Q2 2025 Grand Canyon Education Inc Earnings Call
Good day, and thank you for standing by. Welcome to the Grand Canyon Education second quarter earnings conference call.
At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 1 again, please be advised. That today's conference is being recorded, I would now like to hand the conference over to your first Speaker today, Sarah Collins, general counsel.
Please go ahead.
Joining me on today's call is our chairman and CEO, Brian, Mueller, and our CFO Dan Bacchus, please note that many of our comments today will contain forward-looking statements that involve risk and uncertainties various factors could cause our actual results to be materially different from future results, expressed or implied by such statements. These factors are discussed in our SEC filings, including our annual report on form. 10K quarterly reports on form 10q and current reports on Form 8K. We undertake no obligation to provide updates with regard to the forward-looking statements made during this call. And we recommend that all investors review. These reports thoroughly before taking a financial position in GCE, with that I'll turn the call over to Brian.
Good afternoon and thank you for joining Grand. Canyon education, second quarter 2025 conference call GCE had another strong quarter producing online enrollment growth of 10.1% and hybrid growth, excluding the closed sites and those in teach out of 15.4% with that, I would like to review the results of the 4 delivery platforms at GCE.
First, the online campus at Grand Canyon University. New starts were up in the mid-teens in the second quarter of 2025, which exceeded our expectations. Total enrollment growth was 10.1%, which significantly exceeds GCU's long-term objectives.
In the past, I have highlighted 4 reasons for the growth. They include continuing to roll out. 20 plus new programs on an annual basis. Working with, over 5,500, employers employers directly to address Workforce shortages, increased retention levels again in the second quarter and holding the line on tuition to mean GCU, Maine to maintain gcu's, competitive pricing position.
A fifth reason, and one growing insignificance, is the number of students between 18 and 25 years old that are choosing to do college online.
There are very few universities that have 303 programs delivered fully online. The online campus growth is benefiting from the growing trend of high school graduates that are doing their total program online, as well as students attending the campus that go back and forth between living on campus and using the flexibility of online to engage in other life experiences. Given the trends, I just discussed we believe the momentum that exists in the second quarter will continue into the second half comps in the second half are more difficult but we are still projecting new. Start growth will be in the mid to high single digits.
Second, the GCU, ground campus for traditional students as has been previously, discussed new and total traditional campus. Enrollments were down slightly year-over-year in the fall of 2024 for the reasons, discussed on previous calls, including the difficulty of navigating the new FASA site. Although the spring intake is much less than the fall, we did see an increase in new students starting in G.
At GCU in the spring of 2025 as compared to Spring 2024, which helped offset the increasing number of students that graduated at the end of the fall semester.
Summer, ground enrollment increased 16% over the prior year, traditional students included in the ground. Enrollment at GCU at June 30th of each of each year. Only includes traditional age students that have been attending campus that are taking summer school classes. This has become another reason students are able to graduate in less than 4 years.
We Believe GCU will react new student growth on the ground campus Because of its significant advantages including very low price point. Very low average debt levels percent of students completing in less than 4 years and the relevancy of gcu's academic programs.
Last year in new student registrations for the fall of 2025. And although we continue to see greater than historical numbers of students registering, and melting at this time of the year, we remain optimistic, that we will start to fall 2025 semester 10% above last year in new students, but flat year-over-year in total on campus enrollment.
Fall in total enrollment is being greatly impacted by summer graduations.
Summer school enrollment was greater than expected in approximately. 300 of those students. Took the credits needed to graduate in the summer, rather than returning the fall, which gets their professional career. Started this semester earlier and reduces the debt level, their families need to incur.
As we move forward, there are 3 trends that are impacting traditional college campuses throughout the country. Number 1, the number of high school graduates on an annual basis continues to decline. Number 2, the percent of high school graduates that are choosing the 4 or 5 year back Laureate, path continues to go down. While the number of students choosing shorter certificate or trade programs is going up.
Number 3, the number of high school graduates choosing a baccalaureate path, but doing it fully online, also continues to go up.
We are in a very strong position given those trends.
We have a high quality affordable offering on the GCU, ground campus, but have even greater program choices for students that want to go fully online or to move back and forth between ground and online.
In the future, we will be reporting growth of traditional students under 25, years old and the growth of non-traditional students, 25 and older. The purpose will be to accurately reflect the flexibility that GCU provides to students of the lifespan leading to growth levels. Greatly exceeding the overall Trends across the country.
