Core Insights - The Zacks Schools industry is experiencing a rebound driven by increased demand for career-focused programs in healthcare, skilled trades, cybersecurity, and IT, supported by a labor market that values job-ready skills and government initiatives promoting non-degree pathways [1][2] - Digital innovation is a key differentiator, with institutions investing in adaptive learning tools and scalable online platforms to enhance engagement and support flexible learning for working adults [1][8] - The sector is undergoing consolidation as larger players acquire smaller institutions to broaden offerings and improve scale, with recent legislative changes like "Workforce Pell" expanding market opportunities for accredited programs [6][12] Industry Overview - The Zacks Schools industry includes for-profit education companies offering undergraduate, graduate, and specialized programs in various fields such as finance, healthcare, and technology [3] - The industry is focused on providing career-oriented programs that align with labor market needs, particularly in high-demand areas like nursing and cybersecurity [3][5] Trends Influencing Growth - There is a rising demand for workforce-oriented programs, particularly among adult learners and career switchers, as the labor market increasingly values job-ready skills over traditional degrees [4] - The healthcare sector is facing a significant shortage of skilled professionals, prompting educational institutions to design rigorous programs that meet workforce needs [5] - Digital transformation is driving interest in IT boot camps and tech-aligned certifications, where for-profit providers have established a scalable presence [4] Financial Performance and Market Position - The Zacks Schools industry has lagged the broader Zacks Consumer Discretionary sector but has outperformed the S&P 500 Composite over the past year, with a collective gain of 20.6% [16] - The industry's forward 12-month price-to-earnings ratio is currently at 15.32X, lower than the S&P 500's 22.76X, indicating potential value opportunities [19] Company Highlights - Grand Canyon Education has seen a 10% increase in total online enrollment and a 42.1% stock surge over the past year, with earnings for 2025 expected to grow by 12.8% [25] - Laureate Education's stock has rallied 76.6% over the past year, with a projected earnings growth of 28.2% for 2025 [28] - Stride has experienced a 107.8% stock increase, with fiscal 2026 earnings expected to grow by 5.2% [32] - Lincoln Educational Services has surged 59.5% in stock price, with a projected earnings growth of 19.6% for 2025 [34] - Perdoceo Education's stock has risen 44.7%, with earnings for 2025 expected to grow by 10% [39]

Core Insights - Lincoln Educational Services Corporation is experiencing strong demand for its programs, leading to significant revenue growth and increased student enrollment [2][3] - The company's growth strategy, including new campus developments and program replication initiatives, is expected to drive future growth [2] - Lincoln operates 22 campuses across 12 states, focusing on skilled trades, automotive, health sciences, and information technology [3] Company Overview - Lincoln Educational Services Corporation has been a leader in specialized technical training for over 75 years, addressing America's skills gap [3] - The company was incorporated in New Jersey in 2003 and has a history dating back to 1946 with the opening of its first campus [3] Upcoming Events - The company will participate in several investor conferences in the coming weeks, including the Midwest IDEAS Conference on August 27 and the B. Riley Securities Consumer & TMT Conference on September 10 [5]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Lincoln Educational Services Corporation (LINC) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - The historical EPS growth rate for Lincoln Educational Services is 1.8%, but projected EPS growth for this year is expected to be 19.6%, surpassing the industry average of 15.2% [5]. Group 2: Cash Flow Growth - Lincoln Educational Services has a year-over-year cash flow growth of 41%, significantly higher than the industry average of 8% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 22.9%, compared to the industry average of 10.5% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Lincoln Educational Services have been revised upward, with the Zacks Consensus Estimate increasing by 4.9% over the past month [9]. Group 4: Overall Assessment - Lincoln Educational Services holds a Zacks Rank of 2 (Buy) and a Growth Score of A, indicating its potential as a strong growth investment [10][11].

Core Viewpoint - Lincoln Educational Services Corporation (LINC) has experienced significant selling pressure, resulting in a 16.5% stock price decline over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) for LINC is currently at 29.79, indicating that the stock is in oversold territory and may be poised for a rebound as selling pressure exhausts [5] - RSI is a momentum oscillator that helps identify overbought or oversold conditions, with readings below 30 typically signaling an oversold stock [2][3] Group 2: Fundamental Analysis - There has been a consensus among sell-side analysts to raise earnings estimates for LINC, with a 4.9% increase in the consensus EPS estimate over the last 30 days, suggesting potential price appreciation [7] - LINC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]

Core Viewpoint - Lincoln Educational Services (NASDAQ: LINC) has experienced a 15% decline in stock price recently, yet it remains the largest holding in the author's portfolio, indicating a strong belief in the company's long-term value despite short-term volatility [1]. Company Summary - The company has been a focus of investment for several years, reflecting a commitment to its potential for value over growth [1]. - The author has a beneficial long position in LINC shares, indicating confidence in the company's future performance [2]. Industry Context - The author has a background in investment, having witnessed significant market events such as the dot-com bubble, which may provide insights into the current market dynamics affecting companies like LINC [1].

