Financial Data and Key Metrics Changes - In Q4 2025, Lincoln Educational Services reported a revenue increase of $25.2 million, or 21.4%, reaching $142.9 million [19] - Adjusted EBITDA rose by 51.2% to $29.1 million, with an EBITDA margin expanding over 400 basis points to 20.4% [23] - Net income increased over 70% to $12.7 million, or $0.40 per diluted share [23] Business Line Data and Key Metrics Changes - Student starts grew by 15.7% in Q4 2025, marking 13 consecutive quarters of growth [8] - Transportation and skilled trades, which represent about 80% of the student population, saw a 23.4% increase in starts, while healthcare and other professions declined by 2% [21] - The company exited its culinary program in December 2024, which contributed to the decline in healthcare starts [21] Market Data and Key Metrics Changes - The average student population grew by 17% year-over-year, with a year-end population of approximately 17,000 students [20] - The company anticipates significant job creation in Texas, with 240,000 new jobs in skilled trades expected over the next six years [10] Company Strategy and Development Direction - Lincoln is focusing on expanding its network of schools and replicating in-demand programs at existing campuses to address the skills gap in the U.S. [18] - The company plans to initiate two new campus projects each year, with new campuses in Hicksville, New York, and Rowlett, Texas, expected to open in 2026 [11] - The Lincoln 10.0 hybrid teaching platform is enhancing instructional efficiency and student flexibility, contributing to growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trends for 2026, projecting revenue could approach $600 million [17] - The company is experiencing strong demand for skilled trades training, driven by employer needs and a shift in public perception regarding traditional college education [5] - Management highlighted the importance of corporate partnerships for profitability and student hiring opportunities [16] Other Important Information - The company completed its most ambitious expansion in recent history during 2025, including relocating campuses and launching new programs [9] - Capital expenditures for 2025 totaled $88 million, with 70% allocated to growth initiatives [24] Q&A Session Summary Question: Can you elaborate on the increased investment in high school initiatives? - Management noted that about 20% of students come from high schools, and there is a growing receptiveness from schools to allow trade program discussions [37] Question: What is the current status of healthcare and other professions? - Management indicated that healthcare starts are expected to grow in 2026, particularly with the resumption of nursing enrollments at Paramus [40] Question: How is the 2026 guidance structured? - Management explained that organic growth and new campuses are both contributing factors, with expectations for continued strong performance [48] Question: What are the metrics for graduation and placement rates for 2025? - Graduation rate declined to 67.5%, while placement rate increased to 82.8% [67]