Lincoln Third-Quarter Revenue Rises 12.6% as Starts Rebound

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $159.2 million as student starts rose 14.2% on a comparable basis and full-year sales guidance is now $600.0 million–$605.0 million.

Lincoln Educational Services Corporation (LINC), a career-oriented post-secondary education provider, reported third-quarter revenue of $159.2 million, up 12.6% from $141.4 million a year earlier, as student starts recovered on a comparable-start basis after a weak second-quarter conversion.

Starts rose 14.2% to 7,362 on a comparable-start basis after a 1% year-over-year increase in the second quarter. The company said lead conversion returned to historic levels. Revenue growth slowed from 22.4% in the second quarter. Average student population rose 10.9% on a comparable basis.

Adjusted EBITDA increased 30.8% to $17.4 million from $13.3 million. Beginning in fiscal 2026, the company no longer excludes pre-opening costs or net operating losses from new campuses when calculating the measure, and recast prior periods. Net income rose 24.1% to $4.7 million, or $0.15 a share, from $3.8 million, or $0.12 a share.

Operating income increased 22.5% to $7.7 million. Campus operations contributed $24.8 million of operating income, up 6.8%, while corporate expenses were $17.1 million, roughly unchanged. Educational services and facilities expense rose 17.2% to $67.1 million, including a $3.1 million increase tied to new campuses in Houston, Hicksville, Rowlett, and Suitland. Selling, general and administrative expense rose 8.4% to $84.3 million.

Ending student population rose 11.4% to 20,325. Transportation and Skilled Trades ended at 16,571, up 13.2%, and Healthcare and Other Professions at 3,754, up 4.0%. Net cash from operating activities improved $11.0 million year over year to $34.9 million. Total liquidity was approximately $136 million as of September 30, 2026.

President and CEO Scott Shaw cited operational performance through October and current trends in discussing full-year revenue guidance. Lincoln's current 2026 revenue guidance is $600.0 million–$605.0 million, and it is narrowing student-start growth guidance to 10%–12% from 10%–14%. It reiterated adjusted EBITDA of $76.0 million–$80.0 million, net income of $23.0 million–$26.0 million, diluted EPS of $0.74–$0.83, and capital expenditures of $95.0 million–$100.0 million. The adjusted EBITDA range includes approximately $10.0 million in losses related to new campus openings and strategic growth initiatives.

The company completed the acquisition of its previously leased Melrose Park, Illinois campus property for $18.8 million. It signed leases for an approximately 90,000-square-foot Tempe, Arizona campus expected to open in the first quarter of 2028 and an approximately 36,000-square-foot Suitland, Maryland focused-program facility expected to open in the fourth quarter of 2027. The new Hicksville, New York campus is expected to begin its first class in November.

During the third quarter, Lincoln repurchased 871,135 shares for approximately $21.0 million. The board increased the share-repurchase authorization by $30 million to $70 million, with more than $37 million remaining. In November, the company entered into an amendment under its revolving credit facility providing greater flexibility for daily borrowing and repayment and enhanced share-repurchase flexibility.