LINC 8-K
Lincoln Educational Services Corp (LINC)
8-K
2025-08-11
For: 2025-08-11
View Original
Added on
April 11, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 11, 2025
(Exact Name of Registrant as Specified in Charter)
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (973 )
736-9340
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which
registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. |
Results of Operations and Financial Condition.
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On August 11, 2025, Lincoln Educational Services Corporation. (the “Company”) issued a press release announcing financial results for the second
quarter ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated in this Item 2.02 by reference.
The information contained under this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be
deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained under this Item 2.02 in this Current Report on
Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, unless specifically identified therein as being
incorporated therein by reference. The furnishing of the information under this Item 2.02 in this Current Report is not intended to, and does not, constitute a determination or admission by the Company that the information contained under this
Item 2.02 in this Current Report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.
| Item 9.01 |
Financial Statements and Exhibits.
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Exhibits
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Press release of Lincoln Educational Services Corporation dated August 11, 2025
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104
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Cover Page Interactive Data File (embedded within the inline XBRL document).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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LINCOLN EDUCATIONAL SERVICES CORPORATION
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Date: August 11, 2025
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By:
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/s/ Brian K. Meyers
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Name: Brian K. Meyers
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Title: Executive Vice President, Chief Financial Officer and Treasurer
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Exhibit 99.1
Lincoln Educational Services Reports Second Quarter Results and
Increases Outlook for Full Year 2025
Conference Call Today at 10:00 a.m. Eastern Daylight Time
PARSIPPANY, N.J., August 11, 2025 – Lincoln
Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the second quarter ended June 30, 2025, as well as recent business developments.
Second Quarter 2025 Financial and Operational Highlights
(Quarter ended June 30, 2025, compared to June 30, 2024, unless otherwise noted)
Financial Performance
| • |
Revenue of $116.5 million, an increase of 13.2%, 15.1% excluding the Transitional segment
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| • |
Adjusted EBITDA of $10.5 million, an increase of 68.4%
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| • |
Net income of $1.6 million, compared to $0.7 million net loss
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| • |
Based on strong first half performance and favorable operating trends, guidance for 2025 has been raised
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Student Metrics*
| • |
Student starts up by 19.5%, or 21.8% excluding the Transitional segment
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| o |
Organic student starts up by 18.6%**
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| • |
Quarter-end student population up by 18.2%, or 20.6% excluding the Transitional segment
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* Includes 2,764 student starts
on July 1, 2025, to align with comparable student start activity in the prior year that occurred in the last week of June 2024
** Excludes student starts from our programs launched in 2024 and 2025, discontinued programs, Paramus nursing program, newly opened
East Point campus and the Transitional segment
A complete listing of Lincoln's non-GAAP measures is described and reconciled to the corresponding GAAP measures at the end of this release.
Campus Development Activity
| • |
Nashville, TN campus relocation completed in March. Student starts and revenue performance are exceeding expectations, with two new programs set to launch in October.
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| • |
Houston, TX campus received regulatory approval in June. Student enrollments are underway, with first classes expected to start in early Q4.
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| • |
Levittown, PA campus relocation completed and existing automotive students already transferred to the new location in August. HVAC, electrical and welding programs to start in September.
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1
“Our operating and financial momentum continued to build throughout the second quarter as we generated nearly 22 percent student start growth and grew revenues by more
than 15 percent from campus operations, as well as increased consolidated adjusted EBITDA by 68%. As a result of our performance continuing to exceed expectations during the first half of 2025, and current operating trends, we are raising our
full-year guidance,” said Scott Shaw, President and CEO.
“Our growth is driven by continued rising demand for high-value career-focused training, the effective and efficient execution of our growth strategy, successful
implementation of our Lincoln 10.0 hybrid teaching model, which is delivering increased instructional leverage, and ongoing improvements in our marketing efficiency.
“Campus development remains a key growth driver with our new East Point campus and our relocated Nashville campus outperforming our expectations. In August, we completed
the transfer of our Philadelphia automotive campus to its new location in Levittown where we will add new programs in HVAC, welding and electrical during the third quarter. Our Houston campus has begun enrolling students for its fourth quarter
opening. Looking further ahead, the Hicksville, New York campus remains on track to open during the fourth quarter of 2026, and we hope to announce another new campus development shortly.
“We believe we are exceptionally well-positioned to meet unmet market needs in up to a dozen additional markets and are actively exploring these opportunities for
additional new campuses. The demand for high-value programs that train students for rewarding, long-lasting careers continues to grow, as does the need by America’s corporations to fill their skills gap. Our increased outlook for 2025, the
continued growth in student demand for our programs and our success with our campus development efforts positions Lincoln to exceed the longer-term 2027 targets of approximately $550 million in revenue and $90 million in adjusted EBITDA we set out
last year.”