Third Grand, Canyon, education's, hybrid campus had an increase in enrollment year-over-year of 14% in the second quarter, excluding the closed sites and those that are on teachout enrollment increased 15.4% year-over-year.
We expect the new enrollment growth rate to remain up in the low to mid teens during the second half of 2025.
There are 2 main reasons for this continued growth number 1, almost all of our active, abs and partners have responded to the younger students interested in absn programs by admitting Advanced standing students or are in the process of making that change.
Students with partially completed degrees having accumulated, a great deal of debt and are very interested in nursing careers but didn't have an efficient way to earn the prerequisite science coursework.
GCU, created the science courses and some other gen Ed courses so they could be delivered online. In 8 weeks, students can access these courses from anywhere in the world. There are start opportunities almost every week. These courses have been made very affordable, are taught by experienced faculty class sizes are low and there is a tremendous amount of academic support including in artificial intelligence project which provides students 24/7 access to tutoring.
Since implementing these courses, we have already enrolled 17,085 students.
we have a waterfall report that allows us to know how students are progressing through their prerequisite courses and when they will be eligible to start at 1 of our absn sites,
Graduation rate of students who successfully enter the absn programs is in the mid 80s, and the first time pass rate on the NCLEX exam is approximately 90%.
We now have an extremely efficient way to get students, academically eligible and prepared to enter the program.
These positive results we anticipate will continue. There has never been greater interest among potential students for emptying. The entering the health care professions and specifically nursing.
But because of the low unemployment rate, the interest has shifted to these younger students who have an accumulated, a great deal of debt completing a bachelor's degree in another area and are underemployed.
And with all our partners have responded positively to the change needed to serve the advanced standing students.
Our goal is still to have 80 locations with our partners, with 40 of them with 40 of the locations, being GCU locations in 2025 we will open 5 additional sites.
Including a second location in the Boston area in the fall. Another site in New York City and 3 GCU. Sites in 2025, 1 in Albuquerque, New Mexico, which was opened in the first quarter of 2025 1 in Lake, Mary Florida near Orlando.
Which was opened in the second quarter of 2025 and 1 in Englewood, Colorado, south of Denver.
Which will open in the fall.
The addition of gcu's 3, new site openings will bring its absn location total to 11.
Nursing program was 7 specialized with Northeastern University, including Masters and doctoral level degrees which started this summer at several East Coast locations.
A hybrid occupational therapy bridge to a Master's program will be launched alongside the already successful stage occupational therapy assistant hybrid program. An online Health Science degree with Udica University and GCU will launch a Bachelor of Science in Occupational Therapy Assistance program and a specialized Speech Language Pathology program in 2025 at the Phoenix West Valley location.
Adding additional programs at our hybrid locations is an important component to our business plan.
Forth the center for Workforce Development at Grand Canyon University in the 2022. 23 school year. We started 80 students in gcu's, Electra electricians pre-apprenticeship program in partnership with companies that are experiencing labor shortages in that area and are excited about hiring gcu's graduates.
The program consists of 4 4, credit courses and runs 1 semester. 212. Students successfully completed the program in 202425 including 11 in the Austin. Texas hybrid location.
In Fall 2023 we started gcu's manufacturing CNC machinist pathway in partnership with companies that are experiencing labor shortages in that area.
The program consists of 44, credit courses and runs. 1 semester 33 students completed the program in 2024 25 fiscal year.
These those students attend for 20 hours a week and then work in the facility as a paid employee for 20 hours.
At the end of the semester, they received a manufacturing certificate and became eligible for employment in Arizona's fast. Growing manufacturing industry.
Students in gcu's, growing engineering College, are getting experience in this manufacturing facility, which is adding to their in engineering education.
Recently this manufacturing company owned and operated by a recent GCU, graduate and housed in a GCU facility bought a manufacturing company which has more than doubled. Its capacity and provides the opportunity to significantly grow the number of students involved in this program.
GCU also be rolling out 2. New 2 semester pathway programs. 1 is a Construction, general pathway starting fall of 2025 and 1 is a manufacturing, General pathway starting fall of 2026.
I started out by talking about the relevant programs in creative delivery models that GCE has implemented with its 20 partner institutions.
In the 7 years, since GCE has become a service provider, it has helped his Partners accomplish the following in that time. GCE has helped Grand Canyon University graduate 2 0 0, 5 6.