Group 1 - Lincoln Educational Services Corporation (LINC) reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, and showing an increase from $0.06 per share a year ago, representing an earnings surprise of +125.00% [1] - The company posted revenues of $116.47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.99%, and an increase from $102.91 million year-over-year [2] - Lincoln Educational Services has outperformed the S&P 500, with shares increasing about 50.1% since the beginning of the year compared to the S&P 500's gain of 8.6% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $129.27 million, and for the current fiscal year, it is $0.72 on revenues of $490.47 million [7] - The Zacks Industry Rank indicates that the Schools industry is currently in the top 12% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for June 30, 2025, reflect increased revenue, a shift to net income, asset growth driven by property investments, and a decrease in cash due to substantial capital expenditures and new long-term debt [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets grew to $447.3 million, primarily from property and equipment, while cash decreased and liabilities rose due to new long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $16,701 | $59,273 | | Total current assets | $79,629 | $111,252 | | Property, Equipment and Facilities, net | $149,142 | $103,533 | | Total Assets | $447,321 | $436,556 | | **Liabilities & Equity** | | | | Total current liabilities | $88,252 | $90,212 | | Long-term debt | $13,000 | $0 | | Total liabilities | $266,643 | $258,292 | | Total stockholders' equity | $180,678 | $178,264 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw a turnaround to $1.6 million net income on 13.2% revenue growth, with H1 2025 net income reaching $3.5 million on 13.4% revenue growth Q2 2025 vs Q2 2024 Performance (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $116,474 | $102,914 | | Operating Income (Loss) | $2,878 | $(1,116) | | Net Income (Loss) | $1,554 | $(682) | | Diluted EPS | $0.05 | $(0.02) | H1 2025 vs H1 2024 Performance (in thousands, except per share) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | $233,980 | $206,281 | | Operating Income (Loss) | $6,292 | $(1,575) | | Net Income (Loss) | $3,499 | $(896) | | Diluted EPS | $0.11 | $(0.03) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw $8.1 million cash used in operations, $45.8 million in investing activities driven by capital expenditures, and $11.3 million from financing, resulting in a $42.6 million net cash decrease Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,079) | $(6,599) | | Net cash used in investing activities | $(45,772) | $(3,007) | | Net cash provided by (used in) financing activities | $11,279 | $(3,676) | | **Net Decrease in Cash** | **$(42,572)** | **$(13,282)** | - Capital expenditures significantly increased to **$46.3 million** in H1 2025 from $12.7 million in H1 2024, reflecting investments in campus growth initiatives[23](index=23&type=chunk)[159](index=159&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business segments, accounting policies, and financial components, including a new credit facility, share repurchase program, and the absence of active transitional campuses - The company operates **21 campuses** in **12 states** and is expanding with two new campuses planned for Houston, TX (H2 2025) and Hicksville, NY (end of 2026)[26](index=26&type=chunk) - The business is organized into two segments: Campus Operations (continuing campuses) and Transitional (closed/sold campuses); as of June 30, 2025, no campuses were in the Transitional segment following the sale of the Summerlin campus on January 1, 2025[29](index=29&type=chunk)[84](index=84&type=chunk) - On March 11, 2025, the company amended its credit facility, increasing the principal amount from **$40.0 million to $60.0 million** and extending the maturity to March 7, 2028; as of June 30, 2025, **$13.0 million** was outstanding[65](index=65&type=chunk)[67](index=67&type=chunk) - The company's share repurchase program was extended through May 24, 2026, with approximately **$29.7 million** remaining for repurchases; no shares were repurchased in H1 2025[78](index=78&type=chunk)[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Strong H1 2025 performance, driven by student growth and operational efficiency, is supported by a growth strategy involving new campuses and program expansion, though liquidity is impacted by capital expenditures and new regulatory changes [Business Strategy](index=26&type=section&id=Business%20Strategy) The business strategy focuses on geographic expansion, program replication, operational efficiency, facility utilization, and enhancing the hybrid teaching platform Planned Campus Openings and Relocations | Campus Location | Type | Status | Opening Date | | :--- | :--- | :--- | :--- | | East Point, GA | New Campus | Opened | March 2024 | | Nashville, TN | Campus Relocation | Opened | March 2025 | | Levittown, PA | Campus Relocation | Opened | August 2025 | | Houston, TX | New Campus | In Progress | Second half of 2025 | | Hicksville, NY | New Campus | In Progress | By the end of 2026 | - Strategic priorities include expanding the program portfolio with in-demand offerings, improving margins by centralizing operations, and completing the implementation of the Lincoln 10.0 hybrid teaching platform by year-end[116](index=116&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) H1 2025 revenue grew 13.4% to $234.0 million, driven by a 14.5% student population increase, leading to a significant operating income improvement to $6.3 million due to better margins Six Months Ended June 30, 2025 vs 2024 Key Metrics | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue (millions) | $234.0 | $206.3 | 13.4% | | Average student population | 15,742 | 13,745 | 14.5% | | Total new student starts | 10,531 | 8,920 | 18.1% | | Operating