LINCHIGH SIGNALOPPORTUNITY10-K

LINC demonstrated exceptional operational performance with revenue growing 33% to $261.9M while doubling both net income and operating cash flow, funded through strategic debt reduction and campus expansion.

The company is executing a successful growth strategy, expanding from 21 to 22 campuses with two additional locations planned, while dramatically improving profitability metrics across the board. The substantial debt reduction from $34.8M to $17.8M alongside doubled operating cash flow indicates strong financial discipline and cash generation capabilities during this expansion phase.

Comparing 2026-03-02 vs 2025-03-04View on EDGAR →
FINANCIAL ANALYSIS

LINC delivered outstanding financial performance with revenue surging 33% to $261.9M while net income and operating cash flow both doubled to $20.0M and $59.3M respectively, demonstrating exceptional operational leverage. The company strategically reduced total debt by nearly half to $17.8M while increasing capital expenditures by 52% to $86.6M to fund expansion, though this growth investment contributed to a 52% decline in cash reserves to $28.5M. Overall, the financial profile signals a company in strong growth mode with improving profitability and disciplined capital allocation, though investors should monitor the cash position given the aggressive expansion pace.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+102.4%
$29.3M$59.3M

Operating cash flow surged 102.4% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
+102.2%
$9.9M$20.0M

Net income grew 102.2% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+99.7%
$15.2M$30.3M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Capital Expenditure
Cash Flow
+52.3%
$56.9M$86.6M

Capital expenditure jumped 52.3% — major investment cycle underway; assess returns on deployment.

Cash & Equivalents
Balance Sheet
-51.9%
$59.3M$28.5M

Cash declined 51.9% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Debt
Balance Sheet
-48.8%
$34.8M$17.8M

Debt reduced 48.8% — deleveraging strengthens balance sheet and reduces financial risk.

Revenue
P&L
+33%
$196.9M$261.9M

Strong top-line growth of 33% — accelerating demand or successful expansion into new markets.

Interest Expense
P&L
+32.3%
$2.6M$3.4M

Interest expense surged 32.3% — significant debt increase or rising rates materially impacting earnings.

Inventory
Balance Sheet
+30.6%
$3.1M$4.0M

Inventory surged 30.6% — growing faster than typical sales pace; potential demand softening or supply chain overcorrection.

Current Assets
Balance Sheet
-21.8%
$111.3M$87.0M

Current assets declined 21.8% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-03-04
ADDED
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 35 ITEM 7A.
The Company, which currently operates 22 campuses in 12 states, has entered into leases for two new campuses: one in Hicksville, New York, where programs are expected to begin by the end of 2026, and one in Rowlett, Texas, a northern suburb of Dallas, where the lease commenced in the fourth quarter of 2025, and programs are expected to begin in the first quarter of 2027.
The Company offers programs in skilled trades, automotive, health sciences and information technology.
As of December 31, 2025, we had 17,046 students enrolled at 22 campuses.
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REMOVED
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 41 ITEM 7A.
Forward-looking statements speak only as of the date the statements are made.
We caution you not to unduly rely on the forward-looking statements when evaluating the information presented herein.
The Company, which currently operates 21 campuses in 12 states, has entered into leases for two new campuses: one in Houston, Texas, with programs expected to begin in the second half of 2025, and one in Hicksville, New York, with programs expected to begin by the end of 2026.
Lincoln Educational Services Corporation offers programs in skilled trades (which include Heating Ventilation and Air Conditioning ( HVAC ), welding and computerized numerical control and electrical and electronic systems technology, among other programs), automotive technology, healthcare services (which include nursing, dental assistant and medical assistant, among other programs) and hospitality services and information technology (which include culinary and aesthetics and information technology programs).
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