54,622 in education, including 26,085 first-time teachers, at a time when teacher shortages have created a national crisis.
52,478 in nursing and healthcare professionals, including 3,138 pre-licensure nurses, at a time when there is a huge shortage of nurses.
41,122 in the College of humanities and social sciences including thousands in counseling and social work, where there are also huge shortages.
The College of Business has become 1 of the largest business schools in America and has produced 35,168 graduates. The College of science, engineering, and technology has grown by 219% and provided 8,702 graduates. The doctoral College Honors College and College of theology. Also, continue to grow
In addition gces helped its part other partners.
Graduate 19,320 pre-licensure nurses and occupational. Therapists assistants.
The numbers that I have just cited have all happened in the 7 years since the GCU, GCE trans transaction. And since GCE has become an education services provider,
All of this has occurred while GCE paid 596 million in federal and state taxes. While state universities and community colleges pull money out of the tax system. GCE has helped produce nearly 220,000 graduates while pouring millions of dollars into the system.
For those shareholders interested. We recently issued our 2025 Corporate social responsibility report the report is located at gce.com under investors corporate governance. We are very proud of the social contributions that the company in concert with this University partners and its employees, make to our communities.
Before I discuss the financial results, I want to spend a few minutes talking about the regulatory environment.
That was passed earlier this summer, we'll have on universities such as our partners.
Although, some universities might be impacted.
By the big, beautiful bill, our partners should see little to no impact. Most of what is in the big beautiful view bill are things that I have endorsed for years.
I was very pleased that a Workforce pel grant program was created our country needs more students going into programs such as what GCU is creating in its Center for Workforce Development and the students in those programs should qualify Propel grants.
They have also been a proponent of lowering loan limits at The Graduate and professional level, and giving universities more ability to limit what is Borrowed by its students.
All of which is in the big beautiful Bill, all of our partner Partners graduate programs are delivered either online or hybrid and thus the tuition levels are significantly below loan limits.
Most of the over borrowing occurs because students take the entire difference between loan limits and the amount due for tuition and fees for a living expenses. And a lot of cases that extra borrowing is not needed as our partner. Students are working adults
Reducing the amount of available for living expenses will. In most cases reduce the amount of debt Masters and professional students take on
Loan limits were not changed at the bachelor's level where they are already fairly low.
I also believe the institutional accountability provision contained, in the BBB is a much more appropriate way to analyze the value of higher education to students and taxpayers.
We will not know the impact of this provision on our partner programs until Eid releases information.
But given gcu's, low tuition rates and the high income obtained by graduates of our partners. Nursing programs. We do not expect any issues.
Service Revenue was 247.5 Million for the second quarter of 2025 an increase of 20 million dollars or 8.8% as compared to 2 2, 7. 5 2 4.
The increase year-over-year in service revenue is primarily due to an increase. In partner enrollments of 10.3%, including an increase in GCU, online, enrollments of 10.1% and University partnering partner, enrollments at the off-campus classroom. And laboratory sites of 14% partially offset by a decrease, in Revenue per student year-over-year primarily due to contract modifications,
for some of our University Partners in which the revenue share percentage was reduced
In exchange for us no longer reimbursing, the partner for certain faculty costs, which had the effect of reducing Revenue per student.
And a slight decline year-over-year in revenue per student for online students, due to the continued mix shift to students that have a slightly lower net tuition rate.
Operating income and operating margin for the 3 months ended, June 30th 2025 was 51.8 million and 20.9% respectively as compared to 42.7 million and 18.8% respectively for the same period in 2024.
net income, increased 19.1% to 41.5 million for the second quarter of 2025 compared to 34.9% in 2024
Gap diluted income per share for the 3 months. Ended June 30th 2025 as a dollar 48.
As adjusted non-gaap diluted income for share for the 3 months, ended June 30th. 2025 is a $15.53 which is 16 cents above consensus estimates.
With that. I would like to turn it over to Dan back as our CFO to give a little more color on our 2025 second quarter. Talk about changes in the income statements.
Balance sheet and other items as well as to discuss the 2025 guidance.
Thanks, Brian. Included in our Form AK filed with the SEC, we have included non-GAAP net income and non-GAAP diluted income per share for the three months ended June 30th, 2025, and 2024. The non-GAAP amounts exclude the tax-affected amount of the amortization of intangible assets of $2.1 million in the second quarter of both 2025 and 2024, and the tax-affected amount of $1.1 million in severance costs recorded in the second quarter of 2024 related to an executive that resigned.