Income (Loss) (millions) | $6.3 | $(1.6) | 499.5% | - The Campus Operations segment saw an **80.1% increase in operating income to $41.0 million** for H1 2025, driven by a **15.5% revenue increase** from a **17.4% rise in average student population**[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Marketing efficiency improved, with cost per start declining **17.3%** in H1 2025 compared to the prior-year period[143](index=143&type=chunk) - Corporate expenses increased by **$11.2 million to $34.7 million** in H1 2025, driven by workforce expansion, higher medical claims, and increased performance-based incentive compensation[152](index=152&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity, primarily from Title IV aid, decreased due to $45.8 million in capital expenditures for campus expansion, necessitating a $13.0 million draw on the expanded credit facility - Cash and cash equivalents decreased to **$16.7 million** as of June 30, 2025, from $67.0 million as of June 30, 2024, mainly due to increased capital expenditures[153](index=153&type=chunk) - Capital expenditures for H1 2025 were **$46.3 million**, a substantial increase from $12.7 million in H1 2024, funding the relocation of two campuses and the buildout of two new campuses[159](index=159&type=chunk) - The company's credit facility was increased to **$60.0 million** and extended to 2028, providing financial flexibility for growth; **$13.0 million** was outstanding as of June 30, 2025[166](index=166&type=chunk)[168](index=168&type=chunk) [Regulatory Updates](index=35&type=section&id=Regulatory%20Updates) New DOE rulemaking and the OBBB Act, effective July 1, 2026, introduce changes to Title IV loan limits and accountability metrics, requiring company evaluation of potential impacts - The DOE is conducting negotiated rulemaking sessions which may lead to new regulations for Title IV programs[171](index=171&type=chunk)[172](index=172&type=chunk) - The OBBB Act, effective July 1, 2026, will introduce new Title IV loan limits and accountability metrics that could impact student enrollment and program eligibility[174](index=174&type=chunk)[179](index=179&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure were identified for the three months ended June 30, 2025 - No material changes in market risk exposure were identified for the quarter ended June 30, 2025[178](index=178&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures are effective as of June 30, 2025[180](index=180&type=chunk) - No material changes to internal control over financial reporting occurred during the most recently completed fiscal quarter[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) No material developments occurred in previously disclosed legal proceedings, and other routine legal matters are not expected to have a material adverse effect - No material developments have occurred in previously disclosed legal proceedings[183](index=183&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No new or additional material risk factors were identified for the quarter ended June 30, 2025, beyond those previously disclosed - No new or additional risk factors were identified for the quarter ended June 30, 2025[185](index=185&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The share repurchase program was extended to May 24, 2026, with $29.7 million remaining, and no shares were repurchased in Q2 2025 - The company did not repurchase any shares in Q2 2025; the share repurchase program was extended to May 24, 2026, with **$29.7 million** remaining authorized for repurchases[190](index=190&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO/CFO certifications, and iXBRL financial statements

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Lincoln Educational Services achieved significant financial and operational growth in Q2 2025, with revenue up 13.2% (15.1% excluding transitional business), adjusted EBITDA surging 68.4%, and a shift from net loss to net income, leading to an upgraded full-year 2025 outlook [Second Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operational%20Highlights) Lincoln Educational Services achieved significant financial and operational growth in Q2 2025, with revenue up 13.2% (15.1% excluding transitional business), adjusted EBITDA surging 68.4%, and a shift from net loss to net income, leading to an upgraded full-year 2025 outlook Second Quarter 2025 Financial Highlights (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | Change Rate | Notes | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $116.5 | $102.9 | +$13.6 | +13.2% | 15.1% growth excluding transitional business | | Adjusted EBITDA | $10.5 | $6.2 | +$4.3 | +68.4% | | | Net Income | $1.6 | ($0.7) | +$2.3 | N/A | Shifted from net loss to net income | | Full Year 2025 Guidance | Upgraded | - | - | - | Based on strong first-half performance and favorable operating trends | Second Quarter 2025 Operational Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change Rate | Notes | | :--- | :--- | :--- | :--- | :--- | | Student Enrollments | 5,921* | 4,953 | +19.5% | 21.8% growth excluding transitional business | | Organic Student Enrollments | - | - | +18.6% | Excludes new programs in 2024/2025, discontinued programs, Paramus nursing program, East Point campus, and transitional business | | Ending Student Population | 17,120* | 14,481 | +18.2% | 20.6% growth excluding transitional business | [Campus Development Activity](index=1&type=section&id=Campus%20Development%20Activity) The company made significant progress in campus development, with the Nashville campus relocation completed and exceeding expectations, the Houston campus receiving regulatory approval and commencing enrollment, and the Levittown campus relocation completed with new programs planned, all key drivers of the company's growth strategy - Nashville, TN campus relocation completed in March, with student enrollments and revenue exceeding