Investor Day Scheduled for March 19, 2026, at the new Nashville, TN campus
PARSIPPANY, N.J., Feb. 23, 2026 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ:LINC) today announced financial and operating results for the fourth quarter and fiscal year ended December 31, 2025, as well as recent business developments.
Fourth Quarter 2025 Financial and Operational Highlights
Revenue of $142.9 million, increased $23.5 million, or 19.7%; 21.4% excluding the Transitional segment
Net income increased to $12.7 million, or $0.40 per share, compared to $6.8 million, or $0.22 per share last year
Adjusted EBITDA of $29.1 million, increased by $9.9 million, or 51.2%
Net cash flow from operations of $43.5 million, compared to $30.3 million last year
Student starts grew by 15.7% excluding the Transitional segment
Student population rose by 14.9% excluding the Transitional segment
Full Year 2025 Financial and Operational Highlights
Surpassed fiscal year 2025 guidance ranges for revenue, adjusted EBITDA and net income
Total revenue increased $78.2 million or 17.8% to $518.2 million; 19.7% excluding the Transitional segment
Net income of $20.0 million, compared to $9.9 million in the prior year, representing a 102.2% increase
Adjusted EBITDA increased 58.7% to $67.1 million
Net cash flow from operations increased $30.0 million, or 102.4% to $59.3 million
Student starts grew by 15.2% excluding the Transitional segment
Student population rose by 14.9% excluding the Transitional segment
A complete listing of Lincoln's non-GAAP measures is described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Developments
Launched electrical program at South Plainfield, NJ campus
Initiated a new corporate relationship with New Jersey Transit and expanded the existing relationship with Johnson Controls
Established full year 2026 guidance forecasting continued strong growth
Announced investor day for March 19, 2026 at the new Nashville campus to review strategies and five-year financial targets
"There are three major drivers behind our exceptional finish to 2025 and our outlook for continued double-digit growth for revenue and adjusted EBITDA in 2026," said Scott Shaw, President and Chief Executive Officer. "First, due to continuing high employer demand, the nation is increasingly aware of the safe, rewarding long-term career opportunities created through skilled trades and we have positioned the Company's operations to benefit from this trend, as well as recent public policy actions promoting skilled trades training.
"Second, our carefully executed new campus development and program replication strategies are delivering strong results. Third, our core operations continue to demonstrate consistent growth. Together these drivers have led Lincoln to exceed the financial guidance we had consistently raised for 2025 and set the stage for consistent long-term growth in the years ahead."
"During the fourth quarter, we achieved 15.7% student start growth, marking the thirteenth consecutive quarter of growth for this critical metric. While new campus openings and program replications meaningfully contributed to the overall increase, student starts for our programs that have been operating for more than one year grew by 4% on a same campus same program basis. This core growth was a major contributor to our net income nearly doubling, and the 51.2% increase in adjusted EBITDA during the fourth quarter. We also generated double-digit increases in total student population and total revenue over last year's fourth quarter."
"Our campus relocations and program expansions at our Nashville, Tennessee and Levittown, Pennsylvania campuses, and our new campus in Houston, Texas, are meeting or exceeding our expectations, and our new campuses in Hicksville, New York and Rowlett, Texas remain on schedule to begin enrollment during the fourth quarter of this year and the first quarter of next year, respectively. At the same time, we continue to evaluate opportunities to expand into other under-served U.S. markets as we deploy strategies to build on our core operations growth. For instance, we have expanded investments in targeted high school initiatives, which are leading to greater interest among students, their parents and school districts, and we are enrolling increasing numbers of high school students in the share programs that we have established with certain high schools allowing high school juniors and seniors to take career and technical education courses helping them to begin training for skilled trades while still in high school, providing early, hands-on experience in automotive or other technical fields."
"Our 2026 financial guidance announced today illustrates our confidence in continuing growth trends in our existing operations as well as continuing progress in our recently launched operations. We now believe we can approach the $600 million revenue level for the full year, providing the opportunity to expand on our operating leverage as we further enhance the Lincoln student experience. We have established a standard of excellence within our programs that meet or exceed existing regulatory standards, and we have continued to build our student placement rate in rewarding, long-term careers. Our outlook for the year ahead is robust and we look forward to presenting a full five-year roadmap of Lincoln's future growth during our Investor Day at our new Nashville campus on March 19, 2026."
2025 FOURTH QUARTER FINANCIAL RESULTS (Quarter ended December 31, 2025, compared to the quarter ended December 31, 2024)
Revenue increased by $23.5 million, or 19.7% to $142.9 million, primarily due to a 14.7% increase in average student population, reflecting the Company's robust student start growth, and tuition increases during the year.
