PARSIPPANY, N.J., May 11, 2026 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ:LINC) today reported continued financial and operating momentum during the first quarter ended March 31, 2026, as well as recent business developments.
First Quarter 2026 Financial and Operational Highlights(Quarter ended March 31, 2026, compared to quarter ended March 31, 2025, unless otherwise noted)
Revenue increased 22.5% to $144.0 million from $117.5 million
Net income more than doubled to $4.4 million, or $0.14 per share, compared to $1.9 million, or $0.06 per share
Adjusted EBITDA1 increased 85% to $15.5 million from $8.4 million
Net cash from operating activities improved $13 million to $4.6 million generated versus $8.4 million used last year
Total liquidity as of March 31, 2026 of approximately $72 million
Student starts grew by 19.5% to 5,500, an increase of approximately 900
Student ending-population rose by 17.6% to 18,702, an increase of nearly 2,800
2026 financial guidance raised to reflect strong first quarter results and current trends
1 For additional information, see (1) Reconciliation of non-GAAP financial measures below.
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
In April, Lincoln amended its credit agreement, increasing its aggregate principal amount of its revolving credit facility to $125 million. The additional $65 million in available liquidity enhances Lincoln's financial flexibility to execute its growth initiatives and meet its long-term operating objectives
"The first quarter financial and operating results illustrate the substantial progress made towards achieving our objective of providing the best education and training for in-demand careers while generating consistent, increasing returns to our shareholders," said Scott Shaw, CEO and President. "In a constantly evolving market, we are continuing to experience high employer demand for our graduates and increasing interest in our programs as awareness of the rewarding long-term career opportunities created through skilled trades continues to expand. Our carefully executed strategies of new campus development and program replication, combined with continued growth from our core operations have combined to create a strong start to 2026.
"The 19.5% student start growth during the first quarter exceeded our expectations, which has led to increasing our student start growth guidance for the full year to between 10% and 14%. We have now grown starts for fourteen consecutive quarters, with about half of the increase attributed to organic growth, comprised of our campuses and programs operating over one year. This performance, combined with our graduation rate and placement rates, attests to our expanding leadership in the market.
"The relocations and program expansions at our Nashville, Tennessee and Levittown, Philadelphia campuses, as well as our new campus in Houston, Texas, are all meeting our expectations. Moreover, the development of our new Hicksville, New York and Rowlett, Texas campuses remain on schedule to begin enrollment during the fourth quarter of this year and first quarter of next year, respectively. At the same time, we are actively negotiating two additional greenfield locations to expand our best-in-class campuses and presence into other under-served U.S. markets.
"We also are investing in people and processes to continuously drive superior outcomes, which is positively impacting our student retention rate. Additionally, we continue to develop our corporate partnerships, expand our high school initiatives, as well as execute strategies to attract and build our veteran student population. These efforts are designed to begin yielding meaningful contributions as we turn into 2027. "In addition to our overall growth across all key metrics, the first quarter bottom-line outperformance is largely attributed to increased operating efficiencies throughout our organization. We also generated cash from our operating activities during the first quarter, which has typically been a negative cash flow period for the company. These results, combined with our outlook for the remainder of the year, enable us to raise our 2026 guidance. This strong start to the year and our increased credit facility are important first strides as we advance towards our recently announced 2030 objectives of $850 million in revenue and $150 million of EBITDA, while continuing to build on our leadership position in providing superior education for in-demand careers."
2026 FIRST QUARTER FINANCIAL RESULTS (Quarter ended March 31, 2026, compared to quarter ended March 31, 2025)
Revenue increased by $26.5 million, or 22.5% to $144.0 million, primarily due to an 18.2% increase in average student population driven by 19.5% start growth, with the remainder attributable to tuition increases.
Educational services and facilities expense increased by $11.0 million, or 23.2% to $58.4 million. This includes a $2.9 million increase in costs related to the new campuses in Houston, Hicksville, and Rowlett. The increase was primarily driven by costs associated with a larger student population. The remaining increase was attributable to $3.9 million higher depreciation expense, largely resulting from recent capital investments to support our growth initiatives.
