PresentationScott ShawPresident, CEO & Director Good morning. Excited to have everyone here at our Nashville Auto Diesel College for our second Investor Day. We're excited as Nashville is a very impressive college, and it's state-of-the-art and part of the state of-the-art in this is this little fancy screen here. So as you can see, we have an oh, they turned the lights off in the auto shop. They're supposed to have that on. But any event, you can see that what we've built here is a state-of-the-art facilit ...

Vice President of Marketing Scott Minder said the company’s marketing strategy is data-driven and designed to engage students early in the decision process through to enrollment. He described key channels including paid search (high-intent keywords), social and video platforms (YouTube, Instagram, TikTok), retargeting campaigns, and outbound communications through CRM tools, including email and SMS.The company also reiterated its emphasis on measurable outcomes. Management cited quality metrics used by accr ...

Group 1 - Rosenblatt raised its price target on Lincoln Educational Services to $45 from $39, maintaining a Buy rating due to strong near-term momentum and favorable long-term industry dynamics [1] - Insights from the company's analyst day highlighted current performance strength and long-term growth potential, supported by structural tailwinds [1] - The company is expected to achieve approximately 10% revenue growth alongside margin expansion, driven by demographic trends such as the aging workforce and increasing interest in trade school education [2] Group 2 - The raised valuation reflects Lincoln's continued execution and significant earnings expansion implied by management's long-term targets [2] - The $45 price target is based on a 15x enterprise value to estimated 2027 EBITDA multiple, representing a premium to peers due to strong demand for skilled trades [3] - The company's consistent execution track record supports the premium valuation [3]

Company Provides Five Year Outlook for Financial Performance Live Video Webcast of Investor Day Presentations Begins at 11:00 a.m. ET PARSIPPANY, N.J., March 19, 2026 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) is hosting its 2026 Investor Day at 11:00am ET today at its Nashville, TN campus, and via a live video webcast. Scott Shaw, CEO and President and other members of senior management will review the Company’s strategic priorities, growth initiatives and financial perform ...

Company Overview - Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education, offering programs in skilled trades, automotive technology, health sciences, and information technology since 1946 [3]. - The company operates 22 campuses across 12 states under three brands: Lincoln College of Technology, Lincoln Technical Institute, and Nashville Auto Diesel College [4]. Recent Developments - The company will participate in the Roth Annual Growth Conference from March 22-24, 2026, where executives will engage with growth-oriented institutional investors to discuss recent successes and future growth initiatives [1]. - The President and CEO, Scott Shaw, highlighted that the company's recent operating and financial success is driven by high demand for skilled workers, which exceeds supply [2]. Strategic Focus - Lincoln aims to maximize opportunities in the current favorable environment to ensure graduates find rewarding, long-term careers in fields such as HVAC, electrical, automotive technician, welding, and healthcare [2]. - The company is focused on educating investors about its growth prospects for the current year and beyond, aligning with the interests of attendees at the conference [2].

Core Insights - Lincoln Educational Services Corporation will host an Investor Day conference on March 19, 2026, at its new Nashville campus, focusing on strategic priorities and growth initiatives through 2030 [1] Group 1: Event Details - The Investor Day will feature presentations starting at 10:00 am CT (11:00 am ET) and will include a question-and-answer session with executive leaders [1] - Participants must register in advance to access the video webcast, with a replay available after the event [2] Group 2: Company Overview - Lincoln Educational Services Corporation is a leading provider of career-oriented post-secondary education, offering programs in skilled trades, automotive technology, health sciences, and information technology [3] - The company operates 22 campuses across 12 states under three brands: Lincoln College of Technology, Lincoln Technical Institute, and Nashville Auto Diesel College [4]