2025 SECOND QUARTER FINANCIAL RESULTS
(Quarter ended June 30, 2025, compared to June 30, 2024)
| • |
Revenue increased by $13.6 million, or
13.2% to $116.5 million, primarily due to a 16.0% increase in average student population, from the higher beginning of the year population and our strong start growth in both the first and second quarters of 2025.
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| • |
Educational services and facilities
expense increased by $1.2 million, or 2.7% to $46.8 million. This increase includes a $1.0 million reduction related to the Transitional segment, which incurred expenses in the prior year but not in the current period. On a comparable
basis, educational services and facilities expense increased by $2.2 million. As a percentage of revenue, educational services and facilities expense declined to 40.2% from 44.3% in the prior year, demonstrating improved operating
efficiency at our campuses as we scale operations.
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2
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Selling, general and administrative
expense increased by $9.2 million, or 15.9% to $67.1 million. This includes a $1.1 million reduction related to the Transitional segment, which had expenses in the prior
year but none in the current period. The increase over the prior year was primarily driven by $7.6 million or 36.5% higher administrative expense, due to higher
medical claims expense, costs associated with our expanding student population and compensation expense including performance-based incentive compensation in line with improved financial performance. Additionally, although marketing expense increased slightly, our cost per student start declined 14.0% compared to the prior year period, reflecting a greater return on investment.
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2025 SECOND QUARTER SEGMENT RESULTS
Campus Operations Segment
Revenue increased by $15.2 million, or 15.1% to $116.5 million. Adjusted EBITDA increased by $9.1 million, or 56.4% to $25.4 million, from $16.3 million in the prior
year.
Transitional Segment
During 2024, the Company’s Summerlin, Las Vegas campus was classified in the Transitional segment. The sale of the campus was consummated on January 1, 2025. In the prior
year comparable period, the Summerlin campus had revenue of $1.7 million and operating expenses of $2.2 million. As of June 30, 2025, no campuses were classified in the Transitional segment.
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $16.4 million, compared to $10.7 million in the
prior year. The increase was primarily driven by higher salaries and benefits due to workforce expansion to support a larger student population and execute our growth initiatives. Additionally, medical claims increased, and performance-based
incentive compensation increased in line with improved financial performance.
SIX MONTHS FINANCIAL RESULTS
(Period ended June 30, 2025, compared to June 30, 2024)
| • |
Total revenue increased by 13.4% to $234.0 million
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Student starts grew by 18.1%*, or 21.4%* excluding the Transitional segment
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Quarter-end student population rose by 18.2%*, or 20.6%* excluding the Transitional segment
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Adjusted EBITDA increased by 65.4% to $21.1 million
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Net income of $3.5 million, compared to $0.9 million net loss
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* Includes 2,764 student starts
on July 1, 2025, to align with comparable student start activity in the prior year that occurred in the last week of June 2024
FULL YEAR 2025 OUTLOOK
Based on the 2025 first half operating and financial results, as well as the outlook for the remainder of the year, the Company is raising its
financial guidance for revenue, adjusted EBITDA, net income, capital expenditures, and student starts as follows:
3
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Previous
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Updated
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(In millions, except for student starts)
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FY 2025 Guidance
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FY 2025 Guidance
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Revenue
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$
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485
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-
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$
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495
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$
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490
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-
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$
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500
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Adjusted EBITDA
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$
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58
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-
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$
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63
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1
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$
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60
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-
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$
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65
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1 | |||||||||||||
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Net income
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$
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10
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-
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$
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15
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$
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13
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-
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$
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18
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Capital expenditures
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$
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70
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-
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$
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75
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$
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75
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-
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$
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80
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Student Starts
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10
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%
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-
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14
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% |
12
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%
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-
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15
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%
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| 1 |
The guidance in this release includes references to non-GAAP operating measures. A reconciliation to the midpoint of our guidance can be reviewed below in the non-GAAP
operating measures at the end of this release.
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As a reminder, to provide a clearer view of the Company’s underlying performance, guidance excludes non-cash stock-based compensation and one-time, non-recurring items.
Additionally, it excludes pre-opening costs, as well as net operating losses from new campuses, for up to four quarters after the campus opening, or until the campus becomes profitable, whichever occurs first. In terms of relocating the Nashville
and Levittown campuses, adjustments have been made to exclude pre-opening costs and relocation costs through the end of the quarter in which the relocation is completed. In the case of program replications and expansions, adjustments are made to
exclude net operating losses through the quarter in which the program is launched.
CONFERENCE CALL INFO
Lincoln will host a conference call today at 10:00 a.m. Eastern Standard Time to discuss
results. To access the live webcast of the conference call, please go to the Investor Overview section of Lincoln’s website at http://www.lincolntech.edu. Participants may also register
via teleconference at: Q2 2025 Lincoln Educational Services Earnings Conference Call. Once registration is completed, participants will be provided with a dial-in number containing a
personalized PIN to access the call. Participants are requested to register at least 15 minutes prior to the start of the call.
An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu.
ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
Lincoln Educational Services Corporation is a leading provider of diversified
career-oriented post-secondary education helping to provide solutions to America’s skills gap. Lincoln offers career-oriented programs to recent high school graduates and working adults in four principal areas of study: skilled trades,
automotive, health sciences and information technology. Lincoln has provided the workforce with skilled technicians since its inception in 1946 and currently operates 21 campuses in 12 states under the brands Lincoln Technical Institute, Lincoln
College of Technology and Nashville Auto Diesel College. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired schools including Lincoln Technical Institute,
Inc. which opened its first campus in Newark, New Jersey in 1946. For more information, please go to www.lincolntech.edu.
4
FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation
regarding Lincoln’s business that are not historical facts, including those made in a conference call, may be “forward-looking statements” as that term is defined in the federal securities law. The words “may,” “will,” “expect,” “believe,”
“anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on information available at the time those
statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or
suggested by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results
will be achieved, if at all. Generally, these statements relate to business plans or strategies and projections involving anticipated revenues, earnings, or other aspects of the Company’s operating results. The Company cautions you that these
statements concern current expectations about the Company’s future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company’s control, that may influence the accuracy of
the statements and the projects upon which the statements are based including, without limitation, impacts related to epidemics or pandemics; our failure to comply with the extensive regulatory framework applicable to our industry or our failure to
obtain timely regulatory approvals in connection with acquisitions or a change of control of our Company; our success in updating and expanding the content of existing programs and developing new programs for our students in a cost-effective manner
or on a timely basis; risks associated with cybersecurity; risks associated with changes in applicable federal laws and regulations; uncertainties regarding our ability to comply with federal and state laws and regulations, such as the 90/10 rule
and prescribed cohort default rates; risks associated with the opening of new campuses; risks associated with integration of acquired schools; industry competition; our ability to execute our growth strategies; conditions and trends in our
industry; general economic conditions; and other factors discussed in the “Risk Factors” section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their
entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
5
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
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June 30,
2025
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December 31,
2024
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ASSETS
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||||||||
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CURRENT ASSETS:
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||||||||
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Cash and cash equivalents
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$
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16,701
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$
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59,273
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||||
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Accounts receivable, less allowance of $43,128 and $42,615 at June 30, 2025 and December 31, 2024, respectively
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47,256
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42,983
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||||||
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Inventories
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4,504
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3,053
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||||||
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Income tax receivable
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2,794
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-
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||||||
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Prepaid expenses and other current assets
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8,374
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4,793
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Asset held for sale
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-
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1,150
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Total current assets
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79,629
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111,252
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||||||
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PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $145,468 and $141,271 at June 30, 2025
and December 31, 2024, respectively
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149,142
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103,533
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OTHER ASSETS:
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Noncurrent receivables, less allowance of $24,726 and $22,957 at June , 2025 and December 31, 2024, respectively
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21,139
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19,627
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Deferred finance charges
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354
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323
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Deferred income taxes, net
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24,812
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25,359
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Operating lease right-of-use assets
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132,713
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136,034
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Finance lease right-of-use assets
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25,910
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26,745
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Goodwill
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10,742
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10,742
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Other assets, net
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1,325
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1,387
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Pension plan assets, net
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1,555
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1,554
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Total other assets
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218,550
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221,771
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TOTAL ASSETS
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$
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447,321
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$
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436,556
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||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
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||||||||
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Unearned tuition
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$
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28,083
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$
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30,631
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||||
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Accounts payable
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33,990
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37,026
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||||||
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Accrued expenses
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15,438
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11,986
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||||||
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Income taxes payable
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-
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1,072
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Current portion of operating lease liabilities
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10,741
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9,497
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||||||
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Total current liabilities
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88,252
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90,212