Selling, general and administrative expense increased by $12.2 million, or 18.3% to $79.2 million. This includes a $1.9 million increase in costs related to new campuses in Houston, Hicksville, and Rowlett. The increase was primarily driven by $5.1 million or 17.7% higher administrative expenses primarily driven by costs associated with enrollment growth, due to increased student population, and growth initiatives. Sales and marketing expense increased by $4.2 million, or 21.3%, including $1.2 million related to the Company's new campuses, resulting from planned investments and the timing of the marketing activities. Student services expense increased $1.1 million, or 17.9%, driven by continued investments in staffing and support infrastructure to serve a growing student base.
Corporate and OtherThis category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $21.3 million for the three months ended March 31, 2026, compared to $18.3 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 to execute the Company's growth initiatives.
FULL YEAR 2026 OUTLOOK
Based on the 2026 first quarter 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:
(In millions, except for diluted EPS and student starts)
PreviousFY 2026 Guidance
UpdatedFY 2026 Guidance
Revenue
$580 - $590
$590 - $600
Adjusted EBITDA1
$72 - $76
$76 - $80
Net income
$20 - $23
$23 - $26
Diluted EPS
$0.64 - $0.74
$0.74 - $0.83
Capital expenditures
$70 - $75
$70 - $75
Student starts
8% - 13%
10% - 14%
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. Our 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 10:00 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: Q1 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 22 campuses in 12 states under the brands Lincoln Technical Institute, Lincoln College of Technology and Nashville Auto Diesel College. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired schools including Lincoln Technical Institute, Inc. which opened its first campus in Newark, New Jersey in 1946. For more information, please go to www.lincolntech.edu.
FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation that are not historical facts, including those made in a conference call, may be "forward-looking statements" as that term is defined in the federal securities laws. The words "may," "will," "expect," "believe," "anticipate," "project," "plan," "intend," "estimate," "goal," "target" and "continue," and similar expressions and their opposite are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. The Company cautions you that these statements concern current expectations about the Company's future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company's control, that may affect the accuracy of the statements or the prospects upon which the statements are based including, without limitation, risks associated with our ability to comply with the extensive federal and state regulatory framework applicable to the for-profit education industry such as the 90/10 rule, prescribed cohort default rates, the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs and financial responsibility and administrative capability standards; the effect of future legislative or regulatory initiatives related to veterans' benefit programs; our ability to obtain timely regulatory approvals in connection with acquisitions of additional schools and the related risks associated with integration of acquired schools; risks associated with the opening of new campuses; our ability to execute our growth strategies including updating and expanding the content of existing programs and developing new programs for our students in a timely and cost-effective manner while maintaining positive student outcomes; our ability to effectively compete within our industry; impacts related to epidemics or pandemics; risks associated with cybersecurity; general economic conditions; and other factors discussed in the "Risk Factors" section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share amounts)(Unaudited)
March 31,
December 31,
2026
2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
16,690
$
28,519
Accounts receivable, less allowance of $44,971 and $43,975 at March 31, 2026 and December 31, 2025, respectively
41,734
36,929
Inventories
2,488
3,986
Income tax receivable
501
1,599
Tenant allowance receivable
8,127
8,127
Prepaid and other assets
6,863
7,872
Total current assets
76,403
87,032
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $154,578 and $148,067 at March 31, 2026 and December 31, 2025, respectively
179,352
171,603
OTHER ASSETS:
Noncurrent receivables, less allowance of $25,706 and $26,371 at March 31, 2026 and December 31, 2025, respectively
20,711
21,248
Deferred finance charges
267
302
Deferred income taxes, net
21,668
21,668
Operating lease right-of-use assets
151,209
154,223
Finance lease right-of-use assets
24,657
25,075
Goodwill
10,742
10,742
Other assets, net
1,725
1,271
Total other assets
230,979
234,529
TOTAL ASSETS
$
486,734
$
493,164
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Unearned tuition
$
39,287
$
44,159
Accounts payable
28,253
27,023
Accrued expenses
13,816
18,430
Current portion of operating lease liabilities
10,445
10,634
Current portion of finance lease liabilities
498
463
Total current liabilities
92,299
100,709
NONCURRENT LIABILITIES:
Long-term portion of operating lease liabilities
160,089
162,113
Long-term portion of finance lease liabilities
30,518
30,654
Long-term ...
