Q3 2025 Grand Canyon Education Inc Earnings Call

Good day and thank you for standing by, welcome to the Grand. Canyon education, third quarter earnings conference call.

At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question 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 counselor. Please go ahead.

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 many 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's, third quarter 2025 conference call GCE had another strong quarter producing online enrollment growth of 9.6% in hybrid growth, excluding the post sites and those in teach out of 19.3%, new ground, traditional enrollment grew in the high single digits year-over-year with that. I would like to review the results of the 4 delivery platforms. At Grand Canyon Education, First, the online campus at Grand Canyon University. New starts were up in the mid single digits in the third quarter of 2025, which was in line with our expectations and total enrollment growth was 9.6% with significantly seized Jesus gcu's. Long-term objectives, the new online, enrollment growth rate was an expected deceleration from the previous quarter, uh, growth rates, but is a strong result deal.

Given that the third quarter is, the largest Stark quarter of the year. And that's the prior year comp is large 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, directly to address Workforce shortages, strong retention levels, and hold holding the line on tuition to to maintain gcu's competitive pricing position.

A fifth reason and 1 growing insignificant is the number of students between 18 and 25 years old. They're choosing to go to college online. There are very few universities that have 310 programs delivered fully online.

The online campus growth is benefiting from the growing trend of recent 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 believed the momentum that exists will continue second. The GCU ground campus for traditional students, new traditional campus enrollments were up in the high, single digits, and total traditional campus. Enrollments were down slightly year-over-year in the fall of 2025 while total GCU, ground enrollment was flat year-over-year.

The slight decline year-over-year in total traditional student. Enrollment was in line with our expectations given last year's decline, in new enrollments caused, primarily by the fastest site issues and more recently, the higher than expected summer school graduations.

We Believe GCU will continue to experience new student growth on the ground campus Because of a significant advantages including the very light low price point very low average debt levels percent of students completing in less than 4 years, the relevancy of gcu's academic programs to a fast changing and modern economy and having a 20th, ranked campus in the country.

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 using shorter certificate or trade programs is going up.

A 3, the number of high school graduates choosing a baloria path, but doing it fully online, also continues to go up.

We're in a very strong position. Given these 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 and last quarter's earnings call. We discussed the potential to change the categories that we report student enrollments in so that we most accurately reflect the flexibility that GCU provides to students across the lifespan.

but if decided to report them consistently with why we have reported in Prior years, as we continue to analyze these trends,

We have made some changes to our marketing and recruitment strategy for GCU's traditional campus, which accelerated some spend into 2025. Although it is early, those changes to date are producing positive results. Registrations for the fall 2026 school year are ahead of last year. The third Grand Canyon Education's hybrid campus had an increase in enrollment year-over-year of 17.4% in the third quarter.

This exceeded our expectations and is the result of a higher than expected. Number of new students, starting in the fall.

There are two main reasons for this continued growth: 1, almost all of our active ABSN 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, haven't accumulated a great deal of debt and are very interested in nursing careers but didn't have an efficient way to earn that. Prerequisite science course work

GCU created the science courses in some other gen Ed courses so that 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 our official intelligence project, which provides students 24/7 access to tutoring.

Since implementing these courses, we have already enrolled 19,410 students.

In the summer of 2025 term 66% of metrics students at non GCU, sites, took at least 1 of these courses and of these students they took 5 courses on average.

We have a waterfall report that allows us to know how students are progressing through their prere courses and when they will be eligible to start at 1 of our absn sites graduation rate of students who successfully entered the absn programs is in the mid 80s and the first time pass rate on the NCLEX examination is approximately 90%.

We now have an extremely efficient way to get students, academically eligible and prepared to enter the program. These positive results will enter. We anticipate will continue

There's never been greater interest among potential students for entering the health care professions in 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.

Nearly all our partners are 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 the locations, being GCU locations.

In 2025, we opened up a total of 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, when an 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 was open in the third quarter.

The addition of GCU's three new site openings brought its ABSN location total to 11.

We are also expanding our programmatic offerings with our hybrid partners, by adding a graduate nursing program with 7, specialized with Northeastern University, which started this fall. A hybrid occupational therapy bridge to Masters, programme to the already successful St. Cayce occupational therapy assistant hybrid program which will begin in the fall of 2026. An online Health Science degree with udica University and GCU launched a BS in occupational therapy assistance program and a speech language pathology program in 2025 at its Phoenix, West Valley location.

Adding programs that are hybrid locations is an important component to our business plan.

Our strong hybrid results might come as a surprise to some of the investment Community. Given recent commentary I believe, based on conversations over the years that investors do not always understand the difference between free licensure and post-licensure nursing programs.

