 ​ $ 129,438 ​ $ 144,355 Earnings per share: ​ ​ ​ Basic income per share $ 0.59 ​ $ 1.43 ​ $ 4.62 ​ $ 4.94 Diluted income per share $ 0.58 ​ $ 1.42 ​ $ 4.60 ​ $ 4.91 Basic weighted average shares outstanding 27,740 ​ 29,003 ​ 28,002 ​ 29,248 Diluted weighted average shares outstanding 27,897 ​ 29,164 ​ 28,165 ​ 29,405 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 3 Table of Contents GRAND CANYON EDUCATION, INC. Consolidated Balance Sheets ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, (In thousands, except par value) 2025 ​ 2024 ​ ​ (Unaudited) ​ ​ ​ ASSETS: ​ ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ Cash and cash equivalents ​ $ 97,284 ​ $ 324,623 Investments ​ 179,691 ​ — Accounts receivable, net ​ 122,041 ​ 82,948 Income tax receivable ​ 22,679 ​ 490 Other current assets ​ 12,299 ​ 11,915 Total current assets ​ 433,994 ​ 419,976 Property and equipment, net ​ 180,013 ​ 176,823 Right-of-use assets ​ ​ 99,871 ​ ​ 99,541 Amortizable intangible assets, net ​ ​ 153,647 ​ ​ 159,962 Goodwill ​ 160,766 ​ 160,766 Other assets ​ 4,501 ​ 1,357 Total assets ​ $ 1,032,792 ​ $ 1,018,425 LIABILITIES AND STOCKHOLDERS’ EQUITY: ​ ​ Current liabilities ​ ​ Accounts payable ​ $ 19,284 ​ $ 26,721 Accrued compensation and benefits ​ 28,766 ​ 33,183 Accrued liabilities ​ 70,539 ​ 29,620 Income taxes payable ​ 144 ​ 8,559 Deferred revenue ​ 3,801 ​ — Current portion of lease liability ​ 14,204 ​ 12,883 Total current liabilities ​ 136,738 ​ 110,966 Deferred income taxes, noncurrent ​ 40,195 ​ 26,527 Other long-term liability ​ ​ 1,494 ​ ​ 1,444 Lease liability, less current portion ​ 96,324 ​ 95,635 Total liabilities ​ 274,751 ​ 234,572 Commitments and contingencies ​ ​ Stockholders’ equity ​ ​ Preferred stock, $ 0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at September 30, 2025 and December 31, 2024 ​ — ​ — Common stock, $ 0.01 par value, 100,000 shares authorized; 54,178 and 54,090 shares issued and 28,004 and 28,858 shares outstanding at September 30, 2025 and December 31, 2024, respectively ​ 542 ​ 541 Treasury stock, at cost, 26,174 and 25,232 shares of common stock at September 30, 2025 and December 31, 2024, respectively ​ ( 2,190,582 ) ​ ( 2,024,370 ) Additional paid-in capital ​ 347,146 ​ 336,736 Accumulated other comprehensive gain ​ 551 ​ — Retained earnings ​ 2,600,384 ​ 2,470,946 Total stockholders’ equity ​ 758,041 ​ 783,853 Total liabilities and stockholders’ equity ​ $ 1,032,792 ​ $ 1,018,425 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ ​ 4 Table of Contents GRAND CANYON EDUCATION, INC. Consolidated Statements of Comprehensive Income (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ September 30, ​ September 30, (In thousands) 2025 2024 2025 2024 Net income $ 16,274 ​ $ 41,467 ​ $ 129,438 ​ $ 144,355 Other comprehensive income, net of tax: ​ ​ ​ Realized gains on available-for-sale securities, net of taxes of $ 39 for the three months ended September 30, 2024, and $ 17 for the nine months ended September 30, 2024 ​ — ​ ​ 126 ​ ​ — ​ ​ 57 Unrealized gains on available-for-sale securities, net of taxes of $ 121 for the three months ended September 30, 2025, and $ 172 for the nine months ended September 30, 2025 386 ​ — ​ 551 ​ — Comprehensive income $ 16,660 ​ $ 41,593 ​ $ 129,989 ​ $ 144,412 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ 5 Table of Contents GRAND CANYON EDUCATION, INC. Consolidated Statement of Stockholders’ Equity (In thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Treasury Stock ​ Paid-in ​ Comprehensive ​ Retained ​ ​ ​ ​ Shares Par Value Shares Cost Capital Loss Earnings Total Balance at December 31, 2024 ​ 54,090 ​ $ 541 ​ 25,232 ​ $ ( 2,024,370 ) ​ $ 336,736 ​ $ — ​ $ 2,470,946 ​ $ 783,853 Comprehensive income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 7 ) ​ ​ 71,618 ​ ​ 71,611 Common stock purchased for treasury ​ — ​ ​ — ​ 395 ​ ​ ( 68,927 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 68,927 ) Restricted shares forfeited ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Share-based compensation ​ 86 ​ ​ 1 ​ 53 ​ ​ ( 9,463 ) ​ ​ 3,629 ​ ​ — ​ ​ — ​ ​ ( 5,833 ) Balance at March 31, 2025 ​ 54,176 ​ $ 542 ​ 25,680 ​ $ ( 2,102,760 ) ​ $ 340,365 ​ $ ( 7 ) ​ $ 2,542,564 ​ $ 780,704 Comprehensive income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 172 ​ ​ 41,546 ​ ​ 41,718 Common stock purchased for treasury ​ — ​ ​ — ​ 259 ​ ​ ( 47,933 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 47,933 ) Restricted shares forfeited ​ — ​ ​ — ​ 5 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Share-based compensation ​ 2 ​ ​ — ​ — ​ ​ — ​ ​ 3,487 ​ ​ — ​ ​ — ​ ​ 3,487 Balance at June 30, 2025 ​ 54,178 ​ $ 542 ​ 25,944 ​ $ ( 2,150,693 ) ​ $ 343,852 ​ $ 165 ​ $ 2,584,110 ​ $ 777,976 Comprehensive income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 386 ​ ​ 16,274 ​ ​ 16,660 Common stock purchased for treasury ​ — ​ ​ — ​ 220 ​ ​ ( 39,889 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 39,889 ) Restricted shares forfeited ​ — ​ ​ — ​ 10 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Share-based compensation ​ — ​ ​ — ​ — ​ ​ — ​ ​ 3,294 ​ ​ — ​ ​ — ​ ​ 3,294 Balance at September 30, 2025 ​ 54,178 ​ $ 542 26,174 ​ $ ( 2,190,582 ) ​ $ 347,146 ​ $ 551 ​ $ 2,600,384 ​ $ 758,041 ​ ​ 6 Table of Contents GRAND CANYON EDUCATION, INC. Consolidated Statement of Stockholders’ Equity (In thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Treasury Stock ​ Paid-in ​ Comprehensive ​ Retained ​ ​ ​ ​ Shares Par Value Shares Cost Capital Loss Earnings Total Balance at December 31, 2023 ​ 53,970 ​ $ 540 24,017 ​ $ ( 1,849,693 ) ​ $ 322,512 ​ $ ( 57 ) ​ $ 2,244,712 ​ $ 718,014 Comprehensive income ​ — ​ — — ​ — ​ — ​ ( 56 ) ​ 68,010 ​ 67,954 Common stock purchased for treasury ​ — ​ — 172 ​ ( 22,558 ) ​ — ​ — ​ — ​ ( 22,558 ) Restricted shares forfeited ​ — ​ — 4 ​ — ​ — ​ — ​ — ​ — Share-based compensation ​ 117 ​ 1 55 ​ ( 7,446 ) ​ 3,482 ​ — ​ — ​ ( 3,963 ) Balance at March 31, 2024 ​ 54,087 ​ $ 541 ​ 24,248 ​ $ ( 1,879,697 ) ​ $ 325,994 ​ $ ( 113 ) ​ $ 2,312,722 ​ $ 759,447 Comprehensive income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ ( 13 ) ​ ​ 34,878 ​ ​ 34,865 Common stock purchased for treasury ​ — ​ ​ — ​ 281 ​ ​ ( 39,113 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 39,113 ) Restricted shares forfeited ​ — ​ ​ — ​ 12 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Share-based compensation ​ 3 ​ ​ — ​ — ​ ​ — ​ ​ 3,996 ​ ​ — ​ ​ — ​ ​ 3,996 Balance at June 30, 2024 ​ 54,090 ​ $ 541 ​ 24,541 ​ $ ( 1,918,810 ) ​ $ 329,990 ​ $ ( 126 ) ​ $ 2,347,600 ​ $ 759,195 Comprehensive income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 126 ​ ​ 41,467 ​ ​ 41,593 Common stock purchased for treasury ​ — ​ ​ — ​ 273 ​ ​ ( 39,703 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 39,703 ) Restricted shares forfeited ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Share-based compensation ​ — ​ — 2 ​ ( 324 ) ​ 3,376 ​ — ​ — ​ 3,052 Balance at September 30, 2024 ​ 54,090 ​ $ 541 24,816 ​ $ ( 1,958,837 ) ​ $ 333,366 ​ $ — ​ $ 2,389,067 ​ $ 764,137 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ 7 Table of Contents GRAND CANYON EDUCATION, INC. Consolidated Statements of Cash Flows (Unaudited) ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ September 30, (In thousands) 2025 2024 Cash flows provided by operating activities: ​ ​ Net income $ 129,438 ​ $ 144,355 Adjustments to reconcile net income to net cash provided by operating activities: ​ Share-based compensation 10,411 ​ 10,855 Depreciation and amortization 23,323 ​ 20,707 Amortization of intangible assets ​ 6,315 ​ ​ 6,315 Deferred income taxes 13,497 ​ ( 560 ) Reserve for litigation settlement ​ 35,000 ​ ​ — Lease termination, impairment and other ​ 2,411 ​ ​ — Other, including fixed asset disposals ( 444 ) ​ ( 743 ) Changes in assets and liabilities: ​ Accounts receivable from university partners ( 39,093 ) ​ ( 37,577 ) Other assets ( 3,218 ) ​ 1,239 Right-of-use assets and lease liabilities ​ 576 ​ ​ 1,296 Accounts payable ( 8,477 ) ​ 10,710 Accrued liabilities 70 ​ 1,747 Income taxes receivable/payable ( 30,604 ) ​ ( 10,623 ) Deferred revenue 3,801 ​ 6,420 Net cash provided by operating activities 143,006 ​ 154,141 Cash flows (used in) provided by investing activities: ​ Capital expenditures ( 27,225 ) ​ ( 27,501 ) Additions of amortizable content ( 47 ) ​ ( 227 ) Purchase of equity investment ​ ( 1,000 ) ​ ​ — Loss on equity investment ​ 500 ​ ​ — Purchases of investments ( 224,715 ) ​ ( 48,594 ) Proceeds from sale or maturity of investments 46,872 ​ 147,619 Net cash (used in) provided by investing activities ( 205,615 ) ​ 71,297 Cash flows used in financing activities: ​ Repurchase of common shares and shares withheld in lieu of income taxes ( 164,730 ) ​ ( 108,329 ) Net cash used in financing activities ( 164,730 ) ​ ( 108,329 ) Net (decrease) increase in cash and cash equivalents and restricted cash ( 227,339 ) ​ 117,109 Cash and cash equivalents and restricted cash, beginning of period 324,623 ​ 146,475 Cash and cash equivalents and restricted cash, end of period $ 97,284 ​ $ 263,584 Supplemental disclosure of cash flow information ​ Cash paid for interest $ — ​ $ 4 Cash paid for income taxes $ 53,748 ​ $ 51,420 Supplemental disclosure of non-cash investing and financing activities ​ Purchases of property and equipment included in accounts payable $ 798 ​ $ 1,604 ROU Asset and Liability recognition $ 330 ​ $ 6,395 Excise tax on treasury stock repurchases $ 1,482 ​ $ 815 ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ ​ ​ ​ ​ ​ 8 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) 1. Nature of Business Grand Canyon Education, Inc. (together with its subsidiaries, the “Company” or “GCE”) is a publicly traded education services company dedicated to serving colleges and universities. GCE has developed significant technological solutions, infrastructure and operational processes to provide services to these institutions on a large scale. GCE’s most significant university partner is Grand Canyon University (“GCU”), an Arizona non-profit corporation, a comprehensive regionally accredited university that offers graduate and undergraduate degree programs, emphases and certificates across ten colleges both online, on ground at its campus in Phoenix, Arizona and at eleven off-campus classroom and laboratory sites. We also provide education services to numerous university partners across the United States. In the healthcare field, we work in partnership with a number of top universities and healthcare networks, offering healthcare-related academic programs at off-campus classroom and laboratory sites located near healthcare providers and developing high-quality, career-ready graduates who enter the workforce ready to meet the demands of the healthcare industry. In addition, we have provided certain services to a university partner to assist them in expanding their online graduate programs. As of September 30, 2025, GCE provides education services to 20 university partners across the United States. 2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and the instructions to Form 10-Q and Article 10, consistent in all material respects with those applied in its financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. They do not include all of the information and footnotes required by GAAP for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that in the opinion of management are necessary for the fair presentation of the interim periods presented. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and footnotes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 from which the December 31, 2024 balance sheet information was derived. Investments As of December 31, 2024 the Company had no investments. As of September 30, 2025, the Company considered its investments in corporate bonds, agency bonds, treasury bills and commercial paper as available-for-sale securities based on the Company’s intent for the respective securities. Available-for-sale securities are carried at fair value, determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. Unrealized investment gains and losses, net of tax, are reported as a separate component of other comprehensive income. Unrealized losses considered to be other-than-temporary are recognized currently in earnings. Amortization of premiums, accretion of discounts, interest and dividend income and realized gains and losses are included in interest and other income. Arrangements with GCU On July 1, 2018, the Company consummated an Asset Purchase Agreement (the “Asset Purchase Agreement”) with GCU. In conjunction with the Asset Purchase Agreement, the Company and GCU entered into a long-term master services agreement (the “Master Services Agreement”) pursuant to which the Company provides identified technology and academic services, counseling services and