0001558370-24-007046 | 10-Q | XBRL Viewer | Grand Canyon Education INC

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Net Income Per Common Share - Summary of Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Denominator:
Basic weighted average shares outstanding	29,459	30,461
Effect of dilutive stock options and restricted stock	180	177
Diluted weighted average shares outstanding	29,639	30,638

Amortizable Intangible Assets

3 Months Ended

Mar. 31, 2024

Amortizable Intangible Assets

Amortizable Intangible Assets

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 2019 acquisition of Orbis Education.

Amortizable intangible assets consist of the following as of:


	March 31, 2024
	Estimated	Gross				Net
	Average Useful	Carrying		Accumulated		Carrying
	Life (in years)	Amount		Amortization		Amount
University partner relationships	25	$	210,000	$	(43,724)	$	166,276
Trade names	1		280		(280)		—
Total amortizable intangible assets, net		$	210,280	$	(44,004)	$	166,276

Amortization expense for university partner relationships and trade names for the years ending December 31:


2024	$	6,314
2025		8,419
2026		8,419
2027		8,419
2028		8,419
Thereafter		126,286
	$	166,276

Share-Based Compensation - Additional Information (Details) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) item shares
2017 Plan
Share-Based Compensation
Shares available for grant	965
Maximum \| 2017 Plan
Share-Based Compensation
Shares available for grant	3,000
Restricted Stock Grants
Share-Based Compensation
Shares granted	117
Shares withheld for taxes	55
Common stock in lieu of taxes \| $	$ 7,446
Restricted Stock Grants \| 2008 Plan
Share-Based Compensation
Shares granted	117
Vesting period	5 years
Number of anniversaries of the vesting date following the date of grant \| item	4
Restricted Stock Grants \| Share-based Compensation Award, Tranche One \| 2008 Plan
Share-Based Compensation
Vesting right percentage	20.00%
Restricted Stock Grants \| Share-based Compensation Award, Tranche Two \| 2008 Plan
Share-Based Compensation
Vesting right percentage	20.00%
Restricted Stock Grants \| Share-based Compensation Award, Tranche Three \| 2008 Plan
Share-Based Compensation
Vesting right percentage	20.00%
Restricted Stock Grants \| Share-based Compensation Award Tranche Four \| 2008 Plan
Share-Based Compensation
Vesting right percentage	20.00%
Restricted Stock Grants \| Share-based Compensation Award Tranche Five \| 2008 Plan
Share-Based Compensation
Vesting right percentage	20.00%

Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments

Schedule of reconciliation of available-for-sale investments from cost basis to fair value


	As of March 31, 2024
			Gross		Gross		Estimated
	Adjusted		Unrealized		Unrealized		Fair
	Cost		Gains		(Losses)		Value
Corporate bonds	$	79,633	$	155	$	(295)	$	79,493
Agency bonds		15,001		4		(13)		14,992
Total investments	$	94,634	$	159	$	(308)	$	94,485

Schedule of available-for-sale securities maturities


Available-for-sale securities maturing as of December 31:
2024	$	50,632
2025		26,916
2026		9,747
2027		7,190
Total	$	94,485

Investments - Maturities of Available-for-sale Investments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Investments
2024	$ 50,632
2025	26,916
2026	9,747
2027	7,190
Total	$ 94,485

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 68,010	$ 59,564

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 196,208	$ 146,475
Investments	94,485	98,031
Accounts receivable, net	111,710	78,811
Insurance receivable	25,500
Income tax receivable	38	1,316
Other current assets	16,512	12,889
Total current assets	444,453	337,522
Property and equipment, net	172,186	169,699
Right-of-use assets	90,135	92,454
Amortizable intangible assets, net	166,276	168,381
Goodwill	160,766	160,766
Other assets	1,755	1,641
Total assets	1,035,571	930,463
Current liabilities
Accounts payable	29,827	17,676
Accrued compensation and benefits	24,785	31,358
Accrued liabilities	57,608	26,725
Income taxes payable	26,300	10,250
Deferred revenue	10,270
Current portion of lease liability	11,336	11,024
Total current liabilities	160,126	97,033
Deferred income taxes, noncurrent	28,454	26,749
Other long-term liability	1,583	410
Lease liability, less current portion	85,961	88,257
Total liabilities	276,124	212,449
Commitments and contingencies
Stockholders' equity
Common stock, $0.01 par value, 100,000 shares authorized; 54,087 and 53,970 shares issued and 29,839 and 29,953 shares outstanding at March 31, 2024 and December 31, 2023, respectively	541	540
Treasury stock, at cost, 24,248 and 24,017 shares of common stock at March 31, 2024 and December 31, 2023, respectively	(1,879,697)	(1,849,693)
Additional paid-in capital	325,994	322,512
Accumulated other comprehensive loss	(113)	(57)
Retained earnings	2,312,722	2,244,712
Total stockholders' equity	759,447	718,014
Total liabilities and stockholders' equity	$ 1,035,571	$ 930,463