We believe that non-GAAP financial information allows investors to develop a more meaningful understanding of the company's performance over time. The adjusted non-GAAP diluted income per share for the three months ended June 30th, 2025 and 2024 is $1.53 and $1.27, respectively.
Service revenue was higher than our expectations in the second quarter of 2025, primarily due to higher than expected enrollments. In all three pillars, as Brian discussed earlier, revenue per student decreased slightly between years.
Done a year-over-year basis by the higher Revenue, the contract modifications, and the 1.1 million is in Severance cost recorded in the second quarter of 2024 related to an executive that resigned effective June 30th 2024.
Partially offset by additional spend for 2025 partner initiatives, but also due to the in continued impact of significantly higher than expected benefit costs as a result of an increase in the number of high cost claims.
Our effective tax rate for the second quarter of 2025 was 24.5%, compared to 25.5% in the second quarter of 2024. Our guidance for the effective tax rate is 24.9%. The decrease year-over-year was primarily due to changes in state income taxes.
I, as I will discuss in a minute. The second half effective tax rate will be impacted by the contributions, made in lie of state income taxes made in July of 2025 and higher state income taxes.
We purchased 259,271 shares of our common stock in the second quarter of 2025 at a cost of approximately $47.4 million, and another 157,000 shares were repurchased since June 30, 2025.
A number of shares beginning.
At the tail end of June. The, the number of shares beginning at the tail end of June, was more than we anticipated, and was the result of the decline in our stock price.
We have 156.9 million remaining available as of today under our share repurchase authorization.
The board and the company attend to continue, using a significant portion of its cash flows from operations to repurchase the shares.
Trading to the balance sheet and cash flows, total unrestricted, cash and cash, equivalents and Investments, as of June 30th 2025 were set 373.9 million.
GC capex in the second quarter of 2025, including capex for new off-campus classroom, and laboratory sites, was approximately 8.6 million or 3.5% of service Revenue.
We continue to expect capex for 2025. We will remain comparable with prior year at between 30 and 40 million.
Last, I would like to provide color on the update data guidance. We have provided in our 8K file today as a reminder, the guidance that we provided in the Outlook section of our AK file today is gaap, net income and diluted income per share, with the components to adjust. The Gap amounts to non-gaap as adjusted, net income, and non-gaap as adjusted diluted income per share.
We have updated full year 2025 guidance to include the second quarter revenue and earnings beats. We have increased the third quarter revenue and earnings projections by adjusting both the low-end and the high-end of our previously recorded guidance, due to the higher-than-expected enrollments as of June 30th and our current expectations for the second half of the year.
for the fourth quarter, we have narrowed, the range between the high and low end producing an increase in Revenue at midpoint,
We continue to anticipate the new online. Enrollments will be up year-over-year in the mid to high single digits in each quarter during the second half of 2025 and that total online enrollments will remain in the high single digits over the prior year.
Total online enrollments will continue to be pressured by increasing graduations and a continued decline in re-entry, students, returning to school. After a break, due to the high retention rates, there could be some upside to our second half projections, given the strong Trends. But given the tough comps, we believe these estimates are appropriate,
We have slightly raised our expectations for the hybrid pillar due to slightly higher than expected hybrid enrollments. We continue to anticipate new and total
student growth rate. In the hybrid pillar to be in the mid to high teens with the revenue growth rate for the hybrid Bill pillar as a result of the enrollment growth continued, continuing to be partially offset By changes made to the contracts for the University partners that are no longer being reimbursed for faculty costs.
We remain optimistic, that fall ground, traditional new enrollment will be in the upper half of our original guidance up approximately 10% year-over-year but total enrollment expectations have been lower slightly at midpoint, as we have decreased the high-end and increased. The low end of the range based on current registrations current new enrollment Trends and the higher than expected summertime graduations with approximately 1 month until the start of the fall semester.
As Brian mentioned ground traditional summer school, enrollment exceeded our expectations, which along with the higher than expected online and hybrid enrollments resulted in higher than expected Revenue in the second quarter, and our expected higher Revenue in the third quarter.
It appears approximately 300 of the higher than expected ground traditional summer. School enrollment was related to students that we had expected to finish their program in the fall, but instead accelerated their coursework and finished in the summer. Thus revenue for these students was accelerated from the fourth quarter to the second slash third quarters.
