Lincoln Educational Services Reports 13.7% Revenue Growth and Profitability Turnaround in Q1 2025

Lincoln Educational Services Corporation reported a significant increase in financial performance for the first quarter of 2025, with revenues reaching $117.5 million, a 13.7% increase from $103.4 million in the same period last year. This growth was primarily driven by a 13.1% rise in the average student population, which increased to 15,469 from 13,678. The company also achieved a net income of $1.9 million, compared to a net loss of $0.2 million in the prior year, marking a notable turnaround in profitability.

In terms of operational metrics, Lincoln Educational Services saw a total of 4,610 new student starts during the quarter, up from 3,967 in the previous year, reflecting a 16.2% increase. The end-of-period student population also grew to 15,904, an 18.3% increase from 13,449. The company operates 21 campuses across 12 states and has plans to expand further, with new campuses set to open in Houston, Texas, and Hicksville, New York, in the coming years.

The company's costs and expenses rose to $114.1 million, up from $103.8 million in the prior year, largely due to increased educational services and facilities expenses, which grew by 10.2% to $47.4 million. This increase included preopening costs for new campuses and investments in expanding existing programs. Selling, general, and administrative expenses also rose by 10.6% to $66.9 million, driven by higher compensation and benefits expenses associated with a larger workforce to support the growing student population.

Lincoln Educational Services has also made strategic moves to enhance its financial flexibility. In March 2025, the company amended its credit facility with Fifth Third Bank, increasing the available amount from $40 million to $60 million and extending the maturity date to March 2028. As of March 31, 2025, the company had no outstanding debt under this facility, which positions it well for future growth initiatives.

Looking ahead, Lincoln Educational Services remains focused on expanding its geographic footprint and enhancing its program offerings. The company plans to continue investing in new campuses and educational programs while maximizing the utilization of existing facilities. However, it remains cautious about potential regulatory changes that could impact its operations, particularly concerning Title IV funding, which constitutes a significant portion of its revenue. The company is closely monitoring developments in the regulatory environment and is prepared to adapt its strategies accordingly.