LINC · Lincoln Educational Services Corporation

Lincoln Educational Services Corporation delivered robust Q1 2026 results with revenue surging 22.5% to $144.0 million, primarily fueled by an 18.2% increase in average student population from 19.5% growth in student starts to 5,500 and modest tuition hikes. Student ending population expanded 17.6% to 18,702, underscoring sustained demand for its skilled trades, automotive, health sciences, and IT programs. Net income doubled to $4.4 million ($0.14 per share), while Adjusted EBITDA jumped 85% to $15.5 million, reflecting operational efficiencies and scale benefits. Educational services costs rose 23.2% to $58.4 million due to larger student base and $3.9 million higher depreciation from growth investments, including new campuses. SG&A increased 18.3% to $79.2 million, driven by enrollment support, marketing, and staffing for expansion. Notably, the company generated $4.6 million in operating cash flow, a $13 million improvement from prior year's use, with total liquidity at $72 million. CEO Scott Shaw highlighted 14 consecutive quarters of starts growth, half organic, and progress on new campuses in Nashville, Levittown, Houston, Hicksville, and Rowlett, plus two additional sites in negotiation. In April, Lincoln amended its credit facility to $125 million, adding $65 million liquidity for growth. Reflecting Q1 strength and trends, management raised FY2026 guidance: revenue to $590-600 million (from $580-590M), Adjusted EBITDA to $76-80 million (from $72-76M), net income to $23-26 million, EPS to $0.74-0.83, and starts growth to 10-14%. This positions the company toward 2030 goals of $850 million revenue and $150 million EBITDA, supported by high employer demand, retention improvements, and partnerships.