Lincoln Educational Q2 revenue rises beats on student population growth

Lincoln Educational Services

10/08/2026 13:10

Overview
US career education provider's Q2 revenue rose 22%, beating analyst expectations
Q2 adjusted EBITDA grew 42%, beating analyst estimates
Company reiterated full-year guidance and raised capital expenditure outlook for campus expansion

Outlook
Company reiterates 2026 revenue guidance of $590 mln to $600 mln
Lincoln Educational Services expects 2026 adjusted EBITDA of $76 mln to $80 mln
Company raises 2026 capital expenditure guidance to $95 mln-$100 mln, up about $25 mln

Result Drivers
STUDENT POPULATION GROWTH - Revenue growth was primarily driven by a 14.5% increase in average student population, with the remainder attributable to tuition increases
ENROLLMENT TRENDS - Student start growth slowed to 1% in Q2 as fewer enrolled students attended the first day of class and changes in student decision-making affected conversion from enrollment to start
COSTS FROM NEW CAMPUSES - Higher educational and administrative expenses were driven by a larger student population and increased costs related to new campuses in Houston, Hicksville, and Rowlett

Company press release: ID:nGNX5vXnLs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$142.56 mln
$140.49 mln (6 Analysts)
Q2 EPS
 
$0.06
 
Q2 Net Income
 
$1.95 mln
 
Q2 Adjusted EBITDA
Beat
$12.70 mln
$10.93 mln (6 Analysts)
Q2 Operating Income
 
$3.31 mln
 
Q2 Pretax Profit
 
$2.26 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the professional & business education peer group is "buy"
Wall Street's median 12-month price target for Lincoln Educational Services Corp is $58.00, about 41.5% above its August 7 closing price of $40.99
The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 49 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)