Lincoln Educational lifts revenue outlook to $600M–$605M
Management said momentum increases confidence in its 2030 objectives of $850 million in revenue and $150 million in EBITDA.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Lincoln Educational Services Corporation (LINC) reported third-quarter 2026 revenue of $159.177 million, up 12.6% from $141.389 million a year earlier. Net income was $4.716 million, up 24.1%; operating income was $7.696 million, up 22.5%; and adjusted EBITDA was $17.370 million, up 30.8%. Comparable student starts increased 14.2%. The 2025 comparable start figure excludes 2,764 starts on July 1, 2025, to align start schedules.
For the first nine months, revenue was $445.695 million versus $375.369 million, net income was $11.018 million versus $7.298 million, and operating cash flow was $61.515 million versus $15.803 million. LINC raised 2026 revenue guidance to $600.0 million-$605.0 million and narrowed student-start growth guidance to 10%-12%; it reiterated adjusted EBITDA guidance of $76.0 million-$80.0 million, net income of $23.0 million-$26.0 million, diluted EPS of $0.74-$0.83, and capital expenditures of $95.0 million-$100.0 million. Prior adjusted EBITDA figures were recast after LINC stopped excluding new-campus and program-expansion pre-opening costs and operating losses beginning in fiscal 2026.
4 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue rose 12.6% to $159.177 million.
- Moderate pointThird-quarter adjusted EBITDA increased 30.8% to $17.370 million.
- Moderate pointThird-quarter net income increased 24.1% to $4.716 million.
- Moderate pointNine-month operating cash flow was $61.515 million, versus $15.803 million.
Negative
- None.
Filing Explained
Nine-month repurchases were recorded alongside a lower September 30 share count; reported total liquidity was $135,627 thousand.
This 8-K reports third-quarter results and records
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Third-quarter revenue: $159.177 million
Third-quarter net income: $4.716 million
Third-quarter operating income: $7.696 million
+5 more
8 metrics
Third-quarter revenue
$159.177 million
Quarter ended September 30, 2026; up 12.6% from $141.389 million in 2025.
Third-quarter net income
$4.716 million
Quarter ended September 30, 2026; up 24.1% from $3.799 million in 2025.
Third-quarter operating income
$7.696 million
Quarter ended September 30, 2026; up 22.5% from $6.285 million in 2025.
Third-quarter adjusted EBITDA
$17.370 million
Quarter ended September 30, 2026; up 30.8% from $13.277 million in 2025.
Comparable student starts growth
14.2%
Third quarter 2026 versus the adjusted 2025 comparison, which excludes 2,764 starts on July 1, 2025.
Nine-month operating cash flow
$61.515 million
Nine months ended September 30, 2026, versus $15.803 million in 2025.
2026 revenue guidance
$600.0 million-$605.0 million
Full-year 2026 guidance; raised.
2026 adjusted EBITDA guidance
$76.0 million-$80.0 million
Full-year 2026 guidance; reiterated.
Key Terms
Adjusted EBITDA, 90/10 rule, Title IV Program regulations, Total liquidity
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA excludes non-cash stock-based compensation"
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.
90/10 rule regulatory
"such as the 90/10 rule"
Title IV Program regulations regulatory
"current and future Title IV Program regulations"
Total liquidity financial
"presentation of total liquidity"
Total liquidity is the sum of a company's cash, short-term investments, undrawn credit lines and other assets that can quickly be converted to cash without big loss. Investors care because it shows how easily a company can pay bills, weather downturns or seize opportunities—think of it as a household's checking account plus available credit that keeps day-to-day operations and unexpected expenses covered.
Earnings Snapshot
Revenue: $159.177 million · Guidance included
Third quarter ended September 30, 2026
Revenue
$159.177 million
+12.6% year over year
Operating income
$7.696 million
+22.5% year over year
Net income
$4.716 million
+24.1% year over year
Adjusted EBITDA
$17.370 million
+30.8% year over year
Comparable student starts
7,362 starts
+14.2% versus the adjusted 2025 comparison, which excludes 2,764 starts on July 1, 2025
Guidance
2026 guidance: revenue $600.0 million-$605.0 million; student-start growth 10%-12%; adjusted EBITDA $76.0 million-$80.0 million; net income $23.0 million-$26.0 million; diluted EPS $0.74-$0.83; capital expenditures $95.0 million-$100.0 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did LINC perform in the third quarter of 2026?
LINC reported revenue of $159.177 million and net income of $4.716 million for the third quarter. Revenue increased 12.6% and net income increased 24.1% from the year-earlier quarter; adjusted EBITDA was $17.370 million, up 30.8%.
What is LINC's 2026 financial guidance?
LINC's 2026 guidance is $600.0 million-$605.0 million in revenue, $76.0 million-$80.0 million in adjusted EBITDA, and $23.0 million-$26.0 million in net income. It also projects diluted EPS of $0.74-$0.83, capital expenditures of $95.0 million-$100.0 million, and student-start growth of 10%-12%.
