Core Viewpoint - Lincoln Educational Services Corporation (LINC) shows a significantly improving earnings outlook, making it a potentially solid investment choice as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $0.06 per share, unchanged from the previous year, with a 5.88% increase in the Zacks Consensus Estimate over the last 30 days [6][8]. - The full-year earnings estimate is projected at $0.72 per share, representing a 28.57% increase from the prior year [7]. Zacks Rank and Performance - Lincoln Educational Services has received a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [9]. Stock Performance - The stock has gained 20.9% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10].

Group 1: Company Overview - Lincoln Educational Services Corporation (LINC) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - The company has seen significant price increases, with shares up 14.38% over the past week and 20.87% over the past month, outperforming the Zacks Schools industry [6][7] Group 2: Performance Metrics - Over the past quarter, LINC shares have increased by 15.63%, and over the last year, they have gained 73.11%, while the S&P 500 has moved -3.37% and 13.7% respectively [7] - The average 20-day trading volume for LINC is 259,715 shares, indicating a bullish trend as the stock is rising with above-average volume [8] Group 3: Earnings Outlook - In the past two months, one earnings estimate for LINC has moved higher, increasing the consensus estimate from $0.67 to $0.72 for the full year [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10] Group 4: Investment Consideration - Given the positive momentum and earnings outlook, LINC is positioned as a promising investment opportunity for those seeking stocks set to soar in the near term [12]

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Core Insights - Lincoln Educational Services Corporation (LINC) reported strong first-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, marking the sixth consecutive quarter of double-digit growth [1][3] Financial Performance - Adjusted earnings per share were 11 cents, surpassing the Zacks Consensus Estimate of 4 cents by 175% and increasing 83.3% year-over-year [3] - Total revenues reached $117.5 million, exceeding the consensus estimate of $114 million by 3.2% and rising 13.7% from the previous year [3] - Adjusted EBITDA was $10.6 million, reflecting a year-over-year increase of 62.5% [5] Student Enrollment - Student starts (excluding the Transitional segment) grew by 20.9% to 4,610, while the quarter-end student population rose 18.3% to 15,904 compared to the previous year [4] - The average student population increased to 15,469 from 13,311 a year ago [4] Expenses and Cash Flow - Selling, general and administrative expenses increased by 10.6% year-over-year to $66.9 million, primarily due to costs related to new programs and campuses [4] - Cash and cash equivalents as of March 31, 2025, were $28.7 million, down from $59.3 million as of December 31, 2024 [7] Guidance and Projections - LINC raised its 2025 revenue guidance to between $485 million and $495 million, up from the previous range of $480-$490 million [8] - Adjusted EBITDA is now expected to be in the range of $58-$63 million, an increase from the earlier expectation of $55-$60 million [8] - Student starts growth is projected in the 10-14% range, up from the previous expectation of 8-12% [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from______ to______ Commission File Number 000-51371 LINCOLN EDUCATIONAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) New Jersey 57- ...

