Lincoln Educational Services NASDAQ: LINC reported a sharply stronger first quarter of 2026, with management pointing to broad demand for skilled trades training, new campus investments and operating efficiencies as drivers behind higher revenue, profitability and student starts.
Chief Executive Officer and President Scott M. Shaw called the quarter “outstanding,” saying the company achieved 19.5% growth in student starts. He said about half of that growth came from organic operations, defined as campuses and programs opened before 2025.
“We believe this metric is a solid proof point that Lincoln Tech is leading the way in an evolving skilled trades marketplace,” Shaw said. He cited demand for training in fields such as HVAC, electrical, automotive technology, welding and healthcare, and said employer demand for skilled workers continues to exceed supply.
Revenue and EBITDA Rise on Higher Student Population
Chief Financial Officer and Executive Vice President Brian Meyers said first-quarter revenue increased 22.5% to $144 million, driven by an 18.2% increase in average student population and a 3.6% increase in revenue per student. He said the company has now recorded three years of consecutive double-digit quarterly revenue growth.
Adjusted EBITDA rose 84.7% to $15.5 million, while net income more than doubled to $4.4 million. Diluted earnings per share were $0.14, based on approximately 31.3 million weighted average diluted shares outstanding. Meyers said the net income margin benefited from an effective tax rate of about 22% due to a discrete tax benefit related to stock vesting, and he expects the tax rate to normalize to about 29% in future quarters.
Operating expenses totaled $137.6 million, compared with $114.1 million in the prior-year quarter. Meyers said expenses were in line with expectations and reflected both a larger student population and growth initiatives. Education service and facilities expenses rose to $58.4 million from $47.4 million, but excluding a $3.9 million increase in depreciation tied to recent investments, those expenses fell as a percentage of revenue, helped by instructional efficiencies.
Meyers also said bad debt expense improved to 9.5% of revenue from 10.1%, marking the fifth consecutive quarter of year-over-year improvement as a percentage of revenue. He attributed the improvement to stronger financial aid processing and cash collections.
Student Starts Increase Across Core Programs
Lincoln said more than 5,500 new students started across its 22 campuses during the quarter, bringing ending student population up by approximately 2,800 students, or nearly 18% from the prior year.
Transportation and skilled trades programs, which represent about 80% of Lincoln’s total population, grew starts by nearly 24%. Healthcare and Other Professions programs, which account for about 20% of the population, increased starts by 5%.
Shaw said the company resumed enrolling new students in its Paramus nursing program in January, which contributed to the improvement in healthcare starts after a decline in the fourth quarter. In response to an analyst question, Shaw said the Paramus program has the “full green light” from the state of New Jersey and said its NCLEX pass rate is over 90%.
Shaw also said Lincoln’s nursing programs were profitable in the first quarter for the first time since before COVID-19. He said the company wants to make healthcare programs “as profitable as possible” before expanding them further, but noted that some newer campuses have undeveloped space that could support healthcare or other programs.
Company Raises Full-Year Guidance
Lincoln raised its 2026 outlook across key metrics, with Meyers saying the high end of the company’s prior guidance now represents the low end of the updated range.
- Revenue: $590 million to $600 million
- Adjusted EBITDA: $76 million to $80 million
- Net income: $23 million to $26 million
- Diluted EPS: $0.74 to $0.83
- Student start growth: 10% to 14%
Meyers said the adjusted EBITDA guidance now includes approximately $10 million in new campus losses and excludes only non-cash stock-based compensation. He said Lincoln no longer adds back losses related to new campuses in their pre-opening and initial year of operations.
The company maintained its capital expenditure guidance of $70 million to $75 million. Planned spending includes future campuses in Hicksville, New York, and Rowlett, Texas, as well as program expansions and maintenance investments. Meyers said about 65% of total capital expenditures are tied to growth initiatives.
Cash Flow Improves; Credit Facility Expanded
Lincoln generated $4.6 million in cash flow from operations during the first quarter, compared with a use of $8.4 million in the prior-year period. Shaw said it was the first time in 10 years the company generated operating cash in the first quarter.
After quarter-end, Lincoln amended its credit facility, increasing its revolving line of credit to $125 million from $60 million and securing more favorable terms. Meyers said the expanded facility provides additional capacity and flexibility for investments in new campuses, program expansions and potential corporate development opportunities.
At the end of the first quarter, Lincoln had $72 million in total liquidity, including $16.7 million of cash and $5 million of debt outstanding.
Campus Expansion and New Programs Remain in Focus
Shaw said campus relocations and openings completed in 2025 are meeting expectations, and program expansions at existing campuses are contributing to start growth. In February, Lincoln opened an electrical program at its South Plainfield, New Jersey campus.
The company’s Hicksville and Rowlett campus development projects remain on schedule. Shaw said Hicksville is expected to begin enrollment in the fourth quarter, while Rowlett is expected to begin enrolling students in the first quarter of 2027. He added that Lincoln continues to search for additional greenfield locations and may report further expansion plans when it releases second-quarter results.
During the question-and-answer session, Shaw said Lincoln is still focused on opening about two new campuses per year, though the expanded credit facility gives it flexibility to move faster if suitable locations are found.
Management also discussed corporate partnerships and workforce training initiatives, including an agreement with New Jersey Transit under which Lincoln’s WorkforceLinc division is providing diesel and electrical systems training to technicians at New Jersey maintenance facilities.
Shaw said the company is also investing in high school initiatives and veteran enrollment efforts intended to drive longer-term results beginning in 2027. He said more than two dozen High School Share proposals are under review by school districts. Under that program, students attend Lincoln classes during their junior and senior years and continue after high school to earn a certificate in less time.
Looking ahead, Shaw said the company’s momentum brings it closer to its 2030 objectives, which include $850 million in revenue and $150 million in adjusted EBITDA.
About Lincoln Educational Services NASDAQ: LINC
Lincoln Educational Services Corporation is a publicly traded provider of career-focused post-secondary vocational education in the United States. Operating under the Lincoln Tech and Lincoln Culinary Institute brands, the company delivers hands-on technical instruction across high-growth industries. Its mission centers on equipping students with practical skills and industry credentials designed to meet employer needs.
The company's program offerings span automotive technology, skilled trades, health sciences, information technology, culinary arts and public safety.
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