support, marketing and communication services, and several back-office 9 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) services to GCU in return for 60 % of GCU’s tuition and fee revenue. Except for identified liabilities assumed by GCU, GCE retained responsibility for all liabilities of the business arising from pre-closing operations. Internally Developed Software The Company capitalizes certain costs related to internal-use software, primarily consisting of direct labor associated with creating the software. Software development projects generally include three stages: the preliminary project stage (all costs are expensed as incurred), the application development stage (certain costs are capitalized and certain costs are expensed as incurred) and the post-implementation or operation stage (all costs are expensed as incurred). Costs capitalized in the application development stage include costs of design, coding, integration, and testing of the software developed. Capitalization of costs requires judgment in determining when a project has reached the application development stage and the period over which we expect to benefit from the use of that software. Once the software is placed in service, these costs are amortized straight-line over the estimated useful life of the software, which is generally three years . These assets are a component of our property and equipment, net in our consolidated balance sheets. Capitalized Content Development The Company capitalizes certain costs to fulfill a contract related to the development and digital creation of content on a course-by-course basis for each university partner, many times in conjunction with faculty and subject matter experts. The Company is responsible for the conversion of instructional materials to an on-line format, including outlines, quizzes, lectures, and articles in accordance with the educational guidelines provided to us by our university partners, prior to the respective course commencing. We also capitalize the creation of learning objects which are digital assets such as online demonstrations, simulations, and case studies used to obtain learning objectives. Costs that are capitalized include payroll and payroll-related costs for employees who are directly associated and spend time producing content and payments to faculty and subject matter experts involved in the process. The Company starts capitalizing content costs when it begins to develop or to convert a particular course, resources have been assigned and a timeline has been set. The content asset is placed in service when all work is complete, and the curriculum could be used for instruction. Capitalized content development assets are included in other assets in our consolidated balance sheets. The Company has concluded that the most appropriate method to amortize the deferred content assets is on a straight-line basis over the estimated life of the course, which is generally four years which corresponds with course’s review and major revision cycle. As of September 30, 2025 and December 31, 2024, $ 468 and $ 658 , respectively, net of amortization, of deferred content assets are included in other assets, long-term in the Company’s consolidated balance sheets and amortization is included in technical and academic services where the costs originated. Long-Lived Assets The Company evaluates the recoverability of its long-lived assets for impairment, other than goodwill, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Leases The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to determine whether the lease is a finance or operating lease. Right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease term. At lease inception, the Company determines the lease term by assuming no exercises of renewal options, due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and are recognized as 10 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) lease expense on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, and the non-lease components are accounted for separately and not included in our ROU assets and lease liabilities. Leases primarily consist of off-campus classroom and laboratory site locations and office space. Goodwill and Amortizable Intangible Assets Goodwill represents the excess of the purchase price of an acquired business over the amount assigned to the tangible and intangible assets acquired and liabilities assumed. Goodwill is assessed at least annually for impairment during the fourth quarter, or more frequently if circumstances indicate potential impairment. Goodwill is allocated to our reporting unit at the education services segment, which is the same as the entity as a whole (entity level reporting unit). The Company has concluded there is one operating segment and one reporting unit for goodwill impairment consideration. The Financial Accounting Standards Board has issued guidance that permits an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. The Company reviews goodwill at least annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Finite-lived intangible assets that are acquired in a business combination are recorded at fair value on their acquisition dates and are amortized using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or on a straight-line basis over the estimated useful life of the intangible asset if the pattern of economic benefit cannot be reliability determined. Finite-lived intangible assets consist of university partner relationships and trade names. The Company reviews its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. There were no indicators that the carrying amount of the finite-lived intangible assets were impaired as of September 30, 2025. