Lincoln Educational Services (LINC) Q3 2025 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in revenue, adjusted EBITDA, and student population for Q3 2025, marking twelve consecutive quarters of student start growth.

• Q3 2025 revenue reached $141.4M, adjusted EBITDA rose 65.1% to $16.9M, and net income was $3.8M.

• Student starts increased 6% year-over-year to approximately 6,400–6,445 in Q3 2025.

• Continued campus expansion with new locations in Houston, TX and Rowlett, TX, and relocations in Nashville, TN, Levittown, PA, and Philadelphia.

• Raised full-year 2025 financial guidance and 2027 targets above previous objectives.

Financial highlights

• Q3 2025 revenue was $141.4M, up 23.6–25.4% year-over-year; adjusted EBITDA grew 65.1% to $16.9M.

• Net income for Q3 2025 was $3.8M ($0.12/share); adjusted net income was $6.3M ($0.20/share), up 54.9%.

• Nine-month revenue was $375.4M (+17.1% YoY); nine-month net income was $7.3M, up 138.7%.

• Cash and cash equivalents at quarter-end were $13.5M; total liquidity including credit facility was $65.5M.

• Capital expenditures for nine months were $68.1M, mainly for campus expansion.

Outlook and guidance

• FY 2025 guidance: revenue $505M–$510M, adjusted EBITDA $65M–$67M, net income $17M–$19M, student starts up 15–16%, CapEx $75M–$80M.

• 2027 targets raised to over $600M in revenue and $90M+ in adjusted EBITDA.

• New Rowlett, TX campus scheduled to open Q1 2027; continued focus on geographic expansion and program replication.

• Implementation of hybrid teaching platform expected by year-end.

• Management expects to fund future capital expenditures with cash from operations and cash on hand.