Enrollment and Revenue - As of December 31, 2025, the company had 17,046 students enrolled at 22 campuses, with an average enrollment of 16,622 students for the fiscal year, and annual revenue of $518.2 million, representing a 17.8% increase over the prior fiscal year[21]. - Skilled trades programs accounted for 52% of total average student enrollment, with program lengths of 32 to 88 weeks and tuition rates ranging from $21,000 to $36,000[29]. - Automotive programs represented 26% of total average student enrollment, with program lengths of 52 to 94 weeks and tuition rates ranging from $27,000 to $44,000[30]. - Health sciences programs comprised 22% of total average student enrollment, with program lengths of 27 to 104 weeks and tuition rates ranging from $15,000 to $34,000[31]. - Approximately 23% of students were recruited directly out of high school during the fiscal year ended December 31, 2025[36]. Campus and Program Development - The company plans to open new campuses in Hicksville, New York, and Rowlett, Texas, with programs expected to begin by the end of 2026 and in the first quarter of 2027, respectively[28]. - The company is transitioning to a hybrid teaching platform, Lincoln 10.0, expected to be finalized by the end of 2026 for most programs, enhancing flexibility and scalability[28]. - The company maintains strong relationships with local employers to ensure training aligns with job market needs, facilitating high job placement rates for graduates[40]. Marketing and Recruitment - The company utilizes a fully integrated digital marketing approach, driving the majority of new student leads and enrollments through various online channels[33]. - Referrals from current students and high school counselors historically represent about 11% of new student starts, highlighting the importance of community relationships[34]. Workforce and Employee Development - As of December 31, 2025, the company had approximately 2,590 employees, reflecting a 5.0% increase in workforce from the previous fiscal year[43]. - The average student to teacher ratio was approximately 17.7 to 1 during the fiscal year ended December 31, 2025[45]. - The company recognizes the importance of employee knowledge and skill development, providing position-based training and online access to various programs for growth[50]. - The company employs fully integrated recruiting software to manage hiring processes and enhance productivity across its campuses and corporate functions[48]. - Approximately 270 employees are covered by collective bargaining agreements that will expire between 2026 and 2030, with renegotiations expected in 2026[51]. Financial Overview - Approximately 84.7% of the company's revenues for the fiscal year ended December 31, 2025, were derived from Title IV Programs[59]. - The company has posted surety bonds totaling approximately $20.0 million on behalf of its schools and education representatives with multiple states[61]. - The company is committed to sustainability and regularly reviews its environmental impact, adhering to various environmental laws and regulations[55]. - In the fiscal year ended December 31, 2025, the company derived approximately 4.8% of its revenues from veterans' benefits programs, including the Post-9/11 GI Bill and Veteran Readiness and Employment services[74]. - The company must comply with certain requirements established by the VA to continue participation in veterans' benefits programs, including reporting on enrollment status and maintaining student records[74]. Regulatory Compliance and Challenges - The DOE has issued new regulations that could increase the likelihood of the company being placed on provisional certification status, which may lead to additional reporting requirements and potential loss of Title IV eligibility[84]. - The company is subject to detailed oversight and review by the DOE, which periodically revises its regulations and changes interpretations of existing laws[85]. - The expiration dates for the current Title IV program participation agreements for the company's institutions are December 31, 2028, for Iselin, NJ, and New Britain, CT, and June 30, 2029, for Indianapolis, IN[79]. - The company must periodically apply to the DOE for continued certification to participate in Title IV Programs, and changes in ownership or substantive changes may trigger a review[79]. - The VA imposes limitations on the percentage of students per program who can have tuition covered by veterans' benefits, which could affect the company's programs if not compliant[76]. - Federal budgetary shortfalls and constraints could result in a decrease in the level of federal financial aid available to the company's students[73]. - The company is required to comply with the "Principles of Excellence" to continue recruitment activities at military installations[77]. - Changes in applicable statutes, regulations, or appropriations could impact the company's eligibility or funding under veterans' benefits programs[75]. - The Department of Education (DOE) announced a reduction in force impacting nearly 50% of its workforce, which may lead to delays in Title IV funding approvals for schools[89]. - A potential government shutdown could disrupt the ability to draw down Title IV federal student aid, adversely affecting schools and students[90]. - A significant percentage of the company's revenues are derived from Title IV Programs, making it vulnerable to any disruptions or reductions in funding[91]. Financial Regulations and Liabilities - The OBBB Act, effective July 1, 2026, introduces new limits on Title IV loans and accountability metrics for educational programs, which could impact enrollment and revenue[94]. - The DOE's new gainful employment regulations, effective July 1, 2024, will evaluate educational programs based on debt-to-earnings rates, risking Title IV eligibility if benchmarks are not met[96][97]. - The proposed regulations under the OBBB Act could lead to loss of Direct Loan program access if programs fail to achieve a positive earnings premium for two out of three years[99]. - The DOE's Borrower Defense to Repayment regulations, delayed until July 1, 2035, could impact the company's financial liabilities related to discharged loans[103]. - Approximately 3,000 borrower defense claims have been received by the DOE concerning the company's schools, requiring a fact-finding process[104]. - The company may face liability for approximately $1.4 million in discharged loans for 280 borrowers from its Massachusetts schools[105]. - The current 90/10 Rule requires institutions to limit Title IV and federal funds to no more than 90% of total revenue, with the company deriving approximately 4.8% of revenues from federal student aid programs in 2025[111]. - For the fiscal year ended December 31, 2025, the institutions' 90/10 Rule percentages ranged from approximately 82.9% to 88.0%[113]. - The company is making operational changes to maintain 90/10 Rule percentages below the 90% threshold, but lacks significant control over Title IV Program funds availability[114]. - The cohort default rates for the 2022 federal fiscal year were zero, with no institutions exceeding the 30% threshold for the 2020 or 2021 fiscal years[117]. - The company's composite score for the 2025 fiscal year is calculated to be 2.0, indicating financial responsibility[121]. - The Department of Education (DOE) published final regulations on October 31, 2023, that modify triggering events for financial responsibility assessments, effective July 1, 2024[122]. - The final regulations increase the likelihood of the DOE imposing financial protection requirements on the company and its institutions[125]. Proposed Changes and Future Implications - Proposed regulations may impose a $20,000 annual limit and a $65,000 aggregate limit on PLUS loans for parents, potentially impacting student enrollment[132]. - A lifetime loan limit of $257,500 for all borrowers (excluding Federal Direct PLUS loans) is proposed, with implications for enrollment and revenues[133]. - The company is evaluating the impact of new Title IV loan limits on prospective student enrollment and financing options[132]. - The DOE's negotiated rulemaking process aims to amend regulations regarding the return of unearned Title IV funds, with final regulations expected by July 1, 2026[130]. - The AHEAD Committee proposed regulations for the Workforce Pell program, allowing short-term workforce programs to disburse Pell grants if they meet specific requirements, expected to take effect on July 1, 2026[134]. - The DOE plans to initiate a negotiated rulemaking process to amend existing regulations for accrediting agencies, which could impact institutional eligibility[135]. - New regulations could lead to additional reporting requirements and potential liabilities, affecting the company's operations and results[136]. - The DOE's regulations prohibit substantial misrepresentation, which could result in sanctions or loss of Title IV eligibility if violated[137]. - A change of control occurs when a company acquires a school eligible for Title IV Programs, leading to a suspension of eligibility until recertification is completed[141]. - The DOE published final regulations effective July 1, 2023, expanding requirements for school acquisitions, potentially complicating future acquisitions[141]. - Institutions may add new educational programs without DOE approval unless provisionally certified, impacting expansion plans[147]. - Closed school loan discharges may be granted by the DOE, which could lead to financial liabilities for the company[149]. - The DOE assesses administrative capability under various standards, with failure to meet them risking ineligibility for Title IV Programs[150]. - Final regulations published in 2023 expand administrative capability requirements, effective July 1, 2024, including financial aid counseling and compliance with gainful employment requirements[151]. - The company is subject to significant regulatory scrutiny, including audits and compliance reviews by federal and state agencies, which could adversely affect its operations and financial condition[154]. - Non-compliance with Title IV Program requirements could lead to liabilities or sanctions, including loss of eligibility to participate in federal financial assistance programs[156]. Financial Position - As of December 31, 2025, the company had no outstanding borrowings, indicating a strong liquidity position[347]. - The company recorded interest expense of $0.8 million for the year ended December 31, 2025, primarily related to borrowings and fees on the unused portion of its credit facility[348]. - The company has invested cash reserves into money market funds, expecting minimal financial exposure to interest rate fluctuations[346]. - The company offers extended financing programs to students, which helps bridge the gap between financial aid and education costs[158]. - Regulatory changes have required the company to alter its compensation practices, impacting employee productivity and retention[153]. - The company is under scrutiny from various federal and state agencies regarding consumer protection laws, which could affect its recruiting and marketing practices[157]. - The company must submit annual compliance audit reports to the DOE, which could result in adverse actions if findings are repeated[154]. - Significant violations of Title IV Program requirements could lead to civil or criminal penalties, affecting the institution's ability to operate[156].