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such intangible assets are not recoverable, a potential impairment loss is recognized to the extent the carrying amounts of the assets exceeds the fair value of the assets. Share-Based Compensation The Company measures and recognizes compensation expense for share-based payment awards made to employees and directors. The fair value of the Company’s restricted stock awards is based on the market price of its common stock on the date of grant. Stock-based compensation expense related to restricted stock grants is expensed over the vesting period using the straight-line method for Company employees and the Company’s board of directors (the “Board of Directors”). The Company recognizes forfeitures as they occur. Fair Value of Financial Instruments The carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and benefits and accrued liabilities expenses approximate their fair value based on the liquidity or the short-term maturities of these instruments. The fair value of investments was determined using Level 1 and Level 2 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets. The unit of account used for valuation is the individual underlying security. The basis for fair value measurements for each level is described below, with Level 1 having the highest priority. -Level 1 – inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. -Level 2 – inputs are quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in non-active markets; and model-derived valuations whose inputs are observable or whose significant valuation drivers are observable. -Level 3 – unobservable inputs that are not corroborated by market data. Investments are comprised of corporate bonds, commercial paper and agency bonds. 11 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) Revenue Recognition The Company generates all of its revenue through services agreements with its university partners (“Services Agreements”), pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back-office services to its university partners in return for a percentage of tuition and fee revenue. The Services Agreements have initial terms ranging from 7 - 15 years , subject to renewal options, although certain agreements may give the university partners the right to terminate early if certain conditions are met. The Services Agreements have a single performance obligation, as the promises to provide the identified services are not distinct within the context of these agreements. The single performance obligation is delivered as our partners receive and consume benefits, which occurs ratably over a series of distinct service periods (daily or semester). Service revenue is recognized over time using the output method of measuring progress towards complete satisfaction of the single performance obligation. The output method provides a faithful depiction of the performance toward complete satisfaction of the performance obligation and can be tied to the time elapsed which is consumed evenly over the service period and is a direct measurement of the value provided to our partners. The service fees received from our partners over the term of the agreement are variable in nature in that they are dependent upon the number of students attending the university partner’s program and revenues generated from those students during the service period. Due to the variable nature of the consideration over the life of the service arrangement, the Company considered forming an expectation of the variable consideration to be received over the service life of this one performance obligation. However, since the performance obligation represents a series of distinct services, the Company recognizes the variable consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned. The Company meets the criteria in the standard and exercises the practical expedient to not disclose the aggregate amount of the transaction price allocated to the single performance obligation that is unsatisfied as of the end of the reporting period. The Company does not disclose the value of unsatisfied performance obligations because the directly allocable variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a service that forms part of a single performance obligation. The service fees are calculated and settled per the terms of the Services Agreements and result in a settlement duration of less than one year for all partners. There are no refunds or return rights under the Services Agreements. The Company’s receivables represent unconditional rights to consideration from our Services Agreements with our university partners. Accounts receivable, net is stated at net realizable value and contains billed and unbilled revenue. The Company utilizes the allowance method to provide for doubtful accounts based on its evaluation of the expected credit losses. There have been no amounts written off and no reserves established as of September 30, 2025 given historical collection experience and an evaluation of reasonable and supportable forecasts of economic conditions and other pertinent factors affecting the Company’s customers such as known credit risk or industry trends. The Company will continue to review and revise its allowance methodology based on its collection experience with its partners. For our partners with unbilled revenue, revenue recognition occurs in advance of billings. Billings for some university partners do not occur until after the service period has commenced and final enrollment information is available. Given that the Fall semester ends just prior to December 31 of each year, unbilled revenue is low at year end (whereas a semester is ongoing at the end of each other fiscal quarter, and unbilled revenue is thus higher at the end of our first three quarters). Our unbilled revenue of $ 11,180 and $ 115 as of September 30, 2025 and December 31, 2024, respectively, are included in accounts receivable in our consolidated balance sheets. Deferred revenue represents the excess of amounts received as compared to amounts recognized in revenue on our consolidated statements of income as of the end of the reporting period, and such amounts are reflected as a current liability on our consolidated balance sheets. We generally receive payments for our services billed within 30 days of invoice. These payments are recorded as deferred revenue until the services are delivered and revenue is recognized. ​ ​ 12 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) Allowance for Credit Losses The Company records its accounts receivable at the net amount expected to be collected. Our accounts receivable are derived through education services provided to university partners. The Company maintains an allowance for credit losses resulting from our university partners not making payments. The Company determines the adequacy of the allowance by periodically evaluating each university partner’s balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. Bad debt expense is recorded as a technology and academic services expense in the consolidated income statements. The Company monitors the impact of other factors on expected credit