Lincoln Educational Services Reports Strong Third Quarter Financial Results, Student Starts Increase More Than 14%, Adjusted EBITDA Grows Nearly 31%

Maintained 2026 adjusted EBITDA guidance includes approximately $10 million in losses from new campus openings and growth initiatives.

Rhea-AI Summary

Lincoln Educational Services (LINC) reported third-quarter 2026 revenue of $159.2 million, with student starts and earnings also increasing year over year. Revenue rose 12.6%, net income increased 24.1% to $4.7 million, and diluted earnings per share rose to $0.15 from $0.12. Adjusted EBITDA, a non-GAAP earnings measure, increased 30.8% to $17.4 million. Student starts grew 14.2% to 7,362 on an adjusted comparison basis.

The company raised full-year revenue guidance to $600 million–$605 million, narrowed expected student-start growth to 10%–12%, and maintained adjusted EBITDA guidance of $76 million–$80 million. Nine-month operating cash flow reached $61.5 million versus $15.8 million. Lincoln repurchased approximately $21 million of shares during the quarter and expanded its buyback authorization by $30 million. It also purchased its Melrose Park campus property for $18.8 million and signed leases for planned Arizona and Maryland facilities.

32 points · 0 major

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased 12.6% to $159.2 million year over year.
• Moderate pointThird-quarter net income increased 24.1% to $4.7 million from $3.8 million.
• Moderate pointThird-quarter adjusted EBITDA increased 30.8% to $17.4 million from $13.3 million.
• Moderate pointThird-quarter operating income increased 22.5% year over year.
• Moderate pointThird-quarter student starts rose 14.2% to 7,362, excluding 2,764 July 2025 starts from the comparison.
• Moderate pointThird-quarter average student population increased 10.9% year over year.
• Moderate pointQuarter-end student population rose 11.4% to 20,325 year over year.
• Moderate pointThird-quarter operating cash flow increased to $34.9 million from $23.9 million year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue guidance was raised to $600 million–$605 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Lincoln narrowed expected 2026 student-start growth to 10%–12%, within its previous range.
• Moderate pointThird-quarter share repurchases returned approximately $21 million through purchases of 871,135 shares. 3.7% of market cap
• Moderate pointBuyback authorization increased $30 million to $70 million, with more than $37 million remaining available. 5.4% of market cap
• Moderate pointMelrose Park campus property acquisition completed for $18.8 million, replacing the previously leased property. 3.4% of market cap

19 minor points

• Minor pointThird-quarter diluted earnings per share rose to $0.15 from $0.12 year over year.
• Minor pointNine-month revenue increased 18.7% to $445.7 million year over year.
• Minor pointNine-month adjusted EBITDA increased 49.0% to $45.6 million from $30.6 million.
• Minor pointNine-month net income rose to $11.018 million from $7.298 million year over year.
• Minor pointNine-month diluted earnings per share increased to $0.35 from $0.23 year over year.
• Minor pointNine-month operating income rose to $17.414 million from $12.577 million year over year.
• Minor pointNine-month operating cash flow increased to $61.5 million from $15.8 million year over year.
• Minor pointNine-month student starts rose 11.0% to 18,840, with the 2025 comparison excluding 2,764 July starts.
• Minor pointNine-month average student population increased 14.4% to 18,404 year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lincoln maintained 2026 adjusted EBITDA guidance of $76 million–$80 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lincoln maintained 2026 net income guidance of $23 million–$26 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lincoln maintained 2026 diluted earnings per share guidance of $0.74–$0.83.
• Minor pointTotal liquidity stood at approximately $136 million on September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Signed Tempe campus lease supports a planned Arizona opening in first-quarter 2028.
• Minor point. Forward-looking: it has not happened yet and may not happen.Signed Suitland facility lease supports a planned Maryland opening in fourth-quarter 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Hicksville campus expects its first class in November 2026.
• Minor pointRowlett campus construction continues as part of Lincoln's expansion.
• Minor pointNovember revolving-credit amendment provides greater borrowing, repayment and share-repurchase flexibility.
• Minor point. Forward-looking: it has not happened yet and may not happen.Lincoln reiterated 2030 objectives of $850 million revenue and $150 million EBITDA.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Lincoln maintained planned 2026 capital expenditures of $95 million–$100 million.
• Moderate pointThird-quarter educational services and facilities expense increased 17.2% to $67.1 million year over year.
• Moderate pointThird-quarter selling, general and administrative expense increased 8.4% to $84.3 million year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance includes approximately $10 million in losses from campus openings and growth initiatives.
• Minor pointNine-month educational services and facilities expense increased 22.2% to $185.1 million year over year.

