What factors drove the changes in Lincoln Educational Services's revenue and profit?

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What guidance did Lincoln Educational Services's management provide for the next earnings period?

What were the key takeaways from Lincoln Educational Services’s earnings call?

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What were the key takeaways from Lincoln Educational Services's earnings call?

What is the revenue and EPS growth rate for Lincoln Educational Services year over year?

- **Revenue Growth**: Q3 2025 revenue up 25.4% to $141.4 million, driven by 6% student start growth and new campus openings.
- **Strategic Expansion**: New Rowlett, TX, and Hicksville, NY, campuses to add $25-$30 million in annualized revenue by 2027. Lincoln 10.0 model improves efficiency, reducing instructional costs.
- **Health Care Focus**: Core LPN and medical assisting programs grew 2%, with RN program approvals pending. Paramus, NJ, campus to resume LPN enrollments in January 2026.
- **High School Outreach**: Program partnerships doubled year-over-year, integrating career training into high school curricula.
- **2027 Targets**: Revised guidance projects $600 million in revenue and $90 million in EBITDA, exceeding prior targets of $550 million and $90 million.
- **Military Enrollment**: 5%-6% of students use GI Bill benefits, with plans to expand into degree-granting programs for veterans.

**【CEO Summary Section】**
- Lincoln reported 6% year-over-year growth in student starts for Q3 2025, driven by strong demand in skilled trades programs. New campuses in East Point, GA, Houston, TX, and upcoming Rowlett, TX, contributed significantly to growth.
- The company expanded programs at existing campuses, including automotive, HVAC, and welding, with 11 new programs launched in 2024-2025. The Lincoln 10.0 hybrid teaching model improved instructional efficiency and space utilization.
- Health care segment focus shifted to core LPN and medical assisting programs, with plans to introduce RN programs in 2026. The Paramus, NJ campus will resume LPN enrollments in January 2026.
- High school outreach programs doubled year-over-year, with partnerships in New Jersey and Texas to integrate career training into high school curricula.
- Management raised 2027 financial targets to $600 million in revenue and $90 million in EBITDA, exceeding previous guidance of $550 million and $90 million, respectively.

**【CFO Financial Commentary】**
- Q3 2025 revenue reached $141.4 million, a 25.4% year-over-year increase, driven by a 6% rise in student starts and higher revenue per student. Adjusted EBITDA grew 65.1% to $16.9 million, reflecting operational leverage from new campuses and program expansions.
- Net income was $3.8 million, or $0.12 per share, with adjusted net income of $6.3 million, up 54.9% year-over-year. Cash flow from operations was $23.9 million for the quarter.
- Capital expenditures for the first nine months of 2025 totaled $68.1 million, primarily for new campuses and program expansions. The company expects to exceed 2025 guidance of $505-$510 million in revenue and $65-$67 million in EBITDA.

**【Q&A Highlights】**
- **2026 Outlook**: CFO Brian Meyers confirmed 2026 EBITDA under revised methodology (excluding pre-opening costs) will exceed 2025 guidance of $65-$67 million. New campuses in Rowlett, TX, and Hicksville, NY, are expected to contribute $25-$30 million in annualized revenue by year four.
- **Health Care Segment**: CEO Scott Shaw emphasized core LPN and medical assisting programs grew 2% in Q3, with RN program approvals pending in New Jersey, New York, and Connecticut. Regulatory delays could take 12-48 months.
- **Campus Expansion**: East Point, GA, campus added 500 student capacity, and Rowlett, TX, campus (opening Q1 2027) will have 1,600 student capacity. New campuses achieve 20%+ IRR threshold, with East Point exceeding expectations.
- **Military Enrollment**: 5%-6% of students use GI Bill benefits, with plans to re-enter the military training market as degree-granting institutions in key states.


Lincoln Educational Services Corporation (LINC) Q3 2025 Earnings Call Transcript

- **Revenue and Profit Growth**: Q2 revenue up 15.1% to $116.5M, adjusted EBITDA surging 56% to $10.5M. Full-year guidance raised to $490-500M revenue and $60-65M EBITDA.
- **New Campus Momentum**: Houston opening Q4, Hicksville (NY) late 2026, with two new campuses annually targeting $25-30M annualized revenue.
- **Skilled Trades Dominance**: Auto, HVAC, welding programs driving 32% start growth, corporate partnerships addressing workforce gaps.
- **Efficiency Improvements**: 13% reduction in marketing cost per start, Lincoln 10.0 model enabling 18-month campus growth milestones.
- **Long-Term Ambition**: 2027 goals of $550M revenue and $90M EBITDA, supported by 12-15% annual student start growth.