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NONCURRENT LIABILITIES:
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Long-term portion of operating lease liabilities
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134,494
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138,803
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||||||
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Long-term portion of finance lease liabilities
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30,897
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29,261
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Long-term debt
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13,000
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-
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||||||
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Other long-term liabilities
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-
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16
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||||||
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Total liabilities
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266,643
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258,292
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||||||
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COMMITMENTS AND CONTINGENCIES
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||||||||
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STOCKHOLDERS' EQUITY:
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||||||||
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Common stock, no par value - authorized 100,000,000 shares at June 30, 2025 and December 31, 2024, issued and outstanding 31,625,285
shares at June 30, 2025 and 31,462,640 shares at December 31, 2024
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48,181
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48,181
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||||||
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Additional paid-in capital
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49,554
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50,639
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||||||
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Retained earnings
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82,669
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79,170
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||||||
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Accumulated other comprehensive loss
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274
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274
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||||||
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Total stockholders' equity
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180,678
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178,264
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||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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447,321
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$
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436,556
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||||
6
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
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Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
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2025
|
2024
|
2025
|
2024
|
|||||||||||||
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REVENUE
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$
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116,474
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$
|
102,914
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$
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233,980
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$
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206,281
|
||||||||
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COSTS AND EXPENSES:
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||||||||||||||||
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Educational services and facilities
|
46,791
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45,561
|
94,199
|
88,584
|
||||||||||||
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Selling, general and administrative
|
67,061
|
57,865
|
133,965
|
118,359
|
||||||||||||
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(Gain) loss on sale of assets
|
(256
|
)
|
604
|
(476
|
)
|
913
|
||||||||||
|
Total costs & expenses
|
113,596
|
104,030
|
227,688
|
207,856
|
||||||||||||
|
OPERATING INCOME (LOSS)
|
2,878
|
(1,116
|
)
|
6,292
|
(1,575
|
)
|
||||||||||
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OTHER:
|
||||||||||||||||
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Interest income
|
11
|
638
|
125
|
1,336
|
||||||||||||
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Interest expense
|
(813
|
)
|
(667
|
)
|
(1,514
|
)
|
(1,234
|
)
|
||||||||
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INCOME (LOSS) BEFORE INCOME TAXES
|
2,076
|
(1,145
|
)
|
4,903
|
(1,473
|
)
|
||||||||||
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PROVISION (BENEFIT) FOR INCOME TAXES
|
522
|
(463
|
)
|
1,404
|
(577
|
)
|
||||||||||
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NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
$
|
1,554
|
$
|
(682
|
)
|
$
|
3,499
|
$
|
(896
|
)
|
||||||
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Basic
|
||||||||||||||||
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Net income (loss) per common share
|
$
|
0.05
|
$
|
(0.02
|
)
|
$
|
0.11
|
$
|
(0.03
|
)
|
||||||
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Diluted
|
||||||||||||||||
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Net income (loss) per common share
|
$
|
0.05
|
$
|
(0.02
|
)
|
$
|
0.11
|
$
|
(0.03
|
)
|
||||||
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Weighted average number of common shares outstanding:
|
||||||||||||||||
|
Basic
|
30,990
|
30,660
|
30,900
|
30,481
|
||||||||||||
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Diluted
|
31,271
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30,660
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31,172
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30,481
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||||||||||||
7
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
Six Months Ended
June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net income (loss)
|
$
|
3,499
|
$
|
(896
|
)
|
|||
|
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
||||||||
|
Depreciation and amortization
|
7,637
|
5,501
|
||||||
|
Finance lease amortization
|
835
|
787
|
||||||
|
Amortization of deferred finance charges
|
90
|
57
|
||||||
|
Deferred income taxes
|
547
|
421
|
||||||
|
(Gain) loss on sale of assets
|
(476
|
)
|
913
|
|||||
|
Fixed asset donations
|
(197
|
)
|
(178
|
)
|
||||
|
Provision for credit losses
|
25,012
|
25,537
|
||||||
|
Stock-based compensation expense
|
2,548
|
2,104
|
||||||
|
(Increase) decrease in assets:
|
||||||||
|
Accounts receivable
|
(30,797
|
)
|
(32,977
|
)
|
||||
|
Inventories
|
(1,451
|
)
|
603
|
|||||
|
Prepaid income taxes
|
(2,794
|
)
|
(5,220
|
)
|
||||
|
Prepaid expenses and current assets
|
(3,611
|
)
|
1,154
|
|||||
|
Other assets, net
|
(657
|
)
|
806
|
|||||
|
Increase (decrease) in liabilities:
|
||||||||
|
Accounts payable
|
(9,768
|
)
|
(472
|
)
|
||||
|
Accrued expenses
|
3,452
|
(2,069
|
)
|
|||||
|
Unearned tuition
|
(2,548
|
)
|
(2,578
|
)
|
||||
|
Income taxes payable
|
(1,072
|
)
|
-
|
|||||
|
Other liabilities
|
1,672
|
(92
|
)
|
|||||
|
Total adjustments
|
(11,578
|
)
|
(5,703
|
)
|
||||
|
Net cash used in operating activities
|
(8,079
|
)
|
(6,599
|
)
|
||||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Capital expenditures
|
(46,276
|
)
|
(12,725
|
)
|
||||
|
Proceeds from sale of property and equipment
|
504
|
9,718
|
||||||
|
Net cash used in investing activities
|
(45,772
|
)
|
(3,007
|
)
|
||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Proceeds from borrowings
|
25,000
|
-
|
||||||
|
Payments on borrowings
|
(12,000
|
)
|
-
|
|||||
|
Payment of deferred finance fees
|
(121
|
)
|
(456
|
)
|
||||
|
Finance lease principal paid
|
(179
|
)
|
(64
|
)
|
||||
|
Tenant allowance finance leases
|
2,212
|
-
|
||||||
|
Net share settlement for equity-based compensation
|
(3,633
|
)
|
(3,156
|
)
|
||||
|
Net cash provided by (used in) financing activities
|
11,279
|
(3,676
|
)
|
|||||
|
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(42,572
|
)
|
(13,282
|
)
|
||||
|
CASH AND CASH EQUIVALENTS —Beginning of period
|
59,273
|
80,269
|
||||||
|
CASH AND CASH EQUIVALENTS—End of period
|
$
|
16,701
|
$
|
66,987
|
||||
(1) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company believes it is
useful to present non-GAAP financial measures that exclude certain significant items as a means to understand the performance of its business, and to enable comparability of operating performance between periods. Additionally, the Company’s
management regularly uses our non-GAAP financial measures to make operating decisions, for planning and forecasting purposes. EBITDA, adjusted EBITDA, adjusted net income and total liquidity are measures not recognized in financial statements
presented in accordance with GAAP.