5 minor points

• Minor pointNine-month selling, general and administrative expense increased 14.8% to $243.1 million year over year.
• Minor pointThird-quarter interest expense rose to $1.114 million from $991,000 year over year.
• Minor pointNine-month interest expense rose to $3.009 million from $2.505 million year over year.
• Minor pointLong-term debt reached $24.752 million at September 30, 2026, versus none at December 31, 2025.
• Minor pointCash and equivalents fell to $20.627 million from $28.519 million at December 31, 2025.

News Explained

After third-quarter repurchases, more than $37 million remained available under Lincoln’s $70 million share-buyback authorization; a November amendment to its revolving credit facility also provides greater flexibility for daily borrowing and repayment and for share repurchases.

Key Figures

Q3 revenue: $159.2 million (+12.6%) Q3 Adjusted EBITDA: $17.4 million (+30.8%) Q3 net income: $4.7 million (+24.1%) +5 more

Q3 revenue

$159.2 million (+12.6%)

Third quarter 2026 versus the prior-year quarter

Q3 Adjusted EBITDA

$17.4 million (+30.8%)

Third quarter 2026 versus the prior-year quarter

Q3 net income

$4.7 million (+24.1%)

Third quarter 2026 versus the prior-year quarter

Q3 student starts

7,362 (+14.2%)

Third quarter 2026

2026 revenue guidance

$600.0–$605.0 million

Full-year 2026 guidance; raised

2026 Adjusted EBITDA guidance

$76.0–$80.0 million

Full-year 2026 guidance; reiterated

2026 student-start guidance

10%–12%

Full-year 2026 guidance; narrowed within the prior range

Share repurchase authorization

$70 million

Total authorization after a $30 million increase

Previous Earnings Reports

2 past events · Latest: Aug 10

Same Type 2 events

1. Aug 10

   Q2 earnings

   24h Move

   -24.9%

   Q2 revenue rose 22.4% and the company reiterated 2026 revenue guidance of $590–$600 million.

2. May 11

   Q1 earnings

   24h Move

   +10.6%

   Q1 2026 results included 22.5% revenue growth and raised full-year 2026 guidance.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, diluted eps, non-gaap, gaap, +1 more

5 terms

adjusted ebitda financial

"Adjusted EBITDA increased 30.8% to $17.4 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

diluted eps financial

"Diluted EPS | | $0.74 | | - | | $0.83"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

non-gaap financial

"The guidance in this release includes references to non-GAAP operating measures."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

gaap financial

"financial results that are determined in accordance with U.S. generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

revolving credit facility financial

"an amendment under its revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Conference Call Today, at 10:30 a.m. Eastern Standard Time

PARSIPPANY, N.J., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today reported financial results for the third quarter and nine months ended September 30, 2026, as well as recent business developments.

Third Quarter 2026 Financial and Operational Highlights
(Quarter ended September 30, 2026, compared to quarter ended September 30, 2025, unless otherwise noted)

• Student starts grew by 14.2% to 7,362¹
• Revenue increased 12.6% to $159.2 million from $141.4 million
• Adjusted EBITDA increased 30.8% to $17.4 million from $13.3 million²
• Net income increased 24.1% to $4.7 million, from $3.8 million
  
• Diluted earnings per share increased to $0.15, from $0.12
• Net cash from operating activities improved $11.0 million to $34.9 million versus $23.9 million last year
• Total liquidity as of September 30, 2026, of approximately $136 million²
• Ending student population rose by 11.4% to 20,325
• Increased full-year 2026 revenue guidance
  