**【CEO Summary Section】**
- **Strong Q2 Growth**: Student starts increased 22% YoY, revenue rose 15.1% to $116.5 million, and adjusted EBITDA surged 56% to $10.5 million.
- **Lincoln 10.0 Model Success**: Hybrid teaching model driving flexibility and efficiency, with East Point campus achieving 36-month growth targets in 18 months.
- **New Campus Expansion**: Houston campus opening in Q4, Hicksville (NY) targeting late 2026, and plans for two new campuses annually. Each new campus aims for $25-30M annualized revenue and $7-10M EBITDA by year four.
- **Skilled Trades Focus**: Auto, HVAC, welding, and nursing programs outperforming, with corporate partnerships (e.g., Johnson Controls) addressing workforce gaps.
- **Long-Term Goals**: 2027 targets of $550M revenue and $90M EBITDA, supported by 12-15% annual student start growth.

**【CFO Financial Commentary】**
- **Revenue and Profitability**: Q2 GAAP net income $1.6M ($0.05 EPS), adjusted net income $2.7M ($0.09 EPS). Full-year guidance raised to $490-500M revenue, $60-65M EBITDA, and $13-18M net income.
- **Cost Efficiency**: 13% reduction in marketing cost per start, declining bad debt as a percentage of revenue. Operating expenses up 11.6% YoY due to student growth and new campus investments.
- **Liquidity and Capital**: $63.7M total liquidity, $58M capital expenditures year-to-date. Full-year CapEx guidance increased to $75-80M.
- **One Big Beautiful Bill Impact**: Minimal expected impact from new student loan limits, with focus on high-demand programs unaffected by policy changes.

**【Q&A Highlights】**
- **Student Start Growth**: Q3 starts expected flat vs. 20% YoY in Q3 2024, Q4 on track with H1 2025 growth (~18-20%). July 1 start inclusion boosts Q2 starts by 2,764 students.
- **Healthcare Programs**: Nursing program restructuring to blend Lincoln 10.0 model, aiming for three shifts to improve profitability. Culinary and massage therapy programs discontinued to focus on higher-demand areas.
- **Military Outreach**: Less than 10% of students currently military due to Lincoln 10.0 model constraints. Re-enrollment expected post-degree-granting status approvals in NY, NJ, CT.
- **Capital Allocation**: Houston campus on track for Q4 opening, Levittown (PA) transitioning from auto-only to full-skilled trades. 2026 CapEx expected lower due to delayed new campus announcements.


Lincoln Educational Services Corporation (LINC) Q2 2025 Earnings Call Transcript

- **Revenue Soars 16%**: Q1 2025 revenue hits $117.5M, fueled by 20.9% student start growth and Lincoln 10.0 model efficiencies.
- **EBITDA Surges 56%**: Adjusted EBITDA reaches $10.6M (9% margin), up from $6.8M (7% margin) in Q1 2024.
- **Campus Expansion Success**: East Point (Atlanta) profitable by Q3 2024; Nashville relocated to state-of-the-art facility with new programs.
- **Cost Efficiency**: Marketing cost per start down 20%; instructional costs fall 100bps to 40.3% of revenue.
- **2025 Guidance Raised**: Revenue $485-495M, EBITDA $58-63M, start growth 10-14%, despite Q2/Q3 start timing shift.
- **Bad Debt Improvement**: 10% of revenue (vs. 13% 2024), targeting 11-12% for 2025.