expectations, and two new programs planned for October[5](index=5&type=chunk) - Houston, TX campus received regulatory approval in June, with student enrollments underway and classes expected to begin in early Q4[5](index=5&type=chunk) - Levittown, PA campus relocation completed, with existing automotive students transferred to the new site in August, and HVAC, electrical, and welding programs launching in September[5](index=5&type=chunk) [CEO Commentary and Strategic Outlook](index=2&type=section&id=CEO%20Commentary%20and%20Strategic%20Outlook) CEO Scott Shaw emphasized the company's sustained operational and financial growth momentum in Q2, with significant increases in student enrollments and revenue, leading to an upgraded full-year outlook, driven by demand for high-value vocational training, effective strategy execution, successful Lincoln 10.0 hybrid learning, and improved marketing efficiency - The company achieved nearly **22% student enrollment growth** and over **15% campus operations revenue growth** in Q2, with consolidated adjusted EBITDA increasing by **68%**[6](index=6&type=chunk) - Growth drivers include sustained demand for high-value vocational training, effective execution of growth strategies, successful implementation of the Lincoln 10.0 hybrid learning model, and continuous improvement in marketing efficiency[7](index=7&type=chunk) - Campus development is a key growth driver, with the newly opened East Point campus and relocated Nashville campus exceeding expectations; the Houston campus has begun enrollments, the Hicksville, New York campus is expected to open in Q4 2026, and more new campus development projects are planned[8](index=8&type=chunk) - The company believes it is well-positioned to meet unmet demand in up to a dozen additional markets and expects to surpass its long-term 2027 targets of approximately **$550 million in revenue** and **$90 million in adjusted EBITDA** set last year[9](index=9&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's financial results for Q2 and the first six months of 2025, covering consolidated performance and segment-specific outcomes [Second Quarter 2025 Financial Results (Consolidated)](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results%20(Consolidated)) In Q2 2025, the company's consolidated revenue grew 13.2% to $116.5 million, primarily due to an increase in average student population, while educational services and facilities expenses as a percentage of revenue decreased, indicating improved operational efficiency Second Quarter 2025 Consolidated Financial Data (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | $116.5 | $102.9 | +$13.6 | +13.2% | | Educational Services and Facilities Expenses | $46.8 | $45.6 | +$1.2 | +2.7% | | Educational Services and Facilities Expenses as % of Revenue | 40.2% | 44.3% | -4.1% | - | | Selling, General and Administrative Expenses | $67.1 | $57.9 | +$9.2 | +15.9% | | Cost per Student Enrollment | - | - | - | -14.0% | - Revenue growth is primarily attributed to a **16.0% increase in average student population**, driven by higher beginning student population and strong student enrollment growth in Q1 and Q2 2025[10](index=10&type=chunk) - The increase in selling, general and administrative expenses was mainly driven by a **$7.6 million (36.5%) increase in administrative expenses**, due to higher medical claims, costs associated with expanding student population, and performance incentive compensation tied to improved financial results[11](index=11&type=chunk) [Second Quarter 2025 Segment Results](index=3&type=section&id=Second%20Quarter%202025%20Segment%20Results) In Q2 2025, the Campus Operations segment achieved significant growth in both revenue and adjusted EBITDA, while the Transitional segment no longer generated revenue or expenses due to campus sale, and Corporate and Other expenses increased to support student population growth and strategic initiatives [Campus Operations Segment](index=3&type=section&id=Campus%20Operations%20Segment) The Campus Operations segment demonstrated strong performance in Q2 2025, with revenue increasing by 15.1% to $116.5 million and adjusted EBITDA surging by 56.4% to $25.4 million Campus Operations Segment Q2 2025 Performance (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | $116.5 | $101.2 | +$15.2 | +15.1% | | Adjusted EBITDA | $25.4 | $16.3 | +$9.1 | +56.4% | [Transitional Segment](index=3&type=section&id=Transitional%20Segment) The Transitional segment had no business activity in Q2 2025, as its sole Summerlin, Las Vegas campus was sold on January 1, 2025, which had contributed $1.7 million in revenue and incurred $2.2 million in operating expenses in the prior year - The Summerlin, Las Vegas campus was sold on January 1, 2025, resulting in no campus classification for the Transitional segment in Q2 2025[13](index=13&type=chunk) Transitional Segment Q2 2024 Performance | Metric | Q2 2024 (Million USD) | | :--- | :--- | | Revenue | $1.7 | | Operating Expenses | $2.2 | [Corporate and Other](index=3&type=section&id=Corporate%20and%20Other) Corporate and Other expenses increased to $16.4 million in Q2 2025 from $10.7 million in the prior year, primarily due to staff expansion supporting the growing student population and growth initiatives, along with higher medical claims and performance incentive compensation Corporate and Other Expenses (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | | :--- | :--- | :--- | :--- | | Corporate and Other Expenses | $16.4 | $10.7 | +$5.7 | - The increase in expenses was primarily driven by higher salaries and benefits due to staff expansion, increased medical claims, and performance incentive compensation tied to improved financial results[14](index=14&type=chunk) [Six Months Ended June 30, 2025 Financial Results (Consolidated)](index=3&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Financial%20Results%20(Consolidated)) For the six months ended