Year-to-Date 2026 Financial Highlights
(Nine months ended September 30, 2026, compared to September 30, 2025, unless otherwise noted)

• Revenue increased 18.7%, or $70.3 million, to $445.7 million
• Adjusted EBITDA increased 49.0% to $45.6 million from $30.6 million²
• Net cash provided by operating activities increased to $61.5 million from $15.8 million
• Student starts increased 11.0% to 18,840
• Average student population rose by 14.4% to 18,404¹
  

¹ 2025 figures exclude 2,764 student starts on July 1, 2025, to align with comparable student start activity in the current year, during the last week of June 2026, returning to the Company’s typical start schedule
² A complete listing of Lincoln's non-GAAP measures, along with descriptions and reconciliations to the corresponding GAAP measures, is included at the end of this release.

Recent Business Developments

• Completed the acquisition of previously leased Melrose Park, Illinois campus property for $18.8 million
• Signed new leases for an approximately 90,000 square-foot facility in Tempe, Arizona, which will be the Company’s first campus in the state and is expected to open in the first quarter of 2028, and for an approximately 36,000 square-foot focused-program facility in Suitland, Maryland, expected to open in the fourth quarter of 2027.
• During the third quarter, the Company repurchased 871,135 shares of its common stock for approximately $21.0 million.
• Our Board approved a $30 million increase in the existing share repurchase authorization, to $70 million in total, with more than $37 million remaining available.
• In November, the Company entered into an amendment under its revolving credit facility that provides, among other items, greater flexibility for daily borrowing and repayment and enhanced share repurchase flexibility.
• The new Hicksville, New York campus, the second in the state, is expected to begin its first class in November.
  

“During the third quarter, we generated double-digit growth across all our key metrics, highlighted by our 14.2% increase in student starts” said Scott Shaw, President & CEO. “The strong starts reflects our organization’s flexibility and responsiveness to a dynamic marketing environment where we continue to see robust demand for our high return-on-investment training and education programs. We continue to examine effective strategies to broaden our future lead generation sources and we saw an improvement in lead conversion rate to starts during the quarter to our historic levels. Based on our year-to-date performance and current outlook, we are refining our guidance for start growth of 10% to 12% for the full year, within the previous guidance range we established following our first quarter.

“Our start-growth and increase in average student population led to solid third quarter revenue growth of 12.6%. During the period, we continued to realize operating efficiencies in many of our operations, which contributed to a 22.5% increase in operating income, 30.8% growth in Adjusted EBITDA and a 24.1% rise in net income.

“The strong cash generation, and enhanced liquidity continues to fund our growth initiatives. Our new Hicksville, New York campus is expected to begin classes this month while the construction of our Rowlett, Texas campus continues. During the quarter, we signed leases and advanced plans to develop campuses in the metropolitan Washington, D.C. and Phoenix, Arizona markets. Our business development efforts to examine other underserved markets for both our full scale and focused-program campus models remain quite active. We also continue with our efforts to enter new partnerships or expand existing ones as the demand for skilled workers remains far higher than supply. For instance, our WorkforceLinc Division recently expanded our collaboration with CMC Corporation and entered a new partnership with ABB to train students for careers in electrical systems and technology careers serving the data center industry.

“As we look to the remainder of 2026 and the longer-term future, based on our operational performance through October and current trends, we are raising our full-year revenue guidance. The need for employees trained in the automotive, skilled trades, and healthcare fields continues its significant growth and Lincoln Tech is providing an established, proven education and training model to help America address its chronic skills gap. Our momentum increases our confidence in achieving our long-term 2030 objectives of $850 million in revenue and $150 million of EBITDA as we continue to expand our leadership position,” Mr. Shaw concluded.