losses. Technology and Academic Services Technology and academic services consist primarily of costs related to ongoing maintenance of educational infrastructure, including online course delivery and management, student records, assessment, customer relations management and other internal administrative systems. This also includes costs to provide support for content development, faculty training, development and other faculty support, technology support, rent and occupancy costs for university partners’ off-campus classroom and laboratory sites, and assistance with state compliance. This expense category includes salaries, benefits and share-based compensation, information technology costs, amortization of content development costs and other costs associated with these support services. This category also includes an allocation of depreciation, amortization, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Counseling Services and Support Counseling services and support consist primarily of costs including team-based counseling and other support to prospective and current students as well as financial aid processing. This expense category includes salaries, benefits and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Marketing and Communication Marketing and communication include lead acquisition, digital communication strategies, brand identity advertising, media planning and strategy, video, data science and analysis, marketing to potential students and other promotional and communication services. This expense category includes salaries, benefits and share-based compensation for marketing and communication personnel, brand advertising, marketing leads and other promotional and communication expenses. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of certain services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Advertising costs are expensed as incurred. General and Administrative General and administrative expenses include salaries, benefits and share-based compensation of employees engaged in corporate management, finance, human resources, compliance, and other corporate functions. This category also includes an allocation of depreciation, amortization, lease expense, and occupancy costs attributable to the provision of these services, primarily at the Company’s Phoenix, Arizona and Indianapolis, Indiana locations. Commitments and Contingencies The Company accrues for contingent obligations when it is probable that a liability has been incurred and the amount is reasonably estimable. When the Company becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that a loss will result and the amount of the loss is estimable, the Company records a liability for the estimated loss. If the loss is not probable or the amount of the potential loss is not estimable, the Company will disclose the claim if the likelihood of a potential loss is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes include tax, legal, and other 13 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) regulatory matters, which are subject to change as events evolve, and as additional information becomes available during the administrative and litigation process. The Company expenses legal fees as incurred. Concentration of Credit Risk The Company believes the credit risk related to cash equivalents and investments is limited due to its adherence to an investment policy that requires investments to have a minimum BBB rating, depending on the type of security, by at least one major rating agency at the time of purchase. All of the Company’s cash equivalents and investments as of September 30, 2025 and December 31, 2024 consist of investments rated BBB or higher by at least one rating agency. Additionally, the Company utilizes at least one financial institution to conduct initial and ongoing credit analysis on its investment portfolio to monitor and lower the potential impact of market risk associated with its cash equivalents and investment portfolio. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances, which are primarily invested in money market funds or on deposit at high credit quality financial institutions in the U.S. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At September 30, 2025 and December 31, 2024, the Company had $ 96,534 and $ 323,124 , respectively, in excess of the FDIC insured limit . The Company is also subject to credit risk for its accounts receivable balance. Our dependence on our most significant university partner, GCU, with 89.1 % and 88.3 % of total service revenue for the nine-month periods ended September 30, 2025 and 2024, respectively, subjects us to the risk that declines in our customer’s operations would result in a sustained reduction in service revenue for the Company. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Segment Information The Company operates as a single education services company using a core infrastructure that serves the curriculum and educational delivery needs of its university partners. The Company’s Chief Executive Officer (the “Chief Operating Decision Maker” or “CODM”) manages the Company’s operations as a whole and no expense or operating income information is generated or evaluated on any component level other than consolidated net income. The education services segment generates revenue through Service Agreements with its university partners, pursuant to which the Company provides integrated technology and academic services, marketing and communication services, and back-office services to its university partners in return for a percentage of tuition and fee revenue. The accounting policies of the education services segment are the same as those described in the summary of significant accounting policies. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. The CODM uses consolidated net income to monitor budget versus actual results, which is used to evaluate headcount and compensation decisions. Recent Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial condition, results of operations or statements of cash flows. In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU No. 2024-03 does not change or remove existing expense disclosure requirements but requires disaggregated disclosures about certain expense categories and captions, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. ASU No. 2024-03 will become effective for us in fiscal year 2027 and in 14 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) the first quarter of fiscal year 2028 for interim reporting. Retrospective application is permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial condition, results of operations or cash flows. In September 2025, the FASB issued ASU 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40)”. ASU 2025-06 removes all references to project stages throughout ASC 350-40 and clarifies the applicable threshold to begin capitalizing costs. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. Adoption of this ASU should be applied using a prospective transition approach, a modified transition approach based on project status or a retrospective transition approach. The Company is currently evaluating the impact of this new standard on our financial statements and disclosures. The Company has determined that no other recent accounting pronouncements apply to its operations or could otherwise have a material impact on its consolidated financial statements. 3. Investments As of September 30, 2025 the Company had investments of $ 179,691 classified as available-for-sale securities. The Company had no investments at December 31, 2024 as it sold all its investments in the third quarter of 2024 and the proceeds were invested in cash and cash equivalents. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2025 ​ ​ ​ Gross Gross Estimated ​ ​ Adjusted ​ Unrealized ​ Unrealized ​ Fair ​ ​ Cost ​ Gains ​ (Losses) ​ Value Corporate bonds ​ $ 169,806 ​ $ 770 ​ $ ( 49 ) ​ $ 170,527 Commercial paper ​ ​ 5,313 ​ ​ — ​ ​ — ​ ​ 5,313 Agency bonds ​ ​ 3,849 ​ ​ 2 ​ ​ — ​ ​ 3,851 Total investments ​ $ 178,968 ​ $ 772 ​ $ ( 49 ) ​ $ 179,691 ​ For the nine months ended September 30, 2025, the net unrealized gains were $ 551 , net of taxes. For the nine months ended September 30, 2024, the net realized gains were $ 57 , net of taxes. Available-for-sale debt securities are carried at fair value on the consolidated balance sheets. The Company estimates the lifetime expected credit losses for all available-for sale debt securities in an unrealized loss position. If our assessment indicates that an expected credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the expected credit loss in the allowance for credit losses in technology and academic services in our consolidated income statements. ​ ​ ​ ​ ​ Available-for-sale securities maturing as of December 31: ​ ​ ​ 2025 ​ $ 2,500 2026 ​ ​ 69,106 2027 ​ ​ 78,014 2028 ​ ​ 30,071 ​ ​ $ 179,691 ​ ​ 4. Net Income Per Common Share Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for 15 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2025 2024 2025 2024 Denominator: Basic weighted average shares outstanding 27,740 29,003 28,002 29,248 Effect of dilutive stock options and restricted stock 157 161 163 157 Diluted weighted average shares outstanding 27,897 29,164 28,165 29,405 ​ Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock in accordance with the treasury stock method. For both of the three-month periods ended September 30, 2025 and 2024, approximately nil , and for the nine-month periods ended September 30, 2025 and 2024, approximately 20 and 26 , respectively, of the Company’s restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These restricted stock awards could be dilutive in the future. ​ 5. Property and Equipment Property and equipment consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2025 ​ 2024 Land $ 5,098 ​ $ 5,098 Land improvements 2,242 ​ 2,242 Buildings 51,399 ​ 51,399 Buildings and leasehold improvements 39,496 ​ 37,424 Computer equipment 142,534 ​ 141,160 Furniture, fixtures and equipment 31,262 ​ 29,715 Internally developed software 116,709 ​ 98,605 Construction in progress 6,948 ​ 6,393 ​ 395,688 ​ 372,036 Less accumulated depreciation and amortization ( 215,675 ) ​ ( 195,213 ) Property and equipment, net $ 180,013 ​ $ 176,823 ​ ​ 6. Amortizable Intangible Assets Identified intangible assets of $ 210,280 consisted primarily of university partner relationships that were valued at $ 210,000 , which arose in connection with the acquisition of Orbis Education in January 2019. Amortizable intangible assets consist of the following as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Estimated ​ Gross ​ ​ ​ ​ Net ​ Average Useful ​ Carrying ​ Accumulated ​ Carrying ​ Life (in years) ​ Amount ​ Amortization ​ Amount University partner relationships 25 $ 210,000 $ ( 56,353 ) $ 153,647 Trade names 1 ​ ​ 280 ​ ​ ( 280 ) ​ — Total amortizable intangible assets, net ​ ​ $ 210,280 ​ $ ( 56,633 ) ​ $ 153,647 ​ 16 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) Amortization expense for university partner relationships and trade names for the years ending December 31: ​ ​ ​ ​ ​ 2025 ​ $ 2,104 2026 ​ 8,419 2027 ​ ​ 8,419 2028 ​ ​ 8,419 2029 ​ ​ 8,419 Thereafter ​ 117,867 ​ ​ $ 153,647 ​ ​ 7. Leases The Company has operating leases for off-campus classroom and laboratory sites, office space, office equipment, and optical fiber communication lines. These leases have remaining lease terms that range from four months to 11 years . At lease inception, we determine the lease term by assuming no exercises of renewal options due to the Company’s constantly changing geographical needs for its university partners. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company had operating lease costs of $ 13,306 and $ 12,350 for the nine-month periods ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the Company had a $ 6,472 of non-cancelable operating lease commitments for one off-campus classroom and laboratory sites that had not yet commenced. The Company’s weighted-average remaining lease term relating to its operating leases is 7.43 years, with a weighted-average discount rate of 4.43 % . The cash paid for operating lease liabilities was $ 12,720 and $ 11,054 for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the Company had no financing leases. Future payment obligations with respect to the Company’s operating leases, which were existing at September 30, 2025, by year and in the aggregate, are as follows: ​ ​ ​ ​ ​ Year Ending December 31, Amount 2025 ​ $ 4,391 2026 ​ ​ 18,750 2027 ​ ​ 18,151 2028 ​ ​ 17,475 2029 ​ ​ 17,363 Thereafter ​ ​ 55,137 Total lease payments ​ $ 131,267 Less interest ​ ​ 20,739 Present value of lease liabilities ​ $ 110,528 ​ ​ ​ 8. Commitments and Contingencies Legal Matters From time to time, the Company is a party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible, and the amount involved could be material. With respect to the majority of pending litigation matters, the Company’s ultimate legal and financial responsibility, if any, cannot be estimated with certainty and, in most cases, any potential losses related to those matters are not considered probable. 