Lincoln Ed Sets 2 New Campuses, $550M Revenue Goal by 2027 Amid 22% Student Growth

Strong Performance and Strategic Expansion

Lincoln Educational Services Corporation (LINC) delivered impressive results during its second quarter of 2025, showcasing robust growth across key financial metrics. The company’s leadership highlighted significant improvements in student starts, revenue, and profitability, signaling a positive trajectory for the business.

Scott M. Shaw, President and CEO, emphasized the success of the Lincoln 10.0 hybrid teaching model, which has contributed to increased operational efficiency and student engagement. He noted that the company experienced nearly 22% growth in student starts and about 15% revenue growth from existing operations. Additionally, consolidated adjusted EBITDA saw a substantial increase of 68% compared to the same period last year.

Shaw also announced an upward revision to the full-year financial guidance, reflecting confidence in the company's growth initiatives. This includes expanding the Lincoln 10.0 model, investing in campus expansions, and replicating successful programs across existing locations. These efforts are driven by strong demand for career-focused skills training, particularly in skilled trades.

New Campus Developments and Financial Outlook

The company plans to open two new campuses annually in Levittown, Pennsylvania; Houston, Texas; and Hicksville, New York. Each of these campuses is projected to generate $25 million to $30 million in annualized revenue and $7 million to $10 million in EBITDA by the fourth year of operation.

Shaw mentioned that the company is increasing its capital expenditures (CapEx) guidance for the full year, now expecting to spend between $75 million and $80 million. This reflects the company’s commitment to scaling its operations and enhancing its market presence.

Brian K. Meyers, CFO, provided detailed financial results for the quarter. Revenue reached $116.5 million, representing a 15.1% increase over the prior year. Adjusted EBITDA grew by 56%, reaching $10.5 million, up from $6.7 million. Net income was $1.6 million or $0.05 per diluted share, with adjusted net income at $2.7 million or $0.09 per diluted share.

Updated Full-Year Guidance

Meyers outlined updated full-year guidance, projecting revenue between $490 million and $500 million, adjusted EBITDA between $60 million and $65 million, and net income ranging from $13 million to $18 million. Capital expenditures are expected to be between $75 million and $80 million, with student starts growing by 12% to 15% for the year.

Student starts for the second half of the year are expected to be relatively flat in Q3 due to a strong comparison with the previous year. However, Q4 is anticipated to align with the growth trends seen in the first half of the year.

Management reaffirmed its long-term goal of exceeding $550 million in revenue and $90 million in adjusted EBITDA by 2027, demonstrating continued confidence in the company’s strategic direction.

Operational Highlights and Challenges

Several key factors contributed to the strong performance, including improved marketing efficiencies, declining bad debt expenses, and lower marketing costs per start. The company ended the quarter with $63.7 million in total liquidity, providing flexibility for future investments.

Despite the positive momentum, management acknowledged some challenges, including temporary declines in healthcare program starts and a pause in the Paramus nursing program. Additionally, delays in Title IV drawdowns due to Department of Education verification processes have impacted cash flow. However, Shaw stated that regulatory shifts are not expected to have a material financial impact.

Analysts’ Perspectives and Market Sentiment

Analysts maintained a positive outlook, praising the company’s performance and seeking clarity on growth drivers and capital deployment. Management’s responses reflected confidence, with frequent references to strong demand and operational momentum.

In the Q&A session, analysts raised questions about various aspects of the business, including student start guidance, the impact of the One Big Beautiful Bill Act, healthcare program performance, and CapEx trends. Management provided detailed insights, emphasizing the potential for growth in skilled trades and ongoing efforts to improve healthcare program profitability.

Quarter-over-Quarter Comparison and Future Outlook

Compared to the previous quarter, management’s tone remained confident, with a slight increase in conviction due to upgraded guidance and operational outperformance. Key metrics such as revenue growth, student starts, and operational efficiencies all showed favorable trends.

While challenges remain, particularly in the healthcare segment and regulatory environment, Lincoln Educational Services continues to focus on execution and long-term value creation. The company’s strategic expansion, operational improvements, and strong financial performance position it well for sustained growth in the coming years.