Investor Day Scheduled for March 19, 2026, at the new Nashville, TN Campus
PARSIPPANY, N.J., Nov. 10, 2025 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ:LINC) today announced financial and operating results for the third quarter ended September 30, 2025, as well as recent business developments.
Third Quarter Financial and Operational Highlights(Quarter ended September 30, 2025, compared to the quarter ended September 30, 2024, unless otherwise noted)
Financial Performance
Revenue increased $27.0 million, or 23.6% to $141.4 million, or 25.4% excluding the Transitional segment
Net income of $3.8 million, or $0.12 per share, compared to $4.0 million, or $0.13 per share last year, when the quarter included a $2.8 million one-time insurance gain
Adjusted EBITDA increased to $16.9 million or 65.1%
Full-year 2025 financial guidance raised following strong results
Student Metrics
Student starts* up by 3.2%, or 6.0% excluding the Transitional segment; nine-month student starts up 12.0%, or 15.0% excluding the Transitional segment
Student population up by 14.8%, or 17.2% excluding the Transitional segment
* Excludes 2,764 student starts on July 1, 2025, to align with comparable student start activity in the prior year that occurred in the last week of June 2024
A complete listing of Lincoln's non-GAAP measures is described and reconciled to the corresponding GAAP measures is included at the end of this release.
Campus Development Activity
Entered into a lease for a new campus in Rowlett, Texas, a northern suburb of Dallas, expected to open early in 2027.
Completed the relocation of Levittown, Pennsylvania campus.
Recently opened new Houston, Texas campus.
"As the demand for high-value career-focused training continues to reach new heights across America, Lincoln's proven expertise, innovative training platforms, and campus development strategies are creating sustained levels of growth," said Scott Shaw, President and Chief Executive Officer. "During the third quarter, our student start growth exceeded our expectations, and we have now experienced twelve consecutive quarters of student start growth. At the same time, total student population, total revenue, and consolidated adjusted EBITDA all grew at double-digit rates over prior year periods. As a result, we are, once again, raising our outlook for the full year.
"During the third quarter, we completed the relocations and program expansions at our Nashville, Tennessee and Levittown, Philadelphia campuses and opened our new campus in Houston, Texas. Last week, we announced our decision to open a second campus serving the Dallas metro area in Rowlett, a northern suburb. The new campus will complement our highly successful Grand Prairie, Texas campus and is expected to open in the first quarter of 2027. We also continue to build-out our new campus in Hicksville, New York and evaluate the opportunities for expansion into additional U.S. markets that we consider under-served.
"While the establishment of new campuses is a major part of our growth strategy, the successful implementation of our Lincoln 10.0 hybrid teaching model continues to deliver increased instructional leverage, and benefits to students. In addition, recent innovations in our approach to the high school graduate market are generating greater interest among students, their parents and school districts.
"With our updated guidance today, we now believe Lincoln will end the year with more than a half a billion dollars in revenue, and we are raising our 2027 objectives to more than $600 million in revenue and $90 million in adjusted EBITDA before any benefit from adjusting for pre-opening costs and losses from our new campuses and program expansions. We look forward to presenting a full long-term outlook during an Investor Day we will host at our new Nashville campus on March 19, 2026."
2025 THIRD QUARTER FINANCIAL RESULTS (Quarter ended September 30, 2025, compared to the quarter ended September 30, 2024)
Revenue increased by $27.0 million, or 23.6% to $141.4 million, primarily due to a 17.2% increase in average student population, reflecting 12.0% start growth during the first nine months of 2025. Additional contributing factors included tuition increases and the timing of books and tools revenue.
Educational services and facilities expense increased by $9.2 million, or 19.2% to $57.3 million. The primary driver of the increase was higher costs associated with supporting a larger student population. This increase includes a $1.2 million reduction related to the Transitional segment, which incurred expenses only in the prior year. On a comparable basis, educational services and facilities expense increased by $10.4 million. As a percentage of revenue, educational services and facilities expense declined to 40.5% from 42.0% in the prior year comparable period, demonstrating improved operating efficiency as our campus operations scale.
Selling, general and administrative expense increased by $14.5 million, or 22.8% to $77.8 million. This includes a $1.1 million reduction related to the Transitional segment, which had expenses only in the prior year. The increase over the prior year was primarily driven by higher administrative expense, due to costs associated with the expanding student population; compensation expenses, including performance-based incentives tied to improved financial performance and higher sales and marketing expenses resulting from planned investments and the timing of marketing activities.