17 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) Upon resolution of any pending legal matters, the Company may incur charges in excess of presently established reserves. Management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on the Company’s financial condition, results of operations or cash flows. Pending Litigation Matters False Claims Act Matter . In May 2020, the Company was served with a qui tam lawsuit that had been filed against us in 2019 in the U.S. District Court for the District of Massachusetts by a former employee on behalf of the federal government. All proceedings in the lawsuit had been under seal until February 2020, when the U.S. government decided to not intervene in the lawsuit, and the complaint was then unsealed by the court. The suit, United States ex rel Mackillop v. Grand Canyon Education, Inc. , alleges that we violated the False Claims Act by improperly compensating certain of our enrollment counselors in violation of the Title IV law governing compensation of such employees (the “incentive compensation rule”), and as a result, improperly received Title IV program funds. In response to a second amended complaint filed in September 2020, we filed a motion to dismiss and a motion to transfer the matter to the U.S. District Court for the District of Arizona. In December 2020, the court granted our motion to dismiss as to one of three counts and granted the motion to transfer but only upon conclusion of pretrial proceedings. In September 2021, we filed a motion for summary judgment which the Massachusetts court denied in September 2022. Subsequently, the matter was transferred to the Arizona court and trial was scheduled for late April 2024. Prior to trial commencing, we and the relator reached an agreement to stay trial while the parties attempt to finalize the terms upon which the litigation could be concluded. After numerous motions and unsuccessful settlement talks over a period of years, the parties recommenced settlement discussions in spring 2025, with any such settlement being contingent upon approvals from applicable U.S. government agencies and final agreement by all parties on acceptable terms, both monetary and non-monetary. As disclosed in the Company’s Form 8-K filed with the SEC on October 30, 2025, the Company, the relator, the U.S. Department of Justice and ED have reached settlement terms that are acceptable to all parties. Under these terms, which are subject to final review by the Court, the Company has agreed to pay $ 35.0 million and ED has agreed that the Company’s current enrollment counselor compensation and related plans do not violate the law prohibiting incentive compensation. The Court has scheduled a hearing for its review mid-November 2025, and the settlement is not effective until the Court reviews it and the parties sign the final settlement agreement. We have nevertheless recorded the settlement amount in our financial statements for the period ended September 30, 2025. Matters Related to GCU Graduate Program Disclosures and Related Matters. The Company is a party to several matters alleging that, in the performance of its marketing services provided on behalf of GCU, it made false or misleading representations regarding the time to complete and the costs associated with and/or accreditation issues related to certain GCU graduate programs. These matters include: ● Smith and Wang v. Grand Canyon Education, Inc. This putative class action was filed in June 2024 in the United States District Court for the District of Arizona and asserts claims under the federal RICO statute as well as various claims for violations of state law consumer protection statutes. On September 20, 2024, the plaintiffs amended their complaint, and on November 4, 2024, the Company moved to dismiss the case. The court granted in part and denied in part the motion to dismiss. Specifically, the court dismissed one of the plaintiff’s RICO counts but allowed the other RICO count and the consumer protection claims to proceed to discovery. Discovery is ongoing, and there is currently no trial date scheduled in this matter. ● Federal Trade Commission v. Grand Canyon Education, Inc., et al . This suit was filed in late December 2023 in United States District Court for the District of Arizona and asserts claims under the FTC Act and Telemarketing Sales Rule. In February 2024, GCE filed a partial motion to dismiss, which was denied in August 2024. On June 17, 2025, the parties filed a Joint Motion and Proposed Order Staying Case for 60-Days to Consider Non-Settlement Resolution of the Case. On August 15, 18 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) 2025, the Commission voted unanimously to dismiss the case in its entirety and the case was terminated with prejudice on August 19, 2025. ● Ogdon v. Grand Canyon Education, Inc., et al . This putative class action was filed in May 2020 in federal district court in California and later transferred to United States District Court for the District of Arizona and asserts claims for violations of California’s False Advertising Law, Unfair Competition Law, Consumer Legal Remedies Act; Unjust Enrichment; and purported violations of the federal RICO statute, including a conspiracy claim. The defendants include the Company along with our chief executive officer, chief operating officer and chief financial officer. In July 2025, the plaintiff filed a Second Amended Complaint and added an additional plaintiff. The Company filed a motion to dismiss the Second Amended Complaint on August 19, 2025. The court has not yet ruled on the motion. Discovery is ongoing, and there is currently no trial date scheduled in this matter. ● Valerio, et al. v. Grand Canyon Education, Inc., et al. This suit was filed on December 24, 2024, in Maricopa County, Arizona Superior Court on behalf of nearly 300 plaintiffs. The plaintiffs assert various claims, including claims for violations of state law consumer protection statutes. The Company filed a motion to dismiss the complaint on May 12, 2025. On September 17, 2025, the court denied the motion to dismiss. The court held a status conference on October 9, 2025, to address issues of case management. The court has not yet issued a case management conference. There is currently no trial date scheduled in this matter. ​ We believe that the Company’s representations made in marketing materials or by our employees regarding GCU’s doctoral program requirements were at all times accurate and not false or misleading, and thus did not violate applicable law. The Company intends to defend itself vigorously in each of these legal proceedings. The outcome of these legal proceedings is uncertain at this point. At present, the Company cannot estimate a range of loss for these actions based on the information available to the Company. Accordingly, the Company has not accrued any liability associated with these actions. 