Lincoln Educational Services(US:LINC)2026-02-23 19:12Financial 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]