Lincoln Educational delivered third quarter results that exceeded Wall Street expectations, prompting a significant positive reaction from the market. Management credited the outperformance to higher student enrollment, robust demand for skilled trade programs, and operational efficiencies achieved through its hybrid teaching platform. CEO Scott Shaw pointed to growth from new and expanded campuses, such as East Point, Nashville, Levittown, and Houston, as critical contributors. He stated, “Our growth has accelerated due to the nation’s increased interest in skilled trade careers and through our successful development of greenfield campuses and the expansion of successful programs to existing campuses.”
Is now the time to buy LINC? Find out in our full research report (it’s free for active Edge members).
Lincoln Educational (LINC) Q3 CY2025 Highlights:
- Revenue: $141.4 million vs analyst estimates of $131.5 million (23.6% year-on-year growth, 7.5% beat)
- Adjusted EPS: $0.20 vs analyst estimates of $0.12 (68.7% beat)
- Adjusted EBITDA: $16.9 million vs analyst estimates of $12.88 million (12% margin, 31.2% beat)
- The company lifted its revenue guidance for the full year to $507.5 million at the midpoint from $495 million, a 2.5% increase
- EBITDA guidance for the full year is $66 million at the midpoint, above analyst estimates of $62.3 million
- Operating Margin: 4.4%, in line with the same quarter last year
- Enrolled Students: 18,244, up 2,357 year on year
- Market Capitalization: $659.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lincoln Educational’s Q3 Earnings Call
- Alexander Paris (Barrington Research) asked for clarification on adjusted EBITDA guidance and the impact of pre-opening costs. CFO Brian Meyers confirmed pre-opening costs are excluded from future adjusted EBITDA calculations and guidance will exceed previous targets even without these add-backs.
- Lucas John Horton (Northland Capital Markets) inquired about the drivers of strong student start growth and campus-level expansion. CEO Scott Shaw explained robust interest across new and existing campuses, with East Point’s expansion adding capacity for 500 additional students.
- Lucas John Horton (Northland Capital Markets) followed up on healthcare program expansion, specifically the RN degree timeline. Shaw detailed that degree-granting approval is a state-by-state process and could take 12–48 months depending on the state.
- Eric Martinuzzi (Lake Street Capital Markets) questioned the comparability of new long-term revenue guidance and the contribution of new campuses. Meyers and Shaw clarified that the updated projection includes all recently announced campus expansions.
- Griffin Boss (B. Riley Securities) asked about tuition per student and ramp-up periods for new campuses. Meyers attributed higher average tuition to a mix of modest price increases and program mix, while Shaw stated new campuses are expected to reach breakeven at around 850–1,000 students within 18–24 months.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the enrollment ramp at recently opened and soon-to-launch campuses, (2) progress on regulatory approvals for registered nurse degree programs, and (3) continued adoption of the Lincoln 10.0 hybrid model and its impact on operational efficiency. The trajectory of high school outreach initiatives and healthcare program expansion will also be key signposts for future growth.
Lincoln Educational currently trades at $20.86, up from $17.80 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