Educational services and facilities expense increased by $8.8 million, or 19.5% to $53.9 million. The primary driver of the increase was higher costs associated with supporting a larger student population and higher depreciation expense associated with the Company's recent growth initiatives.
Selling, general and administrative expense increased by $9.1 million, or 14.6% to $71.2 million. The increase over the prior year was primarily driven by higher administrative expense associated with the expanding student population; compensation expenses, and higher sales and marketing expenses resulting from investments in new programs.
2025 FOURTH QUARTER SEGMENT RESULTS Campus Operations SegmentRevenue increased by $25.2 million, or 21.4% to $142.9 million. Adjusted EBITDA increased by $13.0 million, or 42.4% to $43.8 million, from $30.7 million in the prior year comparable period.
Transitional SegmentDuring 2024, the Company's Summerlin, Las Vegas campus was classified in the Transitional segment and in that period the Summerlin campus had revenue of $1.7 million and operating expenses of $2.3 million. The sale of the Summerlin campus was completed on January 1, 2025. Throughout 2025, no campuses were classified in the Transitional segment. Corporate and OtherThis category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $16.7 million, compared to $13.8 million in the prior year comparable period. The increase was primarily driven by higher salary and benefits expenses related to workforce expansion to support a larger student population and execute the growth initiatives. FULL YEAR 2026 OUTLOOKThe Company ended 2025 in a position of strength with significant liquidity to fund expansion plans. Lincoln will begin 2026 with over 17,000 students, an increase of nearly 15% over 2025. Lincoln is well positioned to achieve another year of strong growth in key financial metrics, as reflected in the following outlook for 2026:
FY 2025
2026 Guidance
Year-Over-Year
(In millions, except for student starts)
Actuals
Low
High
growth2
Revenue
$518.2
$580
-
$590
13
%
Adjusted EBITDA1
$57.1
$72
-
$76
30
%
Net income
$20.0
$20
-
$23
8
%
Diluted EPS
$0.64
$0.64
-
$0.74
8
%
Capital expenditures
$88.0
$70
-
$75
-18
%
Student starts
20,906
8%
-
13%
1 Due to a methodology change in 2026, 2025 adjusted EBITDA has been restated to reflect add back only for stock-based compensation expense, pension adjustment and other one-time costs.2 Year-over-year growth percentages are calculated using the fiscal 2026 guidance midpoint.
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, 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 will no longer adjust adjusted EBITDA for pre-opening costs and net operating losses from new campuses and program expansions. Going forward, adjusted EBITDA will reflect only the add-back of non-cash stock-based compensation and other non-recurring items, if any. Notably, our 2026 adjusted EBITDA guidance includes approximately $10.0 million of costs related to new campus operating losses and strategic growth initiatives.
March 19, 2026 Investor Day
The Company will host an Investor Day at its Nashville, Tennessee campus, on Thursday, March 19, 2026, with presentations from 10:00 a.m., 12:00 p.m. Central Time. A live webcast of the presentations, along with a question-and-answer session with the Company's executive leaders and guests, will focus on Lincoln's strategic priorities and growth initiatives over the next five years, through 2030. Investors interested in attending should contact Michael Polyviou of EVC Group ([email protected], 732-933-2754 (office), 732-232-6914 (mobile)) by March 6, 2026.
CONFERENCE CALL INFORMATION
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: Q4 2025 Lincoln Educational Services Earnings Conference Call. Once registration is completed, participants will be provided with a dial-in number containing a personalized PIN to access the call. Participants are requested to register at least 15 minutes prior to the start of the call.
An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu. ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education helping to provide solutions to America's skills gap. Lincoln offers career-oriented programs to recent high school graduates and working adults in four principal areas of study: skilled trades, automotive, health sciences and information technology. Lincoln has provided the workforce with skilled technicians since its inception in 1946 and currently operates 22 campuses in 12 states under the brands Lincoln Technical Institute, Lincoln College of Technology and Nashville Auto Diesel College. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired schools including Lincoln Technical Institute, Inc. which opened its first campus in Newark, New Jersey in 1946. For more information, please go to www.lincolntech.edu.
FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation that are not historical facts, including those made in a conference call, may be "forward-looking statements" as that term is defined in the federal securities laws. The words "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," "goal," "target" and "continue," and similar expressions and their opposite are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. The Company cautions you that these statements concern current expectations about the Company's future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company's control, that may affect the accuracy of the statements or the prospects upon which the statements are based including, without limitation, risks associated with our ability to comply with the extensive federal and state regulatory framework applicable to the for-profit education industry such as the 90/10 rule, prescribed cohort default rates, the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs and financial responsibility and administrative capability standards; the effect of future legislative or regulatory initiatives related to veterans' benefit programs; our ability to obtain timely regulatory approvals in connection with acquisitions of additional schools and the related risks associated with integration of acquired schools; risks associated with the opening of new campuses; our ability to execute our growth strategies including updating and expanding the content of existing programs and developing new programs for our students in a timely and cost-effective manner while maintaining positive student outcomes; our ability to effectively compete within our industry; impacts related to epidemics or pandemics; risks associated with cybersecurity; general economic conditions; and other factors discussed in the "Risk Factors" section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except share amounts)(Unaudited)
December 31,
December 31,
2025
2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
28,519
$
59,273
Accounts receivable, less allowance of $43,975 and $42,615 at December 31, 2025 and December 31, 2024, respectively
36,929
42,983
Inventories
3,986
3,053
Income tax receivable
1,599
-
Tenant allowance receivable
8,127
4,793
Prepaid and other assets
7,872
Assets held for sale
-
1,150
Total current assets
87,032
111,252
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $148,068 and $141,271 at December 31, 2025 and December 31, 2024, respectively
171,603
103,533
OTHER ASSETS:
Noncurrent receivables, less allowance of $26,371 and $22,957 at December 31, 2025 and December 31, 2024, respectively
21,248
19,627
Deferred finance charges
302
323
Deferred income taxes, net
21,668
25,359
Operating lease right-of-use assets
154,223
136,034
Finance lease right-of-use assets
25,075
26,745
Goodwill
10,742
10,742
Pension plan assets, net
-
1,554
Other assets, net
1,271
1,387
Total other assets
234,529
221,771
TOTAL ASSETS
$
493,164
$
436,556
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Unearned tuition
$
44,159
$
30,631
Accounts payable
27,023
37,026
Accrued expenses
18,430
11,986
Income taxes payable
-
1,072
Current portion of operating lease liabilities
10,634
9,497
Current portion of finance lease liabilities
463
-
Total current liabilities
100,709
90,212
NONCURRENT LIABILITIES:
Long-term portion of operating lease liabilities
162,113
138,803
Long-term portion of finance lease liabilities
30,654
29,261
Other long-term liabilities
-
16
Total liabilities
293,476
258,292
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value - authorized 100,000,000 shares at December 31, 2025 and December 31, 2024, issued and outstanding 31,623,795 shares at December 31, 2025 and 31,462,640 shares at December 31, 2024
48,181
48,181
Additional paid-in capital
52,339
50,639
Retained earnings
99,168
79,170
Accumulated other comprehensive loss
-
274
Total stockholders' equity
199,688
178,264
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
493,164
$
436,556
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
REVENUE
$
142,872
$
119,374
$
518,241
$
440,064
COSTS AND EXPENSES:
Educational services and facilities
53,907
45,122
205,389
181,759
Selling, general and administrative
71,169
62,105
282,946
243,803
Gain on insurance proceeds
-
-
-
(2,794
)
(Gain) loss on sale of assets
60
1,218
(406
)
2,119
Total costs & expenses
125,136
108,445
487,929
424,887
OPERATING INCOME
17,736
10,929
30,312
15,177
OTHER:
Interest income
-
299
126
2,099
Interest expense
(889
)
(672
)
(3,394
)
(2,565
)
Pension excise tax
(926
)
-
(926
)
-
INCOME BEFORE INCOME TAXES
15,921
10,556
26,118
14,711
PROVISION FOR INCOME TAXES
3,221
3,722
6,120
4,820
NET INCOME
$
12,700
$
6,834
$
19,998
$
9,891
Basic
Net income per common share
$
0.41
$
0.22
$
0.65
$
0.32
Diluted
Net income per common share
$
0.40
$
0.22
$
0.64
$
0.32
Weighted average number of common shares outstanding:
Basic
31,006
30,679
30,942
30,580
Diluted
31,381
31,144
31,260
30,891
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited)
Year Ended
December 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
19,998
$
9,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
19,161
11,334
Finance lease amortization
1,670
1,622
Amortization of deferred finance charges
142
133
Deferred income taxes
2,623
(2,242
)
(Gain) loss on sale of assets
(406
)
2,119
Gain on insurance proceeds
-
(2,794
)
Proceeds from insurance
-
2,794
Fixed asset donations
(311
)
(277
)
Provision for credit losses
58,085
56,578
Stock-based compensation expense
5,488
4,629
(Increase) decrease in assets:
Accounts receivable
(53,652
)
(65,984
)
Inventories
(933
)
(184
)
Prepaid income taxes
(1,599
)
-
Prepaid expenses and current assets
(10,381
)
(687
)
Other assets, net
7,169
110
Increase (decrease) in liabilities:
