Lincoln Educational Services reported a sharp year-over-year jump in second-quarter and first-half results, with revenue, earnings and cash generation all moving higher while student growth remained strong.
For the quarter ended June 30, 2026, revenue rose 22.4% to $142.6 million from $116.5 million a year earlier. Adjusted EBITDA climbed 42.4% to $12.7 million from $8.9 million. Net cash from operating activities improved to $22.1 million from just $0.3 million in the prior-year quarter.
Student volume also increased. Ending student population rose 10.4% to about 18,900, up by nearly 1,800 students. Student starts increased 1% in the quarter, though the company said it still expects full-year student start growth of 10% to 14%.
On a six-month basis, revenue increased 22.5% to $286.5 million, up $52.5 million from the same period in 2025. Adjusted EBITDA rose 62.9% to $28.2 million from $17.3 million. Average student population grew 16.3% to more than 18,300, an increase of almost 2,600 students. Student starts were up 9% year to date.
Operating expenses climbed alongside the growth. In the second quarter, educational services and facilities expense increased 27.4% to $59.6 million from $46.8 million, while selling, general and administrative expense rose 18.8% to $79.7 million from $67.1 million. Corporate and other expenses increased to $18.2 million from $16.4 million.
For the first half, educational services and facilities expense rose 25.3% to $118.0 million from $94.2 million, and selling, general and administrative expense increased 18.5% to $158.8 million from $134.0 million. Corporate and other expenses increased to $39.6 million from $34.7 million.
The company ended the quarter with approximately $143 million in total liquidity.
Lincoln also raised its capital expenditure outlook by about $25 million, now projecting $95 million to $100 million for 2026, while leaving its other full-year guidance unchanged. Revenue guidance remains $590 million to $600 million, adjusted EBITDA is still expected at $76 million to $80 million, net income at $23 million to $26 million, diluted EPS at $0.74 to $0.83, and student starts growth at 10% to 14%.
Recent business moves included signing a lease in Suitland, Maryland, for a campus expected to open in the fourth quarter of 2027, and completing the $18.8 million purchase of its Melrose Park, Illinois campus property in July. Today the company's shares have moved -23.54% to a price of $31.34. Check out the company's full 8-K submission here.
