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Education company Lincoln Educational (NASDAQ:LINC) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 13.7% year on year to $117.5 million. Its non-GAAP profit of $0.11 per share was significantly above analysts’ consensus estimates.
Is now the time to buy LINC? Find out in our full research report (it’s free).
Lincoln Educational’s first quarter results were shaped by strong student enrollment growth, the expansion of its hybrid teaching model, and targeted campus investments. CEO Scott Shaw highlighted the impact of the Lincoln 10.0 hybrid model, which blends online and hands-on instruction to offer flexibility and improved graduation rates. The company benefited from higher student starts, particularly in transportation and skilled trades, while phasing out lower-demand programs. Marketing efficiencies also contributed, as cost per student start fell. Despite a shortfall in revenue against Wall Street expectations, management attributed double-digit revenue growth to sustained demand for skilled trades training and operational improvements at newly opened and relocated campuses.
For the remainder of the year, management expects continued momentum driven by additional program replications, the opening of new campuses, and ongoing efficiency gains. CFO Brian Meyers noted that the company’s raised full-year EBITDA guidance reflects confidence in operational leverage and enrollment trends. Shaw pointed to broader national trends favoring skilled trades and highlighted that regulatory changes and government initiatives are expected to support demand. He explained, “Our growth strategy is simple. We will continue to expand our network of schools by replicating our most in-demand programs at our existing campuses while building new campuses in new and existing markets.” The company is also closely monitoring regulatory developments and expects minimal impact from tariffs or economic headwinds in the near term.
Management attributed the quarter’s results to strong demand for skilled trade programs, successful campus expansion, and improved marketing efficiency. The company also benefited from leveraging its hybrid teaching model and optimizing its program mix.
Lincoln Educational’s outlook is anchored in continued expansion of its program offerings, new campus openings, and operational leverage, while navigating regulatory changes and shifting market preferences.
In future quarters, the StockStory team will be tracking (1) the ramp-up of new campus openings and the contribution of new programs to enrollment, (2) the sustainability of marketing efficiencies and operating leverage, and (3) progress on regulatory approvals for program expansions. We will also monitor how phasing out low-demand programs and the national focus on skilled trades shape student demand and financial outcomes.
Lincoln Educational currently trades at a forward EV-to-EBITDA ratio of 11.8×. Should you double down or take your chips? Find out in our full research report (it’s free).
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