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1. Company Snapshot

1.a. Company Description

Lincoln Educational Services Corporation, together with its subsidiaries, provides various career-oriented post-secondary education services to high school graduates and working adults in the United States.The company operates in two segments: Transportation and Skilled Trades, and Healthcare and Other Professions.It offers associate's degree, and diploma and certificate programs in automotive technology; skilled trades programs, including electrical, heating and air conditioning repair, welding, computerized numerical control, and electrical and electronic systems technology; health science programs comprising nursing, dental and medical assistant, claim examiner, medical administrative assistant, etc.; hospitality services programs, such as culinary, therapeutic massage, cosmetology, and aesthetics; and information technology programs.


The company operates 22 schools in 14 states under the Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts and Sciences, and other brand names.As of December 31, 2021, it had 13,059 students enrolled at 22 campuses.The company was founded in 1946 and is based in Parsippany, New Jersey.

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1.b. Last Insights on LINC

Lincoln Educational Services Corporation faces challenges due to high capital expenditures, which fuel growth but raise concerns about near-term free cash flow and sustainability of returns. Despite this, management's aggressive expansion reflects confidence in long-term demand for skilled trades education. The company's Q2 earnings beat estimates, with quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.04 per share. According to Zacks, the stock is considered a strong buy.

1.c. Company Highlights

2. Lincoln Educational Services' Strong Q3 2025 Earnings: A Closer Look

Lincoln Educational Services reported a robust third quarter 2025, with revenue increasing by 25.4% to $141.4 million. The company's adjusted EBITDA grew by 65.1% to $16.9 million, driven by a 6% growth in student starts and a 4.8% increase in revenue per student. The company's net income was $3.8 million, while adjusted net income was $6.3 million or $0.20 per diluted share, beating analyst estimates of $0.12. The strong financial performance was largely driven by continued momentum in enrollment growth and improved operating efficiencies.

Publication Date: Nov -20

📋 Highlights
  • Revenue & Profit Growth:: Q3 revenue surged 25.4% to $141.4M; adjusted EBITDA jumped 65.1% to $16.9M.
  • Student Enrollment Momentum:: 6% student start growth (6,400 starts), with 11.8% rise in skilled trades and 20% average student population growth.
  • Capital Expenditure & Campus Expansion:: $75–80M capex for new campuses (Houston, Rowlett, Hicksville) and 90,000-sq-ft East Point facility.
  • 2027 Financial Guidance Raised:: Revenue targeting $550M–$600M; adjusted EBITDA aiming for $90M+ from $65M–$67M original range.
  • Operational Efficiency Gains:: Lincoln 10.0 platform boosted instructional efficiency; tuition hikes (3–4%) and program rationalization drove 4.8% revenue per student growth.

Operational Highlights

Scott Shaw mentioned that the company's new campuses are being designed with larger square footage to accommodate future growth, citing the East Point campus as an example, which has around 90,000 square feet with 10,000 to 12,000 square feet reserved for future programs. The company is also focusing on making its programs more efficient and cost-effective, with a strong emphasis on skilled trades, which are growing faster due to their cost-effectiveness.

Financial Guidance and Outlook

The company raised its full-year guidance across all metrics, expecting revenue ranging from $505 million to $510 million, adjusted EBITDA in the range of $65 million to $67 million, and net income ranging from $17 million to $19 million. Analysts estimate next year's revenue growth at 9.2%. The company's 2027 financial objective is $550 million in revenue and $90 million in adjusted EBITDA, with plans to exceed this target.

Valuation Metrics

Lincoln Educational Services' current valuation metrics are as follows: P/E Ratio of 46.55, P/B Ratio of 3.68, P/S Ratio of 1.45, EV/EBITDA of 22.07, and ROE of 8.09%. These metrics suggest that the company's stock may be slightly overvalued, with a high P/E Ratio indicating that investors have high expectations for future growth. However, the company's strong financial performance and growth prospects may justify the current valuation.