**【CEO Summary Section】**
- **Revenue Growth**: Q1 2025 revenue increased 16% to $117.5 million, driven by a 20.9% rise in student starts (4,600+ students) and Lincoln 10.0 hybrid teaching model efficiencies.
- **EBITDA Expansion**: Adjusted EBITDA surged 56% to $10.6 million, with a 9% margin, reflecting cost savings and program replication success.
- **New Campus Momentum**: East Point (Atlanta) became profitable in Q3 2024, and Nashville Auto Diesel College (NADC) relocated to a state-of-the-art facility, opening new programs in Q2 2025. Houston and Levittown campuses are set to open in late 2025.
- **Demand Trends**: Transportation and skilled trade programs grew 32.4%, while healthcare starts declined 6.3% due to program phase-outs. Lincoln 10.0 reduced curriculum time, boosting graduate placement rates.
- **Strategic Focus**: Expansion into underserved markets, corporate partnerships, and workforce skills gap solutions drive long-term growth. 2027 targets: $550M revenue, $90M EBITDA.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q1 2025 GAAP net income $1.9M ($0.06 EPS), vs. $0.03 EPS prior year. Non-GAAP adjusted net income $3.5M ($0.11 EPS). Operating expenses rose 13% to $114.3M, but marketing cost per start dropped 20%.
- **CapEx Allocation**: $25M Q1 spend (total $70-75M annual), funding new campuses, program expansions, and equipment upgrades. Each new campus contributes $6M EBITDA by year 4.
- **Guidance Update**: Full-year 2025: $485-495M revenue, $58-63M EBITDA, 10-14% start growth. Q2/Q3 starts impacted by 2,300 students shifting from June to July 1st (2024 vs. 2025).
- **Efficiency Gains**: Instructional costs fell 100bps to 40.3% of revenue. Bad debt improved to 10% of revenue (from 13% in 2024), aided by new financial aid software.

**【Q&A Highlights】**
- **Regulatory Environment**: Positive for skilled trades, with DOE approvals for welding programs and new campuses. Houston campus awaiting final regulatory sign-off.
- **Program Performance**: Electrical program at Lincoln, RI, and HVAC at Denver outperform. 5 new programs launching in 2025.
- **Economic Resilience**: Demand stable despite macro uncertainty, with record lead generation and 6% organic HOPS growth (excluding phase-outs).
- **Bad Debt Improvement**: 10% of revenue in Q1 (vs. 13% 2024), targeting 11-12% for 2025. Cash collections and financial aid efficiency drive reductions.


Lincoln Educational Services (LINC)-12 May 25-2025 Q1 Earnings call transcript

- **Revenue Surge**: 16.4% YoY growth to $440.1 million, driven by 15.2% student start increase.
- **Model Efficiency**: Lincoln 10.0 hybrid learning now covers 65% of students, cutting program time and boosting placement rates.
- **Campus Expansion**: 3 new campuses opening in 2025, with Hicksville (NY) set for Q4 2026.
- **Profitability**: Adjusted EBITDA up 60% YoY to $42.3 million; 2025 guidance targets $55-60 million.
- **Cash Strength**: $60 million cash on hand, $30 million Q4 cash flow, no debt.
- **Key Risks**: Regulatory delays in nursing programs, cautious 2025 EBITDA margin target of 12%.


**【CEO Opening Remarks】**
- **Revenue Growth**: Full-year revenue reached $440.1 million, up 16.4% YoY, driven by 11.5% growth in average student population and 15.2% increase in student starts.
- **Operational Efficiency**: Lincoln 10.0 hybrid teaching model now covers 65% of students, reducing program completion time and improving graduate placement rates.
- **Campus Expansion**: Opened East Point campus in Atlanta (Q3 2024), exceeding internal revenue projections by $6 million. Planning 3 new campuses in 2025 (Nashville, Levittown, Houston) and Hicksville (Q4 2026).
- **Program Replication**: Launched 5 new programs in 2024, with 7 more expected in 2025, targeting $1 million EBITDA per program after 3 years.
- **Corporate Partnerships**: Added 10 new or expanded corporate partnerships, including a 5-year agreement with Container Maintenance Corporation.
- **Financial Health**: Ended 2024 with $60 million cash, no debt, and $30 million cash flow from operations (Q4 2024).

