Lincoln Educational Services (NASDAQ:LINC) Issues Quarterly Earnings Results

Lincoln Educational Services (NASDAQ:LINC) released its quarterly earnings data on Monday. The company reported $0.06 earnings per share for the quarter, Zacks reports. The firm had revenue of $142.56 million during the quarter, compared to analysts’ expectations of $139.49 million. Lincoln Educational Services had a net margin of 3.99% and a return on equity of 14.61%. Lincoln Educational Services updated its FY 2026 guidance to 0.740-0.830 EPS.

Here are the key takeaways from Lincoln Educational Services’ conference call:

• Second-quarter results were strong, with revenue up 22.4% to $142.6 million, Adjusted EBITDA up 42.4% to $12.7 million, and net income rising 25% year over year. Operating cash flow improved by nearly $35 million in the first half.
• Student starts grew only 1% in the quarter despite 9% enrollment growth, reflecting weaker enrollment-to-start conversion, financial-aid timing, student loan defaults, and some impact from AI-driven search changes. Management said lead growth moderated but expects conversion and starts to improve in the third quarter.
• Lincoln reiterated its 2026 outlook, including revenue of $590 million-$600 million, Adjusted EBITDA of $76 million-$80 million, and student-start growth of 10%-14%; management expects August to be its largest start month ever, supported by stronger high-school recruiting.
• The company is accelerating expansion, with Hicksville expected to enroll students in the fourth quarter, Rowlett in the first quarter of 2027, and planned campuses in Suitland, Maryland, and Tempe, Arizona. Suitland’s focused-campus model requires about $10 million of investment and is projected to generate $5 million of Adjusted EBITDA at full ramp.
• Lincoln expanded revolving-credit capacity to $125 million, ending the quarter with $143.2 million of total liquidity, and increased 2026 capital-expenditure guidance to $95 million-$100 million to fund growth. Improved retention, up approximately 150 basis points year over year, also supported the student population and revenue outlook.

Lincoln Educational Services Trading Up 0.9%

NASDAQ:LINC traded up $0.28 during midday trading on Wednesday, hitting $30.66. 143,036 shares of the company traded hands, compared to its average volume of 542,673. The company has a current ratio of 0.83, a quick ratio of 0.80 and a debt-to-equity ratio of 0.18. The firm’s fifty day moving average is $46.25 and its 200-day moving average is $41.11. The firm has a market capitalization of $972.41 million, a P/E ratio of 42.58, a P/E/G ratio of 2.62 and a beta of 0.83. Lincoln Educational Services has a 12-month low of $17.29 and a 12-month high of $56.34.

Insider Transactions at Lincoln Educational Services

In related news, Director James J. Burke, Jr. sold 15,807 shares of Lincoln Educational Services stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $48.36, for a total transaction of $764,426.52. Following the completion of the transaction, the director directly owned 44,198 shares of the company’s stock, valued at approximately $2,137,415.28. The trade was a 26.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kevin M. Carney sold 3,000 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $48.00, for a total transaction of $144,000.00. Following the completion of the sale, the director directly owned 25,039 shares in the company, valued at $1,201,872. This trade represents a 10.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 55,000 shares of company stock worth $2,614,758. 12.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. grew its holdings in Lincoln Educational Services by 275.0% during the 4th quarter. Invesco Ltd. now owns 178,892 shares of the company’s stock worth $4,320,000 after acquiring an additional 131,192 shares in the last quarter. Pillsbury Lake Capital LLC purchased a new position in Lincoln Educational Services during the fourth quarter valued at approximately $17,028,000. Wellington Management Group LLP raised its stake in Lincoln Educational Services by 18.7% in the fourth quarter. Wellington Management Group LLP now owns 588,511 shares of the company’s stock worth $14,213,000 after buying an additional 92,800 shares in the last quarter. Millennium Management LLC lifted its holdings in Lincoln Educational Services by 1,084.2% during the fourth quarter. Millennium Management LLC now owns 208,912 shares of the company’s stock worth $5,045,000 after buying an additional 191,270 shares during the period. Finally, Boothbay Fund Management LLC boosted its position in Lincoln Educational Services by 4.1% during the 4th quarter. Boothbay Fund Management LLC now owns 103,286 shares of the company’s stock valued at $2,494,000 after acquiring an additional 4,049 shares in the last quarter. Hedge funds and other institutional investors own 72.23% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Northland Securities set a $60.00 price objective on shares of Lincoln Educational Services in a research report on Thursday, May 28th. Weiss Ratings cut Lincoln Educational Services from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, August 3rd. Rosenblatt Securities decreased their target price on Lincoln Educational Services from $60.00 to $50.00 and set a “buy” rating on the stock in a research report on Tuesday. B. Riley Financial increased their target price on Lincoln Educational Services from $46.00 to $56.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. Finally, Barrington Research set a $50.00 target price on shares of Lincoln Educational Services in a report on Monday. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Lincoln Educational Services presently has a consensus rating of “Moderate Buy” and an average price target of $50.67.

Trending Headlines about Lincoln Educational Services

Here are the key news stories impacting Lincoln Educational Services this week:

• Positive Sentiment: Lincoln reported quarterly revenue of $142.56 million, above the $139.49 million analyst consensus. It also posted $0.06 in EPS and reaffirmed full-year 2026 guidance of $0.74-$0.83 per share, with the consensus estimate at $0.78. Lincoln Educational Services Reports Strong Second Quarter Financial Results
• Positive Sentiment: Analysts remain constructive despite lower targets. Rosenblatt maintained a Buy rating while reducing its target to $50 from $60, and Barrington reiterated Buy with a $50 target, citing the company’s outlook and industry tailwinds. Rosenblatt Price Target Update Barrington Buy Rating Update
• Neutral Sentiment: Reported short interest was zero shares, offering no evidence of meaningful conventional short positioning; however, the figure provides little insight into near-term trading direction.
• Negative Sentiment: Northland Securities reduced several estimates: Q3 2026 EPS to $0.13 from $0.20, FY2026 EPS to $0.77 from $0.78, FY2027 EPS to $0.98 from $1.00, and modestly lowered Q1, Q3 and Q4 2027 forecasts. Only its Q4 2026 estimate increased, to $0.44 from $0.43. The revisions suggest near-term earnings momentum is less favorable than previously expected.
• Negative Sentiment: A report indicated that new student starts slowed, raising concerns about enrollment growth and future revenue expansion. Lincoln Educational Slides After New Student Starts Slow
• Negative Sentiment: Investors purchased roughly 2,687 put options, about 435% above average daily put volume, signaling elevated hedging or bearish speculation. Unusually high options activity also points to heightened volatility.

About Lincoln Educational Services

Lincoln Educational Services Corporation is a publicly traded provider of career-focused post-secondary vocational education in the United States. Operating under the Lincoln Tech and Lincoln Culinary Institute brands, the company delivers hands-on technical instruction across high-growth industries. Its mission centers on equipping students with practical skills and industry credentials designed to meet employer needs.

The company’s program offerings span automotive technology, skilled trades, health sciences, information technology, culinary arts and public safety.