Lincoln Educational Services (LINC) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 grew 22.5% year-over-year to $144.0 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 to $15.5 million.

• Achieved positive operating cash flow in Q1 for the first time in a decade, totaling $4.6 million.

• Full-year 2026 guidance was raised across all key metrics, including revenue ($590M–$600M), adjusted EBITDA ($76M–$80M), net income ($23M–$26M), and diluted EPS ($0.74–$0.83).

• The company continues to expand geographically with new campuses in Houston, Hicksville, and Rowlett, and is implementing a hybrid teaching platform to enhance scalability.

• Amended credit agreement in April increased the revolving credit facility to $125 million, enhancing financial flexibility.

Financial highlights

• Average student population increased 18.2% year-over-year, with Transportation and Skilled Trades starts up nearly 24% and Healthcare and Other Professions up 5%.

• 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 at quarter-end were $16.7 million, with total liquidity of $72 million and $5 million in debt.

Outlook and guidance

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

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

• Capital expenditure guidance unchanged at $70M–$75M, with about half expected in Q2 and 65% allocated to growth initiatives.

• 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.