What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-04-30 · 90 added, 67 removed, 448 unchanged (26% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands, except per share data)

45 unchanged sentences

Preferred stock, $ 0.01 par value, 10,000 shares authorized;

0 shares issued and outstanding at March 31, 2026 and December 31, 2025

0 shares issued and outstanding at June 30, 2026 and December 31, 2025

Common stock, $ 0.01 par value, 100,000 shares authorized;

54,263 and 54,178 shares issued and 26,705 and 27,393 shares outstanding at March 31, 2026 and December 31, 2025, respectively

Treasury stock, at cost, 27,558 and 26,785 shares of common stock at March 31, 2026 and December 31, 2025, respectively

54,265 and 54,178 shares issued and 26,234 and 27,393 shares outstanding at June 30, 2026 and December 31, 2025, respectively

Treasury stock, at cost, 28,031 and 26,785 shares of common stock at June 30, 2026 and December 31, 2025, respectively

( 2,496,632 )

9 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands)

Other comprehensive income, net of tax:

Unrealized losses on available-for-sale securities, net of taxes of $ 217 and $ 1 for the three months ended March 31, 2026 and 2025, respectively

Unrealized gains (losses) on available-for-sale securities, net of taxes of $ 13 and $ 52 for the three months ended June 30, 2026 and 2025, respectively, and $ 204 and $ 51 for the six months ended June 30, 2026 and 2025, respectively

Comprehensive income

3 unchanged sentences

(In thousands)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Treasury Stock

8 unchanged sentences

( 2,420,603 )

Three Months Ended March 31, 2025

Comprehensive income

Common stock purchased for treasury

Restricted shares forfeited

Share-based compensation

Balance at June 30, 2026

( 2,496,632 )

Six Months Ended June 30, 2025

Treasury Stock

8 unchanged sentences

( 2,102,760 )

Comprehensive income

Common stock purchased for treasury

Restricted shares forfeited

Share-based compensation

Balance at June 30, 2025

( 2,150,693 )

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Three Months Ended

Six Months Ended

(In thousands)

25 unchanged sentences

Net cash used in financing activities

Net decrease in cash and cash equivalents and restricted cash

Net increase (decrease) in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash, beginning of period

18 unchanged sentences

In addition, we have provided certain services to a university partner to assist them in expanding their online graduate programs.

As of March 31, 2026, GCE provides education services to 20 university partners across the United States.

As of June 30, 2026, GCE provides education services to 20 university partners across the United States.

Summary of Significant Accounting Policies

15 unchanged sentences

The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.

As of March 31, 2026 and December 31, 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.

As of June 30, 2026 and December 31, 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 of the hierarchy of valuation inputs, with the use of inputs other than quoted prices that are observable for the assets.

Unrealized investment

Unrealized investment gains and losses, net of tax, are reported as a separate component of other comprehensive income.

Unrealized losses

Grand Canyon Education, Inc.

1 unchanged sentence

(In thousands, except per share data)

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.

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.

30 unchanged sentences

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 the course’s review and major revision cycle.

As of March 31, 2026 and December 31, 2025, $ 360 and $ 413 , respectively, net of amortization, of deferred content assets are included in other assets, long-term in the

As of June 30, 2026 and December 31, 2025, $ 335 and $ 413 , 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 technology and academic services where the costs originated.

Grand Canyon Education, Inc.

1 unchanged sentence

(In thousands, except per share data)

Company’s consolidated balance sheets and amortization is included in technology and academic services where the costs originated.

Long-Lived Assets

19 unchanged sentences

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 March 31, 2026.

There were no indicators that the carrying amount of the finite-lived intangible assets were impaired as of June 30, 2026.

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.

3 unchanged sentences

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

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.

Grand Canyon Education, Inc.

1 unchanged sentence

(In thousands, except per share data)

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

25 unchanged sentences

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

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

Grand Canyon Education, Inc.

1 unchanged sentence

(In thousands, except per share data)

consideration that becomes known and billable because these fees relate to the distinct service period in which the fees are earned.

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.

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.

3 unchanged sentences

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 March 31, 2026 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.

There have been no amounts written off and no reserves established as of June 30, 2026 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.

2 unchanged sentences

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 $ 4,541 and $ 53 as of March 31, 2026 and December 31, 2025, respectively, are included in accounts receivable in our consolidated balance sheets.

Our unbilled revenue of $ 4,677 and $ 53 as of June 30, 2026 and December 31, 2025, 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.

15 unchanged sentences

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

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.

Grand Canyon Education, Inc.

1 unchanged sentence

(In thousands, except per share data)

and share-based compensation, and other costs such as dues, fees and subscriptions and travel costs.

