Lincoln Educational Services 2025 Q3 Earnings Beats Expectations with Revenue Surge

Lincoln Educational Services (LINC) reported Q3 2025 earnings with a 23.6% revenue surge to $141.39 million, surpassing estimates. While EPS declined 7.7% to $0.12, the company raised full-year guidance, projecting revenue between $505–510 million and adjusted EBITDA of $65–67 million, reflecting confidence in continued growth.

Revenue

Campus Operations revenue surged by 25.4% to $141.4 million, driven by a 17.2% rise in average student population and tuition increases. The Transitional segment, previously housing the Summerlin campus, was sold in Q1 2025, eliminating it from the current quarter's results. Corporate and other expenses rose to $16.8 million, reflecting workforce expansion to support growth initiatives.

Earnings/Net Income

Despite a 7.7% EPS decline to $0.12, Lincoln's adjusted EBITDA of $16.9 million exceeded estimates by 65.1%, highlighting strong profitability and operational efficiency.

Post-Earnings Price Action Review

The strategy of buying LINC on a revenue beat and holding for 30 days appears viable. Lincoln’s 12th consecutive quarter of student start growth and a 23.6% revenue surge outperform expectations, while adjusted EBITDA of $16.9 million underscores profitability. The stock surged 12% post-earnings, and raised 2025 guidance to $505–510 million revenue and $65–67 million adjusted EBITDA. Holding for 30 days allows investors to assess sustained growth while mitigating short-term volatility.

CEO Commentary

CEO Scott Shaw highlighted 6% student start growth, strategic investments in greenfield campuses (East Point, Nashville, Houston, Levittown), and the Lincoln 10.0 hybrid teaching platform’s efficiency gains. He emphasized expansion in skilled trades and healthcare programs, including RN degree plans, while addressing healthcare segment declines due to noncore program exits.

Guidance

Lincoln raised 2025 full-year guidance to $505–510 million revenue and $65–67 million adjusted EBITDA. For 2026, adjusted EBITDA is expected to exceed $65–67 million (excluding $10 million in pre-opening costs), with revenue growth surpassing 2025 targets. The company anticipates 2027 revenue exceeding $600 million and adjusted EBITDA above $90 million.

Additional News

Lincoln announced a new campus in Rowlett, Texas, set to open in early 2027, expanding its Dallas metro presence. The company also scheduled an Investor Day on March 19, 2026, at its Nashville campus to outline long-term strategies. CEO Scott Shaw emphasized growth in skilled trades and healthcare programs, including plans for RN degrees, while addressing regulatory challenges in expanding these offerings.