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Compensation

Schedule of activity related to restricted stock granted under company's incentive plan


		Weighted Average
	Total	Grant Date
	Shares	Fair Value per Share
Outstanding as of December 31, 2023	450	$	93.16
Granted	117	$	130.60
Vested	(142)	$	91.08
Forfeited, canceled or expired	(4)	$	94.61
Outstanding as of March 31, 2024	421	$	104.22

Schedule of share-based compensation expense


	2024		2023
Technology and academic services	$	605	$	678
Counseling services and support		1,826		1,743
Marketing and communication		54		48
General and administrative		998		900
Share-based compensation expense included in operating expenses		3,483		3,369
Tax effect of share-based compensation		(871)		(842)
Share-based compensation expense, net of tax	$	2,612	$	2,527

Net Income Per Common Share

3 Months Ended

Mar. 31, 2024

Net Income Per Common Share

Net Income Per Common Share

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 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
	March 31,
	2024	2023
Denominator:
Basic weighted average shares outstanding	29,459	30,461
Effect of dilutive stock options and restricted stock	180	177
Diluted weighted average shares outstanding	29,639	30,638

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, 2024 and 2023, approximately 78 and 100, 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.

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2024

Property and Equipment

Schedule of property and equipment


	March 31,		December 31,
	2024		2023
Land	$	5,098	$	5,098
Land improvements		2,242		2,242
Buildings		51,399		51,399
Buildings and leasehold improvements		34,463		34,210
Computer equipment		140,304		138,950
Furniture, fixtures and equipment		26,970		26,737
Internally developed software		74,728		71,204
Construction in progress		13,903		10,274
		349,107		340,114
Less accumulated depreciation and amortization		(176,921)		(170,415)
Property and equipment, net	$	172,186	$	169,699

Net Income Per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restricted Stock Grants
Antidilutive securities excluded from computation of earnings per share
Stock awards outstanding excluded from the calculation of diluted earnings	78	100

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

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 and pursuant to the rules and regulations of the United States Securities and Exchange Commission 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, 2023. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles 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, 2023 from which the December 31, 2023 balance sheet information was derived.

Investments

As of March 31, 2024 and December 31, 2023, the Company considered its investments in corporate bonds, agency bonds 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.

Insurance Receivable

The Company recorded a insurance receivable on March 31, 2024 for $25,500 for the Shareholder Litigation matter discussed in detail in Note 8 of the consolidated financial statements. The Company’s insurance carriers will fund the entire settlement amount.

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 pursuant to which the Company provides identified technology and academic services, counseling services and support, marketing and communication services, and several back-office 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 March 31, 2024 and December 31, 2023, $726 and $746, 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 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 March 31, 2024. 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 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.

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 Company’s 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 Company’s 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 March 31, 2024. 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 has ended as of December 31 of each year unbilled revenue is low at year end whereas at the end of each fiscal quarter a semester is ongoing and thus unbilled revenue is higher. Our unbilled revenue of $2,956 and $188 as of March 31, 2024 and December 31, 2023, 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.

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 partners 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 includes 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 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 March 31, 2024 and December 31, 2023 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 March 31, 2024 and December 31, 2023, the Company had $195,207 and $145,474, 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, with 89.7% and 88.5% of total service revenue for the three-month periods ended March 31, 2024 and 2023, 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 U.S. generally accepted accounting principles 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 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.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure,” effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The ASU adds disclosure requirements for segment expense information. The ASU clarifies that single reportable segment entities are subject to Topic 280 in its entirety. The Company adopted this standard effective January 1, 2024 and the adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The 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.