Line with our expectations as a reminder, the ground traditional campus starts one day earlier in 2025 than in 2024, which will have an impact of moving $1.4 million in revenue from the fourth quarter to the third quarter in comparison to the prior year.
On the expense side as you will recall after a pause on certain Investments pilot merely in headcount in the first 9 months of 2024, we ramped up hiring another spend in the fourth quarter of 2024 and anticipate this continued investment to accelerate. And the second half to meet the growth goals of our partners. We also continue to absorb significant increases in both benefit costs and Technology services with benefit costs significantly exceeding. Our expectations in both the first and second quarters
Our revised guidance assumes, these Trends continue in the second half of the year as it relates to the hybrid pillar. We will continue to incur additional costs for the new hybrid relocations that have opened in 2024 and 2025, but we are experiencing increased sight level profitability. Due to the increasing enrollments.
last, we continue to anticipate an increase in legal fees again in 2025, over 2024, as we have a couple of lawsuits filed in Prior years, they're expected to go into the discovery phase and or trial during 2025
General. Administrative expenses was increased in the third quarter of 2025 by 5 million, for the contributions, in lie of state income taxes, made in July 2025.
These dollar-for-dollar tax credits, reduce our state, Arizona State tax liability for the amount of donation and support private school education through contributions to school tuition organizations, which then provide scholarships to students attending private high schools in Arizona.
Roughly 75% of the tax. Credit is recognized as lower income tax in the third quarter. And the remaining 25% is recognized as lower income tax expense in the fourth quarter.
Contributions of 4.5 million were made in July of 2024.
We are estimating that interest income will continue to be down year-over-year due to the declining cash balances, resulting from more aggressive stock buybacks and a declining interest rate environment. We have lowered interest income slightly for the rest of the calendar year due to the greater-than-expected stock buybacks during the first and second quarters. While decreasing, the number of weighted average shares outstanding.
We have lowered the effective tax rate for the last two quarters of 2025 to 20.6% and 22.8%, with a full-year tax rate of 22.3%. This is due to the $5 million of contributions made in lieu of state income taxes, made in July.
Our effective tax rate for the third and fourth quarters would have been 24.7% and 24.1% and our full year tax rate would have been 23.6%. If the contributions had not been made the effective tax rate continues to be impacted by higher state taxes. As we continue to add new sites in States outside of Arizona, which have higher state tax rates and other factors.
As mentioned earlier, our weighted average. Shares guidance says decrease slightly for each of the 2. Remaining quarters due to the greater than expected purchases. Uh beginning in June, the board continues to authorize the repurchase of shares as it believes the stock remains undervalued. Based on the metrics, it uses to evaluate including the ratio of Enterprise Value to adjusted ibida and the free cash flow yield rather than multiples of other education companies. As although we can be viewed as being in the same sector. There are a few, if any appropriate comes
I will now turn the call over to the moderator so that we can answer questions.
Thank you. At this time. We will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced to withdraw your question. Please press star 1 1 1 again.
Please stand by while we compile the Q&A roster.
Our first question comes from Jeff silver with BMO Capital markets, your line is open.
Thanks so much. Um wanted to focus on the accelerating enrollment growth in the quarter. Brian in your remarks you highlighted a number of areas that drove that but we really saw a pickup between 1 q and 2q or maybe 1 or 2 of those. Can you highlight specifically for that acceleration?
Above average uh increases in that that's 1, number 2, uh, the prere courses, um those courses that students are taking noted to to, to get ready academically for uh, the health care program or Healthcare careers specifically. Nursing those things are are, are coming at us in a, in a higher rates than expected. Um, and then thirdly, uh, and I referred to this a number of times in the, in the in, uh, but the number of students in the country that are wanting to go to college, post High School graduation, but our content to do it from home.
Um in in in uh that that that number is really in uh increasing now our online enrollments. Um we're 1 of the few universities that have fully online programs we have over 300 of them and so if you want to be an accountant for example, and you you uh earned 30 or 40 college credits through dual enrollment, or other means while you were in high school, you know, 2 and 2 and a half years. You you, you can complete a bachelor degree in accounting, uh, incurred, very little debt. And and um, students are starting to wake up to that opportunity, there are students who are staying home and, uh, entering our teacher, Ed program, um, uh, our our, our other business programs. And so it's, I would say it's those, it's the prere courses in the science area. It's the uh, pair professional growth in producing teachers uh and then it's the in uptick.