Marketing and Communication

15 unchanged sentences

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 March 31, 2026 and December 31, 2025 consist of investments rated BBB or higher by at least one rating agency.

All of the Company’s cash equivalents and investments as of June 30, 2026 and December 31, 2025 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.

1 unchanged sentence

Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000.

At March 31, 2026 and December 31, 2025, the Company had $ 95,395 and $ 111,011 , respectively, in excess of the FDIC insured limit .

At June 30, 2026 and December 31, 2025, the Company had $ 169,042 and $ 111,011 , 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 90.3 % and 90.4 % of total service revenue for the three-month periods ended March 31, 2026 and 2025, 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.

Our dependence on our most significant university partner, GCU, with 89.4 % of total service revenue for each of the six-month periods ended June 30, 2026 and 2025, subjects us to the risk that declines in our customer’s operations would result in a sustained reduction in service revenue for the Company.

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

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.

Grand Canyon Education, Inc.

1 unchanged sentence

(In thousands, except per share data)

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.

16 unchanged sentences

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.

As of March 31, 2026 the Company had investments of $ 155,555 classified as available-for-sale securities.

As of March 31, 2026

As of June 30, 2026 the Company had investments of $ 103,466 classified as available-for-sale securities.

As of June 30, 2026

Corporate bonds

Commercial paper

Total investments

For the three months ended March 31, 2026 and 2025, the net unrealized losses were $ 696 and $ 7 , respectively, net of taxes.

For the six months ended June 30, 2026 and 2025, the net unrealized gains and (losses) were ($ 656 ) and $ 165 , respectively, net of taxes.

Available-for-sale securities are carried at fair value on the consolidated balance sheets.

12 unchanged sentences

Three Months Ended

Six Months Ended

Basic weighted average shares outstanding

2 unchanged sentences

Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock in accordance with the treasury stock method.

For the three-month periods ended March 31, 2026 and 2025, approximately 109 and 60 , 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.

For the three-month periods ended June 30, 2026 and 2025, approximately 116 and nil , respectively, and for the six-months periods ended June 30, 2026 and 2025, approximately 112 and 30 , 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.

15 unchanged sentences

Amortizable intangible assets consist of the following as of:

March 31, 2026

June 30, 2026

Average Useful

4 unchanged sentences

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 five months to 10 years and six months .

These leases have remaining lease terms that range from two 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 $ 4,502 and $ 4,339 for the three-month periods ended March 31, 2026 and 2025, respectively.

Grand Canyon Education, Inc.

Notes to Consolidated Financial Statements

(In thousands, except per share data)

As of March 31, 2026, the Company had $ 28,961 of non-cancelable operating lease commitments for five off-campus classroom and laboratory sites that had not yet commenced.

The Company had operating lease costs of $ 9,065 and $ 8,749 for the six-month periods ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company had $ 31,055 of non-cancelable operating lease commitments for five 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 6.97 years, with a weighted-average discount rate of 4.51 % .

The cash paid for operating lease liabilities was $ 4,570 and $ 4,053 for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at March 31, 2026, by year and in the aggregate, are as follows:

The cash paid for operating lease liabilities was $ 9,372 and $ 8,358 for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at June 30, 2026, by year and in the aggregate, are as follows:

Year Ending December 31,

2 unchanged sentences

Present value of lease liabilities

Grand Canyon Education, Inc.

Notes to Consolidated Financial Statements

(In thousands, except per share data)

Commitments and Contingencies

17 unchanged sentences

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 scheduled to end on May 12, 2026.

Plaintiffs filed a motion for class certification as to their RICO claims and to certify California and Florida

Grand Canyon Education, Inc.

Notes to Consolidated Financial Statements

(In thousands, except per share data)

subclasses as to their state law consumer protection claims.

Fact discovery ended on May 12, 2026, but the Parties jointly requested that the Court permit limited supplemental depositions that were conducted on July 15, 2026.

Plaintiffs filed a motion for class certification as to their RICO claims and to certify California and Florida subclasses as to their state law consumer protection claims.

The Company has filed its opposition to class certification.

18 unchanged sentences

The court ordered plaintiffs to file individual complaints for each plaintiff.

The plaintiffs filed their individual complaints on December 11, 2025, and Defendants filed answers to each complaint on January 30, 2026.

The plaintiffs

Grand Canyon Education, Inc.

Notes to Consolidated Financial Statements

(In thousands, except per share data)

filed their individual complaints on December 11, 2025, and Defendants filed answers to each complaint on January 30, 2026.

Discovery is ongoing and there is currently no trial date scheduled in this matter.