8
| • |
We define EBITDA as income (loss) before net interest expense (interest income), provision (benefit) for income taxes, depreciation and amortization.
|
| • |
We define adjusted EBITDA as EBITDA plus stock-based compensation expense and adjustments for items not considered part of the Company’s normal recurring operations.
|
| • |
We define adjusted net income as net income plus adjustments for items not considered part of the Company’s normal recurring operations.
|
| • |
We define total liquidity as the Company’s cash and cash equivalents and available borrowings under our credit facility.
|
EBITDA, adjusted EBITDA, adjusted net income, and total liquidity are presented because we believe they are useful indicators of the Company’s performance and ability to make strategic
investments and meet capital expenditures and debt service requirements. However, they are not intended to represent cash flows from operations as defined by GAAP and should not be used as an alternative to net income (loss) as indicators of
operating performance or cash flow as a measure of liquidity. EBITDA, adjusted EBITDA, adjusted net income and total liquidity are not necessarily comparable to similarly titled measures used by other companies.
9
The following is a reconciliation of net income (loss) to EBITDA, adjusted EBITDA, adjusted net income, and total liquidity (in thousands):
|
Three Months Ended June 30,
(Unaudited)
|
||||||||||||||||||||||||||||||||
|
Consolidated
|
Campus Operations
|
Transitional
|
Corporate
|
|||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||
|
Net income (loss)
|
$
|
1,554
|
$
|
(682
|
)
|
$
|
18,704
|
$
|
9,575
|
$
|
-
|
$
|
(510
|
)
|
$
|
(17,150
|
)
|
$
|
(9,747
|
)
|
||||||||||||
|
Interest expense (income), net
|
802
|
29
|
605
|
565
|
-
|
-
|
197
|
(536
|
)
|
|||||||||||||||||||||||
|
Provision (benefit) for income taxes
|
522
|
(463
|
)
|
-
|
-
|
-
|
-
|
522
|
(463
|
)
|
||||||||||||||||||||||
|
Depreciation and amortization
|
4,710
|
3,323
|
4,545
|
3,130
|
-
|
18
|
165
|
175
|
||||||||||||||||||||||||
|
EBITDA
|
7,588
|
2,207
|
23,854
|
13,270
|
-
|
(492
|
)
|
(16,266
|
)
|
(10,571
|
)
|
|||||||||||||||||||||
|
Stock-based compensation expense
|
1,343
|
1,045
|
-
|
-
|
-
|
-
|
1,343
|
1,045
|
||||||||||||||||||||||||
|
New campus and campus relocation costs
|
1,342
|
2,029
|
1,342
|
2,029
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Program expansions
|
238
|
365
|
238
|
365
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Loss on sale of assets
|
-
|
594
|
-
|
594
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Adjusted EBITDA
|
$
|
10,511
|
$
|
6,240
|
$
|
25,434
|
$
|
16,258
|
$
|
-
|
$
|
(492
|
)
|
$
|
(14,923
|
)
|
$
|
(9,526
|
)
|
|||||||||||||
|
Six Months Ended June 30,
(Unaudited)
|
||||||||||||||||||||||||||||||||
|
Consolidated
|
Campus Operations
|
Transitional
|
Corporate
|
|||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||
|
Net income (loss)
|
$
|
3,499
|
(896
|
)
|
$
|
39,782
|
$
|
21,683
|
$
|
-
|
$
|
(795
|
)
|
$
|
(36,283
|
)
|
$
|
(21,784
|
)
|
|||||||||||||
|
Interest expense (income), net
|
1,389
|
(102
|
)
|
1,199
|
1,066
|
-
|
-
|
190
|
(1,168
|
)
|
||||||||||||||||||||||
|
Provision (benefit) for income taxes
|
1,404
|
(577
|
)
|
-
|
-
|
-
|
-
|
1,404
|
(577
|
)
|
||||||||||||||||||||||
|
Depreciation and amortization
|
8,472
|
6,288
|
8,145
|
5,884
|
-
|
38
|
327
|
