Highlights

  • Revenue for the three months ended June 30, 2026 was $142.6 million, compared with $116.5 million in the prior year period.
  • Net income was $1,946 thousand, or $0.06 per diluted share, compared with $1,554 thousand, or $0.05 per diluted share.
  • Management expects full year 2026 revenue of $590 million to $600 million and capital expenditures of $95 million to $100 million.
  • The company completed the $18.8 million Melrose Park, Illinois property purchase on July 7, 2026, with a $15.0 million mortgage loan.

Lincoln Educational Services Corporation (NASDAQ: LINC) shares were trading at USD 21.82 on October 27, 2026, up 2.63%, with a relative volume at time of 5.47. The career-oriented education provider amended its credit agreement in April 2026, completed the Melrose Park property purchase on July 7, 2026, and reported second quarter 2026 results and full year guidance on August 10, 2026.

Lincoln Educational Services is a New Jersey corporation with principal executive offices in Parsippany, New Jersey. It provides career-oriented postsecondary education to recent high school graduates and working adults through the Lincoln Technical Institute, Lincoln College of Technology and Nashville Auto Diesel College brands. The company operates 22 campuses in 12 states and offers programs in skilled trades, automotive, health sciences and information technology. It reports Campus Operations and Transitional segments, and no campuses were classified as Transitional at June 30, 2026. Its fiscal year ends December 31.

Second Quarter 2026 Results

Revenue for the three months ended June 30, 2026 was $142.6 million, an increase of $26.1 million, or 22.4%, from $116.5 million. The company attributed the growth primarily to a 14.5% increase in average student population, with the remainder from tuition increases. Net income was $1,946 thousand, compared with $1,554 thousand in the prior year period.

Costs rose in the quarter. Educational services and facilities expense was $59.6 million, up $12.8 million, or 27.4%, and selling, general and administrative expense was $79.7 million, up $12.6 million, or 18.8%. The provision for credit losses increased by $2.9 million, or 11.2% of revenue compared with 11.3% a year earlier.

Student Starts, Cash and Financing

The filing reports 5,969 total new student starts in the quarter. On the earnings call, management said the start rate was lower than expected as a lower percentage of enrolled students converted to starts, and that student starts increased 1% during the quarter. It said it has implemented actions to improve conversion.

Net cash provided by operating activities for the six months ended June 30, 2026 was $26.7 million, compared with net cash used of $8.1 million a year earlier. The company held $44.2 million in cash and cash equivalents at June 30, 2026.

In April 2026, the company amended its credit agreement, raising total borrowing capacity from $60.0 million to $125.0 million and extending maturity to April 11, 2031. It had $26.0 million outstanding under the facility at June 30, 2026. The Melrose Park mortgage carries a fixed rate of 5.99% per year for the first five years.

Outlook and Regulatory Items

Management reiterated full year 2026 guidance on the call: revenue of $590 million to $600 million, adjusted EBITDA of $76 million to $80 million, net income of $23 million to $26 million, diluted EPS of $0.74 to $0.83 and student start growth of 10% to 14%. It raised capital expenditure guidance from $70 million to $75 million to $95 million to $100 million, citing the Melrose Park purchase and the Suitland, Maryland campus. Guidance includes approximately $10 million in new campus losses.

Campus programs are expected to begin in Hicksville, New York by the end of 2026, in Rowlett, Texas in the first quarter of 2027 and in Suitland, Maryland in the fourth quarter of 2027.

The filing discloses that final Department of Education rules place a $20,000 annual limit and a $65,000 aggregate limit on parent PLUS loans for undergraduate programs, effective July 1, 2026, and that the company cannot currently predict their effect on enrollments and revenues. New accountability rules published July 1, 2026 include an earnings test, and the company said it cannot predict how its programs will perform under the new metrics.