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.

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury stock, common	Total
Beginning Balance at Dec. 31, 2022	$ 538	$ 309,310	$ (533)	$ 2,039,727	$ (1,711,423)	$ 637,619
Beginning Balance ( In Shares) at Dec. 31, 2022	53,830
Beginning Balance, treasury shares at Dec. 31, 2022					22,772
Comprehensive income			119	59,564		59,683
Common stock purchased for treasury					$ (35,090)	(35,090)
Common stock acquired, shares					310
Restricted shares forfeited, shares					5
Share-based compensation	$ 2	3,367			$ (6,331)	(2,962)
Share-based compensation, shares	136				56
Ending Balance at Mar. 31, 2023	$ 540	312,677	(414)	2,099,291	$ (1,752,844)	659,250
Ending Balance ( In shares ) at Mar. 31, 2023	53,966
Ending Balance, treasury shares at Mar. 31, 2023					23,143
Beginning Balance at Dec. 31, 2023	$ 540	322,512	(57)	2,244,712	$ (1,849,693)	$ 718,014
Beginning Balance ( In Shares) at Dec. 31, 2023	53,970
Beginning Balance, treasury shares at Dec. 31, 2023					24,017	24,017
Comprehensive income			(56)	68,010		$ 67,954
Common stock purchased for treasury					$ (22,558)	(22,558)
Common stock acquired, shares					172
Restricted shares forfeited, shares					4
Share-based compensation	$ 1	3,482			$ (7,446)	(3,963)
Share-based compensation, shares	117				55
Ending Balance at Mar. 31, 2024	$ 541	$ 325,994	$ (113)	$ 2,312,722	$ (1,879,697)	$ 759,447
Ending Balance ( In shares ) at Mar. 31, 2024	54,087
Ending Balance, treasury shares at Mar. 31, 2024					24,248	24,248

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 3
-Subparagraph (c)
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-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Amortizable Intangible Assets - Net Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2019
Amortizable Intangible Assets
Gross Carrying Amount	$ 210,280
Accumulated Amortization	(44,004)
Net Carrying Amount	$ 166,276
Orbis Education
Amortizable Intangible Assets
Intangible assets		$ 210,280
University partner relationships
Amortizable Intangible Assets
Estimated average useful life	25 years
Gross Carrying Amount	$ 210,000
Accumulated Amortization	(43,724)
Net Carrying Amount	$ 166,276
University partner relationships \| Orbis Education
Amortizable Intangible Assets
Intangible assets		$ 210,000
Trade names
Amortizable Intangible Assets
Estimated average useful life	1 year
Gross Carrying Amount	$ 280
Accumulated Amortization	$ (280)

Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Income Statements
Service revenue	$ 274,675	$ 250,125
Costs and expenses:
Technology and academic services	39,125	37,512
Counseling services and support	82,884	73,349
Marketing and communication	55,353	52,894
General and administrative	10,730	9,788
Amortization of intangible assets	2,105	2,105
Total costs and expenses	190,197	175,648
Operating income	84,478	74,477
Interest expense	(2)	(19)
Investment interest and other	3,729	2,153
Income before income taxes	88,205	76,611
Income tax expense	20,195	17,047
Net income	$ 68,010	$ 59,564
Earnings per share:
Basic income per share	$ 2.31	$ 1.96
Diluted income per share	$ 2.29	$ 1.94
Basic weighted average shares outstanding	29,459	30,461
Diluted weighted average shares outstanding	29,639	30,638

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2024	Dec. 31, 2023
Consolidated Balance Sheets
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	54,087	53,970
Common stock, shares outstanding	29,839	29,953
Treasury stock, common shares	24,248	24,017