Revenue Growth - Revenue increased by 13.7% to $117.5 million, marking the sixth consecutive quarter of double-digit growth[5] - Revenue for Q1 2025 was $117,506,000, an increase of 13.3% compared to $103,366,000 in Q1 2024[22] - Total revenue for Q1 2025 reached $117,506, an increase of 13.7% from $103,366 in Q1 2024[30] - Campus Operations segment generated revenue of $117,506 in Q1 2025, a 16.0% increase from $101,321 in Q1 2024[30] Profitability - Net income improved to $1.9 million, compared to a net loss of $0.2 million in the previous year[5] - Net income for Q1 2025 was $1,944,000, compared to a net loss of $214,000 in Q1 2024, marking a turnaround in profitability[22] - Basic and diluted net income per share for Q1 2025 was $0.06, compared to a loss of $0.01 per share in Q1 2024[22] - Operating income for Q1 2025 was $3,413,000, a significant improvement from an operating loss of $458,000 in Q1 2024[22] - Operating income for Campus Operations improved to $21,671 in Q1 2025, a 71.9% increase from $12,609 in Q1 2024[30] Adjusted EBITDA - Adjusted EBITDA rose to $10.6 million, compared to $6.5 million in the prior year, reflecting a 63% increase[5] - Adjusted EBITDA for Q1 2025 was $10,636, up from $6,545 in Q1 2024, indicating a growth of 62.5%[29] - Adjusted EBITDA guidance for 2025 was increased to between $58 million and $63 million[13] - The company projects adjusted EBITDA for 2025 to be in the range of $58,000 to $63,000, with a midpoint of $60,500[34] Student Enrollment - Student starts grew by 16.2%, with a 20.9% increase excluding the Transitional segment[5] - The number of starts in Campus Operations increased by 20.9% to 4,610 in Q1 2025, compared to 3,812 in Q1 2024[32] - The average population in Campus Operations grew by 16.2% to 15,469 in Q1 2025, up from 13,311 in Q1 2024[32] Liquidity and Financial Position - Total liquidity reached nearly $90 million, with no debt outstanding as of March 31, 2025[5] - Total liquidity as of March 31, 2025, was $88,655, consisting of cash and cash equivalents of $28,655 and a credit facility of $60,000[29] - Cash used in operating activities for Q1 2025 was $(8,378,000), an improvement from $(14,934,000) in Q1 2024[24] - Total costs and expenses for Q1 2025 were $114,093,000, up from $103,824,000 in Q1 2024, reflecting a 9.5% increase[22] Capital Expenditures and Investments - Capital expenditures for Q1 2025 were $(19,889,000), significantly higher than $(1,684,000) in Q1 2024, indicating increased investment in growth[24] - New campus and campus relocation costs for 2025 are estimated at $8,900, which includes pre-opening costs and net operating losses[35] - The Nashville campus relocation was completed, enhancing operational efficiency and supporting the launch of two new programs[5] - The company plans to open a new campus in Houston, Texas by year-end 2025 and in Hicksville, New York by the end of 2026[7] Marketing Efficiency - Marketing cost per student start was approximately 20% lower compared to the prior year, indicating improved efficiency[10] Credit Losses - The company reported a provision for credit losses of $11,835,000 in Q1 2025, slightly down from $12,213,000 in Q1 2024[24] Guidance and Projections - The company raised its full-year 2025 revenue guidance to between $485 million and $495 million[13] - Adjusted EBITDA and other non-GAAP measures are used by the company to assess performance and make strategic decisions[26][27] - Total liquidity, defined as cash and cash equivalents plus available borrowings, is a key measure for the company's ability to meet capital expenditures and debt service[28]

Financial Data and Key Metrics Changes - Revenue increased by 16% to $117.5 million, marking the eighth consecutive quarter of double-digit revenue growth [24] - Adjusted EBITDA grew by 56% to $10.6 million, with an adjusted EBITDA margin rising to 9% from 7% in the prior year [31] - Net income was $1.9 million or $0.06 per diluted share, while adjusted net income was $3.5 million or $0.11 per diluted share [32] Business Line Data and Key Metrics Changes - Student starts at 21 campuses grew by 20% over the prior period, continuing a trend of double-digit growth for six consecutive quarters [11] - Transportation and Skilled Trades programs saw a robust 32.4% increase in stock growth, while healthcare and other professions experienced a 6.3% decline due to program optimizations [25][26] Market Data and Key Metrics Changes - The company is successfully meeting the growing demand for educational alternatives to traditional four-year colleges, with a focus on closing the workforce skills gap [12][19] - The East Point campus in Atlanta opened in March 2024 and contributed over $4 million in revenue during Q1 2025, becoming profitable ahead of schedule [12][101] Company Strategy and Development Direction - The company is focused on expanding its network of schools by replicating in-demand programs and opening new campuses in underserved markets [17] - The Lincoln ten point zero hybrid teaching model has provided increased flexibility for students, contributing to higher graduation rates and attracting corporate partners [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately $550 million in organically generated revenue and $90 million in adjusted EBITDA by 2027 [9] - The company anticipates continued strong demand for skilled trades training, driven by initiatives in manufacturing, electrical grid rebuilding, and workforce needs [18][85] Other Important Information - Capital expenditures for 2025 are expected to range between $70 million and $75 million, supporting new campuses and program expansions [28][35] - The company has amended its credit facility to increase financial flexibility, ending the quarter with approximately $90 million in total liquidity and no debt outstanding [28] Q&A Session Summary Question: Can you provide additional color on the strong demand and increased marketing efficiencies? - Management noted that improved marketing efficiencies and increased awareness have driven strong demand, with expectations for savings to continue throughout the year [39] Question: What is the update on regulatory changes and their impact? - Management indicated that they are in a good position with regulatory changes, as the administration supports more people entering trades, and they are maintaining close contact with the Department of Education [45][46] Question: Are all new programs approved by the Department of Education? - Management confirmed that all new programs are approved except for the welding program in Rhode Island, which is pending [51] Question: When will the healthcare starts begin to grow again? - Management expects healthcare starts to be in growth mode beginning in Q4 2025, following the suspension of certain programs [53] Question: How much of the healthcare start weakness is attributed to specific program suspensions? - Management indicated that outside of the suspended programs, healthcare starts grew by almost 6% [61] Question: What is the expected cadence of capital expenditures throughout the year? - Management forecasted Q2 to be one of the heaviest quarters for capital expenditures, slightly exceeding Q1 [97]