Pre-licensure nursing would probably be better referred to as "license" as these students are studying to become licensed as first-time nurses.

These students need to take pre-med type, Court science courses, such as Anatomy physiology, microbiology, chemistry, and biology before being qualified to enter the program and then specialized nursing courses that includes Hands-On.

Practice in a lab setting in a real world experience in patient care during the nursing Corps.

Students can take the pre-med science. Courses, completely online through gcu's prerequisite courses.

The event can become eligible to enter GCU or 1 of our other partner, absn programs, the growth of students. In both the prerequisite online courses and the absn program continues to be very strong.

Post-licensure nursing programs. Today are generally delivered completely online and include the RN to BSN, the masters of nursing program and the Doctorate of Nursing.

These programs are for those that already are nurses.

Nursing and wants a graduate degree, oftentimes to get a management role.

Both of these degree, programs are typically management programs and have a minimum number of clinical requirements.

Many universities that offer online courses offer these programs and they have become competitive.

GCU offers both programs and has a large student body in both of these areas.

Because of the competitive landscape and the law of large numbers, the growth of these programs has been less than our overall growth rate for a number of years. That has not been concerning to us because GCU has over 300 other online programs, most of which are less competitive and are growing at a faster pace.

Forth the center for Workforce Development at Grand Canyon University GCU. Now has 4 programs in the center for Workforce Development, including the elections, pre electricians pre-apprenticeship program, the CNC machinist pathway program, the manufacturing specialist intensive pathway and the Construction general pathway and and will be rolling out a fifth program. The manufacturing General pathway in the fall of 2026.

These programs are all built in partnership with companies that are experiencing labor shortages in that area and are excited about hiring gcu's graduates.

These programs are either 1 semester or 2 semester programs. 212, students successfully completed the electrician pre-apprenticeship program in 202425 including 11 in the Austin. Texas hybrid location.

33 students completed a matter of the manufacturing CNC. Machinist pathway program in a 202425 fiscal year. These students attend school 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 receive a manufacturing certificate become 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 engineering education.

I started out talking about the relevant programs in Creative delivery models that GCE is implemented with its 20 partner institutions.

In the 7 plus years, since GCE has become a service provider, it has helped its Partners accomplish the following.

In that time gca's helped Grand Canyon University graduate. 20002 206,709. Students 5588 in education including 26,099.

first time, teachers at a time when teacher shortages have created a national crisis,

54,068 in nursing and Healthcare professions, including 3383, pre-licensure nurses at a time when there is a huge shortage of nurses,

42,820 in the College of humanities and social sciences, including thousands and counseling and social work, where there are also huge shortages.

The College of Business has become one of the largest business schools in America and has produced 36,276 graduates.

The College of Science, Engineering, and Technology has grown by 220% and provided 9,029 graduates.

The doctoral College Honors College and College of theology. Also continue to grow

In addition GC has helped his other partners graduate over 15,000, pre-licensure nurses and occupational therapist. Assistants

The number that I have just cited have all happened in the past 7 plus years since the GCU GCE transaction. And since GCE has become an education services provider,

All of this has occurred while GCE paid $612 million in federal and state taxes.

While state universities and community colleges pull money out of the tax system, GCE has has helped produce over 220,000 graduates while pouring millions of dollars into the system.

Service Revenue was 261.1 Million for the third quarter of 2025 an increase of 22.8 million.

or 9.6% is compared to the 238.3% for the third quarter of 2024

The increase year-over-year in service revenue was primarily due to an increase in partner enrollments of 7.9%, which included an increase in GCU online enrollments of 9.6%.

University partner enrollments at the off-campus classroom and laboratory sites of 17.4% and an additional day of ground traditional Revenue at GCU of 0.9 million in the quarter, as a result of the 1-day earlier than last year. Fall start date.

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 September 30th 2025 was 18 million and 6.9% respectively.

Excluding the charges described in detail in our 8K file today, adjusted operating income and adjusted operating margin for the 3 months. And it's September 30th, 2025 was 58.2 million and 222.3% respectively. As compared to 50.3 million and 211.1% respectively, for the same period in 2024.

Net income was 16.3 Million for the third quarter of 2025.

Gap diluted income for share for the 3 months, ended September 30th.

Uh, 2025 is 58 cents, as adjusted, non-gaap diluted income per share for the 3 months. Ended September 30th 2025 is 1.78 cents which is in line with the concessions, the consensus estimates

With that. I'd like to turn it over to Dan back as our CFO to give a little more color and our 2025 third quarter. Talk about changes in the income, statements, balance sheet, and other items, as well as to discuss the 2025 guidance.