9. Share-Based Compensation Incentive Plan The Company makes equity incentive grants pursuant to our 2017 Equity Incentive Plan (the “2017 Plan”) under which a maximum of 3,000 shares may be granted. As of September 30, 2025, 873 shares were available for grants under the 2017 Plan. Restricted Stock During the nine months ended September 30, 2025, the Company granted 86 shares of common stock with a service vesting condition to certain of its executives, officers and employees. The restricted shares have voting rights and vest in five annual installments of 20 %, with the first installment vesting in March of the calendar year following the date of grant (the “first vesting date”) and subsequent installments vesting on each of the four anniversaries of the first vesting date. Upon vesting, shares will be withheld in lieu of taxes equivalent to the minimum statutory tax withholding required to be paid when the restricted stock vests. During the nine months ended September 30, 2025, the Company withheld 53 shares of common stock in lieu of taxes at a cost of $ 9,463 on the restricted stock vesting dates. In June 2025, following the annual stockholders meeting, the Company granted 2 shares of common stock to the non-employee members of the Board of Directors. The restricted shares granted to these directors have voting rights and vest on the earlier of (a) the one-year anniversary of the date of grant or (b) immediately prior to the next annual stockholders meeting. On June 30, 2024, a named executive officer resigned for “good reason” which resulted in an acceleration of the next tranche of restricted stock awards that would have vested on March 1, 2025. As a result, the incremental share-based compensation expense from the modification on five restricted stock awards for the accelerated vesting date was $ 558 and is included in the general and administrative expenses in the Company’s consolidated income statement. In July of 2024, 5 shares vested and 2 shares were withheld in lieu of taxes at a cost of $ 324 on the accelerated vesting date. 19 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) A summary of the activity related to restricted stock granted under the 2017 Plan since December 31, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Total ​ Grant Date ​ ​ Shares ​ Fair Value per Share Outstanding as of December 31, 2024 403 ​ $ 104.54 Granted 88 ​ $ 173.00 Vested ( 139 ) ​ $ 98.09 Forfeited, canceled or expired ( 15 ) ​ $ 122.89 Outstanding as of September 30, 2025 337 ​ $ 124.20 ​ Share-based Compensation Expense The table below outlines share-based compensation expense for the nine months ended September 30, 2025 and 2024 related to restricted stock granted: ​ ​ ​ ​ ​ ​ ​ ​ 2025 2024 Technology and academic services $ 2,034 ​ $ 1,925 Counseling services and support 5,652 ​ 5,402 Marketing and communication 200 ​ 168 General and administrative 2,525 ​ 3,360 Share-based compensation expense included in operating expenses $ 10,411 ​ $ 10,855 Tax effect of share-based compensation ( 2,603 ) ​ ( 2,714 ) Share-based compensation expense, net of tax $ 7,808 ​ $ 8,141 ​ 10. Treasury Stock The Board of Directors has authorized share repurchases of up to $ 2,245,000 since the initiation of the Company’s stock repurchase program. The expiration date on the current repurchase authorization is March 1, 2026. Repurchases occur at the Company’s discretion. Repurchases may be made in the open market or in privately negotiated transactions, pursuant to the applicable SEC rules. The amount and timing of future share repurchases, if any, will be made as market and business conditions warrant. During the nine months ended September 30, 2025 the Company repurchased 874 shares of common stock, at an aggregate cost of $ 156,749 . As of September 30, 2025, there remained $ 144,381 available under its current share repurchase authorization. Shares repurchased in lieu of taxes are not included in the repurchase plan totals as they were approved in conjunction with the restricted share awards. Excise taxes of $ 1,482 are not included in the repurchase plan totals but are included in the total cost of net share repurchases in the consolidated statement of stockholders’ equity. 11. Related Party Transactions Related party transactions include transactions between the Company and certain of its affiliates. The following transactions were in the normal course of operations and were measured at the exchange amount, which was the amount of consideration established and agreed to by the parties. As of and for the nine months ended September 30, 2025 and 2024, related party transactions consisted of the following: Affiliates GCE Community Fund (“GCECF”) - GCECF was initially formed in 2014. GCECF makes grants for charitable, educational, literary, religious or scientific purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code (the “Code”), including for such purposes as the making of distributions to organizations that qualify as exempt organizations under Section 501 (c)(3) of the Code. The Company’s Chief Executive Officer serves as the president of GCECF and GCECF’s board of directors is comprised entirely of Company executives. The Company is 20 Table of Contents Grand Canyon Education, Inc. Notes to Consolidated Financial Statements (In thousands, except per share data) not the primary beneficiary of GCECF, and accordingly, the Company does not consolidate GCECF’s activities with its financial results. The Company made a voluntary charitable contribution of $ 500 for the nine months ended September 30, 2025, of which no amounts were owed as of September 30, 2025. ​ ​ ​ 21 Table of Contents