Lincoln Educational Services Q2 Revenue Jumps 22.4% but Student Start Growth Lags Expectations

Lincoln Educational Services reported second-quarter 2026 revenue of $142.6 million, a 22.4% year-over-year increase that beat analyst estimates by $3.26 million. Adjusted EBITDA grew 42.4% in the period. GAAP earnings per share came in at $0.06, beating expectations by $0.07.

The results were tempered by student start growth of just 1% in Q2, well below the company's expected 9% enrollment growth for the period. Despite the enrollment shortfall, management reiterated its full-year financial and student-start outlook, guiding for 2026 revenue of $590 million to $600 million and Adjusted EBITDA of $76 million to $80 million. Cash flow from operations reached $26.6 million for the six months ended June 30, 2026, compared with a use of $8.1 million in the prior-year period, while year-to-date capital expenditures totaled approximately $33.2 million.

The company ended the period with $44.2 million in cash and $99 million available under its credit facility, for total liquidity of $143.2 million against $26 million in credit facility debt. New campus developments in Hicksville, Rowlett, Suitland and Tempe remain on track, with the Suitland location projected to deliver over 30% IRR and $5 million in EBITDA within three years. Options activity in LINC was notably elevated on August 10, with 4,588 contracts traded.