Thanks Brian, including our Form 8K, filed with the SEC. We have included non-gaap net income and non-gaap diluted income per share for the 3 months, ended September 30th 2025 and 2024. We believe the non-gaap financial information allows investors to develop more meaningful. Understanding of the company's performance over time as adjusted non-gaap diluted income per share for the 3 months, ended September 30th, 2025 and 2024 as a $1.78 and a $148 respectively.

Service Revenue was higher than our expectations. In the third quarter of 2025 primarily due to higher than expected hybrid enrollments traditional campus and online enrollments were in line with our expectations. Although traditional campus Revenue was slightly less than expected due to slightly lower Revenue. Per student than anticipated, an online Revenue with slightly, higher than expected, due to slightly higher Revenue, per student than anticipated,

the third quarter, operating margin was positively, impacted on a year-over-year basis by the higher revenue and the contract modifications partially offset by additional spend for 2026 partner initiatives, but also due to the continued impact of significantly higher than expected benefit costs as a result of higher claim costs, the higher than expected benefit costs had a 6 Cent impact on Epps in the third quarter, we are currently anticipating

This trend will continue in the fourth quarter.

Our effective tax rate for the third quarter of 2025 was 24.9%, compared to 20.8% in the third quarter of 2024 and our guidance of 20.6%. The higher-than-expected effective tax rate is primarily due to the tax impact of the key TAM settlement.

As we discussed our in our last quarter's conference call, we did make 5 million in contributions, in lie of state income taxes and the third quarter of 2025, which had the effect of increasing General and administrative expenses in the third quarter by this amount and lowering income tax expense. Approximately 3/4 in the third quarter and 1 quarter in the fourth quarter.

We repurchased 219,369 shares of our common stock in the third quarter of 2025 at a cost of approximately 39.5 million and another 38745 shares were repurchased since September 30th 2025

We have $136.4 million remaining available as of today. Under our share repurchase authorization, the board and the company intend to continue using a significant portion of its cash flows from operations to repurchase its shares.

Turning the balance sheet and cash flows, total unrestricted, cash, and cash, equivalents and Investments as of September 30th 2025 or 277 million.

GCE capex in the third quarter of 2025, including capex for new off-campus classroom laboratory sites, classroom and laboratory sites was approximately 9.7 million or 3.7% of service Revenue. We anticipate capex for 2025 will be between 30 and 35 million.

Last. I'd like to provide color on the updated guidance. We have provided our AK file today. As a reminder, the guidance we have provided in the Outlook section are AK file. Today is gaap, net income and diluted income per share with the components to adjust Gap amounts to 9 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 third quarter results. We have reaffirmed the previously provided range for the fourth quarter, based on current online trends and the fall ground and hybrid enrollment.

Anticipate slightly lower revenue from military tuition assistance students due to the government shutdown.

A little under 5% of gcu's online students are service members. Using the Department of Defense program to fund their education. The program provides up to $50 per credit hour has an annual cap of 4500 and the aid year begins on October 1st of each year.

No courses started starting during the government shutdown will be paid on the program. So not only will new students. Typically delay starting their program, But continuing students will take a break in their studies, and students ahead plan to restart their program in October due to previously, reaching their annual cap will wait to restart.

Assuming that each of these students is out for 1 course or 8 weeks, the impact on this of this on GCE is $3 million. We are hopeful. The effect will be less due to timing of when students courses start and end the length of the shutdown. And when the students choose to return once it is over, but if the shutdown continues through Thanksgiving, as many predict, fourth quarter likely will be impacted by 3 million.

Other than this timing issue, all pillars are performing better than or as we had expected when we significantly raised our guidance. Last quarter, we continued to anticipate that new online enrollments will be up year-over-year in the mid to high single digits in the fourth quarter. Additionally, total online enrollments will remain in the high single digits compared to the prior year.

Total online enrollments will continue to be pressured by increasing graduations and a continued decline in re-entries. Students returning to school after a break, due to the high retention rates, we have raised our expectations for the hybrid pillar due to higher than expected 2025 hybrid enrollments Revenue. Growth rates for the hybrid, pillar continue to be impacted by changes. Made to the contracts for University partners that are no longer being reimbursed for faculty costs.

We have slightly lowered our expectations for the ground, traditional campus Revenue per student. Based on the actual net tuition revenue of the Fall students and excluding the military tuition assistance. In fact, we have increased our Revenue per student expectations for online.

As a reminder, the ground traditional campus for GCU starts, 1 day earlier in 2025, than in 2024, which will have an impact of moving 0.9 million in revenue for the from the fourth quarter to the third quarter in comparison to the prior year.