June 30, 2025, total revenue increased by 13.4% to $234.0 million, with double-digit growth in both student enrollments and ending student population, adjusted EBITDA surging 65.4%, and a shift from net loss to net income, demonstrating strong overall financial performance in the first half Six Months Ended June 30, 2025 Consolidated Financial Data (YoY) | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | $234.0 | $206.3 | +13.4% | | Student Enrollments | 10,531* | 8,920 | +18.1% | | Ending Student Population | 17,120* | 14,481 | +18.2% | | Adjusted EBITDA | $21.1 | $12.8 | +65.4% | | Net Income | $3.5 | ($0.9) | N/A | - Student enrollments (excluding transitional business) increased by **21.4%**, and ending student population (excluding transitional business) increased by **20.6%**[16](index=16&type=chunk) [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) The company provides its updated financial guidance for the full year 2025, reflecting confidence in future growth based on strong first-half performance and a positive outlook for the remainder of the year [Updated Financial Guidance](index=3&type=section&id=Updated%20Financial%20Guidance) Based on strong first-half 2025 performance and the outlook for the second half, the company has upgraded its full-year 2025 financial guidance for revenue, adjusted EBITDA, net income, capital expenditures, and student enrollment growth, reflecting confidence in future growth Full Year 2025 Financial Guidance Update | Metric | Original Guidance (Million USD) | Updated Guidance (Million USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $485 - $495 | $490 - $500 | Upgraded | | Adjusted EBITDA | $58 - $63 | $60 - $65 | Upgraded | | Net Income | $10 - $15 | $13 - $18 | Upgraded | | Capital Expenditures | $70 - $75 | $75 - $80 | Upgraded | | Student Enrollment Growth | 10% - 14% | 12% - 15% | Upgraded | [Guidance Exclusions and Adjustments](index=4&type=section&id=Guidance%20Exclusions%20and%20Adjustments) To provide a clearer view of performance, the company's guidance excludes non-cash stock-based compensation, one-time non-recurring items, pre-opening costs for new campuses, and net operating losses for up to four quarters post-opening or until profitability - Guidance excludes non-cash stock-based compensation and one-time non-recurring items[18](index=18&type=chunk) - New campus guidance excludes pre-opening costs and net operating losses for up to four quarters post-opening or until profitability[18](index=18&type=chunk) - Adjustments for relocated campuses (e.g., Nashville and Levittown) include pre-opening and relocation costs until the end of the quarter in which the relocation is completed[18](index=18&type=chunk) - Adjustments for program replication and expansion include net operating losses prior to program launch[18](index=18&type=chunk) [Operational Metrics and Student Data](index=11&type=section&id=Operational%20Metrics%20and%20Student%20Data) This section presents key operational metrics and student data, segmented by department and program, highlighting enrollment and population trends for Q2 and the first half of 2025 [Selected Operating Metrics by Segment](index=11&type=section&id=Selected%20Operating%20Metrics%20by%20Segment) In Q2 and the first half of 2025, the Campus Operations segment achieved significant growth in revenue, operating income, student enrollments, and total student population, while the Transitional segment had no operational activity due to its sale, and overall adjusted student enrollments and ending student population showed strong growth Q2 2025 Operating Metrics by Segment (YoY) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | **Revenue:** | | | | | | Campus Operations | $116,474 | $101,233 | +15.1% | - | | Transitional | $0 | $1,681 | -100.0% | - | | **Operating Income (Loss):** | | | | | | Campus Operations | $19,310 | $10,141 | +90.4% | - | | Transitional | $0 | ($509) | +100.0% | - | | Corporate | ($16,432) | ($10,748) | -52.9% | - | | **Enrollments:** | | | | | | Campus Operations | 3,157 | 4,863 | -35.1% | +21.8% | | Transitional | 0 | 90 | -100.0% | -100.0% | | **Ending Student Population:** | | | | | | Campus Operations | 14,356 | 14,198 | +1.1% | +20.6% | | Transitional | 0 | 283 | -100.0% | -100.0% | H1 2025 Operating Metrics by Segment (YoY) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | **Revenue:** | | | | | | Campus Operations | $233,980 | $202,555 | +15.5% | - | | Transitional | $0 | $3,726 | -100.0% | - | | **Operating Income (Loss):** | | | | | | Campus Operations | $40,982 | $22,750 | +80.1% | - | | Transitional | $0 | ($796) | +100.0% | - | | Corporate | ($34,690) | ($23,529) | -47.4% | - | | **Enrollments:** | | | | | | Campus Operations | 7,767 | 8,675 | -10.5% | +21.4% | | Transitional | 0 | 245 | -100.0% | -100.0% | | **Ending Student Population:** | | | | | | Campus Operations | 14,356 | 14,198 | +1.1% | +20.6% | | Transitional | 0 | 283 | -100.0% | -100.0% | [Student Population by Program (Campus Operations Segment)](index=13&type=section&id=Population%20by%20Program%20(Campus%20Operations%20Segment)) Within the Campus Operations segment, Transportation and Skilled Trades programs showed strong student enrollment and total student population growth in both Q2 and the first half of 2025, especially in adjusted data, while Healthcare and Other Professional programs experienced declines Q2 2025 Student Data by Program (YoY) | Metric | Q2 2025 | Q2 2024 | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | **Enrollments:** | | | | | | Transportation and Skilled Trades | 2,350 | 3,648 | -35.6% | +31.6% | | Healthcare and Other Professional | 807 | 1,215 | -33.6% | -7.9% | | **Average Student Population:** | | | | | | Transportation and Skilled Trades | 11,920 | 9,741 | +22.4% | +26.6% | | Healthcare and Other Professional | 3,634 | 3,751 | -3.1% | -1.8% | | **Ending Student Population:** | | | | | | Transportation and