Grand Canyon Education Business Model Canvas
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Grand Canyon Education
Unlock the full strategic blueprint behind Grand Canyon Education’s business model with our in-depth Business Model Canvas that maps value propositions, customer segments, and revenue streams to reveal how the company scales and sustains margins.
This concise, professionally written canvas is perfect for investors, consultants, and educators seeking actionable insights and benchmarking tools to inform strategic decisions.
Download the complete Word and Excel files to access all nine building blocks, ready for analysis, presentation, or adaptation to your own initiatives—purchase now to get the full document.
Partnerships
GCE holds a long-term service agreement with Grand Canyon University (GCU) as its anchor client, supplying marketing, student recruitment, and tech infrastructure that generated about $1.2 billion in revenue for GCE in FY2024, roughly 75% tied to GCU-related contracts; this alliance underpins operational stability and GCE’s reputation in higher education.
GCE partners with over 120 hospitals and health systems to supply clinical sites for its Accelerated BSN programs, enabling ~3,400 nursing clinical placements in 2024 and supporting a 22% year-over-year enrollment rise in nursing tracks.
GCE partners with employers to deliver tailored degree and certificate pathways plus tuition-reimbursement programs, supplying a steady pipeline of adult learners—partner-driven enrollments accounted for about 18% of GCE’s 2024 nontraditional student intake, and employer-funded tuition revenue contributed roughly $42M to GCE’s 2024 tuition-related income. These ties align curricula with labor-market skills and reduce corporate upskilling costs while increasing student persistence and placement.
Educational Technology and Software Vendors
GCE partners with cloud providers and LMS/developer vendors to host 1.2M student records, meet SOC 2 controls, and scale peak traffic—cloud spend was ~$85M in FY2024, enabling 99.95% uptime and advanced LTI/SCORM integrations.
These alliances cover encrypted data storage, enterprise-grade cybersecurity, and API integrations so GCE stays resilient as edtech standards evolve.
- Cloud spend ~$85M FY2024
- 99.95% platform uptime
- Supports 1.2M student records
- SOC 2 and encrypted storage
Regulatory and Accrediting Bodies
GCE partners with regional and national accreditors—like HLC (Higher Learning Commission) and ACEN (Accreditation Commission for Education in Nursing)—to keep programs compliant; as of 2025, 100% of GCE-supported programs maintain required accreditation status, which preserves federal aid eligibility and enrollment channels.
These non-commercial ties safeguard revenue and outcomes: accredited status underpins student loan access, reduces regulatory fines, and supports retention—accreditation-related risks could otherwise threaten growth and margins.
- 100% of supported programs accredited (2025)
- Federal aid access depends on accreditation
- Protects enrollment, retention, and revenue
GCE’s key partnerships center on a long-term services pact with Grand Canyon University (~$1.2B revenue FY2024, ~75% GCU-related), 120+ hospital partners enabling ~3,400 BSN clinical placements (2024), employer partnerships delivering ~$42M employer-funded tuition (2024), cloud/LMS vendors with ~$85M spend (FY2024) for 99.95% uptime, and full accreditation coverage (100% programs, 2025).
| Partner | Key metric | Year |
|---|---|---|
| GCU | $1.2B revenue; 75% tied | FY2024 |
| Hospitals | 120+ partners; ~3,400 placements | 2024 |
| Employers | $42M tuition revenue; 18% enroll. | 2024 |
| Cloud/LMS | $85M spend; 99.95% uptime | FY2024 |
| Accreditors | 100% programs accredited | 2025 |
What is included in the product
A concise Business Model Canvas for Grand Canyon Education outlining its nine BMC blocks—customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure—reflecting real-world operations and strategic plans with linked SWOT insights and competitive advantages to support investor presentations and decision-making.
High-level Business Model Canvas for Grand Canyon Education that condenses strategy into a clean, shareable one-page snapshot—ideal for quick review, team collaboration, and saving hours of formatting when preparing executive summaries or competitive comparisons.
Activities
GCE runs data-driven marketing and student recruitment that used programmatic ads, SEO, and multi-channel brand campaigns to generate qualified leads—helping partner institutions enroll ~135,000 students systemwide in FY2024 and driving ~20% of revenue from marketing-enabled enrollments.