On the expense side, we do not anticipate any material changes in the assumptions we gave last quarter, the current trends that we have been discussing will continue in the fourth quarter. We continue to absorb significant increases in both benefit costs and Technology services. And we have accelerated some ground campus. Spend into the second half of 2025.

We are estimating that interest income will continue to be down year-over-year due to the declining cash balances, due to more aggressive stock BuyBacks and a declining interest rate environment.

We still believe that the effective tracks rate for the fourth quarter of 2025, will be 22.8% with a full year. Tax rate of 22.9%, the effective tax rate continues to be impacted by higher state income taxes as we continue to add new sites and States outside of Arizona, which have higher state tax rates and other factors.

We have not adjusted. Our weighted average shares outstanding amount. The number of shares purchased were less on a daily basis through late October, but have accelerated in the last week to, to decline in the stock price, the board continues to authorize the repurchase of shares as it believes the stock remains undervalued, based on the metrics that 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 few, if any appropriate comps. And the board is instructed us to be more aggressive in stock BuyBacks when the stock drives like it has recently.

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. 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 again.

Please stand by while we compile the Q&A roster.

Our first question is from Jeff silver of BMO Capital markets. Your line is now open.

Thank you so much and Brian, really appreciate the caller on what's going on in your nursing program. Um, maybe we can just, you know, double click on that.

Can you just frame it for us in terms of how large your nursing programs are at GCU and how they differ between pre-licensure and post-licensure programs? Also, how each one of them has been growing? Thanks.

Students on our campus. That's absn students at our off-site campuses. That is prerequisite students preparing for the absn, uh, it's R and the BSN it's MN, its Doctorate of nursing. Uh, and so like unlike other institutions, uh, yes, we are heavily vested in the health care industry, but I, I should also include occupational therapy the nurse practitioner program. Um, and so health care is about 30% of our total enrollments. But even that is highly Diversified uh across, you know, uh, of program levels and, and in different programs. And so, um,

I know that there has been a lot of concern about

Less Diversified institutions with regards to Health Care. Uh we're very different in that nearly impacted the way. Others would be because of of how Diversified and competitive. Uh, we are in a programs that we offer.

Does that really help? It does. And of that 30%, I know you may not have the numbers at your fingertips, but roughly what percentage of the total of that 3% are specifically in post-licensure nursing programs?

In post-licensure nursing. Yeah. Well, roughly, as you know, 5,000, uh, GC of the hybrid student, we have roughly 5,000 hybrid students. We have a couple hundred GCU, uh, pre-licensure students. And then the rest is is uh, online nursing students, the as Brian said which includes the prerequisite students

Got it. Okay, all right, that's really helpful. Um let me shift gears and and talk about, you know, your focus on younger students specifically with GCU online. Um you talked about some changes to Compass marketing, I'm just curious. Do you Market to the students that will potentially go online? These younger students any differently and, and if so, we can talk about the different marketing, uh, uh, channels know, you know, the the what I refer to in terms of the change in a little bit of a change in strategy is so much of the work that we've done uh for GCU, traditional students has been work in high schools. You know we have a sizable staff that works in high schools throughout the country, we find contracts uh, with schools, um, we have over, I think 8,000 partnership with high schools and so that's been 95% of our work. Um, but what we've what we've figured out is that we can contact through, uh, social media Avenues. Uh,

Students, um, at a less expensive rate and to a far greater extent. Uh, and so we've, we, we are starting to advertise more, uh, especially in social media areas and the initial. So, we spent some money there where we typically haven't spent it, uh, but the results have been tremendous, um, our actual registrations. At this time are are significantly ahead of what they were last year at this time. And, uh, we're watching that carefully. In fact, we watch it every day. Um, but uh, you know, part of our thinking is that yes, there's fewer high school graduates and fewer as a percent are going to college. But the but the reasons that are that, that is true, we've answered in space, uh, the value proposition that we have here is just is just, uh, I think under not understood by enough Americans right now. And we need to get that word out, uh, in a way that is,

is more aggressive than just depending upon those people working in high schools. Uh, and so our initial, uh, uh, results are are really good. Um, and we'll, we'll keep monitoring them. And if it continues in that vein, we'll spend even more money in January and February, um,

So it's, it's a slight change in terms of the balance really between what we're doing from an advertising standpoint. And what we're paying in salaries for people, working in high schools, we're moving a little bit out of the salary component. We're moving that into the advertising component and initially, we're getting a broader reach, we're getting a broader reach and we're getting uh, very strong interest. So um, we're excited about that.