6 unchanged sentences

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 March 31, 2026, 788 shares were available for grants under the 2017 Plan.

Prior to June 2026, the Company made equity incentive grants under its 2017 Equity Incentive Plan (the “2017 Plan”).

In April 2026, the Board of Directors of the Company approved, and at the Company’s 2026 annual meeting of stockholders held on June 10, 2026, the Company’s stockholders adopted, a 2026 Equity Incentive Plan (the “2026 Plan”).

All future grants of equity incentives will be made from the 2026 Plan.

As of June 30, 2026, 1,497 shares were available for grants under the 2026 Plan.

Restricted Stock

During the three months ended March 31, 2026, the Company granted 85 shares of common stock with a service vesting condition to certain of its executives, officers and employees.

During the six months ended June 30, 2026, the Company granted 85 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 three months ended March 31, 2026, the Company withheld 47 shares of common stock in lieu of taxes at a cost of $ 7,521 on the restricted stock vesting dates.

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, 2025 is as follows:

During the six months ended June 30, 2026, the Company withheld 47 shares of common stock in lieu of taxes at a cost of $ 7,521 on the restricted stock vesting dates.

In June 2026, 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.

A summary of the activity related to restricted stock granted under the 2017 Plan and the 2026 Plan since December 31, 2025 is as follows:

Weighted Average

2 unchanged sentences

Forfeited, canceled or expired

Outstanding as of March 31, 2026

Outstanding as of June 30, 2026

Grand Canyon Education, Inc.

Notes to Consolidated Financial Statements

(In thousands, except per share data)

Share-based Compensation Expense

The table below outlines share-based compensation expense for the three months ended March 31, 2026 and 2025 related to restricted stock granted:

The table below outlines share-based compensation expense for the six months ended June 30, 2026 and 2025 related to restricted stock granted:

Technology and academic services

11 unchanged sentences

The amount and timing of future share repurchases, if any, will be made as market and business conditions warrant.

During the three months ended March 31, 2026 the Company repurchased 725 shares of common stock, at an aggregate cost of $ 120,385 .

As of March 31, 2026, there remained $ 223,968 available under its current share repurchase authorization.

During the six months ended June 30, 2026 the Company repurchased 1,197 shares of common stock, at an aggregate cost of $ 195,665 .

As of June 30, 2026, there remained $ 148,689 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 $ 1,836 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.

Subsequent Events

As is described in Footnote 1, on July 1, 2018, the Company entered into the Master Services Agreement with GCU.

Under the terms of the Master Services Agreement, the Company provides identified technological, counseling, marketing, financial aid processing and other support services to GCU in return for service fees equal to 60 % of GCU’s revenue derived from tuition and academic-related fees, ancillary fees related to student housing, food service, athletic ticket sales, and arena, hotel, golf course, and apparel operations.

The Master Services Agreement had an initial term of fifteen (15) years running through June 30, 2033, subject to renewal options, although GCU has the right to terminate the MSA at any time after July 1, 2025 for convenience upon payment of a termination fee equal to one -hundred (100%) of the fees paid to the Company in the trailing twelve (12) month period.

If GCU chose not to renew the Master Services Agreement after the initial fifteen (15) year term or any subsequent five-year automatic renewal term, GCU would be required to pay the Company a non-renewal fee equal to fifty percent (50%) of the fees paid in the trailing twelve (12) month period.

On July 29, 2026, we entered into an Amended and Restated Master Services Agreement with GCU (the “Amended MSA”).

The Amended MSA is effective as of July 1, 2026, has an initial term of fifteen (15) years running through June 30, 2041, and, unless notice of non-renewal is given at least eighteen (18) months in advance of the end of the initial term or any renewal term, will automatically renew up to three additional five (5) year renewal terms.

The Amended MSA eliminates GCU’s ability to terminate for convenience (while also eliminating any related early termination fees owed by GCU) prior to the end of the term, restructures the service fees such that going forward (i) service fees are calculated as 60 % of tuition and academic-related fees only, (ii) ancillary fees and other revenue are for the sole benefit of GCU, and (iii) a reimbursement payment that the Company had been making to GCU in respect of certain academic related costs is eliminated, and (iv) in lieu of the prior non-renewal fee that was due if GCU did not renew the MSA at the end of the term, the Company would continue to provide services to, and receive services fees from, GCU for an eighteen (18) month period following termination.

As previously disclosed, the Company estimates that, under the Amended MSA, its service revenue will be reduced by approximately $ 20 million annually but that its operating income will decline by an immaterial amount due to the elimination of the academic reimbursement payment.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements