Lincoln Educational Services (LINC) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 22.4% year-over-year to $142.6 million, with adjusted EBITDA up 42.4% to $12.7 million and net income at $1.95 million, reflecting strong operational performance and a 14.5% increase in average student population.

• Diluted EPS improved to $0.06 from $0.05, and student population grew 10% year-over-year, with strong retention offsetting softer start growth.

• Full-year guidance reiterated for revenue, adjusted EBITDA, net income, EPS, and student start growth; capital expenditure guidance raised to $95M–$100M to support campus expansion.

• Expansion continued with new campuses in Houston, Hicksville, Rowlett, Suitland, and Melrose Park, and a new lease in Maryland.

• Doubled revolving credit facility to $125M, supporting liquidity and growth initiatives.

Financial highlights

• Q2 2026 revenue: $142.6 million (+22.4% YoY); adjusted EBITDA: $12.7 million (+42.4% YoY); net income: $1.95 million (+25% YoY); diluted EPS: $0.06.

• Year-to-date revenue: $286.5 million (+22.5% YoY); adjusted EBITDA: $28.2 million (+62.9% YoY); net income: $6.3 million (+80.1% YoY).

• Cash flow from operations for H1 2026 was $26.6 million, up nearly $35 million year-over-year.

• Ended Q2 with $44.2 million in cash and $99 million available under the credit facility; $26 million debt outstanding.

• Operating income for Q2: $3.3 million (+15.1% YoY); for six months: $9.7 million (+54.5% YoY).

Outlook and guidance

• 2026 guidance: revenue $590M–$600M, adjusted EBITDA $76M–$80M, net income $23M–$26M, diluted EPS $0.74–$0.83, student start growth 10%–14%.

• Capital expenditures guidance increased to $95M–$100M, with ~75% allocated to growth initiatives.

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

• Hybrid teaching platform rollout expected to be completed by end of 2026 for most programs.

• Confident in robust Q3 start growth, with high school starts expected up over 15%.