Grand Canyon Education's Q1 2025: Key Contradictions in Enrollment Growth, Program Expansion, and Financial Strategies

Enrollment growth and strategic focus, hybrid program expansion and profitability, ABSN program expansion and student outcomes, student financial concerns and tuition stability, enrollment trends and predictions are the key contradictions discussed in Grand Canyon Education's latest 2025Q1 earnings call.



Strong Online Enrollment Growth:
- GCE's online enrollment grew by 7.9%, exceeding long-term objectives of 7%.
- This growth is driven by a focus on opportunities in the labor market, rollout of new programs, and partnerships with employers in various industries to address workforce shortages.

Hybrid Enrollment Expansion:
- Hybrid enrollment increased by 12.1% year-over-year, excluding closed sites and teach-outs, where enrollment rose by 16.5%.
- The expansion is due to the admission of advanced standing students by ABSN partners and the success of new programs like the manufacturing CNC Machinist Pathway.

Revenue Growth and Service Revenue:
- GCE reported service revenue of $289.3 million for Q1 2025, an increase of $14.6 million or 5.3% compared to the previous year.
- The growth was mainly due to increased partner enrollments, particularly in online and hybrid platforms, though partly offset by decreased revenue per student.

Financial Outlook and Guidance:
- GCE updated full-year 2025 guidance due to higher-than-expected enrollments, anticipating new enrollments to be up in the mid-to-high single-digits year-over-year.
- The company expects hybrid pillar new and total student growth to remain mid-to-high teens, while traditional campus enrollments are expected to stay the same as previously provided.

Strategic Partnerships and New Site Openings:
- GCE opened new sites in Albuquerque, Lake Mary, and Englewood, expanding its ABSN locations to 11.
- These openings, along with new program offerings with non-GCU partners, are part of the company's strategy to address the demand for healthcare professionals, particularly nurses.