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2024
Summary of Significant Accounting Policies
Principles of Consolidation	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	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 and pursuant to the rules and regulations of the United States Securities and Exchange Commission 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, 2023. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles 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, 2023 from which the December 31, 2023 balance sheet information was derived.
Investments	Investments As of March 31, 2024 and December 31, 2023, the Company considered its investments in corporate bonds, agency bonds 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.
Insurance Receivable	Insurance Receivable The Company recorded a insurance receivable on March 31, 2024 for $25,500 for the Shareholder Litigation matter discussed in detail in Note 8 of the consolidated financial statements. The Company’s insurance carriers will fund the entire settlement amount.
Arrangements with GCU	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 pursuant to which the Company provides identified technology and academic services, counseling services and support, marketing and communication services, and several back-office 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	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	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 March 31, 2024 and December 31, 2023, $726 and $746, 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	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	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 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 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 March 31, 2024. 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 Company recognizes forfeitures as they occur.
Fair Value of Financial Instruments	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.
Revenue Recognition	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 Company’s 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 Company’s 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 March 31, 2024. 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 has ended as of December 31 of each year unbilled revenue is low at year end whereas at the end of each fiscal quarter a semester is ongoing and thus unbilled revenue is higher. Our unbilled revenue of $2,956 and $188 as of March 31, 2024 and December 31, 2023, 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.
Allowance for Credit Losses	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 partners 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 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 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 Marketing and communication includes 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 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	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 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	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 March 31, 2024 and December 31, 2023 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 March 31, 2024 and December 31, 2023, the Company had $195,207 and $145,474, 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, with 89.7% and 88.5% of total service revenue for the three-month periods ended March 31, 2024 and 2023, 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	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles 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	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 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure,” effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The ASU adds disclosure requirements for segment expense information. The ASU clarifies that single reportable segment entities are subject to Topic 280 in its entirety. The Company adopted this standard effective January 1, 2024 and the adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or statements of cash flows. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The 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. 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.

Nature of Business

3 Months Ended

Mar. 31, 2024

Nature of Business

Nature of Business

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 six off-campus classroom and laboratory sites.

We also provide education services to numerous university partners across the United States. GCE has continued to add additional university partners. In the healthcare field, we work in partnership with a growing number of top universities and healthcare networks across the country, 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 March 31, 2024, GCE provides education services to 23 university partners across the United States.

Investments (Details) - USD ($) $ in Thousands	3 Months Ended
Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Investments
Investments - Available-for-sale	$ 94,485		$ 98,031
Available-for-sale investments
Adjusted Cost	94,634
Gross Unrealized Gains	159
Gross Unrealized (Losses)	(308)
Estimated Fair Value	94,485
Net unrealized gains and losses on available-for-sale debt securities	56	$ (119)
Corporate bonds
Available-for-sale investments
Adjusted Cost	79,633
Gross Unrealized Gains	155
Gross Unrealized (Losses)	(295)
Estimated Fair Value	79,493
Agency bonds
Available-for-sale investments
Adjusted Cost	15,001
Gross Unrealized Gains	4
Gross Unrealized (Losses)	(13)
Estimated Fair Value	$ 14,992

Treasury Stock

3 Months Ended

Mar. 31, 2024

Treasury Stock

Treasury Stock

10. Treasury Stock

The Board of Directors has authorized under its existing stock repurchase program, an aggregate authorization for share repurchases since the initiation of our program of $2,045,000. The expiration date on the repurchase authorization is March 1, 2025. Repurchases occur at the Company’s discretion. Repurchases may be made in the open market or in privately negotiated transactions, pursuant to the applicable Securities and Exchange Commission rules. 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, 2024 the Company repurchased 172 shares of common stock, at an aggregate cost of $22,524. As of March 31, 2024, there remained $242,530 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 $34 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.

Share-Based Compensation - Summary of Activity Related to Restricted Stock Granted under Company's Incentive Plan (Details) - Restricted Stock Grants shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Total Shares
Total Shares, Outstanding, Beginning Balance \| shares	450
Total Shares, Granted \| shares	117
Total Shares, Vested \| shares	(142)
Total Shares, Forfeited, canceled or expired \| shares	(4)
Total Shares, Outstanding, Ending Balance \| shares	421
Weighted Average Grant Date
Weighted Average Grant Date Fair Value, Beginning Balance \| $ / shares	$ 93.16
Weighted Average Grant Date Fair Value, Granted \| $ / shares	130.60
Weighted Average Grant Date Fair Value, Vested \| $ / shares	91.08
Weighted Average Grant Date Fair Value, Forfeited, canceled or expired \| $ / shares	94.61
Weighted Average Grant Date Fair Value, Ending Balance \| $ / shares	$ 104.22

Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation
Share-based compensation expense included in operating expenses	$ 3,483	$ 3,369
Tax effect of share-based compensation	(871)	(842)
Share-based compensation expense, net of tax	2,612	2,527
Technology and academic services
Share-Based Compensation
Share-based compensation expense included in operating expenses	605	678
Counseling services and support
Share-Based Compensation
Share-based compensation expense included in operating expenses	1,826	1,743
Marketing and communication
Share-Based Compensation
Share-based compensation expense included in operating expenses	54	48
General and administrative
Share-Based Compensation
Share-based compensation expense included in operating expenses	$ 998	$ 900

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property and Equipment
Property and equipment	$ 349,107	$ 340,114
Less accumulated depreciation and amortization	(176,921)	(170,415)
Property and equipment, net	172,186	169,699
Land
Property and Equipment
Property and equipment	5,098	5,098
Land Improvements
Property and Equipment
Property and equipment	2,242	2,242
Buildings
Property and Equipment
Property and equipment	51,399	51,399
Buildings and Leasehold Improvements
Property and Equipment
Property and equipment	34,463	34,210
Computer Equipment
Property and Equipment
Property and equipment	140,304	138,950
Furniture, Fixtures and Equipment
Property and Equipment
Property and equipment	26,970	26,737
Internally Developed Software
Property and Equipment
Property and equipment	74,728	71,204
Construction in Progress
Property and Equipment
Property and equipment	$ 13,903	$ 10,274

Nature of Business (Details)	3 Months Ended
Nature of Business (Details)	Mar. 31, 2024 item
Nature Of Operations
Number of off-campus classroom and laboratory sites	5
Number of university partners	23
Grand Canyon University
Nature Of Operations
Number of colleges operated	10
Number of off-campus classroom and laboratory sites	6

Treasury Stock (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Treasury Stock
Common stock acquired, cost	$ 22,558	$ 35,090
Excise tax on treasury stock repurchases	$ 34	$ 187
Common stock repurchase authorization
Treasury Stock
Common stock acquired, shares	172
Common stock acquired, cost	$ 22,524
Remaining authorized repurchase amount	242,530
Excise tax on treasury stock repurchases	34
Common stock repurchase authorization \| Maximum
Treasury Stock
Authorized amount for repurchase of common stock	$ 2,045,000

Leases

3 Months Ended

Mar. 31, 2024

Leases

Leases

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 two months to 10 years and one month. 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 $3,877 and $3,018 for the three-month periods ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, the Company had $29,578 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 7.79 years, with a weighted-average discount rate of 3.9%. The cash paid for operating lease liabilities was $3,541 and $2,600 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the Company had no financing leases.

Future payment obligations with respect to the Company’s operating leases, which were existing at March 31, 2024, by year and in the aggregate, are as follows:


Year Ending December 31,	Amount
2024	$	11,025
2025		14,808
2026		14,808
2027		14,080
2028		13,835
Thereafter		45,261
Total lease payments	$	113,817
Less interest		16,520
Present value of lease liabilities	$	97,297

Leases (Details) $ in Thousands	3 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2024 USD ($) item lease	Mar. 31, 2023 USD ($)
Leases
Lessee, Operating Lease, Existence of Option to Extend [true false]	false
Operating lease costs	$ 3,877	$ 3,018
Non-cancelable operating lease commitments not yet commenced	$ 29,578
Number of off-campus classroom and laboratory sites \| item	5
Weighted-average remaining lease term	7 years 9 months 14 days
Weighted-average discount rate of operating leases	3.90%
Operating lease payments	$ 3,541	$ 2,600
Number of financing leases \| lease	0
Minimum
Leases
Term of operating leases	2 months
Maximum
Leases
Term of operating leases	10 years 1 month

Amortizable Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Amortizable Intangible Assets

Summary of amortizable intangible assets


	March 31, 2024
	Estimated	Gross				Net
	Average Useful	Carrying		Accumulated		Carrying
	Life (in years)	Amount		Amortization		Amount
University partner relationships	25	$	210,000	$	(43,724)	$	166,276
Trade names	1		280		(280)		—
Total amortizable intangible assets, net		$	210,280	$	(44,004)	$	166,276

