Lincoln Educational Services (NASDAQ:LINC) Announces Earnings Results

Lincoln Educational Services (NASDAQ:LINC) released its earnings results on Monday. The company reported $0.06 EPS for the quarter, Zacks reports. Lincoln Educational Services had a return on equity of 15.25% and a net margin of 4.11%.The company had revenue of $142.56 million during the quarter, compared to analysts’ expectations of $139.49 million. 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 Stock Down 24.9%

LINC stock opened at $30.77 on Tuesday. The business’s 50 day simple moving average is $46.63 and its 200 day simple moving average is $41.09. Lincoln Educational Services has a 1-year low of $17.29 and a 1-year high of $56.34. The firm has a market capitalization of $976.02 million, a PE ratio of 43.34, a PEG ratio of 3.49 and a beta of 0.83. The company has a current ratio of 0.83, a quick ratio of 0.80 and a debt-to-equity ratio of 0.18.

Insider Transactions at Lincoln Educational Services

In other news, Director Kevin M. Carney sold 3,000 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $48.00, for a total value of $144,000.00. Following the completion of the transaction, the director directly owned 25,039 shares in the company, valued at approximately $1,201,872. The trade was a 10.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director James J. Burke, Jr. sold 15,807 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $48.36, for a total transaction of $764,426.52. Following the sale, the director owned 44,198 shares in the company, valued at $2,137,415.28. This represents a 26.34% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 55,000 shares of company stock worth $2,614,758. 12.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Lincoln Educational Services

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Invesco Ltd. increased its stake in shares of Lincoln Educational Services by 275.0% in the 4th quarter. Invesco Ltd. now owns 178,892 shares of the company’s stock valued at $4,320,000 after purchasing an additional 131,192 shares during the last quarter. Pillsbury Lake Capital LLC bought a new stake in shares of Lincoln Educational Services during the 4th quarter worth $17,028,000. Wellington Management Group LLP lifted its position in shares of Lincoln Educational Services by 18.7% during the 4th 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 during the last quarter. Millennium Management LLC boosted its stake in Lincoln Educational Services by 1,084.2% in the fourth quarter. Millennium Management LLC now owns 208,912 shares of the company’s stock valued at $5,045,000 after buying an additional 191,270 shares in the last quarter. Finally, Boothbay Fund Management LLC grew its position in Lincoln Educational Services by 4.1% in the fourth 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 during the last quarter. 72.23% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Rosenblatt Securities restated a “buy” rating and issued a $60.00 price target on shares of Lincoln Educational Services in a report on Thursday, June 11th. B. Riley Financial increased their target price on Lincoln Educational Services from $46.00 to $56.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. Lake Street Capital restated a “buy” rating and set a $55.00 target price on shares of Lincoln Educational Services in a report on Tuesday, May 12th. Northland Securities set a $60.00 price target on shares of Lincoln Educational Services in a research note on Thursday, May 28th. Finally, Weiss Ratings cut shares of Lincoln Educational Services from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, August 3rd. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $53.17.

Key Stories Impacting Lincoln Educational Services

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

• Positive Sentiment: Second-quarter results exceeded expectations. Lincoln reported adjusted? GAAP EPS of $0.06, beating consensus by $0.07, while revenue of approximately $142.6 million surpassed estimates by $3.26 million. The company also reported a 4.11% net margin and 15.25% return on equity. Lincoln Educational Services earnings results
• Positive Sentiment: Full-year guidance was maintained. Management projects fiscal 2026 EPS of $0.74–$0.83 and revenue of $590 million–$600 million, broadly consistent with analyst expectations. Maintaining the outlook provides some reassurance that management views the enrollment slowdown as manageable. Lincoln Educational Services second-quarter results and guidance
• Positive Sentiment: Analyst support remains favorable. Barrington reiterated its Buy rating, citing Lincoln’s outlook and industry tailwinds, although it reduced its price target to $50 from a higher prior target. A separate Seeking Alpha analysis characterized the selloff as a potential opportunity to buy the dip. Lincoln Educational Services analyst rating
• Neutral Sentiment: The earnings call transcript provides additional management commentary on the quarter, enrollment trends and the reiterated 2026 outlook. Lincoln Educational Services Q2 2026 earnings call transcript
• Negative Sentiment: New-student starts slowed. This raised concerns that enrollment growth—and therefore future revenue and earnings growth—could weaken, triggering a sharp investor reaction despite the reported quarterly beat. Lincoln Educational new student starts
• Negative Sentiment: Unusually heavy put-option buying—2,687 contracts, roughly 435% above average volume—signals heightened bearish hedging or speculation around LINC. Lincoln Educational Services options activity

Lincoln Educational Services Company Profile

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.