Skilled Trades | 11,050 | 10,482 | +5.4% | +28.8% | | Healthcare and Other Professional | 3,306 | 3,716 | -11.0% | -2.6% | H1 2025 Student Data by Program (YoY) | Metric | H1 2025 | H1 2024 | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | **Enrollments:** | | | | | | Transportation and Skilled Trades | 5,901 | 6,330 | -6.8% | +32.0% | | Healthcare and Other Professional | 1,866 | 2,345 | -20.4% | -7.1% | | **Average Student Population:** | | | | | | Transportation and Skilled Trades | 11,807 | 9,642 | +22.5% | +24.6% | | Healthcare and Other Professional | 3,704 | 3,759 | -1.5% | -0.8% | | **Ending Student Population:** | | | | | | Transportation and Skilled Trades | 11,050 | 10,482 | +5.4% | +28.8% | | Healthcare and Other Professional | 3,306 | 3,716 | -11.0% | -2.6% | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles the company's non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Total Liquidity, providing supplementary insights into business performance and financial health [Definitions of Non-GAAP Measures](index=8&type=section&id=Definitions%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, and Total Liquidity to assess business performance, strategic investment capacity, and ability to meet capital expenditure and debt service needs, complementing but not replacing GAAP financial statements - EBITDA is defined as income (loss) before net interest expense (interest income), provision (benefit) for income taxes, depreciation, and amortization[32](index=32&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation expense and adjustments for items not considered part of the company's normal recurring operations[32](index=32&type=chunk) - Adjusted Net Income is defined as net income adjusted for items not considered part of the company's normal recurring operations[32](index=32&type=chunk) - Total Liquidity is defined as the company's cash and cash equivalents and available borrowings under its credit facility[32](index=32&type=chunk) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) The company provides a reconciliation of net income to EBITDA and Adjusted EBITDA for Q2 and the first half of 2025, demonstrating significant Adjusted EBITDA growth by excluding non-recurring items such as interest, taxes, depreciation, amortization, stock-based compensation, new campus/relocation costs, program expansion, and loss on asset sales Q2 2025 Net Income to Adjusted EBITDA Reconciliation (Thousand USD) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $1,554 | ($682) | | EBITDA | $7,588 | $2,207 | | Stock-based compensation expense | $1,343 | $1,045 | | New Campus and Campus Relocation Costs | $1,342 | $2,029 | | Program Expansion | $238 | $365 | | Loss on Asset Sale | $0 | $594 | | **Adjusted EBITDA** | **$10,511** | **$6,240** | H1 2025 Net Income to Adjusted EBITDA Reconciliation (Thousand USD) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $3,499 | ($896) | | EBITDA | $14,764 | $4,713 | | Stock-based compensation expense | $2,548 | $2,103 | | New Campus and Campus Relocation Costs | $3,226 | $4,831 | | Program Expansion | $610 | $454 | | Loss on Asset Sale | $0 | $594 | | Severance and Other One-time Costs | $0 | $89 | | **Adjusted EBITDA** | **$21,148** | **$12,784** | [Reconciliation of Adjusted Net Income and Total Liquidity](index=11&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Total%20Liquidity) The company provides a reconciliation of Adjusted Net Income for Q2 and the first half of 2025, presenting a more comparable view of profitability by excluding non-recurring adjustments like new campus/relocation costs and program expansion, along with their income tax effects, and reports total liquidity of $63.7 million as of June 30, 2025 Q2 2025 Adjusted Net Income Reconciliation (Thousand USD) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $1,554 | ($682) | | New Campus and Campus Relocation Costs | $1,342 | $2,623 | | East Point, Georgia Depreciation | $0 | $371 | | Program Expansion | $238 | $365 | | Income Tax Impact | ($474) | ($1,008) | | **Adjusted Net Income (Loss)** | **$2,660** | **$1,669** | H1 2025 Adjusted Net Income Reconciliation (Thousand USD) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $3,499 | ($896) | | New Campus and Campus Relocation Costs | $3,226 | $5,425 | | Program Expansion | $610 | $454 | | East Point, Georgia Depreciation | $0 | $511 | | Severance and Other One-time Costs | $0 | $89 | | Income Tax Impact | ($1,152) | ($1,944) | | **Adjusted Net Income (Loss)** | **$6,183** | **$3,639** | Total Liquidity (As of June 30, 2025) | Metric | Amount (Thousand USD) | | :--- | :--- | | Cash and Cash Equivalents | $16,701 | | Credit Facility | $47,000 | | **Total Liquidity** | **$63,701** | [Reconciliation of 2025 Guidance](index=14&type=section&id=Reconciliation%20of%202025%20Guidance) The company provides a midpoint reconciliation of its 2025 guidance for net income to Adjusted EBITDA and Adjusted Net Income, with adjustments including interest, taxes, depreciation, amortization, new campus/relocation costs, program expansion, other one-time items, and stock-based compensation expenses, along with their tax impacts 2025 Guidance Midpoint Reconciliation (Thousand USD) | Metric | Adjusted EBITDA (Thousand USD) | Net Income (Thousand USD) | | :--- | :--- | :--- | | Net Income | $15,500 | $15,500 | | Interest Expense, Net | $3,200 | - | | Provision for Income Taxes | $6,500 | - | | Depreciation and Amortization | $20,800 | $400 | | EBITDA | $46,000 | - | | New Campus and Campus Relocation Costs | $7,500 | $7,500 | | Program Expansion | $2,100 | $2,100 | | Other One-time Items | $1,500 | $1,500 | | Stock-based compensation expense | $5,400 | - | | Tax Impact | - | ($3,500) | | **Total** | **$62,500** | **$23,500** | - New campus and campus relocation costs involve locations such as Nashville, Tennessee; Levittown, Pennsylvania; Houston, Texas; and Hicksville, New York[41](index=41&type=chunk) - New