Schedule of amortization expense for university partner relationships and trade names

Amortization expense for university partner relationships and trade names for the years ending December 31:


2024	$	6,314
2025		8,419
2026		8,419
2027		8,419
2028		8,419
Thereafter		126,286
	$	166,276

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Leases - Future Payment Obligations (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases
2024	$ 11,025
2025	14,808
2026	14,808
2027	14,080
2028	13,835
Thereafter	45,261
Total lease payments	113,817
Less interest	16,520
Present value of lease liabilities	$ 97,297

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows provided by operating activities:
Net income	$ 68,010	$ 59,564
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	3,483	3,369
Depreciation and amortization	6,653	5,537
Amortization of intangible assets	2,105	2,105
Deferred income taxes	1,724	1,816
Other, including fixed asset disposals	(208)	410
Changes in assets and liabilities:
Accounts receivable from university partners	(32,899)	(25,158)
Other assets	(3,757)	(4,625)
Right-of-use assets and lease liabilities	335	419
Accounts payable	11,970	1,953
Accrued liabilities	(51)	(6,294)
Income taxes receivable/payable	17,328	14,225
Deferred revenue	10,270	9,678
Net cash provided by operating activities	84,963	62,999
Cash flows used in investing activities:
Capital expenditures	(8,979)	(8,587)
Additions of amortizable content	(72)	(244)
Purchases of investments	(19,381)	(52,556)
Proceeds from sale or maturity of investments	23,172	24,253
Net cash used in investing activities	(5,260)	(37,134)
Cash flows used in financing activities:
Repurchase of common shares and shares withheld in lieu of income taxes	(29,970)	(41,234)
Net cash used in financing activities	(29,970)	(41,234)
Net increase (decrease) in cash and cash equivalents and restricted cash	49,733	(15,369)
Cash and cash equivalents and restricted cash, beginning of period	146,475	120,409
Cash and cash equivalents and restricted cash, end of period	196,208	105,040
Supplemental disclosure of cash flow information
Cash paid for interest	2	19
Cash paid for income taxes	295	230
Supplemental disclosure of non-cash investing and financing activities
Purchases of property and equipment included in accounts payable	2,091	973
Insurance receivable for litigation settlement to be paid by insurance	25,500
Excise tax on treasury stock repurchases	$ 34	$ 187

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Comprehensive Income
Unrealized gains (losses) on available for sale securities, taxes	$ 18	$ 37

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases

Schedule of future payment obligations with respect to operating leases


Year Ending December 31,	Amount
2024	$	11,025
2025		14,808
2026		14,808
2027		14,080
2028		13,835
Thereafter		45,261
Total lease payments	$	113,817
Less interest		16,520
Present value of lease liabilities	$	97,297

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Comprehensive Income
Net Income (Loss)	$ 68,010	$ 59,564
Other comprehensive income, net of tax:
Unrealized (losses) gains on available-for-sale securities, net of taxes of $18 and $37 for the three months ended March 31, 2024 and 2023, respectively	(56)	119
Comprehensive income	$ 67,954	$ 59,683

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Investments

3 Months Ended

Mar. 31, 2024

Investments

Investments

3. Investments

As of March 31, 2024 and December 31, 2023, the Company had investments of $94,485 and $98,031, respectively, classified as available-for-sale securities.

As of March 31, 2024, the Company had available-for-sale investments comprised of the following:


	As of March 31, 2024
			Gross		Gross		Estimated
	Adjusted		Unrealized		Unrealized		Fair
	Cost		Gains		(Losses)		Value
Corporate bonds	$	79,633	$	155	$	(295)	$	79,493
Agency bonds		15,001		4		(13)		14,992
Total investments	$	94,634	$	159	$	(308)	$	94,485

For the three months ended March 31, 2024 and 2023, the net unrealized losses and gains were $56 and $119, respectively, 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. The Company has the ability and intent to hold these investments until recovery or maturity.


Available-for-sale securities maturing as of December 31:
2024	$	50,632
2025		26,916
2026		9,747
2027		7,190
Total	$	94,485

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies

Commitments and Contingencies

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.

