Lincoln Educational Services Corporation, along with its affiliated entities, specializes in providing vocational and technical post-secondary education to both recent high school ...
Lincoln Educational Services Corporation is a for-profit education company focused on preparing students for technical and career-oriented occupations. Founded in 1946 as Lincoln Technical Institute, the company has developed from a regional trade-school operator into a multi-state provider of hands-on post-secondary education. Its principal consumer-facing brand is Lincoln Tech, with ...Lincoln Educational Services Corporation is a for-profit education company focused on preparing students for technical and career-oriented occupations. Founded in 1946 as Lincoln Technical Institute, the company has developed from a regional trade-school operator into a multi-state provider of hands-on post-secondary education. Its principal consumer-facing brand is Lincoln Tech, with related names including Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, and Euphoria Institute of Beauty Arts and Sciences. The company is headquartered at 14 Sylvan Way in Parsippany, New Jersey, and its shares trade on the NASDAQ Global Select Market under the ticker LINC.
Lincoln’s academic offerings are organized broadly around transportation and skilled trades, as well as healthcare and other professions. Transportation programs include automotive technology and related vehicle-service training. Skilled-trade programs cover fields such as electrical systems, heating, ventilation and air conditioning, welding, computerized numerical control, and electrical or electronic systems. Healthcare programs include practical nursing, dental assisting, medical assisting, medical administrative support, and claims examination. Other offerings include culinary arts, therapeutic massage, cosmetology, aesthetics, and information technology. Depending on the program and campus, students may earn associate degrees, diplomas, or certificates.
The company’s operating model depends on campus-based instruction, laboratories, workshops, specialized equipment, instructors, student support, admissions, career services, and financial-aid administration. Because many programs require practical training, Lincoln’s cost structure includes substantial personnel expenses, facility costs, equipment purchases, maintenance, consumable materials, compliance costs, and marketing and student-recruitment expenses. Its capital expenditure profile can therefore be higher than that of a purely online education provider. The supplied financial data indicates a trailing-twelve-month gross margin of approximately 60.3%, EBITDA margin of approximately 10.5%, operating margin of approximately 6.1%, and net profit margin of approximately 4.1%.
The supplied data identifies approximately 2,590 full-time employees and describes a network of 22 campuses across 14 states at the referenced reporting date, serving more than 13,000 students. Campus count and enrollment can change as the company opens, closes, relocates, or acquires schools. Lincoln also has a history of expanding its geographic reach and program portfolio through acquisitions and campus development.
Scott M. Shaw serves as president and chief executive officer and joined the company in 2001. James J. Burke Jr. is identified as a founder and former president and CEO. Lincoln’s strategic priorities generally include increasing enrollment, improving student completion and employment outcomes, expanding programs aligned with labor-market demand, strengthening employer relationships, and maintaining regulatory and accreditation compliance. Key business risks include changes in federal financial-aid rules, enrollment volatility, competition from public colleges and other training providers, labor-market conditions, regulatory oversight of for-profit education, student affordability, and the need to continually update technical equipment and curricula. The company’s supplied trailing valuation metrics include a price-to-earnings ratio of approximately 56.2 and an enterprise-value-to-EBITDA multiple of approximately 26.1, although these figures are time-sensitive and should be evaluated against current filings and market data.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$518.2M
+17.8%
-1.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$20.0M
+102.2%
-55.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+60.4%
+2.8%
-2.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+5.8%
+67.3%
-47.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+3.9%
+71.7%
-54.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-27.4M
+0.4%
+175.2%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-5.3%
+15.4%
+175.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
102.1%
+2.5%
+8.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.86x
-29.9%
+15.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome to Lincoln Educational Services second quarter 26 earnings call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you would need to press 11 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. I would now like to hand the conference over to Michael Polyviou. You may begin.
Michael Polyviou: Thank you, Towanda. Good morning, everyone. Before the market opened today, Lincoln Educational Services issued a news release reporting financial results for the first quarter excuse me, for the second quarter ending 06/30/2026 as well as recent corporate developments. The release is available on the investor relations portion of the company's corporate website at www.lincolntech.edu. Joining us today on the call are Scott Shaw, CEO and president, and Brian K. Meyers, Chief Financial Officer and Executive Vice President. Today's call is being recorded. It is being broadcast live on the company's website. A replay of the call will be archived on the company's website. Statements made by Lincoln's management on today's call regarding the company's business that are not historical facts may be forward looking statements as that term is identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate, and continue as well as similar expressions are intended to identify forward looking statements. Forward looking statements should not be read as a guarantee of future performance. The company cautions you that these statements reflect certain expectations about the company's future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond the company's control and may influence the accuracy of the statement and projection upon which the segment statements are based. Factors that may affect the company's results include but are not limited to, the risks and uncertainties discussed in the risk factors section of the annual report on Form 10-K and the quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Forward looking statements are based on information available at the time those statements are made, and management's good faith belief as of that time with respect to future events. All forward looking statements are qualified in their entirety by this cautionary statement. And Lincoln undertakes no obligation to publicly revise or update any forward looking statements whether as a result of new information, future events, or otherwise after the date thereof. 1 other housekeeping matter. During the Q&A portion of the call today, we would ask questioners to limit themselves to 2 questions and then requeue to ask any additional questions. In advance, we thank you for your cooperation. …