$LINC

LINCOLN EDUCATIONAL SERVICES CORP

CIK:0001286613|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
REVENUE	$ 142,560	$ 116,474	$ 286,518	$ 233,980
COSTS AND EXPENSES:
Educational services and facilities	59,632	46,791	118,025	94,199
Selling, general and administrative	79,649	67,061	158,801	133,965
Gain on sale of assets	(33)	(256)	(27)	(476)
Total costs and expenses	139,248	113,596	276,799	227,688
OPERATING INCOME	3,312	2,878	9,719	6,292
OTHER:
Interest income	7	11	37	125
Interest expense	(1,058)	(813)	(1,895)	(1,514)
INCOME BEFORE INCOME TAXES	2,261	2,076	7,861	4,903
PROVISION FOR INCOME TAXES	315	522	1,559	1,404
NET INCOME	$ 1,946	$ 1,554	$ 6,302	$ 3,499
Basic
Net income per common share (in Dollars per share)	$ 0.06	$ 0.05	$ 0.2	$ 0.11
Diluted
Net income per common share (in Dollars per share)	$ 0.06	$ 0.05	$ 0.2	$ 0.11
Weighted average number of common shares outstanding:
Basic (in Shares)	31,257,944	30,990,392	31,194,290	30,900,349
Diluted (in Shares)	31,418,794	31,271,254	31,375,372	31,172,479

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 6,302	$ 3,499
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	14,587	7,637
Finance lease amortization	835	835
Amortization of deferred finance charges	88	90
Deferred income taxes	0	547
Gain on sale of assets	(27)	(476)
Fixed asset donations	(111)	(197)
Provision for credit losses	29,717	25,012
Stock-based compensation expense	3,059	2,548
(Increase) decrease in assets:
Accounts receivable	(39,056)	(30,797)
Inventories	(91)	(1,451)
Prepaid income taxes	(324)	(2,794)
Prepaid expenses and current assets	5,783	(3,611)
Other assets, net	(387)	(657)
Increase (decrease) in liabilities:
Accounts payable	(754)	(9,768)
Accrued expenses	(1,735)	3,452
Unearned tuition	7,761	(2,548)
Income taxes payable	0	(1,072)
Other liabilities	986	1,672
Total adjustments	20,331	(11,578)
Net cash provided by (used in) operating activities	26,633	(8,079)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(29,132)	(46,276)
Proceeds from (payments for) sale of property and equipment	27	504
Net cash used in investing activities	(29,105)	(45,772)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	70,000	25,000
Payments on borrowings	(44,000)	(12,000)
Payment of deferred finance fees	(990)	(121)
Finance lease principal paid	(219)	(179)
Tenant allowance finance leases	0	2,212
Net share settlement for equity-based compensation	(6,660)	(3,633)
Net cash provided by financing activities	18,131	11,279
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	15,659	(42,572)
CASH AND CASH EQUIVALENTS —Beginning of period	28,519	59,273
CASH AND CASH EQUIVALENTS—End of period	44,178	16,701
Cash paid for:
Interest	1,726	1,391
Income taxes	544	4,721
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Liabilities accrued for or non-cash additions of fixed assets	$ 9,525	$ 14,023

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 44,178	$ 28,519
Accounts receivable, less allowance of $41,378 and $43,975 at June 30, 2026 and December 31, 2025, respectively	45,871	36,929
Inventories	4,077	3,986
Income tax receivable	1,923	1,599
Tenant allowance receivable	5,587	8,127
Prepaid and other assets	4,613	7,872
Total current assets	106,249	87,032
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $160,833 and $148,067 at June 30, 2026 and December 31, 2025, respectively	190,686	171,603
OTHER ASSETS:
Noncurrent receivables, less allowance of $26,865 and $26,371 at June 30, 2026 and December 31, 2025, respectively	21,645	21,248
Deferred finance charges	1,204	302
Deferred income taxes, net	21,668	21,668
Operating lease right-of-use assets	151,565	154,223
Finance lease right-of-use assets	24,240	25,075
Goodwill	10,742	10,742
Other assets, net	1,781	1,271
Total other assets	232,845	234,529
TOTAL ASSETS	529,780	493,164
CURRENT LIABILITIES:
Unearned tuition	51,920	44,159
Accounts payable	30,677	27,023
Accrued expenses	16,695	18,430
Current portion of operating lease liabilities	11,127	10,634
Current portion of finance lease liabilities	534	463
Total current liabilities	110,953	100,709
NONCURRENT LIABILITIES:
Long-term portion of operating lease liabilities	160,074	162,113
Long-term portion of finance lease liabilities	30,364	30,654
Long-term debt	26,000	0
Total liabilities	327,391	293,476
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par value - authorized 100,000,000 shares at June 30, 2026 and December 31, 2025, issued and outstanding 31,722,150 shares at June 30, 2026 and 31,623,795 shares at December 31, 2025	48,181	48,181
Additional paid-in capital	48,738	52,339
Retained earnings	105,470	99,168
Total stockholders’ equity	202,389	199,688
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 529,780	$ 493,164