2026 THIRD QUARTER FINANCIAL RESULTS
  
(Quarter ended September 30, 2026, compared to quarter ended September 30, 2025)

• Revenue increased by $17.8 million, or 12.6%, to $159.2 million, primarily due to a 10.9% increase in average student population.
• Educational services and facilities expense increased by $9.8 million, or 17.2%, to $67.1 million. This includes a $3.1 million increase in costs related to the new campuses in Houston, Hicksville, Rowlett, and Suitland. The increase was primarily driven by costs associated with a larger student population, increased laptop pricing, and higher depreciation expense, largely resulting from capital investments to support growth initiatives.
• Selling, general and administrative expense increased by $6.5 million, or 8.4%, to $84.3 million driven by higher student population and costs related to new campuses.

Corporate and Other

This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $17.1 million for the three months ended September 30, 2026, compared with $17.0 million in the prior year period and remain relatively consistent year over year.

2026 YEAR-TO-DATE FINANCIAL RESULTS

(Nine months ended September 30, 2026, compared to nine months ended September 30, 2025)

• Revenue increased by $70.3 million, or 18.7%, to $445.7 million, primarily due to a 14.4% increase in average student population.
• Educational services and facilities expense increased by $33.7 million, or 22.2%, to $185.1 million, primarily driven by a larger student population, costs related to new campuses, and higher depreciation expense, largely resulting from capital investments to support growth initiatives.
• Selling, general and administrative expense increased by $31.4 million, or 14.8%, to $243.1 million, primarily driven by a larger student population, higher sales and marketing expense, and costs related to new campuses and other growth initiatives.

Corporate and Other

Corporate and other expenses were $56.7 million for the nine months ended September 30, 2026, compared with $51.7 million in the prior year period. The increase was primarily driven by higher salaries and benefits to support a larger student population and to execute the Company’s growth initiatives.

FULL YEAR 2026 OUTLOOK

Based on the 2026 year-to-date operating and financial results, as well as the outlook for the remainder of the year, the Company is raising its full-year 2026 revenue guidance, narrowing its student start guidance, and reiterating its guidance for adjusted EBITDA, net income, diluted EPS and capital expenditures as follows:

		2026 Guidance
(In millions, except for student starts and diluted EPS)			Low							High
Revenue		$	600.0				-		$	605.0
Adjusted EBITDA1		$	76.0				-		$	80.0
Net income		$	23.0				-		$	26.0
Diluted EPS		$	0.74				-		$	0.83
Capital expenditures		$	95.0				-		$	100.0
Student starts			10	%			-			12	%

¹ The guidance in this release includes references to non-GAAP operating measures. A reconciliation to the midpoint of the guidance can be reviewed below in the non-GAAP operating measures at the end of this release. The 2026 adjusted EBITDA guidance includes approximately $10.0 million in losses related to new campus openings and strategic growth initiatives.

CONFERENCE CALL INFO

Lincoln will host a conference call today at 10:30 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 2026 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 encouraged 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 23 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 SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) (Unaudited)
		September 30,				December 31,
		2026				2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	20,627			$	28,519
Accounts receivable, less allowance of $42,850 and $43,975 at September 30, 2026, and December 31, 2025, respectively		39,402				36,929
Inventories		3,710				3,986
Income tax receivable		246				1,599
Tenant allowance receivable		4,339				8,127
Prepaid and other assets		2,675				7,872
Total current assets		70,999				87,032
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $166,330 and $148,067 at September 30, 2026, and December 31, 2025, respectively		219,996				171,603
OTHER ASSETS:
Noncurrent receivables, less allowance of $27,765 and $26,371 at September 30, 2026, and December 31, 2025, respectively		22,371				21,248
Deferred finance charges		1,398				302
Deferred income taxes, net		21,668				21,668
Operating lease right-of-use assets		144,332				154,223
Finance lease right-of-use assets		23,822				25,075
Goodwill		10,742				10,742
Other assets, net		1,806				1,271
Total other assets		226,139				234,529
TOTAL ASSETS	$	517,134			$	493,164
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Unearned tuition	$	45,603			$	44,159
Accounts payable		44,127				27,023
Accrued expenses		19,106				18,430
Current portion of operating lease liabilities		11,254				10,634
Current portion of finance lease liabilities and current portion of long-term debt		838				463
Total current liabilities		120,928				100,709
NONCURRENT LIABILITIES:
Long-term portion of operating lease liabilities		153,567				162,113
Long-term portion of finance lease liabilities		30,207				30,654
Long-term debt		24,752				-
Total liabilities		329,454				293,476
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value - authorized 100,000,000 shares at September 30, 2026, and December 31, 2025, issued and outstanding 30,850,093 shares at September 30, 2026, and 31,623,795 shares at December 31, 2025		46,858				48,181
Additional paid-in capital		30,636				52,339
Retained earnings		110,186				99,168
Total stockholders' equity		187,680				199,688
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	517,134			$	493,164