366
|
||||||||||||||||||||||||
|
EBITDA
|
14,764
|
4,713
|
49,126
|
28,633
|
-
|
(757
|
)
|
(34,362
|
)
|
(23,163
|
)
|
|||||||||||||||||||||
|
Stock-based compensation expense
|
2,548
|
2,103
|
-
|
-
|
-
|
-
|
2,548
|
2,103
|
||||||||||||||||||||||||
|
New campus and campus relocation costs
|
3,226
|
4,831
|
3,226
|
4,831
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Program expansions
|
610
|
454
|
610
|
454
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Loss on sale of assets
|
-
|
594
|
-
|
594
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Severance and other one-time costs
|
-
|
89
|
-
|
89
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Adjusted EBITDA
|
$
|
21,148
|
$
|
12,784
|
$
|
52,962
|
$
|
34,601
|
$
|
-
|
$
|
(757
|
)
|
$
|
(31,814
|
)
|
$
|
(21,060
|
)
|
|||||||||||||
10
|
Three Months Ended June 30,
(Unaudited)
|
||||||||||||||||||||||||||||||||
|
Consolidated
|
Campus Operations
|
Transitional
|
Corporate
|
|||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||
|
Net income (loss)
|
$
|
1,554
|
$
|
(682
|
)
|
$
|
18,704
|
$
|
9,575
|
$
|
-
|
$
|
(510
|
)
|
$
|
(17,150
|
)
|
$
|
(9,747
|
)
|
||||||||||||
|
Adjustments to net income:
|
||||||||||||||||||||||||||||||||
|
New campus and campus relocation costs
|
1,342
|
2,623
|
1,342
|
2,623
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
East Point, Georgia depreciation
|
-
|
371
|
-
|
371
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Program expansions
|
238
|
365
|
238
|
365
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Total non-recurring adjustments
|
1,580
|
3,359
|
1,580
|
3,359
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Income tax effect
|
(474
|
)
|
(1,008
|
)
|
-
|
-
|
-
|
-
|
(474
|
)
|
(1,008
|
)
|
||||||||||||||||||||
|
Adjusted net income (loss), non-GAAP
|
$
|
2,660
|
$
|
1,669
|
$
|
20,284
|
$
|
12,934
|
$
|
-
|
$
|
(510
|
)
|
$
|
(17,624
|
)
|
$
|
(10,755
|
)
|
|||||||||||||
|
Six Months Ended June 30,
(Unaudited)
|
||||||||||||||||||||||||||||||||
|
Consolidated
|
Campus Operations
|
Transitional
|
Corporate
|
|||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||
|
Net income (loss)
|
$
|
3,499
|
$
|
(896
|
)
|
$
|
39,782
|
$
|
21,684
|
$
|
-
|
$
|
(795
|
)
|
$
|
(36,283
|
)
|
$
|
(21,785
|
)
|
||||||||||||
|
Adjustments to net income:
|
||||||||||||||||||||||||||||||||
|
New campus and campus relocation costs
|
3,226
|
5,425
|
3,226
|
5,425
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Program expansions
|
610
|
454
|
610
|
454
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
East Point, Georgia depreciation
|
-
|
511
|
-
|
511
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Severance and other one time costs
|
-
|
89
|
-
|
89
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Total non-recurring adjustments
|
3,836
|
6,479
|
3,836
|
6,479
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Income tax effect
|
(1,152
|
)
|
(1,944
|
)
|
-
|
-
|
-
|
-
|
(1,152
|
)
|
(1,944
|
)
|
||||||||||||||||||||
|
Adjusted net income (loss), non-GAAP
|
$
|
6,183
|
$
|
3,639
|
$
|
43,618
|
$
|
28,163
|
$
|
-
|
$
|
(795
|
)
|
$
|
(37,435
|
)
|
$
|
(23,729
|
)
|
|||||||||||||
|
As of
June 30, 2025
|
||||
|
Cash and cash equivalents
|
$
|
16,701
|
||
|
Credit facility
|
47,000
|
|||
|
Total Liquidity
|
$
|
63,701
|
||
*As of June 30, 2025, $13.0 million was outstanding under revolving credit facility.
