Lincoln Educational Services Corporation reported a 15.7% increase in student starts, driven by a shift towards skilled trades over traditional degrees. The company’s 10.0 hybrid teaching platform has improved efficiency, leading to operational leverage and strategic exits from low-ROI programs. Revenue is expected to reach $580-590 million in 2026.

The company plans to include pre-opening costs in adjusted EBITDA for transparency and aims for a 1-3% annual tuition increase. Expansion targets new campuses in NY and TX, focusing on high school recruitment for long-term growth. Bad debt expense decreased to 10.9%, and capital expenditures exceeded guidance due to construction acceleration.

High school receptivity to trades has increased, with a program allowing students to complete 50% of their program before graduation. Campus capacity utilization is at 60%, with plans to drive higher student density for margin expansion. Underutilized space is being repurposed for programs that meet local market demand in Houston and Levittown.

Read more at Yahoo Finance: Lincoln Educational Services Corporation Q4 2025 Earnings Call Summary