Q2 2025 Lincoln Educational Services Corp Earnings Call Transcript
Key Points
- Lincoln Educational Services Corp (LINC) reported a nearly 22% increase in student starts and about 15% revenue growth from current operations.
- The company achieved a 68% increase in consolidated adjusted EBITDA over the previous year's second quarter.
- Lincoln Educational Services Corp (LINC) is expanding its growth initiatives to capitalize on the growing demand for high-value career-focused skills training.
- The Lincoln 10.0 hybrid teaching model is contributing to start growth by providing flexibility to students, combining hands-on learning with online instruction.
- The company is seeing strong results from new and relocated campuses, such as the Nashville Auto-Diesel College, and plans to open additional campuses in underserved markets.
- The healthcare and other professions program experienced an 8% decline in starts, largely due to a temporary pause in enrollment at the Paramus New Jersey campus.
- Total operating expenses increased to $113.6 million, up from $101.8 million in the prior year, primarily due to higher direct costs and growth initiatives.
- The company experienced a temporary slowdown in Title IV drawdowns due to a spike in verification selections by the Department of Education, affecting cash flow.
- The healthcare segment is not as profitable as the skilled trades segment, and investments in expanding opportunities have been limited until profitability improves.
- The company has stopped enrolling military students in certain markets due to inefficiencies in offering blended programs without degree-granting status.
Good day and thank you for standing by. Welcome to the Lincoln Educational Services second-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Michael Polyviou. Please go ahead.
Thank you, Gigi. Good morning, everyone. Before the market opened today, Lincoln Educational Services issued a news release reporting financial results for the second quarter ended June 30, 2025, as well as recent corporate development. 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, President and CEO; and Brian Meyers, Chief Financial Officer. Today's call is being recorded and is being broadcast live on the company's website. A replay of the call will be archived on the company's website.
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