The tables below presents selected operating metrics for our reportable segments (in thousands, except for student population and starts) for the three and six months
ended June 30, 2025:
11
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
2025
|
2025*
|
|
2024
|
% Change
|
% Change*
|
|||||||||||||||
|
Revenue:
|
||||||||||||||||||||
|
Campus Operations
|
$
|
116,474
|
$
|
101,233
|
15.1
|
%
|
||||||||||||||
|
Transitional
|
-
|
1,681
|
-100.0
|
%
|
||||||||||||||||
|
Total
|
$
|
116,474
|
$
|
102,914
|
13.2
|
%
|
||||||||||||||
|
Operating Income (loss):
|
||||||||||||||||||||
|
Campus Operations
|
$
|
19,310
|
$
|
10,141
|
90.4
|
%
|
||||||||||||||
|
Transitional
|
-
|
(509
|
)
|
100.0
|
%
|
|||||||||||||||
|
Corporate
|
(16,432
|
)
|
(10,748
|
)
|
-52.9
|
%
|
||||||||||||||
|
Total
|
$
|
2,878
|
$
|
(1,116
|
)
|
357.8
|
%
|
|||||||||||||
|
Starts:
|
||||||||||||||||||||
|
Campus Operations
|
3,157
|
5,921
|
4,863
|
-35.1
|
%
|
21.8
|
%
|
|||||||||||||
|
Transitional
|
-
|
-
|
90
|
-100.0
|
%
|
-100.0
|
%
|
|||||||||||||
|
Total
|
3,157
|
5,921
|
4,953
|
-36.3
|
%
|
19.5
|
%
|
|||||||||||||
|
Average Population:
|
||||||||||||||||||||
|
Campus Operations
|
15,554
|
16,014
|
13,491
|
15.3
|
%
|
18.7
|
%
|
|||||||||||||
|
Transitional
|
-
|
-
|
320
|
-100.0
|
%
|
-100.0
|
%
|
|||||||||||||
|
Total
|
15,554
|
16,014
|
13,811
|
12.6
|
%
|
16.0
|
%
|
|||||||||||||
|
End of Period Population:
|
||||||||||||||||||||
|
Campus Operations
|
14,356
|
17,120
|
14,198
|
1.1
|
%
|
20.6
|
%
|
|||||||||||||
|
Transitional
|
-
|
-
|
283
|
-100.0
|
%
|
-100.0
|
%
|
|||||||||||||
|
Total
|
14,356
|
17,120
|
14,481
|
-0.9
|
%
|
18.2
|
%
|
|||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2025
|
2025*
|
|
2024
|
% Change
|
% Change*
|
|||||||||||||||
|
Revenue:
|
||||||||||||||||||||
|
Campus Operations
|
$
|
233,980
|
$
|
202,555
|
15.5
|
%
|
||||||||||||||
|
Transitional
|
-
|
3,726
|
-100.0
|
%
|
||||||||||||||||
|
Total
|
$
|
233,980
|
$
|
206,281
|
13.4
|
%
|
||||||||||||||
|
Operating Income (loss):
|
||||||||||||||||||||
|
Campus Operations
|
$
|
40,982
|
$
|
22,750
|
80.1
|
%
|
||||||||||||||
|
Transitional
|
-
|
(796
|
)
|
100.0
|
%
|
|||||||||||||||
|
Corporate
|
(34,690
|
)
|
(23,529
|
)
|
-47.4
|
%
|
||||||||||||||
|
Total
|
$
|
6,292
|
$
|
(1,575
|
)
|
499.5
|
%
|
|||||||||||||
|
Starts:
|
||||||||||||||||||||
|
Campus Operations
|
7,767
|
10,531
|
8,675
|
-10.5
|
%
|
21.4
|
%
|
|||||||||||||
|
Transitional
|
-
|
-
|
245
|
-100.0
|
%
|
-100.0
|
%
|
|||||||||||||
|
Total
|
7,767
|
10,531
|
8,920
|
-12.9
|
%
|
18.1
|
%
|
|||||||||||||
|
Average Population:
|
||||||||||||||||||||
|
Campus Operations
|
15,511
|
15,742
|
13,402
|
15.7
|
%
|
17.5
|
%
|
|||||||||||||
|
Transitional
|
-
|
-
|
343
|
-100.0
|
%
|
-100.0
|
%
|
|||||||||||||
|
Total
|
15,511
|
15,742
|
13,745
|
12.8
|
%
|
14.5
|
%
|
|||||||||||||
|
End of Period Population:
|
||||||||||||||||||||
|
Campus Operations
|
14,356
|
17,120
|
14,198
|
1.1
|
%
|
20.6
|
%
|
|||||||||||||
|
Transitional
|
-
|
-
|
283
|
-100.0
|
%
|
-100.0
|
%
|
|||||||||||||
|
Total
|
14,356
|
17,120
|
14,481
|
-0.9
|
%
|
18.2
|
%
|
|||||||||||||
* Includes 2,764 student starts
on July 1, 2025, to align with comparable student start activity in the prior year that occurred in the last week of June 2024
12
Information included in the table below provides student starts and population under the Campus Operations segment with a breakdown by Transportation and Skilled Trade
programs and Healthcare and Other Professions programs.
