Free cash flow remains highly sensitive to academic billing cycles, with margins ranging from -22.3% in 2025Q3 to 46.6% in 2025Q2, necessitating careful monitoring of working capital liquidity.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Cash from Operations | 294.07M | 273.49M | 289.96M | 243.66M | 220.82M | 313.12M | 308.82M | 306.34M | 199.09M | 304.9M | 218.29M | 173.9M | 167M | 118.45M | 144.2M | 97.1M | 84.1M | 61.17M | 10.23M | 7.1M | 6.8M |
| Operating CF Margin % | - | 24.73% | 28.07% | 25.36% | 24.23% | 34.92% | 36.59% | 39.34% | 23.55% | 31.3% | 24.99% | 22.35% | 24.17% | 19.8% | 28.2% | 22.75% | 21.8% | 23.35% | 6.34% | 7.15% | 9.43% |
| Operating CF Growth % | -13.19% | -5.68% | 19% | 10.34% | -29.48% | 1.39% | 0.81% | 53.88% | -34.7% | 39.68% | 25.52% | 4.13% | 40.99% | -17.86% | 48.5% | 15.45% | 37.5% | 497.8% | 44.05% | 4.46% | - |
| Net Income | 219.9M | 216.17M | 226.23M | 204.99M | 184.68M | 260.34M | 257.2M | 259.18M | 229.01M | 203.32M | 148.51M | 131.41M | 111.47M | 88.71M | 69.45M | 50.55M | 44.37M | 27.3M | 6.68M | 1.53M | 598K |
| Depreciation & Amortization | 40.79M | 39.9M | 36.55M | 31.97M | 31.18M | 30.41M | 29.65M | 26.92M | 35.67M | 54.23M | 45.68M | 35.67M | 29.47M | 25.44M | 21.92M | 17.03M | 12.11M | 7.96M | 5.09M | 3.3M | 2.4M |
| Stock-Based Compensation | 10.38M | 13.64M | 14.22M | 13.2M | 12.64M | 11.53M | 10.66M | 10.3M | 19.51M | 12.69M | 12.28M | 11.26M | 9.95M | 9.94M | 7.81M | 6.45M | 5.05M | 3.42M | 4.99M | 0 | 0 |
| Deferred Taxes | 13.86M | 14.74M | -165K | 402K | 401K | 5.67M | 3.14M | 1.67M | -11.51M | -5.16M | 8.43M | 4.58M | 2.65M | 5.47M | -518K | 20.79M | 179K | -2.54M | -245K | -1.66M | -2.15M |
| Other Non-Cash Items | 2.94M | 2.26M | 1.23M | -442K | 853K | -4.32M | 571K | 3.63M | 23.38M | 22.36M | 9.87M | 16.7M | 10.85M | 11.78M | 17.93M | 35.25M | 25.95M | 19.84M | 8.34M | 6.26M | 4.66M |
| Working Capital Changes | 6.2M | -13.22M | 11.88M | -6.46M | -8.93M | 9.48M | 7.61M | 4.65M | -96.97M | 17.46M | -6.49M | -25.72M | 2.61M | -22.89M | 27.6M | -32.98M | -3.55M | 5.18M | -14.63M | -2.34M | 1.29M |
| Change in Receivables | 2.44M | -1.33M | -4.14M | -1.4M | -7.35M | -2.86M | -13.25M | 766K | -59.26M | -19.85M | -20.34M | -17.31M | -15.43M | -19.16M | -14.15M | -28.2M | -46.91M | -18.38M | -10.79M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 3.89M | 0 | 7.21M | -14.15M | 680K | 5.33M | -8.12M | 3.07M | -9.07M | 13.8M | -9.53M | 31.67M | 21.42M | -8.23M | 0 | 0 |
| Change in Payables | 2.59M | -3.45M | 9.66M | -3.11M | -3.89M | 7.39M | 1.01M | -3.1M | -14.31M | 5.38M | -4.79M | 5M | -2.45M | 8.56M | -630K | 3.15M | 2.51M | 2.15M | 927K | 0 | 0 |
| Cash from Investing | -27.63M | -221.59M | 61.37M | -80.47M | -97.14M | 950.98M | -19.35M | -405.88M | -238.24M | -152.06M | -216M | -200.88M | -161.01M | -172.5M | -131.55M | -84.28M | -111.81M | -58.42M | -6.35M | -7.55M | 6.66M |
| Capital Expenditures | -34.02M | -34.84M | -37.25M | -44.54M | -35.63M | -29.39M | -29.94M | -22.65M | -94.86M | -123.95M | -239.02M | -218.3M | -168.65M | -93.49M | -104.88M | -80.55M | -62.63M | -60.27M | -8.37M | -7.41M | -2.39M |