campus adjustments include pre-opening costs and net operating losses for up to four quarters post-opening or until profitability[41](index=41&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive income (loss), and cash flows, for Q2 and the first half of 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets increased to $447.3 million from December 31, 2024, with a decrease in cash and cash equivalents offset by increases in accounts receivable, inventory, and net property, plant, and equipment, while total liabilities and stockholders' equity also rose Condensed Consolidated Balance Sheets Key Data (Thousand USD) | Metric | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | **Assets:** | | | | Cash and Cash Equivalents | $16,701 | $59,273 | | Accounts Receivable, Net | $47,256 | $42,983 | | Inventory | $4,504 | $3,053 | | Property, Equipment and Facilities, Net | $149,142 | $103,533 | | Total Assets | $447,321 | $436,556 | | **Liabilities and Stockholders' Equity:** | | | | Unearned Tuition | $28,083 | $30,631 | | Long-term Debt | $13,000 | $0 | | Total Liabilities | $266,643 | $258,292 | | Total Stockholders' Equity | $180,678 | $178,264 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) In Q2 and the first half of 2025, the company reported increased revenue and a shift from net loss to net income compared to the prior year, with significant improvement in operating income, despite an increase in interest expense Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Key Data (Thousand USD) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $116,474 | $102,914 | $233,980 | $206,281 | | Operating Income (Loss) | $2,878 | ($1,116) | $6,292 | ($1,575) | | Interest Income | $11 | $638 | $125 | $1,336 | | Interest Expense | ($813) | ($667) | ($1,514) | ($1,234) | | Net Income (Loss) | $1,554 | ($682) | $3,499 | ($896) | | Basic Net Income (Loss) Per Share | $0.05 | ($0.02) | $0.11 | ($0.03) | | Diluted Net Income (Loss) Per Share | $0.05 | ($0.02) | $0.11 | ($0.03) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company experienced increased net cash used in operating activities and a significant rise in net cash used in investing activities, primarily due to higher capital expenditures, while net cash provided by financing activities turned positive, mainly from borrowings Condensed Consolidated Statements of Cash Flows Key Data (Thousand USD) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($8,079) | ($6,599) | | Net Cash Used in Investing Activities | ($45,772) | ($3,007) | | Net Cash Provided by (Used in) Financing Activities | $11,279 | ($3,676) | | Net Decrease in Cash and Cash Equivalents | ($42,572) | ($13,282) | | Cash and Cash Equivalents at End of Period | $16,701 | $66,987 | - Capital expenditures significantly increased from **$12.725 million** in H1 2024 to **$46.276 million** in H1 2025[29](index=29&type=chunk) - Net cash provided by financing activities turned positive, primarily due to **$25.0 million in proceeds from borrowings**[29](index=29&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) This section provides background on Lincoln Educational Services, outlines forward-looking statements, and details conference call and contact information [About Lincoln Educational Services Corporation](index=4&type=section&id=About%20Lincoln%20Educational%20Services%20Corporation) Lincoln Educational Services Corporation is a leading provider of career-oriented post-secondary education, dedicated to addressing America's skills gap by offering vocational programs in skilled trades, automotive, health sciences, and information technology across 21 campuses in 12 states since its founding in 1946 - The company is a provider of career-oriented post-secondary education, aiming to address America's skills gap[21](index=21&type=chunk) - It offers programs in four main areas of study: skilled trades, automotive, health sciences, and information technology[21](index=21&type=chunk) - Founded in 1946, it currently operates 21 campuses in 12 states under brands including Lincoln Technical Institute, Lincoln College of Technology, and Nashville Auto Diesel College[21](index=21&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements based on current information and management's good faith beliefs about future events, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, and the company explicitly disclaims any obligation to publicly revise or update these statements - Forward-looking statements are based on current information and management's good faith beliefs about future events but are subject to various risks and uncertainties[23](index=23&type=chunk) - Risk factors include, but are not limited to: impact of epidemics, failure to comply with regulatory frameworks, success of updating and expanding curricula, cybersecurity risks, changes in laws and regulations, 90/10 rule compliance, risks of new campus openings, industry competition, and macroeconomic conditions[23](index=23&type=chunk) - The company disclaims any obligation to publicly revise or update any forward-looking statements[23](index=23&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Lincoln Educational Services held a conference call on August 11, 2025, at 10:00 AM ET to discuss Q2 results, with investors able to access the webcast via the investor overview section of the company's website or register for dial-in numbers and a personalized PIN - The conference call was held on **August 11, 2025, at 10:00 AM ET**[19](index=19&type=chunk) - The webcast is accessible via the investor overview section of the company's website at http://www.lincolntech.edu[19](index=19&type=chunk) - Participants need to register 15 minutes in advance to receive dial-in numbers and a personalized PIN[19](index=19&type=chunk) [Contact Information](index=14&type=section&id=Contact%20Information) Investors and media can contact Brian Meyers, CFO of Lincoln Educational