3. NewsRoom

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Intech Investment Management LLC Has $296,000 Holdings in Lincoln Educational Services Corporation $LINC

Dec -01

Source: defenseworld.net

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ATGE vs. LINC: Which Stock Is the Better Value Option?

Nov -19

Source: zacks.com

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Acadian Asset Management LLC Has $3.34 Million Stock Position in Lincoln Educational Services Corporation $LINC

Nov -15

Source: defenseworld.net

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Lincoln Educational Services Corporation (LINC) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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Lincoln Educational Services Corporation (LINC) Surpasses Q3 Earnings and Revenue Estimates

Nov -10

Source: zacks.com

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Lincoln Educational Services Reports Continued Growth in Third Quarter Results and Raises Financial Guidance for Full-Year 2025

Nov -10

Source: globenewswire.com

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Lincoln Educational Services: Needs To Begin 'Showing The Money' As Q3 Earnings Approach

Nov -09

Source: seekingalpha.com

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Lincoln Tech to Expand Presence in Texas with New Rowlett Campus

Nov -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.01%)

6. Segments

Campus Operations

Expected Growth: 8%

Campus Operations at Lincoln Educational Services Corporation is driven by increasing demand for vocational training, strategic campus expansions, and effective cost management. Additionally, the company's focus on high-growth fields such as healthcare and technology, coupled with strong industry partnerships, contributes to its 8% growth.

Transitional

Expected Growth: 10%

Lincoln Educational Services Corporation's 10% growth is driven by increasing demand for skilled trades, strategic acquisitions, and expansion into high-growth markets. Additionally, the company's focus on providing in-demand programs, such as healthcare and technology, and its strong employer partnerships contribute to its growth momentum.

7. Detailed Products

Automotive Technology

Lincoln Educational Services Corporation offers Automotive Technology programs that provide students with the skills and knowledge needed to diagnose and repair vehicles.

Skilled Trades

The Skilled Trades program at Lincoln Educational Services Corporation prepares students for careers in electrical, HVAC, and welding.

Health Sciences

Lincoln Educational Services Corporation's Health Sciences programs include nursing, dental assisting, and medical assisting.

Business and IT

The Business and IT programs at Lincoln Educational Services Corporation offer training in business administration, accounting, and information technology.

Culinary Arts

Lincoln Educational Services Corporation's Culinary Arts program teaches students cooking techniques, kitchen management, and food safety.

Transportation and Diesel Technology

The Transportation and Diesel Technology program at Lincoln Educational Services Corporation prepares students for careers in diesel engine repair, truck driving, and automotive technology.

8. Lincoln Educational Services Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lincoln Educational Services Corporation is medium due to the availability of alternative education providers and online courses.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Lincoln Educational Services Corporation's programs and the lack of price sensitivity among students.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the availability of alternative suppliers for educational materials and services.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the education industry and the increasing popularity of online learning platforms.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the education industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.18%
Debt Cost 3.95%
Equity Weight 58.82%
Equity Cost 10.59%
WACC 7.85%
Leverage 70.01%

11. Quality Control: Lincoln Educational Services Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
American Public Education

A-Score: 6.3/10

Value: 5.7

Growth: 5.6

Quality: 8.6

Yield: 2.0

Momentum: 10.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
American Public Education

A-Score: 4.9/10

Value: 4.9

Growth: 5.4

Quality: 5.7

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Universal Technical Institute

A-Score: 4.9/10

Value: 3.3

Growth: 6.3

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Lincoln Educational Services

A-Score: 4.5/10

Value: 4.1

Growth: 5.0

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Coursera

A-Score: 4.4/10

Value: 6.9

Growth: 6.0

Quality: 3.1

Yield: 0.0

Momentum: 8.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Udemy

A-Score: 3.9/10

Value: 6.4

Growth: 5.8

Quality: 4.1

Yield: 0.0

Momentum: 3.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.28$

Current Price

22.28$

Potential

-0.00%

Expected Cash-Flows