Lincoln Educational Services Corporation

11/10/2025 | Press release | Distributed by Public on 11/10/2025 14:10

Lincoln Educational Services Reports Continued Growth in Third Quarter Results and Raises Financial Guidance for Full-Year 2025 (Form 8-K)

Lincoln Educational Services Reports Continued Growth in Third Quarter Results and
Raises Financial Guidance for Full-Year 2025

Conference Call Today at 10:00 a.m. Eastern Standard Time

Investor Day Scheduled for March 19, 2026, at the new Nashville, TN Campus

PARSIPPANY, N.J., Nov. 10, 2025- 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 Segment
Revenue 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 Segment
During 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 Other
This 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 OUTLOOK
Based 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 Updated
(In millions, except for student starts)
FY 2025 Guidance
FY 2025 Guidance
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 INFO

Lincoln 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.

Lincoln Educational Services Corporation published this content on November 10, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 10, 2025 at 20:10 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]