I really appreciate the caller. Thanks so much. Yeah.

Thank you.

Our next question is from Stephen. Pollock of Robert W, Baird your line is now open.

Characterized the the competitive landscape in those programs.

Yeah. You know, we're having we're having a tremendous amount of success in education. Um, you know, the the fact that there's a teacher shortage in this country is is is really the, the problem of universities. Uh, they're waiting for 17 year olds to decide to become a teacher, go through years, 4 years of college, and then step into a public school classroom. Um, it is our belief that anybody between the ages of 18 and 50 years old, may have a reason to re re career in the teaching. Uh, and and so we're citing contracts with major school districts all over the country, helping them, uh, take military veterans. And people that have retired from the police and fire department, people that work in public schools as paraprofessionals or, uh, as teachers aides. And we're we're bringing education right into the school district so that they can become baloria prepared. And, and, and they can school districts can license those people and put them in the classroom. Uh, that thing is is is is is growing tremendously. Uh, our business programs, continue to grow, uh, we have 1 of the fastest growing business.

Programs in the country. Um, we're really excited about the future of counseling and social work. Uh, there's, those are 2 areas where there's also a tremendous shortage of professionals and and like, like teacher education, uh, counseling and, uh, social work. Those are lensure areas. They're very difficult to operate at a distance because you have to do all of the work necessary.

Not just to teach the student in the classroom, but you got to prepare, you got to provide observation hours, you got to provide internships, you got to provide student. Teaching those things have to be, have to be, uh, uh, viewed and evaluated. And we have a 300 million dollar plus administrative system. Plus a field force that allows us to provide those opportunities. And so, uh, it's very uncompetitive in those areas is a huge need, but it's not very competitive because it's, those things are very difficult to do at a distance. Uh, in addition, uh, we're very excited about where we're going in a number of Technology and Engineering areas. Uh, the uh, engineering is a little bit tougher to do online, although we're we're going to be doing it. But technology is not, uh, and we're just scratching the surface in terms of what we're capable of from a technology standpoint, especially in in areas like cyber uh, and especially in in, in those areas, uh, uh, on on on on

Places like uh military bases where they can't compete with the outside work force from a salary standpoint but they need cyber security Specialists. Uh Wars are going to be fought that way and so some of the major military contracts that we've signed recently are the result of expansion in those areas. And so I'm glad you asked that question because

When when people are viewing, this industry uh frequently they are responding to to you to institutions that have a limited number of programs. So that if something happens, uh, that impacts the enrollment in those programs, uh, they're really, uh, in trouble. Uh, our, our programmatic mix is so expansive, um, and it's 1 of the reasons, our our online leads are up, because so many students. Now potential students are not uh, searching on universities. They're searching on careers and they're searching on programs to help, uh, uh, gain entrance into those careers. And our name comes up first because there's very few universities in the country that have our expansive programs. And so when you think about, you know, the the ups and downs that have been part of this industry, we we look at our 17 year history. We have we have basically uh moved through

The ups and downs and it's mainly because of the diversity that exists in our programmatic offerings and in our delivery models, that allows us to move things around if there are changes. Um, and it just makes us, uh, not as, uh, susceptible, uh, to minor changes in their or even major changes. In a specific area, we can move money and we can move empathy and and we can do it very quickly.

No, I appreciate all the caller there. Um, and then you've also talked about sort of the positive spread between or sort of the enrollment advisor efficiency that you've had over the last few years. Are you still seeing the positive spread between enrollment gains and enrollment advisor growth? Um, and I guess do you expect that to be sustainable for the next couple of years?

As a result of activity, working directly inside, uh, companies and organizations all over the country. Um, you know, it 1 of the things that people here are saying now frequently and and people are responding to is that there are there are vast amounts of untapped potential in today's American Workforce, uh, and that's basically because only about 25% of students that want to access higher education, can do it.

On a college campus and spend 4 or 5 years on that campus.

You know, we are we are really growing working directly with companies and helping people working at lower levels in the organization move up through education. Uh, so whether its military base or school districts, hospitals clinics, social welfare agencies, uh, all of those areas. Um, and and, and that the, the percent of new starts that we're getting, as a result of that, work continues to go up which puts less pressure on our, our need to generate leads uh and it makes our lead purchase that much more um effective. And so um when you think about GCE and our capabilities as compared to our competitors were just more diverse in a whole variety of ways. Uh which allows for the consistency of the performance that we've been able to have

Sorry, appreciate all the callers. Thank you. Yep, we reached the end of our third 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 all.

Thank you for your participation. This concludes today's conference. You may now disconnect.