Lincoln Educational Services (LINC) Q1 2026 earnings summary

Executive summary

• Revenue grew 22.5% year-over-year to $144 million, driven by a 19.5% increase in student starts and tuition increases, with net income more than doubling to $4.4 million and adjusted EBITDA rising 85% to $15.5 million.

• Achieved positive operating cash flow of $4.6 million in Q1 for the first time in a decade, reflecting improved operating leverage and higher enrollment.

• Raised full-year 2026 guidance for revenue, adjusted EBITDA, net income, and student starts, supported by strong demand for skilled trades education and successful execution of growth strategies.

• Continued geographic expansion with new campuses in Houston, Hicksville, and Rowlett, and transition to a hybrid teaching platform to enhance scalability and efficiency.

• Increased revolving credit facility from $60 million to $125 million in April, enhancing financial flexibility.

Financial highlights

• Average student population increased 18.2% year-over-year, with transportation and skilled trades starts up nearly 24%.

• Revenue per student increased 3.6% year-over-year.

• Operating expenses rose to $137.6 million from $114.1 million, mainly due to higher student population and growth initiatives.

• SG&A expenses improved to 55% of revenue from 56.9%, with bad debt expense declining for the fifth consecutive quarter.

• Cash and cash equivalents were $16.7 million at quarter-end, with total liquidity of $72 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $590–$600 million, adjusted EBITDA to $76–$80 million, net income to $23–$26 million, and diluted EPS to $0.74–$0.83.

• Student start growth projected at 10%–14% for the year.

• Capital expenditure guidance unchanged at $70 million–$75 million, with about half expected in Q2.

• Long-term 2030 targets reaffirmed: $850 million in revenue and $150 million in adjusted EBITDA.

• New campuses in Hicksville and Rowlett scheduled to open by end of 2026 and early 2027, respectively.