Population by Program (Campus Operations Segment):
|
Three Months Ended June 30,
|
||||||||||||||||||||
|
2025
|
2025*
|
2024
|
% Change
|
% Change*
|
||||||||||||||||
|
Starts:
|
||||||||||||||||||||
|
Transportation and Skilled Trades
|
2,350
|
4,802
|
3,648
|
-35.6
|
%
|
31.6
|
%
|
|||||||||||||
|
Healthcare and Other Professions
|
807
|
1,119
|
1,215
|
-33.6
|
%
|
-7.9
|
%
|
|||||||||||||
|
Total
|
3,157
|
5,921
|
4,863
|
-35.1
|
%
|
21.8
|
%
|
|||||||||||||
|
Average Population:
|
||||||||||||||||||||
|
Transportation and Skilled Trades
|
11,920
|
12,329
|
9,741
|
22.4
|
%
|
26.6
|
%
|
|||||||||||||
|
Healthcare and Other Professions
|
3,634
|
3,685
|
3,751
|
-3.1
|
%
|
-1.8
|
%
|
|||||||||||||
|
Total
|
15,554
|
16,014
|
13,492
|
15.3
|
%
|
18.7
|
%
|
|||||||||||||
|
End of Period Population:
|
||||||||||||||||||||
|
Transportation and Skilled Trades
|
11,050
|
13,502
|
10,482
|
5.4
|
%
|
28.8
|
%
|
|||||||||||||
|
Healthcare and Other Professions
|
3,306
|
3,618
|
3,716
|
-11.0
|
%
|
-2.6
|
%
|
|||||||||||||
|
Total
|
14,356
|
17,120
|
14,198
|
1.1
|
%
|
20.6
|
%
|
|||||||||||||
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2025
|
2025*
|
|
2024
|
% Change
|
% Change*
|
|||||||||||||||
|
Starts:
|
||||||||||||||||||||
|
Transportation and Skilled Trades
|
5,901
|
8,353
|
6,330
|
-6.8
|
%
|
32.0
|
%
|
|||||||||||||
|
Healthcare and Other Professions
|
1,866
|
2,178
|
2,345
|
-20.4
|
%
|
-7.1
|
%
|
|||||||||||||
|
Total
|
7,767
|
10,531
|
8,675
|
-10.5
|
%
|
21.4
|
%
|
|||||||||||||
|
Average Population:
|
||||||||||||||||||||
|
Transportation and Skilled Trades
|
11,807
|
12,012
|
9,642
|
22.5
|
%
|
24.6
|
%
|
|||||||||||||
|
Healthcare and Other Professions
|
3,704
|
3,730
|
3,759
|
-1.5
|
%
|
-0.8
|
%
|
|||||||||||||
|
Total
|
15,511
|
15,742
|
13,401
|
15.7
|
%
|
17.5
|
%
|
|||||||||||||
|
End of Period Population:
|
||||||||||||||||||||
|
Transportation and Skilled Trades
|
11,050
|
13,502
|
10,482
|
5.4
|
%
|
28.8
|
%
|
|||||||||||||
|
Healthcare and Other Professions
|
3,306
|
3,618
|
3,716
|
-11.0
|
%
|
-2.6
|
%
|
|||||||||||||
|
Total
|
14,356
|
17,120
|
14,198
|
1.1
|
%
|
20.6
|
%
|
|||||||||||||
* Includes 2,764 student starts
on July 1, 2025, to align with comparable student start activity in the prior year that occurred in the last week of June 2024
The reconciliations provided below represent management’s projections of various components included in our outlook for the full year 2025. These calculations are for
illustrative purposes and will be reviewed as the year progresses to reflect actual results, our outlook and continued relevance of specific items. Any revisions or modifications, if necessary, will be disclosed in future announcements of 2025
quarterly results. Adjusted EBITDA and adjusted net income have been reconciled to the midpoint of our guidance.
13
Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income - 2025 Guidance
(Reconciled to the Mid-Point of 2025 Guidance)
|
Adjusted
|
||||||||
|
EBITDA
|
Net Income
|
|||||||
|
Net Income
|
$
|
15,500
|
$
|
15,500
|
||||
|
Interest expense, net
|
3,200
|
-
|
||||||
|
Provision for taxes
|
6,500
|
-
|
||||||
|
Depreciation and amortization1
|
20,800
|
400
|
||||||
|
EBITDA
|
46,000
|
-
|
||||||
|
New campus and campus relocation costs2,3
|
7,500
|
7,500
|
||||||
|
Program expansions
|
2,100
|
2,100
|
||||||
|
Other one time items
|
1,500
|
1,500
|
||||||
|
Stock-based compensation expense
|
5,400
|
-
|
||||||
|
Tax Effect
|
-
|
(3,500
|
)
|
|||||
|
Total
|
$
|
62,500
|
23,500
|
|||||
| 2025 Guidance Range | $60,000 - $65,000 |
|||||||
| 1 |
Depreciation expense relates to the new Houston, Texas campus.
|
| 2 |
New campus and campus relocation costs relate to the following locations:
|
Nashville, Tennessee
Levittown, Pennsylvania
Houston, Texas
Hicksville, New York
| 3 |
New campus adjustment includes pre-opening costs, as well as net operating losses up to four quarters after the campus opens, or until the campus becomes profitable, whichever
comes first.
|
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340
EVC GROUP LLC
Investor Relations: Michael Polyviou, [email protected], 732-933-2755
Media Relations: Tom Gibson, 201-476-0322
14