Tue, May 6, 8:13 PM (16 days ago)
**Grand Canyon Education, Inc. (LOPE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $289.3 million, up 5.3% YoY, driven by a 5.8% increase in partner enrollments. - **Profit Margins:** Operating margin at 30.4%, net margin at 24.7%. - **Cash Flow:** Operating cash flow at $67.6 million, down from $84.9 million YoY due to changes in working capital. - **Earnings:** Net income of $71.6 million, up 5.3% YoY. **Key Metrics:** - **Service Revenue Growth:** 5.3% YoY, primarily due to increased partner enrollments. - **Operating Income:** $88.0 million, up 4.4% YoY. - **Earnings per Share (EPS):** Basic EPS at $2.53, diluted EPS at $2.52. **Trends and Uncertainties:** - **Enrollment Growth:** Positive trends in enrollments, particularly in healthcare programs and off-campus sites. - **Legal and Regulatory Risks:** Ongoing litigation and regulatory scrutiny pose uncertainties. - **Seasonality:** Expects quarterly fluctuations due to seasonal enrollment patterns. **Future Operations Impact:** - **Investment in Sites:** Plans to open more off-campus classroom and laboratory sites. - **Share Repurchases:** Continued share repurchases under the authorized program. - **Capital Expenditures:** Anticipates spending $30-$40 million annually on capital expenditures. **Conclusion:** Grand Canyon Education, Inc. (LOPE) showed solid financial performance in Q1 2025 with revenue and earnings growth driven by increased enrollments. However, the company faces uncertainties related to legal proceedings and regulatory risks. The focus on expanding off-campus sites and continued share repurchases indicates a strategic approach to growth and shareholder value.