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 [20] - Net income surged over 70% to $12.7 million, equating to $0.40 per diluted share, while adjusted net income rose to $15.8 million, or $0.50 per diluted share [24] - Adjusted EBITDA increased by 51.2% to $29.1 million, with an EBITDA margin expanding over 400 basis points to 20.4% [24] Business Line Data and Key Metrics Changes - Student starts grew by 15.7% in Q4, marking 13 consecutive quarters of growth, with transportation and skilled trades accounting for 80% of the student population and generating a 23.4% increase [9][22] - Healthcare and other professions, representing about 20% of the population, saw a 2% decline in starts, attributed to the exit from the culinary program and a pause in nursing enrollments [22][41] Market Data and Key Metrics Changes - The company is expanding its presence in Texas, with a new campus in Houston, and anticipates significant job creation in skilled trades in the region [11][12] - The demand for skilled trades training is increasing as employer needs outpace supply, with a growing public interest in alternatives to traditional four-year college education [7][8] 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 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trends for 2026, projecting revenue could approach $600 million, with adjusted EBITDA expected to grow by approximately 30% [17][30] - The company is optimistic about the demand for skilled trades and the effectiveness of its hybrid teaching model, which combines hands-on learning with online instruction [15][18] Other Important Information - The company has made significant strides in reducing bad debt levels, which, along with operational efficiencies, is expected to enhance the student experience and profitability [17] - Lincoln's graduation rate declined to 67.5%, while the placement rate increased to 82.8% [67] Q&A Session Summary Question: Demand for high school initiatives - Management noted a shift in high school receptiveness to skilled trades, with expectations for growth in high school student enrollment over the next few years [38] Question: Performance in healthcare and other professions - Management indicated that healthcare sector growth is expected to resume with the re-enrollment of nursing students, despite previous declines due to program exits [41][42] Question: 2026 guidance assumptions - Management discussed the balance of organic growth and new campuses contributing to the 2026 guidance, emphasizing the importance of existing programs [48][52] Question: CapEx and expansion opportunities - Management confirmed that the East Point campus expansion is on track, with potential for similar expansions at other campuses based on market demand [55][57] Question: Graduation and placement rates - Management provided metrics indicating a graduation rate of 67.5% and a placement rate of 82.8%, with expectations for improvement in high school initiatives [67][68]

Financial Data and Key Metrics Changes - In Q4 2025, Lincoln Educational Services achieved revenue growth of $25.2 million, or 21.4%, reaching $142.9 million [20] - Adjusted EBITDA increased by 51.2% to $29.1 million, with an EBITDA margin expanding more than 400 basis points to 20.4% [24] - Net income rose over 70% to $12.7 million, or $0.40 per diluted share [24] - For the full year 2025, revenue grew 19.7% to $518.2 million, driven by a 17.9% growth in average student population [25] Business Line Data and Key Metrics Changes - Transportation and skilled trades, representing about 80% of the student population, generated start growth of 23.4%, with strong organic growth of approximately 7.5% [22] - Healthcare and other professions, accounting for about 20% of the population, saw a decline in starts by 2% due to strategic exits from less profitable programs [22][42] Market Data and Key Metrics Changes - The company reported a 15.7% growth in student starts during Q4 2025, marking 13 consecutive quarters of growth [9] - The average student population grew by 17%, with a year-end population of approximately 17,000 students, representing over 2,200 more students than the prior year [21] Company Strategy and Development Direction - Lincoln Tech is focusing on expanding its network of schools and replicating in-demand programs at existing campuses to meet the growing demand for skilled trades [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 [12][13] - The company is investing in high school initiatives to increase student recruitment, aiming to grow the percentage of students coming from high schools [38][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth trends, projecting revenue could approach $600 million for 2026 [17] - The company is optimistic about the demand for skilled trades training, driven by employer needs and the public's questioning of traditional four-year college education [7] - Management noted that the outlook for 2026 is robust, with expectations for continued growth in student starts and profitability [18][33] Other Important Information - The company completed the most ambitious expansion in its recent history in 2025, including relocating campuses and launching new programs [10][11] - Capital expenditures for 2025 totaled $88 million, with approximately 70% related to growth initiatives [25] Q&A Session Summary Question: Demand for high school initiatives - Management noted that they are investing more in recruiting high school students due to increased receptiveness from schools and parents [38] Question: Performance of healthcare and other professions - Management indicated that healthcare sector growth is expected to resume with the re-enrollment of nursing students at Paramus [41] Question: 2026 guidance assumptions - Management expects continued organic growth and contributions from new campuses, with a focus on maintaining profitability through operational efficiencies [49][52] Question: Expansion opportunities - Management confirmed that they are exploring additional space in existing campuses to accommodate growth and new programs [55] Question: Graduation and placement rates - The graduation rate declined to 67.5%, while the placement rate increased to 82.8% [67]