| CapEx % of Revenue | 4.16% | 3.15% | 3.61% | 4.63% | 3.91% | 3.28% | 3.55% | 2.91% | 11.22% | 12.72% | 27.37% | 28.05% | 24.4% | 15.63% | 20.51% | 18.87% | 16.23% | 23.01% | 5.19% | 7.46% | 3.31% |
| Acquisitions | 1M | 0 | 0 | 0 | 397K | 29.39M | 0 | -361.18M | -131.55M | 685K | 1.75M | -156.6M | 168.65M | -78.95M | 0 | 0 | -957K | 0 | 8.37M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 538K | 440K | -412K | -897K | -397K | 940.52M | 0 | -69.82M | -30M | -28.11M | 501K | 156.6M | -168.65M | 108.36M | -26.67M | -3.73M | 957K | -33.66M | -8.37M | -149K | 0 |
| Cash from Financing | -314.81M | -264.76M | -173.18M | -137.12M | -604.21M | -908.93M | -166.28M | 40.09M | -26.84M | -35.73M | 20.66M | -15.22M | 3.43M | 4.76M | 71.27M | -25.27M | -1.23M | 24.67M | 12.34M | 9.3M | -1.68M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -107.77M | -33.14M | 82.57M | -6.72M | -31.8M | 17.78M | -6.78M | -6.7M | -6.69M | 77.47M | -3.75M | -2.93M | 23.13M | -8.61M | 3.45M | -1.18M |
| Equity Issued (Net) | -186.9M | -264.76M | -173.18M | -137.12M | -604.21M | -803.83M | -134.01M | -43.91M | -24.76M | -11.3M | -20.06M | -12.07M | -5.34M | -9.3M | -15.24M | -23.11M | 965K | 385K | 134.48M | 4.68M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -938K | -153K | -497K |
| Share Repurchases | -313.72M | -264.76M | -173.18M | -137.12M | -604.21M | -803.83M | -134.01M | -43.91M | -24.76M | -11.3M | -20.06M | -15.56M | -5.34M | -9.3M | -15.24M | -23.11M | -782K | -14.49M | 0 | 0 | -4.2M |
| Other Financing | -127.91M | 0 | 0 | 0 | 0 | 2.68M | 883K | 1.44M | 4.63M | 7.37M | 13.01M | 3.64M | 15.46M | 20.75M | 9.05M | 1.59M | 736K | 1.16M | -113.54M | 1.32M | 0 |
| Net Change in Cash | -48.36M | -212.86M | 178.15M | 26.07M | -480.53M | 355.17M | 123.2M | -59.44M | -66M | 117.1M | 22.94M | -42.2M | 9.41M | -49.29M | 83.92M | -12.45M | -28.93M | 27.42M | 16.22M | 8.85M | 11.78M |
| Free Cash Flow | 260.06M | 238.65M | 252.71M | 198.23M | 185.19M | 283.73M | 278.88M | 283.69M | 104.23M | 180.94M | -20.73M | -44.4M | -1.65M | 24.96M | 39.32M | 16.55M | 21.48M | 902K | 1.86M | -303K | 4.41M |
| FCF Margin % | 31.84% | 21.58% | 24.46% | 20.63% | 20.32% | 31.65% | 33.04% | 36.43% | 12.33% | 18.57% | -2.37% | -5.71% | -0.24% | 4.17% | 7.69% | 3.88% | 5.57% | 0.34% | 1.15% | -0.31% | 6.12% |
| FCF Growth % | 10.54% | -5.56% | 27.48% | 7.04% | -34.73% | 1.74% | -1.7% | 172.19% | -42.4% | 972.73% | 53.31% | -2590.97% | -106.61% | -36.52% | 137.53% | -22.92% | 2281.04% | -51.45% | 713.2% | -106.87% | - |
| FCF per Share | 9.68 | 8.52 | 8.63 | 6.58 | 5.74 | 6.45 | 5.91 | 5.88 | 2.15 | 3.75 | -0.44 | -0.94 | -0.04 | 0.54 | 0.87 | 0.37 | 0.46 | 0.02 | 0.06 | -0.01 | 0.12 |
| FCF Conversion (FCF/Net Income) | 1.18x | 1.27x | 1.28x | 1.19x | 1.20x | 1.20x | 1.20x | 1.18x | 0.87x | 1.50x | 1.47x | 1.32x | 1.50x | 1.34x | 2.08x | 1.92x | 1.90x | 2.24x | 1.53x | 4.65x | 11.37x |
| Interest Paid | 0 | 0 | 4K | 33K | 2K | 3.7M | 4.31M | 11.52M | 1.51M | 2.25M | 1.22M | 1.24M | 1.79M | 2.18M | 606K | 535K | 769K | 1.8M | 3.71M | 0 | 0 |
