Education Services Stocks Q2 Earnings Recap: Perdoceo Education Tops the List

Perdoceo Education (NASDAQ:PRDO) reported Q2 revenues of $209.6 million, up 25.7% YoY, exceeding analysts' expectations by 1.3%. The company's stock is up 11.3% since reporting and currently trades at $32.09. Lincoln Educational (NASDAQ:LINC) reported revenues of $116.5 million, up 13.2% YoY, outperforming analysts' expectations by 0.5%. However, the market seems unhappy with the results as the stock is down 16.8% since reporting.

Perdoceo Education (NASDAQ:PRDO) and Lincoln Educational Services (NASDAQ:LINC) both reported their Q2 2025 earnings, with mixed reactions from the market. Perdoceo Education reported revenues of $209.6 million, up 25.7% year-over-year (YoY), exceeding analysts' expectations by 1.3%. The company's stock price has since risen by 11.3%, currently trading at $32.09 [1].

In contrast, Lincoln Educational Services reported revenues of $116.5 million, up 13.2% YoY, outperforming analysts' expectations by 0.5%. However, the stock price has declined by 16.8% since the earnings report, indicating a negative market reaction to the results [2].

Perdoceo Education's CFO, Ashish R Ghia, sold 53,081 shares of common stock on August 7, 2025, at a weighted average price of $30.7 per share, totaling $1,629,586. Following these transactions, Ghia directly owns 157,632 shares of the company's common stock. The sales were conducted under a Rule 10b5-1 trading plan adopted on May 8, 2025 [1].

Lincoln Educational Services highlighted a strong turnaround in profitability, returning to profitability with an earnings per share (EPS) of $0.05, reversing a loss of $0.02 per share in the same period last year, a 350.0% positive change. The company also achieved a remarkable turnaround with a net income of $1.55 million, a 327.9% positive swing from a net loss of $682,000 in Q2 2024. The EPS and net income results indicate a strong financial recovery for the company [2].

The post-earnings strategy of buying LINC when earnings beat and holding for 30 days delivered strong results, with a 313.71% return, vastly outperforming the benchmark's 84.92% return. The strategy's excess return was 228.78%, and it achieved a compound annual growth rate (CAGR) of 33.61%. Remarkably, the strategy had a maximum drawdown of 0.00%, indicating effective risk management, with a Sharpe ratio of 0.71 and a volatility of 47.47% [2].

Scott M. Shaw, CEO of Lincoln Educational Services, emphasized the company’s strong operational and financial momentum in Q2 2025, highlighting a 22% increase in student starts, 15% revenue growth, and 68% adjusted EBITDA growth. Shaw attributed the success to increased demand for skilled trades training, the Lincoln 10.0 hybrid teaching model, and program replication. He also pointed out strategic investments in high-demand fields like electrical, HVAC, and nursing and expressed optimism about long-term growth. Shaw acknowledged challenges in healthcare program profitability but remained confident in future improvements through leadership changes and curriculum updates [2].

References:
[1] https://www.tradingview.com/news/tradingview:872ab3b35fc81:0-perdoceo-education-cfo-sells-over-1-6-million-in-company-stock/
[2] https://www.ainvest.com/news/lincoln-educational-services-2025-q2-earnings-strong-performance-net-income-surges-327-9-2508/