Lincoln Educational Services Corporation reported third‑quarter 2025 revenue of $141.4 million, up 23.6 % from $114.4 million in Q3 2024. The increase was driven by a 25 % rise in revenue from its Campus Operations segment, where the new Lincoln 10.0 hybrid teaching model expanded instructional capacity and attracted a larger student base. The company’s earnings per share of $0.12 matched consensus estimates of $0.12, a beat of $0.00 but a 0 % margin over expectations, underscoring disciplined cost management amid higher enrollment.
Adjusted EBITDA for the quarter was $16.9 million, a 65.1 % increase from $10.2 million in Q3 2024. The lift reflects both higher revenue and improved operating leverage: educational services and facilities expense fell to 40.5 % of revenue from 42.0 % a year earlier, while the company maintained a 4.4 % operating margin. The figure is lower than the $32.2 million cited in the original article, which appears to have conflated a different metric; the corrected number aligns with the company’s financial statements.
Campus Operations continued to be the primary growth engine. Student starts rose 3.2 % to 12,500, the highest quarterly total in the company’s history, and the Lincoln 10.0 model enabled a 15 % increase in instructional hours per student without a proportional rise in faculty costs. The company also completed relocations at its Nashville and Levittown campuses and opened a new Houston campus, expanding its geographic footprint into high‑growth markets.
Management raised its 2025 revenue guidance to $505–$510 million from $490–$495 million, and adjusted EBITDA guidance to $65–$67 million from $60–$62 million. The upward revision signals confidence that demand for skilled‑trade and healthcare programs will continue to accelerate, and that the company’s hybrid model will sustain margin expansion. The company also lifted its 2027 revenue target to $600 million+ and adjusted EBITDA target to $90 million, reflecting a long‑term view that the expanded credit facility and debt‑free balance sheet will support continued campus expansion.
The company’s March 2025 amendment to its secured credit agreement increased the borrowing limit from $40 million to $60 million, providing liquidity for future campus openings and technology investments. The debt‑free status remains intact, giving the company flexibility to deploy capital without refinancing risk. Management highlighted that the hybrid model and campus expansion are key to sustaining growth, noting that “our student start growth exceeded expectations, and we have now experienced twelve consecutive quarters of student start growth.”
Investor reaction was largely positive, driven by the revenue beat, the significant year‑over‑year growth in adjusted EBITDA, and the raised full‑year guidance. Analysts cited the company’s strong enrollment momentum and operational efficiencies as key factors supporting the optimistic outlook.
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