| Taxes Paid | 44.14M | 0 | 65.26M | 59.03M | 48.57M | 61.9M | 68.38M | 59.9M | 78.19M | 69.61M | 66.21M | 75.59M | 48.84M | 59.89M | 32.81M | 13.46M | 37.7M | 16.31M | 5.27M | 0 | 0 |
Regulatory and MSA concentration
As reported in financial statements, LOPE's operating cash flow to net income ratio exhibits extreme volatility, swinging from a negative 2.99 in 2025Q3 to a positive 2.98 in 2025Q2, which highlights the significant impact of academic cycle timing on cash conversion quality.
The wide variance in the OCF/NI ratio suggests that net income is a poor proxy for short-term cash generation due to the timing of tuition remittances and working capital swings. Investors should monitor whether these fluctuations represent genuine operational friction or merely the expected accounting lag inherent in the OPM business model.
Based on the company's reported figures, free cash flow margins have fluctuated significantly, ranging from a negative 22.3% in 2025Q3 to a peak of 46.6% in 2025Q2, indicating that cash flow trajectory is heavily dependent on the seasonal nature of student enrollment and billing.
The recurring negative FCF in third quarters suggests that the company experiences predictable cash outflows during specific academic periods that are not fully offset by current revenue recognition. This pattern implies that the firm's cash trajectory is stable on an annual basis but requires careful liquidity management during off-peak quarters.
According to recent SEC filings, working capital changes have been a primary driver of cash flow variance, with a notable $127.8 million outflow in 2025Q3 followed by a $63.7 million inflow in 2025Q4, illustrating the sensitivity of cash balances to the timing of partner remittances.
These large swings in working capital appear to be a direct consequence of the service fee receivable structure with GCU. The data suggests that the company's cash position is highly sensitive to the speed at which tuition is collected and subsequently remitted, warranting further investigation into potential collection delays.
As evidenced by the financial data, LOPE has consistently prioritized share repurchases, with quarterly buybacks reaching as high as $126.8 million in 2026Q1, which suggests that management views the current valuation as a compelling opportunity to deploy excess cash generated from operations.
The consistent use of cash for share repurchases, despite the volatility in operating cash flow, indicates a high degree of confidence in the long-term sustainability of the MSA-driven business model. However, investors should monitor whether this capital allocation strategy leaves sufficient liquidity to address potential regulatory fines or infrastructure investments.
Quick answers to the most common questions about buying LOPE stock.
Grand Canyon Education, Inc. (LOPE) generated $273.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Grand Canyon Education, Inc. (LOPE) generated $238.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Grand Canyon Education, Inc. (LOPE) spent $34.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Grand Canyon Education, Inc. (LOPE) spent $264.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.