Lincoln Educational Services — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue increased 12.6% to $159.2 million from $141.4 million in the prior year period.
• Year-to-date 2026 revenue increased 18.7% to $445.7 million from $375.4 million.
• Q3 2026 Adjusted EBITDA increased 30.8% to $17.4 million from $13.3 million.
• Year-to-date 2026 Adjusted EBITDA increased 49.0% to $45.6 million from $30.6 million.
• Q3 2026 net income increased 24.1% to $4.7 million from $3.8 million.
• Year-to-date 2026 net income increased 50.9% to $11.0 million from $7.3 million.
• Q3 2026 diluted earnings per share increased to $0.15 from $0.12.
• Year-to-date 2026 diluted earnings per share increased to $0.35 from $0.23.
• Q3 2026 operating income increased 22.5% to $7.7 million from $6.3 million.
• Year-to-date 2026 operating income increased 38.5% to $17.4 million from $12.6 million.
• Q3 2026 net cash from operating activities improved to $34.9 million from $23.9 million.
• Year-to-date 2026 net cash provided by operating activities increased to $61.5 million from $15.8 million.
• Total liquidity as of September 30, 2026, was approximately $136 million, consisting of $20.6 million in cash and cash equivalents and $115.0 million available under the revolving credit facility.
• Q3 2026 educational services and facilities expense increased 17.2% to $67.1 million; SG&A expense increased 8.4% to $84.3 million.
• Year-to-date 2026 educational services and facilities expense increased 22.2% to $185.1 million; SG&A expense increased 14.8% to $243.1 million.
• Q3 2026 student starts grew 14.2% to 7,362; year-to-date starts increased 11.0% to 18,840.
• Q3 2026 ending student population rose 11.4% to 20,325; year-to-date average student population rose 14.4% to 18,404.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance raised to $600.0 million – $605.0 million.
• Full-year 2026 student start growth guidance narrowed to 10% – 12%.
• Full-year 2026 Adjusted EBITDA guidance reiterated at $76.0 million – $80.0 million.
• Full-year 2026 net income guidance reiterated at $23.0 million – $26.0 million.
• Full-year 2026 diluted EPS guidance reiterated at $0.74 – $0.83.
• Full-year 2026 capital expenditures guidance reiterated at $95.0 million – $100.0 million.
• Management cites long-term 2030 objectives of $850 million in revenue and $150 million in EBITDA.
• Guidance for Adjusted EBITDA includes approximately $10.0 million in losses related to new campus openings and strategic growth initiatives.

Business Segments and Product Lines:

• Q3 2026 student starts in Transportation and Skilled Trades programs were 6,120; Healthcare and Other Professions starts were 1,242.
• Year-to-date 2026 student starts in Transportation and Skilled Trades programs were 15,361; Healthcare and Other Professions starts were 3,479.
• Q3 2026 average population in Transportation and Skilled Trades was 15,101; Healthcare and Other Professions was 3,483.
• Year-to-date 2026 average population in Transportation and Skilled Trades was 14,837; Healthcare and Other Professions was 3,567.
• New leases signed for a 90,000 square-foot campus in Tempe, Arizona, expected to open in Q1 2028.
• New lease signed for a 36,000 square-foot focused-program facility in Suitland, Maryland, expected to open in Q4 2027.
• New Hicksville, New York campus (second in state) expected to begin classes in November 2026.
• Construction of Rowlett, Texas campus continues.
• WorkforceLinc Division expanded collaboration with CMC Corporation and entered a new partnership with ABB to train students for electrical systems and technology careers.

Market and Competitive Landscape:

• Management notes robust demand for high return-on-investment training and education programs.
• Demand for skilled workers in automotive, skilled trades, and healthcare fields remains far higher than supply.
• Company continues to examine underserved markets for full-scale and focused-program campus models.
• Company operates 23 campuses in 12 states under Lincoln Technical Institute, Lincoln College of Technology, and Nashville Auto Diesel College brands.

Risks and Challenges:

• Press release includes standard forward-looking statement risks regarding regulatory compliance (90/10 rule, cohort default rates, Title IV regulations), legislative initiatives, acquisition approvals, new campus openings, program development, competition, pandemics, cybersecurity, and economic conditions.
• No specific current risks or challenges beyond the standard forward-looking statement disclosures were detailed in the financial or operational highlights.

Management Commentary and Tone:

• Scott Shaw, President & CEO, stated the company generated double-digit growth across all key metrics, highlighted by a 14.2% increase in student starts.
• Management noted an improvement in lead conversion rate to starts during the quarter to historic levels.
• Management expressed confidence in achieving 2030 objectives due to momentum and the need for employees trained in automotive, skilled trades, and healthcare fields.
• Management highlighted strong cash generation and enhanced liquidity funding growth initiatives.

Other Key Points:

• Completed acquisition of previously leased Melrose Park, Illinois campus property for $18.8 million.
• Repurchased 871,135 shares of common stock for approximately $21.0 million during the third quarter.
• Board approved a $30 million increase in share repurchase authorization, raising the total to $70 million, with over $37 million remaining available.
• Entered into an amendment to the revolving credit facility in November to provide greater flexibility for daily borrowing/repayment and enhanced share repurchase flexibility.
• Q3 2026 capital expenditures were $67.4 million (investing activities), with total year-to-date capital expenditures of $67.4 million.
• Long-term debt increased to $24.8 million as of September 30, 2026, from $0 at December 31, 2025.
• Unearned tuition (deferred revenue) increased to $45.6 million as of September 30, 2026, from $44.2 million at December 31, 2025.