Why were LINC's prior adjusted EBITDA figures recast?
Beginning in fiscal 2026, LINC stopped excluding pre-opening costs and net operating losses from new campuses and program expansions when calculating adjusted EBITDA. Prior-period amounts were recast to match the current methodology, which adds back non-cash stock-based compensation and other non-recurring items, if any.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 9, 2026
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(Exact Name of Registrant as Specified in Charter)
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices) (Zip Code)
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Registrant’s telephone number, including area code: (973 )
736-9340
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Not applicable
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
| Item 2.02. |
Results of Operations and Financial Condition.
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On November 9, 2026, Lincoln Educational Services Corporation. (the “Company”) issued a press release announcing financial results for its third
quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated in this Item 2.02 by reference.
The information contained under this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be
deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained under this Item 2.02 in this Current Report on
Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, unless specifically identified therein as being
incorporated therein by reference. The furnishing of the information under this Item 2.02 in this Current Report is not intended to, and does not, constitute a determination or admission by the Company that the information contained under this Item
2.02 in this Current Report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.
| Item 9.01 |
Financial Statements and Exhibits.
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| (d) |
Exhibits
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| 99.1 |
Press release of Lincoln Educational Services Corporation dated November 9, 2026
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| 104 |
Cover Page Interactive Data File (embedded within the inline XBRL document).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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LINCOLN EDUCATIONAL SERVICES CORPORATION
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Date: November 9, 2026
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By:
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/s/ Brian K. Meyers
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Name
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Brian K. Meyers
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Title:
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Executive Vice President, Chief Financial Officer and Treasurer
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||
Exhibit 99.1
Lincoln Educational Services Reports Strong Third Quarter Financial Results, Student Starts Increase More Than 14%, Adjusted EBITDA
Grows Nearly 31%
Conference Call Today, at 10:30 a.m. Eastern Standard Time
PARSIPPANY, N.J., November 9, 2026– 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
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| • |
Revenue increased 12.6% to $159.2 million from $141.4 million
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| • |
Adjusted EBITDA increased 30.8% to $17.4 million from $13.3 million2
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| • |
Net income increased 24.1% to $4.7 million, from $3.8 million
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| • |
Diluted earnings per share increased to $0.15, from $0.12
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| • |
Net cash from operating activities improved $11.0 million to $34.9 million versus $23.9
million last year
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| • |
Total liquidity as of September 30, 2026, of approximately $136 million2
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| • |
Ending student population rose by 11.4% to 20,325
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| • |
Increased full-year 2026 revenue guidance
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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
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| • |
Adjusted EBITDA increased 49.0% to $45.6 million from $30.6 million2
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| • |
Net cash provided by operating activities increased to $61.5 million from $15.8 million
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| • |
Student starts increased 11.0% to 18,840
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| • |
Average student population rose by 14.4% to 18,4041
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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.
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| • |
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.
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| • |
During the third quarter, the Company repurchased 871,135 shares of its common stock for approximately $21.0 million.
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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.
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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.
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The new Hicksville, New York, campus, the second in the state, is expected to begin its first class in November.
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“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 reflect 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, NY 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.
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| • |
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.
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| • |
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.
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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.
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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.
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| • |
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.
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Corporate and Other
Corporate and other expenses were $56.7 million for the nine months ended September 30, 2026, compared with $51.7 million in the prior year period. The increase was
primarily driven by higher salaries and benefits to support a larger student population and to execute the Company’s growth initiatives.
FULL YEAR 2026 OUTLOOK
Based on the 2026 year-to-date operating and financial results, as well as the outlook for the remainder of the year, the Company is raising its full-year
2026 revenue guidance, narrowing its student start guidance, and reiterating its guidance for adjusted EBITDA, net income, diluted EPS and capital expenditures as follows:
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2026 Guidance
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|||||||||||
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(In millions, except for student starts and diluted EPS)
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Low
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High
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|||||||||
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Revenue
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$
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600.0
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-
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$
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605.0
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||||||
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Adjusted EBITDA1
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$
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76.0
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-
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$
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80.0
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||||||
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Net income
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$
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23.0
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-
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$
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26.0
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||||||
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Diluted EPS
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$
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0.74
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-
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$
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0.83
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||||||
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Capital expenditures
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$
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95.0
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-
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$
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100.0
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Student starts
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10
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%
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-
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12
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%
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||||||
| 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.
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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
|
||||||
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Finance lease right-of-use assets
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23,822
|
25,075
|
||||||
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Goodwill
|
10,742
|
10,742
|
||||||
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Other assets, net
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1,806
|
1,271
|
||||||
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Total other assets
|
226,139
|
234,529
|
||||||
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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
|
||||||||
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|
||||||||
|
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
|
-
|
-
|
1,871
|
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