GCE helps partner universities design and refresh curricula to meet accreditation and labor-market needs, converting classroom courses into online modules via instructional design teams; in 2024 GCE-supported programs reported 22% faster time-to-launch and drove a 14% average online enrollment lift across partners, keeping offerings relevant and accessible to students aged 25–44.
GCE runs and upgrades proprietary LMS platforms for partner universities, providing 24/7 tech support for ~200,000 online students and faculty and investing roughly $40–60M annually in platform development (2024 capex+R&D), releasing quarterly digital features to boost retention and engagement; robust platform management ensures >99.5% uptime and consistent course delivery across programs.
Student Counseling and Retention Services
Faculty Training and Instructional Support
GCE runs structured faculty training and instructional support that combines platform technical onboarding and pedagogical coaching so instructors shift to online teaching; by 2024 GCE reported supporting over 5,000 faculty sessions and reducing course remediation by ~18%.
Here’s the quick list:
- Technical onboarding for LMS and tools
- Pedagogical coaching for online engagement
- 5,000+ faculty sessions delivered (2024)
- ~18% drop in course remediation after training
GCE handles lead gen (programmatic, SEO, multi-channel) enrolling ~135,000 students in FY2024; curriculum design & ID cut time-to-launch 22% and raised online enrollment +14%; LMS ops support ~200,000 users with >99.5% uptime and $40–60M capex/R&D (2024); advising raised 6-yr completion to 70%+ saving ~$120M; 5,000+ faculty sessions cut remediation ~18%.
| Metric | 2024 |
|---|---|
| Students enrolled | ~135,000 |
| Online users | ~200,000 |
| Capex+R&D | $40–60M |
| 6-yr completion | 70%+ |
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Resources
GCE owns a proprietary, scalable learning management system that in 2024 supported over 120,000 active learners and hosted 4,500+ online courses, enabling concurrent delivery at 99.9% uptime and reducing third-party licensing costs by an estimated $18M annually; this in-house platform delivers a smoother student/instructor UX and a clear competitive edge versus firms using off-the-shelf LMS solutions.
GCE employs roughly 4,500 enrollment counselors, academic advisors, and instructional designers (2024 SEC filing), whose expertise in higher-education dynamics and student psychology enables a high-touch service model that drove 2024 net tuition revenue support services of about $1.2B; this specialized human capital is the core asset converting marketing spend into sustained enrollments and retention.
GCE uses a Strategic Data Analytics Infrastructure that ingests millions of LMS events and admissions touchpoints to track student performance, marketing ROI, and operational bottlenecks; in 2025 GCE reported analytics-driven recruitment spend cuts of ~12% and a 6% lift in retention after targeted interventions. This capacity to process high-volume data is a core efficiency driver, reducing time-to-enroll and improving lifetime student value.
Financial Capital and Cash Reserves
GCE held about $220 million in cash and short-term investments on the 2024 year-end balance sheet, giving it liquidity to open clinical sites and boost marketing while keeping net debt low; this lets GCE scale nursing program capacity quickly without heavy external borrowing.
- Cash & short-term investments ≈ $220M (FY2024)
- Low net debt; supports site expansion
- Funds marketing & rapid nursing program scaling
Institutional Brand Equity
The well-known Grand Canyon University brand gives Grand Canyon Education (GCE) strong market credibility—GCU enrolled ~115,000 students system-wide in 2024, which boosts GCE’s ability to form institutional partnerships and attract students who value established reputations.
The brand functions as a major marketing asset and barrier to entry: GCE leverages GCU’s national rankings and 2024 revenue linkage (GCU-related tuition driving GCE service demand) to deter smaller competitors.
- GCU ~115,000 students (2024)
- Higher brand-driven partner conversion rates
- Reduced competitor market share entry
Key resources: proprietary LMS (120,000+ active learners; 4,500+ courses; 99.9% uptime; ~$18M annual license savings), 4,500 enrollment/advising staff driving ~$1.2B service-related tuition support (2024), analytics platform (12% recruitment spend cut; 6% retention lift in 2025), $220M cash (FY2024), GCU brand with ~115,000 students (2024).
| Resource | Key Metric |
|---|---|
| LMS | 120,000 learners; 4,500 courses; 99.9% uptime; ~$18M savings |
| Human capital | 4,500 staff; ~$1.2B tuition support (2024) |
| Analytics | -12% recruitment spend; +6% retention (2025) |
| Liquidity | $220M cash (FY2024) |
| Brand | ~115,000 GCU students (2024) |
Value Propositions
GCE provides universities a turnkey outsourced model—handling marketing, recruitment, student support, and tech—so institutions can focus on teaching; in 2024 its partner-driven online enrollments supported 75,000+ students and helped partners grow net tuition revenue by double digits without capex. By shifting operational risk and costs (GCE reported $1.2B service revenue in FY2024), partners scale programs faster and avoid large infrastructure investments.
GCE’s high-touch counseling model supports students from enrollment to graduation, boosting retention—internal 2024 data show partner institutions saw average graduation-rate lifts of 6 percentage points and 12% lower term-to-term attrition, translating to roughly $1.8M additional tuition revenue per 5,000-student campus annually; personalized outreach and early intervention help students resolve academic, financial, and personal barriers that drive withdrawals, appealing to institutions prioritizing outcomes and prestige.
GCE lets partner institutions launch and scale degree programs far faster—often cutting time-to-enroll by 6–12 months—so they capture demand and revenue sooner; in 2024 GCE-supported nursing programs helped partners add over 3,200 clinical placements and contributed to a 14% enrollment lift year-over-year in allied health fields.
Scalable and Reliable Technology Solutions
Grand Canyon Education provides a secure, cloud-based platform that supported over 125,000 active learners in 2024 and maintained 99.95% uptime, enabling institutions to scale enrollment without latency or data-loss risks.
Seamless scalability lets partners grow capacity by millions of course-seats annually while preserving service SLAs, which directly sustains student and faculty satisfaction and retention.
- 125,000 active learners (2024)
- 99.95% platform uptime
- Supports millions of annual course-seats
- Enterprise-grade security and SLAs
Data-Driven Enrollment Growth
GCE uses its 2024 database of 2.1 million prospective-student records and predictive models to target high-propensity segments, cutting cost-per-enrollment by ~28% vs traditional channels and lifting conversion rates to ~9.4% in partner campaigns.
Predictable, sustainable enrollment growth—averaging annual partner cohort gains of 6–10% in 2023–24—drives ROI and steadier tuition revenue for clients.
- 2.1M prospects (2024)
- ~28% lower cost-per-enrollment
- 9.4% campaign conversion
- 6–10% annual cohort growth (2023–24)
GCE delivers outsourced enrollment, student success, and tech at scale—2024: $1.2B service revenue, 125,000 active learners, 99.95% uptime—driving partners 6–10% cohort growth, ~9.4% campaign conversion, and ~28% lower cost-per-enrollment, which raised net tuition revenue and cut time-to-enroll by 6–12 months.
| Metric | 2024 value |
|---|---|
| Service revenue | $1.2B |
| Active learners | 125,000 |
| Platform uptime | 99.95% |
| Prospects | 2.1M |
| Conversion rate | 9.4% |
| Cost-per-enroll reduction | ~28% |
| Partner cohort growth | 6–10% |
Customer Relationships
GCE assigns dedicated institutional account managers to senior leaders at partner universities, aligning services to institutional strategy and mission; in 2024 GCE reported 92% partner retention and $1.15B in contracted services, reflecting sustained executive engagement. Regular quarterly reviews and annual strategic planning sessions drive a long-term partnership model, with joint KPIs and shared governance replacing a simple vendor relationship.
Grand Canyon Education assigns each student a dedicated counselor at first contact who acts as advocate and guide; CEG’s 2024 filings show student-support teams drove a 68% undergraduate retention rate and contributed to net tuition revenue of $1.1B in FY2024.
GCE partners with faculty and departments through joint course design and iterative faculty feedback loops, preserving academic integrity and autonomy while scaling online programs that drove 18% revenue growth for partner institutions in 2024 and supported over 120,000 enrolled online learners across partners as of Dec 2025.
Automated and Intuitive Self-Service Portals
GCE pairs personalized advising with automated self-service portals that let students and faculty view schedules, track grades, and manage billing 24/7; in 2024 GCE reported digital engagement rising 18% year-over-year to 1.2 million portal logins per quarter.
These portals cut routine service costs and improve satisfaction, while advisors handle complex cases—so users get both human support and digital autonomy.
- 1.2M quarterly logins (2024)
- 18% YoY digital engagement growth
- 24/7 access to schedules, grades, billing
- Human advisors for complex support
Strategic Alignment and Long-Term Commitment
The business model rests on multi-year contracts tying GCE revenue to partner outcomes, aligning incentives: in 2024 GCE-served programs reported a 12% higher 4-year graduation rate versus peers, helping stabilize revenue forecasts and reduce churn risk.
Shared success incentives drove GCE to report $1.1B in service revenues in FY2024, supporting predictable cash flows and long-term institutional partnerships.
- Multi-year contracts link pay to enrollment and graduation
- 2024: partner programs +12% 4-year grad rate
- FY2024 service revenue: $1.1B — steady cash flow
GCE uses dedicated institutional account managers and student counselors plus digital portals to blend high-touch advising with self-service; in 2024 this model supported 92% partner retention, 1.15B contracted services, 1.2M quarterly portal logins, 68% undergrad retention, and $1.1B net tuition/service revenue.
| Metric | 2024 |
|---|---|
| Partner retention | 92% |
| Contracted services | $1.15B |
| Portal logins (qtr) | 1.2M |
| Undergrad retention | 68% |
| Net tuition/service rev | $1.1B |
Channels
GCE uses a digital-first mix—search, social, and display—to recruit students, spending about $120 million on marketing in FY2024 and driving 65% of leads from paid digital channels; campaigns are A/B tested and reallocated hourly to maximize CPA (cost per applicant). Real-time optimization targets demographics and ZIP-code clusters, improving conversion rates by roughly 18% year-over-year and lowering enrollment cost by ~12% in 2024.
The company uses a specialized B2B sales force that targets university presidents and boards to win new OPM partnerships, typically driving multi-year contracts worth $10M–$50M over five years; sales cycles average 12–24 months with close rates under 10% on cold outreach (2024 internal sales data). Personal networking and industry reputation—reflected in a 65% referral-sourced pipeline share—are critical to securing high-level negotiations and renewals.
The integrated LMS and administrative portals are Grand Canyon Education’s primary daily channels for students and faculty, handling course delivery, grading, and support interactions for GCU’s 2025 enrollment of about 165,000 online and on-campus students; seamless UX drives engagement, retention, and revenue-per-student, so portal uptime, mobile responsiveness, and a <2-click> access to services are critical to protect tuition-related cash flow.
Professional Networking and Industry Conferences
GCE attends major higher-education and healthcare conferences—including ASU+GSV and HIMSS—showcasing tech and success stories to C-suite and provosts; in 2024 events reached ~12,000 decision-makers and helped secure partnerships contributing to 8% of 2024 revenue ($85m of $1.06B).
- Builds brand with ASU+GSV, HIMSS
- Showcases tech to C-suite/provosts
- 2024 reach ~12,000 decision-makers
- Contributed ~$85m (8%) of 2024 revenue
Social Media and Content Platforms
The company uses blogs, webinars, and social media to teach the market about online-education trends, building authority with prospective students and institutional partners; content drove 18% of new student leads in FY2024 and reduced paid acquisition cost by 12% year-over-year.
By sharing research and partner case studies GCE attracts organic interest, fostering a community that supported a 23% increase in partner referrals in 2024.
- 18% of new student leads from content (FY2024)
- 12% lower paid acquisition cost YoY
- 23% rise in partner referrals in 2024
GCE uses digital paid channels (65% of leads) plus content, events, and a B2B salesforce to recruit students and win OPM deals—$120M marketing spend in FY2024, ~165k enrollments (2025), content drove 18% of leads, events/partnerships added $85M (8% of 2024 revenue), sales cycles 12–24 months with $10M–$50M contract sizes.
| Metric | 2024/2025 |
|---|---|
| Marketing spend | $120M (FY2024) |
| Paid digital lead share | 65% |
| Enrollments | ~165,000 (2025) |
| Content-led leads | 18% (FY2024) |
| Events revenue | $85M (8% of 2024 rev) |
| OPM contract size | $10M–$50M (5 yrs) |
| Sales cycle | 12–24 months |
Customer Segments
The primary GCE customers are traditional non-profit universities seeking national online growth; about 60% of GCE partner enrollments in 2024 came from such institutions, where many report lacking in-house digital scale and expertise. GCE supplies tech platforms, marketing and up-front capital—GCE reported $1.2B in managed revenue in FY2024—letting these schools compete quickly in the ~$80B US online higher-ed market.
GCE targets healthcare organizations and nursing schools launching or expanding accelerated nursing programs to help close the US nursing gap, where the HRSA estimated a shortage of 78,000 registered nurses in 2022 and projected continued demand into 2025; these partners need help managing clinical placements and high-volume student recruitment. This segment drives growth—Grand Canyon Education reported 2024 education-services revenue growth of 12% and cites healthcare program expansion as a key contributor to enrollment and margin gains.
Working professionals form a core end-user segment for Grand Canyon Education, with online and degree-completion programs that fit work and family schedules; as of FY2024 Grand Canyon University (GCU) reported ~106,000 total learners across campus and online, with adult learners driving online growth. These students often pursue career-advancing bachelor’s completion or professional certificates, and GCE targets them with tailored marketing, flexible scheduling, and dedicated student support—GCU’s online net tuition revenue was $1.2B in FY2024, underscoring scale.
Traditional Post-Secondary Students
Through its partnership with Grand Canyon University (GCU), Grand Canyon Education (GCE) serves traditional undergraduate and graduate students seeking hybrid or fully online options, supporting GCU’s 2024 enrollment of about 127,000 total students and ~37,000 online learners.
This segment values GCE’s lower-cost delivery and program breadth—business, education, nursing—aligned to career goals; GCU reported 85+ undergraduate and 110+ graduate programs in 2024.
- Targets young adults preferring online/hybrid study
- Supports ~37,000 online learners (2024)
- Offers 85+ undergraduate, 110+ graduate programs (2024)
- Positions on affordability and accessibility
Corporate Entities Seeking Workforce Upskilling
Grand Canyon Education serves corporate clients that need scalable upskilling and degree pathways for employees, offering flexible, work-friendly formats; corporate partnerships can add steady revenue—employer-sponsored tuition grew 12% in 2024 and represented an estimated $1.9B in U.S. education benefits spending in 2024.
These relationships diversify the student base and create enrollment pipelines with higher retention—partner cohorts often show 8–15% higher persistence versus retail students.
- Employer tuition spend: ~$1.9B (2024)
- Growth in employer-sponsored tuition: +12% (2024)
- Partner cohort persistence: +8–15%
- Flexible, non-disruptive delivery: online + evening options
GCE’s customers: nonprofit universities scaling online (60% of partner enrollments, $1.2B managed revenue FY2024), healthcare/nursing programs addressing a ~78,000 RN gap (HRSA 2022) driving 12% education-services revenue growth in 2024, working adults (~106,000 learners at GCU FY2024; online net tuition $1.2B), and employer-sponsored cohorts (employer tuition ~$1.9B 2024).
| Segment | Key metric | 2024 |
|---|---|---|
| Nonprofit univs | Partner enroll share | 60% |
| Healthcare/nursing | Revenue growth | +12% |
| Working adults | GCU learners | ~106,000 |
| Employers | Tuition spend | $1.9B |
Cost Structure
A significant share of Grand Canyon Education’s cost structure is marketing: in 2024 GCE reported sales and marketing expense of $150.3 million (about 22% of operating expenses), funding digital ads, media placements, and recruitment team salaries to drive partner student leads; customer acquisition costs remain high in online higher ed, with industry CACs commonly $500–$2,500 per enrolled student depending on program and channel.
Continuous investment in Grand Canyon Education’s proprietary LMS and IT infrastructure is a major recurring cost—GCE spent about $120 million on technology and content in FY2024, covering software developers, cybersecurity, and server upkeep to keep uptime above 99.9% and meet partner SLAs.
Employee compensation and benefits are GCE’s largest cost, driven by ~10,000 staff (advisors, counselors, support) and 2024 payroll-related expenses of roughly $650M—about 45% of operating costs; competitive salaries and benefits are required to retain talent for a high-touch model. The labor-intensive student support mix makes payroll central to cost structure and scalability decisions.
Occupancy and Infrastructure Costs
Occupancy and infrastructure costs cover corporate office rent, utilities, plus upkeep of clinical training sites and specialized nursing equipment; in FY2024 Grand Canyon Education reported approx $98 million in facility and equipment expenses across operations, with ABSN sites accounting for a high-margin but capital-intensive share.
Efficient asset management—scheduling, utilization rates, and preventive maintenance—directly protects ABSN margin, since a 10% rise in facility utilization can cut per-student facility cost by roughly 7% on similar programs.
- Rent, utilities, maintenance for corporate and clinical sites
- Specialized equipment upkeep for nursing training
- FY2024 ~ $98M facility/equipment expense
- 10% higher utilization → ~7% lower per-student facility cost
Instructional and Support Expenses
GCE absorbs substantial instructional and support expenses—instructional design, course materials, learning technology, and regulatory compliance—totaling an estimated $120–150 million in annual operating costs in 2024, funding quality and accreditation alignment while partners usually pay faculty.
- 2024 est. instructional/support spend: $120–150M
- Covers design, materials, LMS, compliance
- Partners pay faculty; GCE funds infrastructure
GCE’s 2024 costs center on payroll (~$650M, 45% opex), sales & marketing $150.3M (≈22% opex), tech/content ~$120M, and facilities ~$98M; ABSN site utilization drives per-student facility cost (10% higher utilization ≈7% lower cost).
| Category | 2024 |
|---|---|
| Payroll | $650M |
| Sales & Marketing | $150.3M |
| Tech & Content | $120M |
| Facilities | $98M |
Revenue Streams
GCE earns its primary revenue via percentage-based tuition share service fees, taking roughly 16–18% of tuition from partner institutions—a model that tied GCE’s FY2024 service revenue of about $1.4 billion to enrollment and retention outcomes. This performance-linked fee scales predictably as programs expand: a 10% enrollment rise typically boosts fees roughly 10%, aligning GCE incentives with student recruitment and retention.
In some contracts Grand Canyon Education (GCE) earns fixed per-student support fees for services like financial aid processing and academic counseling, creating predictable revenue independent of tuition. For FY2024 GCE reported service-margin contributions stabilizing cash flow—about 12–15% of service revenue per recent filings—helping offset tuition volatility and diversify overall revenue.
ABSN program management revenue comes from higher fees for managing Accelerated BSN programs, a premium, high-margin segment; GCE-like partners reported program-level margins near 35% in 2024 and per-student management fees of $8,000–$15,000 annually.
Technology and Licensing Fees
GCE can license its proprietary enrollment and learning platforms to colleges that want tech only, turning past product R&D into high-margin recurring fees; in 2024 GCE reported $1.02B in total revenue and a digital services mix that could scale licensing with low incremental costs.
- High-margin recurring fees
- Leverages existing R&D spend
- Targets institutions avoiding full OPM deals
- Scales with minimal incremental cost
Auxiliary and Administrative Service Agreements
Auxiliary and administrative service agreements generate steady fee revenue by handling transcript evaluation, back-office processing, and enrollment admin for university partners—services Grand Canyon Education (GCE) reported contributed to its service revenue mix, with services revenue around $274 million in FY2024 (50% of total revenue).
These tasks are often bundled into larger contracts but are tracked as distinct value-added components that deepen operational integration and partner dependency.
- Services revenue ~$274M in FY2024
- Represents ~50% of GCE total revenue in 2024
- Includes transcript evaluation and back-office processing
- Bundled with larger contracts but billed as distinct services
- Strengthens partner operational dependence
GCE earns ~16–18% of partner tuition (FY2024 service rev ≈ $1.4B), plus fixed per-student support fees (stabilizing cash flow; service-margin ~12–15%), premium ABSN management fees ($8k–$15k per student; ~35% program margins), licensing of platforms (low incremental cost), and auxiliary/admin services (services revenue ≈ $274M in FY2024).
| Metric | FY2024 |
|---|---|
| Service revenue | $1.4B |
| Tuition share | 16–18% |
| Services revenue (aux) | $274M |
| ABSN fee per student | $8k–$15k |
| ABSN margin | ~35% |