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

Shareholder Litigation. On May 12, 2020, a securities class action complaint was filed in the U.S. District Court for the District of Delaware by the City of Hialeah Employees’ Retirement System naming the Company, Brian E. Mueller and Daniel E. Bachus as defendants for allegedly making false and materially misleading statements regarding the circumstances surrounding the Company’s sale of Grand Canyon University (the “University”) to a non-profit entity on July 1, 2018 and the subsequent decision of the U.S. Department of Education to continue to treat the University as a for-profit institution for education regulatory purposes (collectively, the “Conversion”). The complaint asserted a putative class period stemming from January 5, 2018, the date when the Company announced that it had applied to the University’s accreditor for approval of the Conversion, to January 27, 2020, the date prior to the publication of a short-seller report focused on the Conversion. A substantially similar complaint was filed in the same court by Grant Walsh on June 12, 2020, making similar allegations against the Company, Mr. Mueller and Mr. Bachus. Both complaints alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder and sought unspecified monetary relief, interest, and attorneys’ fees.

On August 13, 2020, the two cases were consolidated and the Fire and Police Association of Colorado, the Oakland County Employees’ Retirement System and the Oakland County Voluntary Employees’ Beneficiary

Association Trust were appointed as lead plaintiffs. Thereafter, the plaintiffs filed a consolidated amended complaint on October 20, 2020, and the Company filed a motion to dismiss on December 21, 2020. On August 23, 2021, the Court granted the Company’s motion to dismiss in its entirety but permitted plaintiffs to file a further amended complaint to correct deficiencies in the initial complaint. The plaintiffs filed further amended complaints on September 28, 2021, and January 21, 2022, and the Company filed a further motion to dismiss on March 15, 2022. On March 28, 2023, the Company’s motion to dismiss was denied. On January 5, 2024, plaintiffs moved for class action status and the briefing on plaintiffs motion commenced.

On March 25, 2024, the parties executed a Stipulation and Agreement of Settlement to resolve this action. Subsequently, on March 29, 2024, the plaintiffs filed a motion seeking entry of an order preliminarily approving the settlement and establishing notice procedures, and on May 1, 2024, the Court granted an order preliminarily approving the settlement and authorizing dissemination of notice. The settlement remains subject to final approval by the Court. The Company’s insurance carriers will fund the entire settlement amount.

On December 22, 2023, the Company was named as a nominal defendant and certain of the Company’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit filed in the Delaware Court of Chancery related to, among other things, the allegations in the aforementioned securities class action. The complaint asserts claims for breach of fiduciary duty, unjust enrichment, aiding and abetting breach of fiduciary duty, and corporate waste against all defendants. The defendants filed a motion to dismiss the complaint on April 15, 2024. The plaintiffs are required to either file a response opposing the motion to dismiss or submit an amended complaint by no later than June 12, 2024.

False Claims Act Matter. In May 2020, we were 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. In the interim, we filed a motion for reconsideration of the summary judgment ruling in September 2023; that motion remains pending. 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. For any future settlement to be effected, all parties to the litigation will need to agree on acceptable terms, both monetary and non-monetary. In this regard, because this matter involves claims under the False Claims Act, any such terms would also need to be approved by the applicable U.S. government agencies.

We believe that the compensation practices at issue in the complaint, which were developed with the guidance of outside regulatory counsel specifically to comply with Title IV and its regulations and relevant case law interpreting the incentive compensation rule, do not violate applicable law. If a future settlement is not finalized on terms acceptable to all parties in interest, the Company intends to defend itself vigorously in this legal proceeding. The outcome of this legal proceeding is uncertain at this point. At present, the Company cannot reasonably estimate a range of loss for this action based on the information available to the Company. Accordingly, the Company has not accrued any liability associated with this action.

