Executives from Lincoln Educational Services (NASDAQ:LINC) used the company’s second investor day—held at its Nashville Auto Diesel College campus—to highlight growth initiatives, operational changes, and long-term financial targets, while repeatedly emphasizing student outcomes and workforce demand for skilled labor.
Leadership highlights 80-year history and focus on outcomes
Management opened the event by noting the company’s 80th anniversary and positioning the organization as a long-tenured, trades-focused educator. Leadership described a strategy centered on delivering “superior education” aligned with “in-demand careers,” supported by what it characterized as a strong regulatory and compliance posture.
Marketing and admissions describe a “full-funnel” approach and shifting demand
Vice President of Marketing Scott Minder said the company’s marketing strategy is data-driven and designed to engage students early in the decision process through to enrollment. He described key channels including paid search (high-intent keywords), social and video platforms (YouTube, Instagram, TikTok), retargeting campaigns, and outbound communications through CRM tools, including email and SMS.
Minder also said Lincoln is adapting content for the emergence of AI-driven search behaviors, noting the team is optimizing content not only for search engines but also for AI language models.
On demand, the marketing presentation pointed to skilled labor shortages across the trades and health sciences, skepticism about the value and cost of four-year degrees, infrastructure and industrial investment, and broader social acceptance of careers in the trades. Minder said the company is focused on capturing existing demand “as efficiently as possible,” rather than “manufacturing demand.”
Senior Vice President of Admissions Jay Rasmussen described the student base as:
- 22% enrolling directly out of high school
- 73% adult learners
- 5% veterans
Rasmussen characterized admissions as “caretakers,” emphasizing that many prospective students face barriers such as transportation, affordability, childcare, and self-confidence concerns. He said admissions is exploring AI-enabled tools including website search/Q&A functions, compliance-focused call monitoring, rep assistants for policy questions, self-scheduling, and broader self-service capabilities—while maintaining support for students through the process.
Education and career services outline retention initiatives and placement results
Senior Vice President of Education Gina Zaffino said graduation rates have generally remained in the high-60% range, though she noted a slight dip in 2025 that she attributed to rapid growth and the need to keep pace with demand. She said early indicators show improvement, with February graduation results described as the highest so far.
Zaffino outlined steps intended to support retention and graduation, including standardized academic delivery through the hybrid model, reduced administrative burdens, dedicated retention coaches at each campus, and dedicated student services staff to address non-academic needs such as transportation, health issues, and childcare. She also described investments in instructor training and development, including a five-week onboarding “boot camp” for new instructors and a “Ladders” program tied to growth paths and compensation. Zaffino said the initiatives have reduced faculty turnover.
She also described an “AI Study Buddy” tool designed to provide real-time feedback during asynchronous coursework.
Vice President of Career Services Jennifer Hash said the company’s graduates are the “product” and employer partners are the “customers.” Hash reported that Lincoln had over 11,000 graduates last year and a placement rate of 82.8%, which she described as the highest on record. She said the company has increased graduates by 45% over the last decade and expanded career services staffing by 18% over the past two years, now with more than 100 dedicated career services personnel. Hash said Lincoln created a new industry relations division last year to expand employer partnerships nationally and noted an “Employer Link” structure for premier partners that can include tuition reimbursement, scholarships, early hire opportunities, and donations.
Operations and finance detail capacity, the Lincoln 10.0 model, and long-term targets
Chief Operating Officer Chad Nyce described a four-part growth strategy: building new campuses, replicating in-demand programs, driving organic growth, and leveraging available capacity. Nyce said the company is currently operating at about 57% of practical capacity (using an internal 80% utilization benchmark), with the afternoon shift cited as the least utilized. He said the company could “almost double” without expanding the footprint, and potentially increase further if weekend cohorts were ever added.
Nyce also described the company’s “Lincoln 10.0” hybrid model, which management said is structured around asynchronous online learning combined with on-campus training. He said the model improves student flexibility and increases instructional efficiency by allowing faculty to teach more than one cohort per day. Management indicated the 30% online component is asynchronous and said the company chose that level to preserve hands-on training and avoid pushing away students who prefer in-person learning.
On non-Title IV sources, management discussed a focus on workforce training partnerships and referenced relationships such as Container Management Corporation and New Jersey Transit. Nyce also outlined a “high school share” program in New Jersey that resembles dual enrollment, where students attend high school for general education courses and take trade coursework at Lincoln in the afternoon, paid for by school districts. Management said the program remains relatively small, citing about 128 students in New Jersey, but indicated interest from dozens of districts and described funding differences by state as a constraint on scalability.
Chief Financial Officer Brian Meyers recapped progress against targets presented at the prior investor day. He said the company’s 2027 revenue projection from 2024 investor day was $540 million, while the midpoint of 2026 guidance is $585 million, which he described as “a year ahead of schedule.” For adjusted EBITDA, he said the prior 2027 projection has been restated under a methodology that adds back non-cash stock-based compensation, with a revised 2027 target of $78 million and a 2026 midpoint guidance of $74 million. Meyers said net income growth is lagging EBITDA growth due to higher depreciation from recent investments.
Meyers said projected capital expenditures are about $72 million, with 70% allocated to growth initiatives, including new campuses. He described a model that assumes 5% organic growth in the base business (defined as campuses open prior to March 2024), driven by tuition increases and enrollment gains, as well as continued efficiencies and program mix changes.
Looking further out, Meyers presented targets to reach $850 million of revenue and $150 million of adjusted EBITDA by 2030, with annual growth assumptions of roughly 10% for revenue and 20% for adjusted EBITDA. He also discussed margin expansion assumptions toward 18% by 2030 and a goal to triple net income and diluted EPS by that year. He said the company expects to spend roughly $75 million to $80 million in annual CapEx, including $50 million to $55 million for new campus build-outs, and projected no year-end borrowings due to seasonality, while noting potential to expand its credit facility.
Q&A: degree-granting timeline for veterans and nursing profitability
In the Q&A, management said it is pursuing degree-granting status in New Jersey, Connecticut, and New York to better serve veterans, noting that certain rules restrict veterans’ ability to use benefits for online diploma programs. Leadership said it hopes to secure degree-granting status in New Jersey and Connecticut within 12 months, while describing New York as potentially taking one to five years.
On nursing, management said licensed practical nursing (LPN) is offered at seven campuses and cited average NCLEX rates of 95% last year. Executives said nursing is not currently a major EBITDA contributor and is being reorganized to improve profitability, including moving toward the Lincoln 10.0 model and adjusting compensation. Leadership said projections shared with investors assume “nothing” incremental from nursing beyond current levels.
About Lincoln Educational Services (NASDAQ:LINC)
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.
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