2025 THIRD QUARTER SEGMENT RESULTS Campus Operations SegmentRevenue increased by $28.6 million, or 25.4% to $141.4 million. Adjusted EBITDA increased by $11.7 million, or 57.0% to $32.2 million, from $20.5 million in the prior year comparable period.
Transitional SegmentDuring 2024, the Company's Summerlin, Las Vegas campus was classified in the Transitional segment. The sale of the campus was consummated on January 1, 2025. In the prior year comparable period, the Summerlin campus had revenue of $1.7 million and operating expenses of $2.3 million. As of September 30, 2025, no campuses were classified in the Transitional segment. Corporate and OtherThis category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $16.8 million, compared to $8.9 million in the prior year comparable period. The increase was primarily driven by higher salaries and benefits due to workforce expansion to support a larger student population and execute our growth initiatives. NINE MONTHS FINANCIAL RESULTS(Nine months ended September 30, 2025, compared to the nine months ended September 30, 2024)
Total revenue increased $54.7 million or 17.1% to $375.4 million, or 19.1% excluding Transitional segment
Student starts grew by 12.0%, or 15.0% excluding the Transitional segment
Student population rose by 14.8%, or 17.2% excluding the Transitional segment
Net income of $7.3 million, compared to $3.1 million in the prior year, representing a $4.2 million or 138.7% increase
Adjusted EBITDA increased by 64.9% to $38.1 million
FULL YEAR 2025 OUTLOOKBased on the 2025 year-to-date operating and financial results, as well as the outlook for the remainder of the year, the Company is raising its guidance for revenue, adjusted EBITDA, net income and student starts as follows:
Previous FY 2025 Guidance
UpdatedFY 2025 Guidance
(In millions, except for student starts)
Revenue
$
490
-
500
$
505
-
510
Adjusted EBITDA1
$
60
-
65
$
65
-
67
Net income
$
13
-
18
$
17
-
19
Capital expenditures
$
75
-
80
$
75
-
80
Student starts
12
%
-
15
%
15
%
-
16
%
1 The guidance in this release includes references to non-GAAP operating measures. A reconciliation to the midpoint of our guidance can be reviewed below in the non-GAAP operating measures at the end of this release.
As a reminder, to provide a clearer view of the Company's underlying performance, guidance excludes non-cash stock-based compensation and one-time, non-recurring items. Additionally, it excludes pre-opening costs, as well as net operating losses from new campuses, for up to four quarters after the campus opening, or until the campus becomes profitable, whichever occurs first. In terms of relocating the Nashville, Tennessee, and Levittown, Pennsylvania campuses, adjustments have been made to exclude pre-opening costs and relocation costs through the end of the quarter in which the relocation is completed. In the case of program replications and expansions, adjustments are made to exclude net operating losses through the quarter in which the program is launched.
CONFERENCE CALL INFOLincoln will host a conference call today at 10:00 a.m. Eastern Standard Time to discuss results. To access the live webcast of the conference call, please go to the Investor Overview section of Lincoln's website at http://www.lincolntech.edu. Participants may also register via teleconference at: Q3 2025 Lincoln Educational Services Earnings Conference Call. Once registration is completed, participants will be provided with a dial-in number containing a personalized PIN to access the call. Participants are requested to register at least 15 minutes prior to the start of the call.
An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu.
ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education helping to provide solutions to America's skills gap. Lincoln offers career-oriented programs to recent high school graduates and working adults in four principal areas of study: skilled trades, automotive, health sciences and information technology. Lincoln has provided the workforce with skilled technicians since its inception in 1946 and currently operates 22 campuses in 12 states under the brands Lincoln Technical Institute, Lincoln College of Technology and Nashville Auto Diesel College. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired schools including Lincoln Technical Institute, Inc. which opened its first campus in Newark, New Jersey in 1946. For more information, please go to www.lincolntech.edu.
FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation that are not historical facts, including those made in a conference call, may be "forward-looking statements" as that term is defined in the federal securities laws. The words "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," "goal," "target" and "continue," and similar expressions and their opposite are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. The Company cautions you that these statements concern current expectations about the Company's future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company's control, that may affect the accuracy of the statements or the prospects upon which the statements are based including, without limitation, risks associated with our ability to comply with the extensive federal and state regulatory framework applicable to the for-profit education industry such as the 90/10 rule, prescribed cohort default rates, the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs and financial responsibility and administrative capability standards; the effect of future legislative or regulatory initiatives related to veterans' benefit programs; our ability to obtain timely regulatory approvals in connection with acquisitions of additional schools and the related risks associated with integration of acquired schools; risks associated with the opening of new campuses; our ability to execute our growth strategies including updating and expanding the content of existing programs and developing new programs for our students in a timely and cost-effective manner while maintaining positive student outcomes; our ability to effectively compete within our industry; impacts related to epidemics or pandemics; risks associated with cybersecurity; general economic conditions; and other factors discussed in the "Risk Factors" section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share amounts)(Unaudited)
September 30,
December 31,
2025
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
13,480
$
59,273
Accounts receivable, less allowance of $47,605 and $42,615 at September 30, 2025 and December 31, 2024, respectively
51,131
42,983
Inventories
3,093
3,053
Income tax receivable
1,431
-
Prepaid expenses and other current assets
8,197
4,793
Asset held for sale
-
1,150
Total current assets
77,332
111,252
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $149,818 and $141,271 at September 30, 2025 and December 31, 2024, respectively
160,490
103,533
OTHER ASSETS:
Noncurrent receivables, less allowance of $26,685 and $22,957 at September 30, 2025 and December 31, 2024, respectively
22,814
19,627
Deferred finance charges
337
323
Deferred income taxes, net
24,812
25,359
Operating lease right-of-use assets
142,093
136,034
Finance lease right-of-use assets
25,492
26,745
Goodwill
10,742
10,742
Pension plan assets, net
1,554
1,554
Other assets, net
1,273
1,387
Total other assets
229,117
221,771
TOTAL ASSETS
$
466,939
$
436,556
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Unearned tuition
$
33,485
$
30,631
Accounts payable
35,074
37,026
Accrued expenses
16,799
11,986
Income taxes payable
-
1,072
Current portion of operating lease liabilities
10,091
9,497
Current portion of finance lease liabilities
430
-
Total current liabilities
95,879
90,212
NONCURRENT LIABILITIES:
Long-term portion of operating lease liabilities
146,429
138,803
Long-term portion of finance lease liabilities
30,777
29,261
Long-term debt
8,000
-
Other long-term liabilities
-
16
Total liabilities
281,085
258,292
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value - authorized 100,000,000 shares at September 30, 2025 and December 31, 2024, issued and outstanding 31,623,795 shares at September 30, 2025 and 31,462,640 shares at December 31, 2024
48,181
48,181
Additional paid-in capital
50,932
50,639
Retained earnings
86,467
79,170
Accumulated other comprehensive loss
274
274
Total stockholders' equity
185,854
178,264
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
466,939
$
436,556
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(In thousands, except per share amounts)(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
REVENUE
$
141,389
$
114,410
$
375,369
$
320,691
COSTS AND EXPENSES:
Educational services and facilities
57,283
48,055
151,483
136,639
Selling, general and administrative
77,811
63,339
211,775
181,697
Gain on insurance proceeds
-
(2,794
)
-
(2,794
)
Loss (gain) on sale of assets
10
(12
)
(466
)
901
Total costs & expenses
135,104
108,588
362,792
316,443
OPERATING INCOME
6,285
5,822
12,577
4,248
OTHER:
Interest income
-
464
125
1,800
Interest expense
(991
)
(659
)
(2,505
)
(1,893
)
INCOME BEFORE INCOME TAXES
5,294
5,627
10,197
4,155
PROVISION FOR INCOME TAXES
1,495
1,674
2,899
1,098
NET INCOME AND COMPREHENSIVE INCOME
$
3,799
$
3,953
$
7,298
$
3,057
Basic
Net income per common share
$
0.12
$
0.13
$
0.24
$
0.10
Diluted
Net income per common share
$
0.12
$
0.13
$
0.23
$
0.10
Weighted average number of common shares outstanding:
Basic
31,000
30,682
30,934
30,547
Diluted
31,318
31,042
31,221
30,806
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)
Nine Months Ended
September 30,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
7,298
$
3,057
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
12,680
8,312
Finance lease amortization
1,253
1,204
Amortization of deferred finance charges
107
95
Deferred income taxes
547
455
(Gain) loss on sale of assets
(466
)
901
Gain on insurance proceeds
-
(2,794
)
Proceeds from insurance
-
2,794
Fixed asset donations
(197
)
(245
)
Provision for credit losses
42,584
40,823
Stock-based compensation expense
4081
3,354
(Increase) decrease in assets:
Accounts receivable
(53,919
)
(60,542
)
Inventories
(40
)
237
Prepaid income taxes
(1,431
)
(2,006
)
Prepaid expenses and current assets