Financial Performance - Lincoln Educational Services Corporation (LINC) reported earnings per share (EPS) of $0.50, surpassing the estimated $0.42, marking a positive surprise of 19.05% [1][6] - The company achieved revenue of approximately $142.9 million, exceeding the anticipated $128.5 million [1][6] Consistent Earnings Surprises - LINC has consistently surpassed earnings expectations, with a previous quarter EPS of $0.20 against an anticipated $0.12, resulting in a 66.67% surprise [2] - Over the past four quarters, the company has consistently outperformed consensus EPS estimates, showcasing strong operational capabilities and strategic execution [2] Revenue Growth - For the quarter ending December 2025, LINC's revenue of $142.9 million exceeded the Zacks Consensus Estimate by 7.74% [3] - This revenue figure represents a significant increase from $119.37 million in the same period the previous year, highlighting the company's robust business model and market position [3] Financial Metrics - LINC has a price-to-earnings (P/E) ratio of approximately 72, indicating investor confidence in its earnings potential [4] - The price-to-sales ratio stands at about 2.1, while the enterprise value to sales ratio is approximately 2.47, reflecting the company's valuation in relation to its sales and earnings [4] Financial Challenges - The enterprise value to operating cash flow ratio is around 26.45, suggesting a need for efficient cash flow management [5] - The current ratio is about 0.81, indicating potential challenges in covering short-term liabilities with short-term assets [5] - The company's debt-to-equity ratio of approximately 1.05 shows a balanced approach to financing its assets [5]

