Key Highlights

  • Student starts increased 14.2% from the adjusted prior year period.
  • Operating income increased 22.5%, and adjusted EBITDA grew more than 30%.
  • The company repurchased approximately 871,000 shares for about USD 21 million.
  • Liquidity exceeded USD 135 million at the end of the quarter.

Lincoln Educational Services Corporation (NASDAQ:LINC) reported third quarter 2026 student start growth of 14.2% compared with the adjusted prior year period. Reported EPS was USD 0.15 and Revenue was USD 159.18 million, compared with estimates of EPS of USD 0.13 and revenue of USD 152.46 million. The company recorded a 22.5% increase in Operating Income and more than 30% growth in adjusted EBITDA.

Chief executive Scott Shaw said the company regained its student start growth momentum and generated a substantial increase in cash from operating activities, with efficiencies from the Lincoln 10.0 hybrid teaching platform. Lincoln marked its 80th anniversary last month.

Student Population and Starts

The company adjusted third quarter 2025 student starts to exclude July 1 starts, because a shift in the academic calendar moved the late-June start class to July 1, 2025. Against those adjusted numbers, starts grew 14.2%. Organic student starts increased by nearly 5%. The ending student population grew by approximately 2,100 students, or 11%, from a year earlier. Year to date, student starts increased by 1,864, or 11%.

Management said it invests part of the gains from the Lincoln 10.0 platform in programs and processes intended to improve student outcomes, which it believes is positively affecting retention in programs open for more than a year.

Campus Expansion

A 65,000 square foot campus on Long Island offers automotive, welding, HVAC and electrical and electronics Training and is the second Lincoln campus in New York and the 11th in the New York, Connecticut and New Jersey tri-state area. A 36,000 square foot Facility in Suitland, Maryland is to initially offer electrical and electrical systems technology and HVAC programs aimed at Demand from Data Center and other regional employers.

The focus program concept allows the Suitland campus to be developed for an estimated USD 10 million, compared with USD 25 million for a traditional build-out. At full ramp, the campus is projected to serve approximately 500 students and generate about USD 15 million in annual revenue and USD 5 million of EBITDA. At the East Point, Georgia campus, the company added 15,000 square feet to serve an additional 300 students, bringing the facility to approximately 70,000 square feet.

During the quarter, the Johnson Controls Academy celebrated its 500th graduate, and the WorkforceLinc division expanded its collaboration with CMC Corporation.

Capital Allocation and Liquidity

The company repurchased approximately 871,000 shares for a total cost of approximately USD 21 million in the quarter. The board extended the repurchase program through May 2028 and increased the authorization by USD 30 million, bringing the remaining capacity to over USD 37 million, for a total authorization of USD 70 million. Management said the decision reflects confidence in the company's Long-term Growth prospects.

At the end of the quarter, the company had more than USD 135 million of liquidity. The chief financial officer cited strong Liquidity and Cash Flow generation as the basis for the repurchase decision.

Outlook and Reference Points

Management said its third quarter performance and full year outlook increase its confidence in achieving its 2030 financial objectives of approximately USD 850 million in revenue and USD 150 million in EBITDA. Based on current enrollment trends, management projects the strength in student starts to continue, which supports its outlook for full year student start growth.

Disclosed reference points include the 2030 targets, the Suitland campus Investment and capacity figures, the remaining repurchase capacity of over USD 37 million and the comparison basis for student starts adjusted for the July 1 calendar shift.

The company is scheduled to attend several investor conferences in the coming weeks, including events in Dallas on November 18, in Minneapolis and Chicago on November 23 and 24, in New York in early December and January, and the Northland Virtual Conference on December 16.