Financial Data and Key Metrics Changes - Revenue increased by 16% to $117.5 million, marking the eighth consecutive quarter of double-digit revenue growth [23][30] - Adjusted EBITDA grew by 56% to $10.6 million, with an adjusted EBITDA margin rising to 9% from 7% in the prior year [30][32] - Net income was $1.9 million or $0.06 per diluted share, while adjusted net income was $3.5 million or $0.11 per diluted share [31][32] Business Line Data and Key Metrics Changes - Student starts at 21 campuses grew by 20% over the prior period, continuing a trend of double-digit growth for six consecutive quarters [9][30] - Transportation and Skilled Trades programs saw a robust 32.4% increase in stock growth, while healthcare and other professions experienced a decline of 6.3% due to program optimizations [24][25] Market Data and Key Metrics Changes - The company is successfully meeting the growing demand for educational alternatives to traditional four-year colleges, with a focus on closing the workforce skills gap [10][19] - The East Point campus in Atlanta opened in March 2024 and contributed over $4 million in revenue during Q1 2025, becoming profitable ahead of schedule [10][100] Company Strategy and Development Direction - The company is focused on expanding its network of schools by replicating in-demand programs and opening new campuses in underserved markets [16][19] - The Lincoln ten point zero hybrid teaching model has provided increased flexibility for students, contributing to higher graduation rates and attracting corporate partners [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately $550 million in organically generated revenue and $90 million in adjusted EBITDA by 2027 [7][32] - The company anticipates continued strong demand for skilled trades training, driven by initiatives in manufacturing, electrical utilities, and military needs [17][19] Other Important Information - Capital expenditures for 2025 are expected to range between $70 million and $75 million, supporting new campuses and program expansions [27][35] - The company has amended its credit facility to increase financial flexibility, ending the quarter with approximately $90 million in total liquidity and no debt outstanding [27][28] Q&A Session Summary Question: Can you provide additional color on the strong demand and increased marketing efficiencies? - Management noted that improved marketing efficiencies were due to vendor collaboration and increased awareness, leading to lower overall costs [38][39] Question: What is the update on regulatory changes and their impact? - Management indicated that the administration is supportive of trade education, and while there are changes at the Department of Education, they maintain strong contacts to ensure timely approvals [46][47] Question: Are all new programs approved by the Department of Education? - Management confirmed that all new programs are approved except for the welding program in Rhode Island, which is pending [52] Question: How much of the healthcare start contraction is due to specific program suspensions? - Management stated that outside of the suspended programs, healthcare starts grew by approximately 6% [61] Question: What is the expected cadence of capital expenditures throughout the year? - Management indicated that Q2 is expected to be one of the heaviest quarters for capital expenditures, slightly exceeding Q1 [96]

Core Viewpoint - Lincoln Educational Services Corporation (LINC) reported quarterly earnings of $0.11 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 175% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Lincoln Educational Services posted revenues of $117.51 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.22%, compared to $103.37 million in the same quarter last year [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Group 2: Stock Performance - Lincoln Educational Services shares have increased approximately 32.2% since the beginning of the year, while the S&P 500 has declined by 3.8% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $113.37 million, and for the current fiscal year, it is $0.68 on revenues of $485.47 million [7] - The estimate revisions trend for Lincoln Educational Services is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 4: Industry Context - The Schools industry, to which Lincoln Educational Services belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

PARSIPPANY, N.J., May 12, 2025 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the first quarter ended March 31, 2025, as well as recent business developments. First Quarter 2025 Financial and Operational Highlights Conference Call Today at 10 a.m. Eastern Standard Time A complete listing of Lincoln's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release. Recent Developments ...