Services, or investor relations and media representatives from EVC Group LLC for further information - CFO: Brian Meyers, 973-736-9340[42](index=42&type=chunk) - Investor Relations: Michael Polyviou (EVC Group LLC), mpolyviou@evcgroup.com, 732-933-2755[42](index=42&type=chunk) - Media Relations: Tom Gibson (EVC Group LLC), 201-476-0322[42](index=42&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $116.5 million, a 15.1% increase year-over-year, driven by strong student start growth [22][30] - Adjusted EBITDA grew by 56% to $10.5 million, up from $6.7 million, with total consolidated adjusted EBITDA increasing by 68% [25][30] - Net income for the quarter was $1.6 million, or $0.05 per diluted share, with adjusted net income at $2.7 million, or $0.09 per diluted share [26] Business Line Data and Key Metrics Changes - Student starts for the quarter were approximately 5,900, representing a 22% growth over the prior year [23] - Transportation skilled trades programs saw a 32% increase in starts, while healthcare programs experienced an 8% decline due to a pause in nursing program enrollment [23][24] - The company achieved an 18.3% growth rate in student starts at existing campuses, driven by effective marketing initiatives [12] Market Data and Key Metrics Changes - The company is focused on training students for careers in fields with a chronic shortage of skilled employees, such as electrical, HVAC, automotive, welding, and nursing [8][9] - The demand for skilled trade training is expected to increase due to macroeconomic factors, including federal government actions impacting student loans [7] Company Strategy and Development Direction - The company plans to open two new campuses each year and aims for $25 million to $30 million in annualized revenue and $7 million to $10 million of EBITDA by the fourth year of operation for each new campus [14] - Corporate partnerships and program replications at existing campuses are key components of the growth strategy [15] - The company is investing in improving its nursing programs and seeking degree-granting status in multiple states to enhance its healthcare offerings [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for skilled trades, citing significant workforce needs in various sectors [18] - The company raised its full-year guidance, expecting revenue between $490 million and $500 million and adjusted EBITDA between $60 million and $65 million [30] Other Important Information - The company is experiencing a temporary slowdown in Title IV drawdowns due to increased verification selections by the Department of Education, which is expected to impact cash collections in the second half of the year [27][28] - Capital expenditures for the first half of the year were approximately $58 million, with an increase in full-year CapEx guidance to $75 million to $80 million [29][30] Q&A Session Summary Question: What are the expectations for student starts in Q3 and Q4? - Management indicated that Q3 starts are expected to be relatively flat due to high comparison from the previous year, while Q4 is anticipated to align with growth trends seen in the first half of the year [33][36] Question: What impact does the One Big Beautiful Bill have on the company? - Management noted that while the bill introduces annual and lifetime borrowing limits on Parent PLUS loans, it is not expected to have a material financial impact on the company [38][39] Question: Can you comment on the healthcare program's performance? - Management acknowledged that the healthcare segment is not as profitable as skilled trades and is undergoing restructuring to improve its performance, with expectations for growth in 2026 and 2027 [48][52] Question: What is the company's strategy for military and veteran outreach? - Management stated that military students currently represent less than 10% of total enrollment, and the company plans to re-enroll veterans once degree-granting status is achieved [56][59] Question: What programs are driving strong student starts? - The company highlighted that all four programs at the East Point campus (auto, HVAC, electrical, and welding) are performing well, contributing to strong enrollment growth [66][67]

Financial Performance - Revenue for Q2 2025 reached $116.5 million, an increase of 13.2% compared to Q2 2024, with a 15.1% increase in campus operations revenue [7][10] - Adjusted EBITDA for the quarter was $10.5 million, reflecting a significant increase of 68.4% year-over-year [7][14] - Net income for Q2 2025 was $1.6 million, a turnaround from a net loss of $0.7 million in the previous year [7][14] Student Metrics - Student starts increased by 19.5% overall, or 21.8% when excluding the Transitional segment [7][14] - The quarter-end student population rose by 18.2%, or 20.6% excluding the Transitional segment [7][14] Campus Development - The company completed the relocation of its Nashville campus and the transfer of the Philadelphia automotive campus to Levittown, with new programs set to launch [6][8] - The East Point campus and the relocated Nashville campus are outperforming expectations, contributing to growth [6][8] - Future campus openings are planned, including a new campus in Hicksville, New York, expected to open in Q4 2026 [6][8] Growth Strategy - The growth is attributed to rising demand for career-focused training, effective execution of the growth strategy, and improvements in marketing efficiency [5][9] - The company is exploring opportunities for new campuses in additional markets to meet the growing demand for high-value programs [6][9] Guidance Update - Based on strong performance in the first half of 2025, the company has raised its full-year guidance for revenue to between $490 million and $500 million, and adjusted EBITDA to between $60 million and $65 million [15][16] - The updated guidance reflects an increase in expected student starts to between 12% and 15% for the year [15][16]