   

LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
	Three Months Ended												Nine Months Ended
	September 30,												September 30,
			2026						2025						2026						2025
REVENUE		$	159,177					$	141,389					$	445,695					$	375,369
COSTS AND EXPENSES:
Educational services and facilities			67,122						57,283						185,148						151,483
Selling, general and administrative			84,340						77,811						243,141						211,775
Gain on sale of assets			19						10						(8	)					(466	)
Total costs and expenses			151,481						135,104						428,281						362,792
OPERATING INCOME			7,696						6,285						17,414						12,577
OTHER:
Interest income			5						-						42						125
Interest expense			(1,114	)					(991	)					(3,009	)					(2,505	)
INCOME BEFORE INCOME TAXES			6,587						5,294						14,447						10,197
PROVISION FOR INCOME TAXES			1,871						1,495						3,429						2,899
NET INCOME			4,716						3,799						11,018						7,298
Basic
Net income per common share		$	0.15					$	0.12					$	0.35					$	0.24
Diluted
Net income per common share		$	0.15					$	0.12					$	0.35					$	0.23
Weighted average number of common shares outstanding:
Basic			31,165						31,000						31,184						30,934
Diluted			31,424						31,318						31,432						31,221

LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Nine Months Ended
	September 30,
		2026				2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	11,018			$	7,298
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		22,125				12,680
Finance lease amortization		1,253				1,253
Amortization of deferred finance charges		157				107
Deferred income taxes		-				547
Loss (gain) on sale of assets		8				(466	)
Fixed asset donations		(175	)			(197	)
Provision for credit losses		47,062				42,584
Stock-based compensation expense		4,777				4,081
(Increase) decrease in assets:
Accounts receivable		(50,658	)			(53,919	)
Inventories		276				(40	)
Prepaid income taxes		1,353				(1,431	)
Prepaid expenses and current assets		9,808				(3,802	)
Other assets, net		79				1,950
Increase (decrease) in liabilities:
Accounts payable		12,550				(2,856	)
Accrued expenses		566				4,813
Unearned tuition		1,444				2,854
Income taxes payable		-				(1,072	)
Other liabilities		(128				1,419
Total adjustments		50,497				8,505
Net cash provided by operating activities		61,515				15,803
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(67,370	)			(68,127	)
Proceeds from sale of property and equipment		534				494
Net cash used in investing activities		(66,836	)			(67,633	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings		95,000				45,000
Payments on borrowings		(85,000	)			(37,000	)
Payment of deferred finance fees		(1,253	)			(121	)
Finance lease principal paid		(340	)			(266	)
Tenant allowance finance leases		-				2,212
Principal payments on mortgage loan		(20	)			-
Proceeds from mortgage loan		15,040				-
Repurchases of common stock		(19,298	)			-
Net share settlement for equity-based compensation		(6,700	)			(3,788	)
Net cash (used in) provided by financing activities		(2,571	)			6,037
NET DECREASE IN CASH AND CASH EQUIVALENTS		(7,892	)			(45,793	)
CASH AND CASH EQUIVALENTS —Beginning of period		28,519				59,273
CASH AND CASH EQUIVALENTS—End of period	$	20,627			$	13,480

(1) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
  
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company believes it is useful to present non-GAAP financial measures that exclude certain significant items as a means to understand the performance of its business, and to enable comparability of operating performance between periods. Additionally, the Company’s management regularly uses these non-GAAP financial measures to make operating decisions, and for planning and forecasting purposes. EBITDA, adjusted EBITDA, and total liquidity are measures not recognized in financial statements presented in accordance with GAAP.

