While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, ...

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]

Core Insights - Lincoln Educational Services Corporation reported strong financial performance for Q1 2025, with a 13.7% increase in revenue to $117.5 million and a 63% rise in adjusted EBITDA [5][7][8] - The company is raising its full-year guidance based on positive momentum and strong first-quarter results, projecting revenue between $485 million and $495 million [5][13] - The company continues to expand its campus operations and program offerings, with new campuses planned in Houston, Texas, and Hicksville, New York [5][13] Financial Performance - Revenue increased by 13.7% to $117.5 million compared to Q1 2024, marking the sixth consecutive quarter of double-digit growth [7][8] - Adjusted EBITDA rose to $10.6 million from $6.5 million in the prior year [7][8] - Net income improved to $1.9 million from a net loss of $0.2 million in the previous year [7][23] Operational Highlights - Student starts grew by 16.2%, with a 20.9% increase when excluding the Transitional segment [7][8] - The quarter-end student population increased by 15.2%, or 18.3% excluding the Transitional segment [7][8] - The company successfully relocated its Nashville campus and is on track to complete the Levittown campus relocation in the second half of the year [5][7] Segment Results - Campus Operations segment revenue increased by 16.0% to $117.5 million, with adjusted EBITDA rising by 50% to $27.5 million [10][32] - The Transitional segment was eliminated following the sale of the Summerlin campus, which had generated $2.0 million in revenue in the prior year [11][32] Guidance and Future Outlook - The company raised its financial guidance for FY 2025, projecting revenue of $485 million to $495 million and adjusted EBITDA of $58 million to $63 million [13][36] - The guidance reflects expectations for continued growth in student starts, now projected to increase by 10% to 14% [13][36] - Lincoln aims to achieve approximately $550 million in revenue and $90 million in adjusted EBITDA by 2027 [5][13]

Core Insights - The article compares two education stocks, Perdoceo Education (PRDO) and Lincoln Educational Services Corporation (LINC), to determine which offers better value for investors [1]. Valuation Metrics - PRDO has a forward P/E ratio of 12.39, significantly lower than LINC's forward P/E of 28.87, indicating that PRDO may be undervalued [5]. - The PEG ratio for PRDO is 0.83, while LINC's PEG ratio is 1.92, suggesting that PRDO has a more favorable earnings growth outlook relative to its price [5]. - PRDO's P/B ratio is 2.08 compared to LINC's P/B of 3.22, further supporting the notion that PRDO is more attractively priced [6]. Analyst Outlook - PRDO currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while LINC has a Zacks Rank of 4 (Sell), reflecting a less favorable outlook [3]. - The improving earnings outlook for PRDO positions it as a superior value option in the current market [7].

Company Overview - Lincoln Educational Services Corporation (LINC) is expected to report a year-over-year decline in earnings of 33.3%, with quarterly earnings projected at $0.04 per share, while revenues are anticipated to increase by 10.1% to $113.84 million [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for May 12, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2][3]. - The consensus EPS estimate has been revised down by 38.24% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Most Accurate Estimate for Lincoln Educational Services is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -225%, which suggests a challenging outlook for beating the consensus EPS estimate [11][10]. - The company currently holds a Zacks Rank of 4, further complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Lincoln Educational Services had an earnings surprise of +3.33%, having posted earnings of $0.31 per share against an expectation of $0.30 [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [13]. Industry Comparison - In comparison, Universal Technical Institute (UTI), another player in the Zacks Schools industry, is expected to report earnings of $0.12 per share, reflecting a year-over-year decline of 14.3%, with revenues projected at $197.04 million, up 7% [17]. - UTI has an Earnings ESP of 6.12% and a Zacks Rank of 3, indicating a higher likelihood of beating the consensus EPS estimate [18].