Pick up students that graduated in the spring.
And are deciding to do college from home. Um, that have really, uh, helped boost that those online enrollments. The only other thing. Jeff I'd like to remind investors is that uh, although GCU has weekly starts. Um, we are some seasonal in that the third quarter is by far, the largest start quarter of the Year followed by the first quarter with the second and fourth being about the same.
And so, I give that color. The second quarter was outstanding significantly over last year. But if we do, uh, you know, mid to to low end of high, single digits starts in the third quarter, that will be a very, very strong quarter. Um, so, you know, I I don't want people to come back and be concerned about a Slowdown in the third quarter. Um, if it's in that, you know, 567% year-over-year range, that is a, a very big raw growth year-over-year. If that the momentum is going to continue, its just the cops change. Um, got it.
Yeah, no, that that's very helpful. Thank you for reminding us of that. Uh Dan um maybe I can shift gears to regulatory. I know Brian in your repair remarks. He said um, you know some of the changes on the loan side should have little to no impact. But you know I wanted to focus a little bit more specifically on the changes on The Graduate loans. Um I I know Grand Canyon, the campus is mostly undergrad. I know you have you know a lot of grad students online but more Curious for your partners are there a lot of of grad students in your hybrid programs and there could be it, could there be an issue where those programs might be a little bit more expensive compared to the new caps. Thanks.
No. The 90% plus of our partner programs are at the undergraduate level. Uh Marquette has a master's degree program. That's pretty well attended. Uh I think we have 1 other 1 that's that's at the Master's Degree level. Uh uh Northeast North Eastern is opening a master's degree program at 1 of its locations but no 95% plus uh are at the undergraduate level, um earning uh, Bachelor of Science and nursing degrees.
Okay, that's really helpful. I'll get back in the queue. Thanks so much. Thank you.
our next question comes from Stephen, Pollock, with Baird
Yeah, thank you. Um, I guess maybe just jumping off on that point. Uh, Brian you talked about the regulatory environment, sort of um or the changes from the bill affecting other are um, providers in the industry, I guess, what are you expecting? Or maybe things to look out for in terms of a changing competitive response? You've talked about increased scholarships things like that in Prior cycle. So any, any sort of comments that maybe what you're expecting from a competitive standpoint?
um, um,
Uh, offers made to students. And when not just current students uh president at U OFA, but the previous president 1 of his uh explanations for why they had a fiscal crisis down there and we compete against the state universities was that um there were just too many students who were going to school that weren't paying. Um and so we haven't seen that nearly as much this year as we have seen in Prior years. Um, which is partly why we're saying we we we are fairly confident that we'll be 10% up in new enrollments on our ground campus. Um,
The there have been there have been some uh, offers but not nearly what it's been in the last number of years. I think that thing is caught up to to universities. And I'm, I'm really happy that we didn't respond to that. Um, our our, uh, scholarship program is, uh, set in stone and, uh, it's based upon, uh, great point average. Uh, and we don't, we don't vary a lot from that. Um, we've got a, a tremendous offering that returns a tremendous return on investment for our students. Um,
You know, almost 50% of our students on our campus now are graduating in 3 years, uh, which really reduces the amount of money they have to borrow and so um I think we've stayed in the right place from that standpoint and and we're benefiting from it now.
And again a reminder uh to investors that there were no material changes uh to Bachelors level loan limits and so you probably won't see any significant change there. It it there was changes to the Masters and and professional. But as Brian said um you know most of the masters programs out there today are are significantly below even the revised loan limits.
Um it it will reduce living expense distributions to students potentially, um, but shouldn't preclude, uh, students being able to pay for graduate level tuition.
Understood. And, um,
Just I I hear your comments from Jeff's. Other question about um the exciting enrollment growth and sort of the the tougher comps in Q3. But Dan you also talked about um, sort of, you know, potential for upside still. So maybe just in terms of balance where it kind of maybe the the upside drivers.
Well it's it's just can't, can we ex continue to exceed? Our own internal goals on new enrollments. Um, in the second half those are pretty aggressive goals, um, given the tough comps, but that's where the upside would get is if we exceed our own internal goals, uh, in the third and fourth quarter from a new online, new start perspective,
Understood, thank you.
We have reached the end of our second quarter conference call. We appreciate your time and interest in Grand Canyon education. If you still have questions, please contact myself Dan Bacchus. Thank you very much.
Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect