Leases

3 Months Ended

Mar. 31, 2026

The Company has operating leases for office space and campus facilities and finance leases for certain copiers and printers. Leases are classified as operating leases unless they meet any of the criteria below to be classified as a finance lease:

•the lease transfers ownership of the asset at the end of the lease;

•the lease grants an option to purchase the asset that the lessee is expected to exercise;

•the lease term reflects a major part of the asset’s economic life;

•the present value of the lease payments equals or exceeds the fair value of the asset; or

•the asset is specialized with no alternative use to the lessor at the end of the term.

Operating Leases

The Company has operating leases for office space and campus facilities. Some leases include options to terminate or extend for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. The Company leases corporate office space in Florida, under an operating lease that expires in January 2029. Excluding a campus being closed in 2026, the Company leases 27 campuses located in eight states for the Health+ segment under operating leases that expire through December 2034. Prior to the GSUSA Sale Date, GSUSA leased classroom and administrative office space in Washington, D.C. and Honolulu, Hawaii.

Operating lease assets are right-of-use assets, or ROU assets, which represent the right to use an underlying asset for the lease term. Operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases are included in the Operating lease assets, net, and Operating lease liabilities, current and long-term, on the accompanying Consolidated Balance Sheets. These assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate based on information available at lease commencement to determine the present value of the lease payments. The ROU asset includes all lease payments and excludes lease incentives.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. There are no variable lease payments. Lease expense for the three months ended March 31, 2026, was $3.5 million compared to $4.9 million for the three months ended March 31, 2025. Lease expense for the three months ended March 31, 2025, included lease expense for leased classroom and administrative office space leased by GSUSA prior to the GSUSA Sale Date. These costs are primarily related to long-term operating leases but also include amounts for short-term leases with terms greater than 30 days that are not material. Cash paid for amounts included in the present value of operating lease liabilities during the three months ended March 31, 2026, was $3.5 million, compared to $4.7 million for the three months ended March 31, 2025, and is included in operating cash flows.

Finance Leases

The Company leases copiers and printers pursuant to leases that are classified as finance leases and that expire in 2027. The Company pledged the assets financed to secure the outstanding leases. As of March 31, 2026, the total finance lease liability was $0.2 million, with an average interest rate of 7.00%. The ROU assets are recorded within Property and equipment, net on the accompanying Consolidated Balance Sheets. Lease amortization expense associated with the Company’s finance leases was $46,000 for both the three months ended March 31, 2026, and 2025, and is recorded in Depreciation and amortization expense in the accompanying Consolidated Statements of Income.

The following tables present information about the amount and timing of cash flows arising from the Company’s operating and finance leases as of March 31, 2026 (in thousands):


Maturity of Lease Liabilities (Unaudited)	Operating Leases		Finance Leases
2026 (remaining)	$	10,754	$	160
2027	13,957		36
2028	12,560		—
2029	10,831		—
2030	9,221		—
2031	8,926		—
2032 and beyond	11,468		—
Total future minimum lease payments	$	77,717	$	196
Less: imputed interest	(12,714)		(7)
Present value of operating lease liabilities	$	65,003	$	189
Less: lease liabilities, current	(10,993)		(189)
Lease liabilities, long-term	$	54,010	$	—


Balance Sheet Classification (Unaudited)
Current:
Operating lease liabilities, current	$	10,993
Finance lease liabilities, current	189
Long-term:
Operating lease liabilities, long-term	54,010
Finance lease liabilities, long-term	—
Total lease liabilities	$	65,192


Other Information (Unaudited)
Weighted average remaining lease term (in years):
Operating leases	5.99
Finance leases	0.91
Weighted average discount rate:
Operating leases	5.4	%
Finance leases	7.0	%