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands		3 Months Ended
	Jul. 01, 2018	Mar. 31, 2024 USD ($) item segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Summary Of Significant Accounting Policies
Insurance receivable		$ 25,500
Investments		94,485		$ 98,031
Other assets		$ 1,755		1,641
Number of operating segments \| segment		1
Number of reporting units \| segment		1
Number of university partners \| item		23
Goodwill		$ 160,766		160,766
Unbilled revenue		2,956		188
Amounts written off		0
Allowance for doubtful accounts		0
Stockholders equity		759,447	$ 659,250	718,014	$ 637,619
Income tax expense		20,195	$ 17,047
Cash in excess of FDIC insured limits		$ 195,207		145,474
Revenue Benchmark \| Customer Concentration Risk \| Grand Canyon University
Summary Of Significant Accounting Policies
Concentration risk percentage		89.70%	88.50%
Computer Software
Summary Of Significant Accounting Policies
Estimated average useful life		3 years
Capitalized Content Development
Summary Of Significant Accounting Policies
Estimated average useful life		4 years
Other assets		$ 726		$ 746
University partner relationships
Summary Of Significant Accounting Policies
Estimated average useful life		25 years
Minimum
Summary Of Significant Accounting Policies
Initial contract terms of service agreements		7 years
Maximum
Summary Of Significant Accounting Policies
Initial contract terms of service agreements		15 years
Master Services Agreement \| Grand Canyon University
Summary Of Significant Accounting Policies
Percentage of tuition and fee revenue used for closing of purchase agreement	60.00%

Net Income Per Common Share (Tables)

3 Months Ended

Mar. 31, 2024

Net Income Per Common Share

Schedule of weighted average number of common shares outstanding


	Three Months Ended
	March 31,
	2024	2023
Denominator:
Basic weighted average shares outstanding	29,459	30,461
Effect of dilutive stock options and restricted stock	180	177
Diluted weighted average shares outstanding	29,639	30,638

Share-Based Compensation

3 Months Ended

Mar. 31, 2024

Share-Based Compensation

Share-Based Compensation

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 March 31, 2024, 965 shares were available for grants under the 2017 Plan.

Restricted Stock

During the three months ended March 31, 2024, the Company granted 117 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, 2024, the Company withheld 55 shares of common stock in lieu of taxes at a cost of $7,446 on the restricted stock vesting dates.

A summary of the activity related to restricted stock granted under the Company’s Incentive Plan since December 31, 2023 is as follows:


		Weighted Average
	Total	Grant Date
	Shares	Fair Value per Share
Outstanding as of December 31, 2023	450	$	93.16
Granted	117	$	130.60
Vested	(142)	$	91.08
Forfeited, canceled or expired	(4)	$	94.61
Outstanding as of March 31, 2024	421	$	104.22

Share-based Compensation Expense

The table below outlines share-based compensation expense for the three months ended March 31, 2024 and 2023 related to restricted stock granted:


	2024		2023
Technology and academic services	$	605	$	678
Counseling services and support		1,826		1,743
Marketing and communication		54		48
General and administrative		998		900
Share-based compensation expense included in operating expenses		3,483		3,369
Tax effect of share-based compensation		(871)		(842)
Share-based compensation expense, net of tax	$	2,612	$	2,527

Amortizable Intangible Assets - Amortization Expense for Developed Curricula and Student Relationships (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Amortization expense
2024	$ 6,314
2025	8,419
2026	8,419
2027	8,419
2028	8,419
Thereafter	126,286
Net Carrying Amount	$ 166,276

Property and Equipment

3 Months Ended

Mar. 31, 2024

Property and Equipment

Property and Equipment

5. Property and Equipment

Property and equipment consist of the following:


	March 31,		December 31,
	2024		2023
Land	$	5,098	$	5,098
Land improvements		2,242		2,242
Buildings		51,399		51,399
Buildings and leasehold improvements		34,463		34,210
Computer equipment		140,304		138,950
Furniture, fixtures and equipment		26,970		26,737
Internally developed software		74,728		71,204
Construction in progress		13,903		10,274
		349,107		340,114
Less accumulated depreciation and amortization		(176,921)		(170,415)
Property and equipment, net	$	172,186	$	169,699

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 03, 2024
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-34211
Entity Registrant Name	GRAND CANYON EDUCATION, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-3356009
Entity Address, Address Line One	2600 W. Camelback Road
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85017
City Area Code	602
Local Phone Number	247-4400
Title of 12(b) Security	Common Stock
Trading Symbol	LOPE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,738,382
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001434588
Amendment Flag	false