• We define EBITDA as income (loss) before net interest expense (interest income), provision (benefit) for income taxes, depreciation and amortization.
• We define adjusted EBITDA as EBITDA plus stock-based compensation expense and adjustments for items not considered part of the Company’s normal recurring operations.
• We define total liquidity as the Company’s cash and cash equivalents and available borrowings under our revolving credit facility.

EBITDA, adjusted EBITDA, and total liquidity are presented because we believe they are useful indicators of the Company’s performance and ability to make strategic investments and meet capital expenditures and debt service requirements. However, they are not intended to represent cash flows from operations as defined by GAAP and should not be used as an alternative to net income (loss) as indicators of operating performance or cash flow as a measure of liquidity. EBITDA, adjusted EBITDA, and total liquidity are not necessarily comparable to similarly titled measures used by other companies.
   
Adjusted EBITDA excludes non-cash stock-based compensation and one-time, non-recurring items. Historically Adjusted EBITDA has excluded 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. Beginning in fiscal year 2026, the Company no longer excludes pre-opening costs or net operating losses from new campuses and program expansions when calculating adjusted EBITDA. Going forward, adjusted EBITDA will reflect only the add-back of non-cash stock-based compensation and other non-recurring items, if any. Prior period amounts in this release have been recast to conform to the current methodology.

The following tables present reconciliations of net income (loss) to EBITDA and adjusted EBITDA, as well as a presentation of total liquidity (in thousands):

			Three Months Ended September 30,
			(Unaudited)
			Consolidated								Campus Operations								Corporate
				2026				2025				2026				2025				2026				2025
Net income (loss)			$	4,716			$	3,799			$	24,074			$	22,651			$	(19,358	)		$	(18,852	)
Interest expense, net				1,109				991				769				609				340				382
Provision for income taxes				1,871				1,495				-				-				1,870				1,495
Depreciation and amortization				7,956				5,460				7,825				5,316				131				144
EBITDA				15,652				11,745				32,668				28,576				(17,016	)			(16,831	)
Stock-based compensation expense				1,718				1,532				-				-				1,718				1,532
Adjusted EBITDA			$	17,370			$	13,277			$	32,668			$	28,576			$	(15,298	)		$	(15,299	)

			Nine Months Ended September 30,
			(Unaudited)
			Consolidated								Campus Operations								Corporate
				2026				2025				2026				2025				2026				2025
Net income (loss)			$	11,018			$	7,298			$	72,192			$	62,433			$	(61,174	)		$	(55,135	)
Interest expense, net				2,968				2,380				1,948				1,809				1,020				571
Provision for income taxes				3,429				2,899				-				-				3,429				2,899
Depreciation and amortization				23,377				13,933				22,981				13,461				396				472
EBITDA				40,792				26,510				97,121				77,703				(56,329	)			(51,193	)
Stock-based compensation expense				4,777				4,080				-				-				4,777				4,080
Adjusted EBITDA			$	45,569			$	30,590			$	97,121			$	77,703			$	(51,552	)		$	(47,113	)

		As of
		September 30, 2026
Cash and cash equivalents	$	20,627
Credit facility		115,000
Total liquidity	$	135,627

*As of September 30, 2026, $10.0 million was outstanding under the revolving credit facility.

The tables below present operating income (loss) (in thousands) for the three and nine months ended September 30, 2026, and 2025:

		Three Months Ended September 30,
Operating Income (loss):			2026				2025				% Change
Campus Operations		$	24,843			$	23,261				6.8		%
Corporate			(17,147	)		$	(16,976	)			(1.0	)	%
Total		$	7,696			$	6,285				22.5		%
		Nine Months Ended September 30,
Operating Income (loss):			2026				2025				% Change
Campus Operations		$	74,140			$	64,241				15.4		%
Corporate			(56,726	)			(51,664	)			(9.8	)	%
Total		$	17,414			$	12,577				38.5		%

The tables below present student starts and student population with a breakdown by Transportation and Skilled Trades programs and Healthcare and Other Professions programs.

