Cash conversion is exceptional, with OCF/NI of 2.37 in Q2 2026 and cumulative operating cash flow of $720.1M exceeding net income of $563.6M over ten quarters, while capex remains minimal at 3.3% of revenue and buybacks totaled $75.3M in Q2 2026.
Grand Canyon Education, Inc. (LOPE) cash flow statement — 20-year operating, investing & financing cash flows
| 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 | 278.71M | 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 % | -51.39% | -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 | 224.21M | 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 | 41.67M | 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 | 13.58M | 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 | 13.7M | 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 | 2.55M | 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 | -17M | -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 | -6.54M | -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 | -8.69M | -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 | 42.78M | -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 | -36.17M | -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 | 3.17% | 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 | 1.5M | 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 | 53K | 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 | -342.71M | -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) | -342.71M | -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 | -342.71M | -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 | 0 | 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 | -21.22M | -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 | 242.53M | 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 % | 21.24% | 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 % | -7.2% | -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 | 9.25 | 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) | 1.08x | 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 | 53.15M | 53.9M | 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 |
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.
Key Metrics
Top Statement Risk
Regulatory and FAFSA headwinds
Metrics are mathematically derived from official filings.
Cash Conversion Outpaces Reported Earnings
Operating cash flow exceeded net income in most quarters, with OCF/NI reaching 2.37 in Q2 2026, according to the latest cash flow statement. This suggests high earnings quality with minimal accrual distortion.
The consistent OCF/NI ratio above 1.0, except in seasonal trough quarters, indicates that reported earnings are backed by actual cash generation. The large positive working capital changes in peak quarters (e.g., $63.7M in Q4 2025) reflect tuition collections, which may reverse in off-peak periods, but the overall pattern suggests conservative revenue recognition.
Free Cash Flow Resilience Amid Seasonality
Free cash flow margins averaged 37.1% in Q2 2026, with full-year FCF consistently positive despite quarterly swings, as per the cash flow data. This demonstrates the capital-light nature of the OPM model.
FCF margins range from -22.3% in Q3 2025 to 46.6% in Q2 2025, reflecting the academic calendar's impact on working capital. However, cumulative FCF over the last four quarters remains robust, indicating that the business generates substantial cash beyond maintenance needs. The gap between net income and FCF is minimal, reinforcing the quality of earnings.
Minimal Capital Intensity Supports Cash Generation
Capital expenditures average only 3.3% of revenue over the last ten quarters, as reported in the cash flow statement, indicating a highly asset-light model. This low capex allows for significant free cash flow conversion.
Capex of roughly $9-10M per quarter is consistent and likely represents maintenance spending on technology and facilities, not growth investments. The low capital intensity relative to peers (e.g., UTI's negative FCF margin) underscores LOPE's ability to return cash to shareholders while funding organic growth.
Seasonal Working Capital Swings Drive Cash Flow
Working capital changes fluctuate dramatically, from -$127.8M in Q3 2025 to +$70.2M in Q2 2025, based on the cash flow data. This reflects the timing of tuition collections and payments to GCU.
The negative working capital in Q3 (summer) likely results from lower enrollments and delayed receivables, while positive swings in Q4 and Q2 align with peak enrollment periods. This pattern is consistent with the academic calendar and suggests efficient management of receivables and payables, though it introduces quarterly volatility that investors should model.
Aggressive Buybacks Absorb Excess Cash
Share repurchases totaled $75.3M in Q2 2026, with cumulative buybacks exceeding $500M over the last ten quarters, as per the cash flow statement. This signals management's confidence in undervaluation.
The company pays no dividends, instead deploying nearly all free cash flow into buybacks, which have accelerated in recent quarters (e.g., $127.9M in Q1 2026). This capital allocation strategy, combined with negligible debt, suggests a shareholder-friendly approach, though it may limit flexibility for strategic acquisitions.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $720.1M exceeds cumulative net income of $563.6M, based on the cash flow data. This indicates a persistent positive divergence favoring cash.
The cumulative OCF/NI ratio of 1.28 suggests that earnings are conservatively stated, with non-cash charges like D&A and favorable working capital timing boosting cash. This divergence supports the view that LOPE's earnings quality is high, but investors should monitor whether this trend persists as the business matures.
What Could Invalidate the Base Case
The cash flow statement obscures potential regulatory fines and FAFSA-related disruptions, which could pressure future collections and increase compliance costs, as noted in recent disclosures. Investors should monitor these risks.
While operating cash flow has been robust, the recent Department of Education fine and ongoing FAFSA technical issues may lead to higher refunds or delayed tuition payments, potentially reversing the positive working capital trends. Additionally, the heavy reliance on buybacks could mask underlying operational challenges if enrollment growth stalls, warranting close attention to new student start trends.