Financial Performance - Revenue for Q4 2025 reached $142.9 million, an increase of $23.5 million or 19.7% year-over-year; 21.4% growth excluding the Transitional segment[8] - Net income for Q4 2025 was $12.7 million, or $0.40 per share, compared to $6.8 million, or $0.22 per share in the previous year, representing an 86.8% increase[8] - Adjusted EBITDA for Q4 2025 increased by $9.9 million, or 51.2%, to $29.1 million[8] - Total revenue for the full year 2025 was $518.2 million, a $78.2 million increase or 17.8% year-over-year[8] - The company achieved a net income of $20.0 million for the full year 2025, a 102.2% increase from $9.9 million in the prior year[8] - Basic net income per common share for 2025 was $0.65, compared to $0.32 in 2024, marking a 103.1% increase[25] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $67,134,000, up from $42,312,000 in 2024, reflecting a growth of 58.8%[31] Revenue Guidance - The company forecasts revenue for FY 2026 to be between $580 million and $590 million, representing a year-over-year growth of approximately 13%[15] - Adjusted EBITDA guidance for FY 2026 is projected to be between $72 million and $76 million, indicating a growth of 30%[15] - Net income for 2026 is projected at $21,500[35] Operational Growth - Student starts grew by 15.7% in Q4 2025, marking the thirteenth consecutive quarter of growth[6] - Total starts for the three months ended December 31, 2025, increased by 15.7% to 3,930 compared to 3,397 in 2024[34] - Total starts for the twelve months ended December 31, 2025, increased by 15.2% to 20,906 compared to 18,153 in 2024[34] - The number of starts in Campus Operations for the three months ended December 31, 2025, was 3,930, representing a 15.7% increase from 3,397 in 2024[32] - Transportation and Skilled Trades starts rose by 23.4% to 2,920, while Healthcare and Other Professions starts decreased by 2.0% to 1,010[34] Asset and Liability Management - Total assets increased to $493.164 million in 2025, up from $436.556 million in 2024, reflecting a growth of 12.9%[24] - Total liabilities rose to $293.476 million in 2025, up from $258.292 million in 2024, indicating a 13.6% increase[24] - Total current liabilities increased to $100.709 million in 2025 from $90.212 million in 2024, a rise of 11.0%[24] - Cash and cash equivalents decreased to $28.519 million at the end of 2025 from $59.273 million at the end of 2024, a decline of 51.9%[26] Future Plans and Events - The company plans to launch new campuses in Hicksville, New York, and Rowlett, Texas, with enrollment expected to begin in Q4 2025 and Q1 2026, respectively[7] - Lincoln Educational Services will host an Investor Day on March 19, 2026, to discuss strategies and five-year financial targets[19] - The company will review and potentially revise its 2026 guidance as actual results are reported throughout the year[34] Operational Metrics - Operating income for Q4 2025 was $17.736 million, a 62.5% increase from $10.929 million in Q4 2024[25] - Operating income for Campus Operations for the twelve months ended December 31, 2025, was $98,698,000, a significant increase of 55.3% from $63,558,000 in 2024[32] - The average population in Campus Operations increased to 18,243 for the three months ended December 31, 2025, a 17.0% rise from 15,586 in 2024[32] - Average population for the total increased by 17.0% to 18,243 from 15,586 in the previous year[34] - The average population for Transportation and Skilled Trades increased by 25.5% to 12,984[34] Credit Losses - The company reported a provision for credit losses of $58.085 million for the year ended December 31, 2025[26] - The loss on the sale of Summerlin, Las Vegas, was recorded as $1,178,000 in the twelve months ended December 31, 2024[31] Stock-Based Compensation - Stock-based compensation expense is projected at $6,200 for 2026[35]