  

Population by Program:
	Three Months Ended September 30,
	2026		2025		2025*		% Change		% Change*
Starts:
Transportation and Skilled Trades	6,120		7,705		5,253		-20.6%		16.5%
Healthcare and Other Professions	1,242		1,504		1,192		-17.4%		4.2%
Total	7,362		9,209		6,445		-20.1%		14.2%
Average Population:
Transportation and Skilled Trades	15,101		12,894		13,302		17.1%		13.5%
Healthcare and Other Professions	3,483		3,409		3,461		2.2%		0.6%
Total	18,584		16,303		16,763		14.0%		10.9%
End of Period Population:
Transportation and Skilled Trades	16,571		14,635		14,635		13.2%		13.2%
Healthcare and Other Professions	3,754		3,609		3,609		4.0%		4.0%
Total	20,325		18,244		18,244		11.4%		11.4%

	Nine Months Ended September 30,
	2026		2025		2025*		% Change		% Change*
Starts:
Transportation and Skilled Trades	15,361		13,606		13,606		12.9%		12.9%
Healthcare and Other Professions	3,479		3,370		3,370		3.2%		3.2%
Total	18,840		16,976		16,976		11.0%		11.0%
Average Population:
Transportation and Skilled Trades	14,837		12,170		12,442		21.9%		19.2%
Healthcare and Other Professions	3,567		3,606		3,640		-1.1%		-2.0%
Total	18,404		15,776		16,082		16.7%		14.4%
End of Period Population:
Transportation and Skilled Trades	16,571		14,635		14,635		13.2%		13.2%
Healthcare and Other Professions	3,754		3,609		3,609		4.0%		4.0%
Total	20,325		18,244		18,244		11.4%		11.4%

* 2025 figures exclude 2,764 student starts on July 1, 2025, to align with comparable student start activity in the current year during the last week of June 2026, returning to our typical start schedule.

The reconciliations below present management’s projections of the various components included in the Company’s outlook for the full year 2026.  These calculations are furnished for illustrative purposes and will be reviewed as the year progresses to reflect actual results, the Company’s outlook and the continued relevance of specific items. Any necessary revisions or modifications will be disclosed in future announcements of 2026 quarterly results. Adjusted EBITDA and net income have been reconciled to the midpoint of our guidance.

 Reconciliation of Net Income to Adjusted EBITDA - 2026 Guidance
 (Reconciled to the Mid-Point of 2026 Guidance)

			Adjusted
			EBITDA
Net Income		$	24,500
Interest expense, net			4,000
Provision for taxes			10,300
Depreciation and amortization			33,000
EBITDA			71,800
Stock-based compensation expense			6,200
Total		$	78,000
2026 Guidance Range			$76,000 - $80,000

LINCOLN EDUCATIONAL SERVICES CORPORATION

Brian Meyers, CFO
973-736-9340

EVC GROUP LLC
Investor Relations: Michael Polyviou, mpolyviou@evcgroup.com, 732-933-2754
Media Relations: Tom Gibson, 201-476-0322

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Lincoln Educational Services' third-quarter 2026 earnings?

Lincoln earned $4.7 million, or $0.15 per diluted share, in the quarter ended September 30, 2026. Net income increased 24.1% year over year, while diluted earnings per share rose from $0.12. Revenue increased 12.6% to $159.2 million.

What is Lincoln Educational Services' updated 2026 outlook?

Lincoln raised full-year revenue guidance to $600 million–$605 million and narrowed expected student-start growth to 10%–12%. It maintained adjusted EBITDA guidance of $76 million–$80 million, net income of $23 million–$26 million, diluted earnings per share of $0.74–$0.83, and capital expenditures of $95 million–$100 million.

How did Lincoln adjust the comparison for 2026 student-start growth?

The 2025 comparison excludes 2,764 student starts on July 1, 2025 to align with comparable starts occurring in the last week of June 2026. The adjustment reflects a return to Lincoln's typical start schedule and applies to the reported quarterly and year-to-date student-start comparisons.