Lincoln Educational | 8-K: FY2025 Q3 Revenue Beats Estimate at USD 141.39 M

Revenue: As of FY2025 Q3, the actual value is USD 141.39 M, beating the estimate of USD 129.85 M.

EPS: As of FY2025 Q3, the actual value is USD 0.12, beating the estimate of USD 0.024.

EBIT: As of FY2025 Q3, the actual value is USD 7.276 M.

Financial Performance

• Revenue: Increased by $27.0 million, or 23.6%, to $141.4 million for the third quarter of 2025, primarily due to a 17.2% increase in average student population and tuition increases.
• Net Income: $3.8 million, or $0.12 per share, compared to $4.0 million, or $0.13 per share, in the prior year, which included a $2.8 million one-time insurance gain.
• Adjusted EBITDA: Increased to $16.9 million, a 65.1% increase from the prior year.

Operational Metrics

• Educational Services and Facilities Expense: Increased by $9.2 million, or 19.2%, to $57.3 million, driven by higher costs associated with a larger student population. As a percentage of revenue, this expense declined to 40.5% from 42.0% in the prior year, indicating improved operating efficiency.
• Selling, General and Administrative Expense: Increased by $14.5 million, or 22.8%, to $77.8 million, primarily due to higher administrative and marketing expenses.

Cash Flow

• Net Cash Provided by Operating Activities: $15.8 million for the nine months ended September 30, 2025, compared to - $0.993 million in the prior year.
• Net Cash Used in Investing Activities: - $67.6 million, primarily due to capital expenditures.
• Net Cash Provided by Financing Activities: $6.0 million, mainly from proceeds from borrowings.

Unique Metrics

• Student Metrics: Student starts increased by 3.2% for the quarter and 12.0% for the nine months ended September 30, 2025. The student population increased by 14.8%.

Outlook / Guidance

• Lincoln Educational Services Corporation has raised its full-year 2025 financial guidance, expecting revenue between $505 million and $510 million, adjusted EBITDA between $65 million and $67 million, and net income between $17 million and $19 million. The company anticipates ending the year with more than half a billion dollars in revenue and has set a 2027 revenue target of over $600 million with $90 million in adjusted EBITDA.