Accenture for universities.

Sodexo for university operations.

• Online Degree Programs: Grand Canyon Education provides a wide array of undergraduate, graduate, and doctoral degree programs delivered entirely through its online learning platform.
• Campus-Based Degree Programs: The company offers traditional undergraduate and graduate degree programs on its physical university campus, including residential experiences and campus life activities.
• Educational Support Services: It provides various ancillary services such as academic advising, tutoring, career development, and library resources to enhance student learning and success.

Grand Canyon Education (symbol: LOPE) primarily sells its services to other companies/organizations, specifically educational institutions.

Major Customer:

• Grand Canyon University (GCU) - GCU is a private, non-profit university. Following a conversion in 2018, Grand Canyon Education (LOPE) became a third-party service provider to GCU, offering a comprehensive suite of academic, marketing, enrollment, technology, and other support services. Substantially all of LOPE's revenue is derived from its services to Grand Canyon University. As a private entity, GCU does not have a public stock symbol.

Brian E. Mueller, Chief Executive Officer and Chairman of the Board

Brian E. Mueller has served as Chief Executive Officer of Grand Canyon Education since July 1, 2008, and as Chairman of the Board since January 2017. Prior to his tenure at Grand Canyon Education, Mr. Mueller was President and a Director of Apollo Education Group, Inc., the parent company of the University of Phoenix, from 2006 to 2008. He also held various executive positions with the University of Phoenix Online, including CEO from 2002 to 2005, and Chief Operating Officer and Senior Vice President from 1997 to 2002. His career in higher education began as a professor at Concordia University from 1983 to 1987.

Daniel E. Bachus, Chief Financial Officer

Daniel E. Bachus has been the Chief Financial Officer of Grand Canyon Education since July 2008. Before joining Grand Canyon Education, Mr. Bachus served as Chief Financial Officer for Loreto Bay Company, a real estate developer, from January 2007 to June 2008. From 2000 to 2006, he was the Chief Accounting Officer and Controller of Apollo Education Group, Inc., the parent company of the University of Phoenix. He also gained experience at Deloitte & Touche LLP, where he was an Audit Senior Manager from 1992 to 2000. Mr. Bachus is a Certified Public Accountant.

W. Stan Meyer, Chief Operating Officer

W. Stan Meyer has served as Chief Operating Officer of Grand Canyon Education since July 2012. Prior to this role, he was the Executive Vice President from June 2008 to July 2012. From 2002 to 2008, Mr. Meyer was employed by Apollo Education Group, Inc., the parent company of the University of Phoenix, where his roles included Executive Vice President of Marketing and Enrollment from 2006 to 2008. He also served as Regional Vice President of the University of Phoenix Online and Division Director at Axia College and the School of Advanced Studies, all units of the University of Phoenix.

Dilek Marsh, Chief Technology Officer

Dilek Marsh has been the Chief Technology Officer of Grand Canyon Education since July 2021. Her previous roles at the company include Chief Data Officer from July 2018, Executive Vice President since July 2012, and Senior Vice President since August 2008. Ms. Marsh has accumulated over 20 years of experience in higher education, with a focus on information technology roles such as software development project management, business process design, and business analytics since 1999.

Key Risks to Grand Canyon Education (LOPE)

