LINCOLN EDUCATIONAL SERVICES CORP Q3 FY26 Results

During the third quarter, we generated double-digit growth across all our key metrics, highlighted by our 14.2% increase in student starts. The strong starts reflect our organization’s flexibility and responsiveness to a dynamic marketing environment where we continue to see robust demand for our high return-on-investment training and education programs. We continue to examine effective strategies to broaden our future lead generation sources and we saw an improvement in lead conversion rate to starts during the quarter to our historic levels. Based on our year-to-date performance and current outlook, we are refining our guidance for start growth of 10% to 12% for the full year, within the previous guidance range we established following our first quarter. Our start-growth and increase in average student population led to solid third quarter revenue growth of 12.6%. During the period, we continued to realize operating efficiencies in many of our operations, which contributed to a 22.5% increase in operating income, 30.8% growth in Adjusted EBITDA and a 24.1% rise in net income. The strong cash generation, and enhanced liquidity continues to fund our growth initiatives. Our new Hicksville, NY campus is expected to begin classes this month while the construction of our Rowlett, Texas campus continues. During the quarter, we signed leases and advanced plans to develop campuses in the metropolitan Washington, D.C. and Phoenix, Arizona, markets. Our business development efforts to examine other underserved markets for both our full scale and focused-program campus models remain quite active. We also continue with our efforts to enter new partnerships or expand existing ones as the demand for skilled workers remains far higher than supply. For instance, our WorkforceLinc Division recently expanded our collaboration with CMC Corporation and entered a new partnership with ABB to train students for careers in electrical systems and technology careers serving the data center industry. As we look to the remainder of 2026 and the longer-term future, based on our operational performance through October and current trends, we are raising our full-year revenue guidance. The need for employees trained in the automotive, skilled trades, and healthcare fields continues its significant growth, and Lincoln Tech is providing an established, proven education and training model to help America address its chronic skills gap. Our momentum increases our confidence in achieving our long-term 2030 objectives of $850 million in revenue and $150 million of EBITDA as we continue to expand our leadership position.