Core Insights - Lincoln Educational Services is experiencing strong enrollment growth and expansion in skilled trades education, with a focus on HVAC, electrical, automotive, and welding programs [3][4][20] Enrollment and Campus Expansion - The company opened a new campus in Houston, Texas, with classes starting in late September, and early enrollments are exceeding expectations [1] - Lincoln relocated its Nashville campus and introduced new programs, planning to host an Investor Day on March 19 [2] - The company aims to initiate two new campus projects annually, with new campuses planned in Hicksville, New York, and Rowlett, Texas, targeting openings in late 2026 and early 2027 respectively [4][16] Financial Performance - For Q4, revenue increased by $25.2 million, or 21.4%, to $142.9 million, driven by a 17% increase in average student population [9] - Adjusted EBITDA rose 51.2% to $29.1 million, with a margin expansion of over 400 basis points to 20.4% [13] - For the full year, revenue increased by 19.7% to $518.2 million, with total starts rising to approximately 21,000, up 15.2% [14] Student Outcomes and Market Trends - Student placement outcomes for graduates in skilled trades have reached recent highs, driven by demand exceeding supply [3] - The company is benefiting from a growing interest in skilled trades as alternatives to traditional four-year degrees become more appealing [3] Program Mix and Strategic Adjustments - Transportation and skilled trades, which make up about 80% of the student population, saw start growth of 23.4% in the quarter [7] - The company is exiting programs that do not yield strong returns, such as culinary and cosmetology, while focusing on programs that meet gainful employment thresholds [8] Future Guidance - For 2026, the company projects revenue between $580 million and $590 million, with adjusted EBITDA expected to be between $72 million and $76 million [16] - The company anticipates student start growth of 8% to 13% and plans capital expenditures of $70 million to $75 million [16]