1. Regulatory and Legal Scrutiny: Grand Canyon Education (LOPE) faces significant risks due to extensive government legal action and tightening regulatory rules within the higher education sector. The Biden administration's revival of the Gainful Employment (GE) rule could jeopardize the company's eligibility for federal student loans if programs are deemed to leave graduates with excessive debt or insufficient income. Historically, Grand Canyon University (GCU), LOPE's primary partner, has been subject to legal battles and investigations, including a substantial fine from the Department of Education and a lawsuit from the Federal Trade Commission (FTC) concerning deceptive advertising practices and its nonprofit status. Although the Department of Education recently recognized GCU's nonprofit status in December 2025, reversing earlier decisions, the persistent regulatory and legal challenges represent an ongoing material risk to LOPE's operations and financial stability.
2. High Concentration Risk on Grand Canyon University (GCU): LOPE's business model is heavily dependent on Grand Canyon University (GCU), its flagship institution and largest customer. Grand Canyon Education derives a substantial majority of its service revenue from GCU, with 90.4% of service revenue for the three months ended March 31, 2025, attributed to this partnership. Any adverse changes to GCU's operations, policies, or student enrollment, or any regulatory actions taken against GCU, could significantly impact LOPE's revenue and financial performance.
3. Enrollment Challenges and Competitive Pressures: The company has experienced enrollment challenges, particularly with online students, which have been attributed to factors such as high enrollment during the initial stages of the pandemic and subsequent recruiting difficulties. The broader postsecondary education market has seen declining enrollment, with for-profit colleges being notably affected. Furthermore, LOPE faces demographic headwinds, including a shrinking pool of traditional high school graduates and an increasing trend toward shorter, non-degree educational pathways. The highly competitive education services market necessitates continuous innovation and value-added services to maintain market share and attract new students.

The U.S. Department of Education's rescission of guidance related to "bundled services" offered by Online Program Managers (OPMs) under the incentive compensation ban represents a clear emerging threat. This change, which previously allowed OPMs like LOPE to engage in revenue-sharing agreements with universities, could force a shift to less profitable fee-for-service models, leading to contract renegotiations, reduced margins, and a potential decrease in demand for OPM services from partner institutions.

Grand Canyon Education (LOPE) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Growth in Online Enrollments: The company consistently emphasizes strong performance and future expectations for its online programs. Management anticipates mid-to-high single-digit growth in new student starts and overall online enrollment. In Q2 2025, Grand Canyon University's online enrollments increased by 10.1%.
2. Expansion of Hybrid Educational Offerings and Off-Campus Sites: GCE is actively expanding its hybrid programs and off-campus classroom and laboratory sites. Hybrid enrollments demonstrated significant year-over-year growth, increasing by 14% in Q2 2025 and 19.3% in Q3 2025 (excluding closed sites and those in teach-out). The company projects new enrollment growth rates for hybrid programs to remain in the low to mid-teens during the second half of 2025.
3. Introduction of New Programs in High-Demand Fields: Grand Canyon Education continues to develop and roll out new academic programs, with an annual target of over 20 new offerings. The strategic focus is on expanding online and hybrid programs, particularly in fields such as healthcare and technology, and developing workforce development initiatives to address specific industry shortages.
4. Strategic University Partnerships: As an education services provider, GCE currently partners with 22 universities. The company leverages its extensive expertise and technological infrastructure to support these partners, including services like marketing, enrollment management, curriculum development, and faculty training. Continuing to grow and deepen these partnerships, which also includes collaborations with over 5,500 employers, is a key driver for sustained revenue expansion.

Share Repurchases

• Grand Canyon Education has an active share repurchase program, with $136.4 million remaining available under its authorization as of November 5, 2025.
• The company's board and management intend to continue using a significant portion of cash flows from operations for share repurchases.
• The company repurchased approximately $47.4 million of common stock in the second quarter of 2025 and $39.5 million in the third quarter of 2025.

Inbound Investments

• Institutional investors hold a significant portion of Grand Canyon Education's stock, with 94.17% owned by institutional investors and hedge funds.
• Driehaus Capital Management LLC purchased a new position in shares worth approximately $15.8 million in the first quarter of 2025.
• Foresight Group Ltd Liability Partnership also acquired a new stake worth approximately $14.4 million in the first quarter of 2025.

Capital Expenditures

• Grand Canyon Education's capital expenditures (CapEx) for the third quarter of 2025 were approximately $9.7 million, or 3.7% of service revenue.
• The company anticipates full-year CapEx for 2025 to be between $30 million and $35 million, comparable to prior years.
• These capital expenditures are primarily focused on leasehold improvements and equipment for new off-campus classroom and laboratory sites, as well as technology and furniture to support employee growth.