**【CFO Financial Highlights】**
- **Q4 2024 Results**: 
  - Revenue: $119.4 million (+16.4% YoY)
  - Adjusted EBITDA: $19.2 million (+22% YoY)
  - Net Income: $6.8 million ($0.22 EPS)
  - Cash Flow: $30 million (up 38% YoY)
- **Full-Year 2024**: 
  - Adjusted EBITDA: $42.3 million (+60% YoY)
  - Adjusted Net Income: $17.3 million (+17% YoY)
  - Capital Expenditures: $64.1 million (70% for growth)
- **2025 Guidance**: 
  - Revenue: $480-490 million (+10% midpoint)
  - Adjusted EBITDA: $55-60 million (+36% midpoint)
  - Student Starts: +8-12% YoY
  - Capital Expenditures: $70-75 million

**【Q&A Key Points】**
1. **Campus Progress**: 
   - Nashville (relocated) welding program launched in Q1 2025, full transition by Q1 2025.
   - Levittown (relocated) expected Q3 2025 opening.
   - Houston campus on track for Q4 2025.
2. **EBITDA Margin**: 
   - 2025 target: ~12% (midpoint of $57.5 million / $485 million)
   - 2027 target: 16% ($90 million / $550 million)
3. **Healthcare Programs**: 
   - Nursing starts at Paramus campus delayed until 2026 due to regulatory approval.
   - Exited low-ROI programs (cosmetology, culinary, massage therapy), freeing capacity for higher-margin trades.
4. **Regulatory Environment**: 
   - New administration expected to level playing field for vocational schools.
   - Title IV funding delays reduced, but ongoing focus on operational efficiency.
5. **Skilled Trades Demand**: 
   - Auto, diesel, HVAC, and welding programs show strong demand, with welding booths expanding by 40% at Nashville campus.


Lincoln Educational Services (LINC)-24 Feb 25-2024 Q4 Earnings call transcript

Lincoln Educational Services (LINC)-11 Nov 24-2024 Q3 Earnings call transcript

Lincoln Educational Services (LINC)-8 Aug 24-2024 Q2 Earnings call transcript

Lincoln Educational Services (LINC)-6 May 24-2024 Q1 Earnings call transcript

- **Revenue & Growth**: 10.3% full-year revenue growth, 16% Q4 student starts, 1,000+ net new students YoY. 
- **New Campuses**: East Point (Q1 2024), Houston (Q1 2026), and relocated Nashville/Philadelphia campuses. 
- **Financial Strength**: $80M cash, no debt, 2024 EBITDA guidance $35-40M. 
- **Margins & Efficiency**: 5.4% avg. revenue per student increase, targeting mid-teens EBITDA margin. 
- **Demand Drivers**: Skilled trades (auto, welding) outperforming healthcare, 82% placement rate. 
- **Expansion Plan**: 6-8 program replications in 2024, 1 new campus/year starting 2024.

**【CEO Summary Section】**
- **Revenue Growth**: Full-year 2023 same-campus revenue grew 10.3%, with Q4 up 13.6% YoY. Student starts increased 11.4% annually and 16% in Q4, driven by Lincoln 10.0 hybrid learning model adoption (75% of programs). 
- **New Campus Expansion**: Opened East Point, GA campus in Q1 2024 with 4 programs, Houston, TX campus set for Q1 2026. Relocated Nashville and Philadelphia campuses to modern facilities. 
- **Financial Strength**: Ended 2023 with $80M cash, no debt, and a new $60M credit facility. 2024 guidance: Revenue $410-420M, EBITDA $35-40M, student starts +7-12%. 
- **Operational Metrics**: 82% placement rate, 70% graduation rate, and 5.4% avg. revenue per student increase. 

**【CFO Financial Commentary】**
- **Q4 2023 Results**: Adjusted EBITDA $16M, revenue $102.5M (+13.6%), operating expenses $89M (15% of revenue). 
- **Capital Allocation**: 2024 CapEx $65-70M for new campuses, program expansions, and facility relocations. 2023 CapEx $41M, 75% for growth initiatives. 
- **Liquidity**: $80M cash, $40M credit facility, and $10M from Levittown, PA sale-leaseback. 
- **Regulatory Compliance**: 90/10 ratio 81% (vs. 75% prior year), Financial Responsibility Score 3.0 (max). 

**【Q&A Key Highlights】**
- **Student Start Momentum**: 1,000+ net new students YoY, 16% Q4 starts growth. Marketing efficiency and demand for skilled trades (auto, welding) driving growth. 
- **EBITDA Target**: Aiming for mid-teens EBITDA margin in coming years, with 2024 at 9% (vs. 7% in 2023). 
- **Macro Assumptions**: Base case: status quo on interest rates/unemployment, but low unemployment not hindering demand for hands-on careers. 
- **Program Performance**: Automotive programs grew 11% without new openings, reflecting underlying demand for skilled trades.

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