Lincoln Educational Services Corporation (LINC) SEC Filings & Earnings Calls

Q2 student start growth slowed to 1% due to conversion issues; management taking corrective actions.

“Our start growth for the quarter slowed to one percent, as fewer enrolled students than expected attended the first day of class. ... we observed changes in the student decision-making process that affected conversion from enrollment to start.” · word for word

Dependence on Title IV federal student aid programs

“The most significant source of student financing is Title IV Programs, which represented approximately 85% of our cash receipts relating to revenues in 2025.” · word for word

Educational services cost inflation

“Educational services and facilities expense as a percentage of revenue increased to 41.8% from 40.2% in the prior year comparable period.” · word for word

Increased leverage with $15.04M mortgage; interest rate resets after 5 years to Treasury + 1.75% with 5% floor.

“Loan accrues interest at 5.99% for first 5 years, then Treasury + 1.75% with 5% floor.”

Dependence on Title IV Federal Student Aid

“Title IV Programs represented approximately 85% of our cash receipts relating to revenues in 2025.”

Cash Position Decline Due to Campus Expansion

“Cash and cash equivalents decreased to $16.7 million as of March 31, 2026, from $28.7 million as of March 31, 2025, primarily driven by increased capital expenditures due to campus expansion.”

Execution risk: new campus development may face delays or underperformance.

“The development of our new Hicksville, New York and Rowlett, Texas campuses remain on schedule to begin enrollment during the fourth quarter of this year and first quarter of next year, respectively.” · word for word

Regulatory risk: changes in federal student aid policies could impact enrollment.

“Uncertainties related to our ability to comply with the existing and future federal and state regulatory framework applicable to.”

Increased debt capacity may lead to higher leverage if utilized, but terms appear favorable.

“Facility is secured by first-priority lien on substantially all personal property; contains customary covenants.”

Forward-looking statements subject to regulatory, enrollment, and macroeconomic risks.

“Safe harbor statement lists numerous risks including regulatory changes, enrollment declines, and competition.”

Title IV Revenue Concentration

“approximately 84.7% (calculated based on cash receipts) of our revenues were derived from Title IV Programs.” · word for word

Regulatory Change Risk

“Congress periodically revises the HEA and other laws governing Title IV Programs and annually determines the funding level for each Title IV Program.” · word for word

Accreditation Risk

“If any of our schools loses its accreditation, students attending that school would no longer be eligible to receive Title IV Program funding.” · word for word

Dependence on Title IV federal student aid

“The most significant source of student financing is Title IV Programs, which represented approximately 82% of our cash receipts relating to revenues in 2024.” · word for word

Cash burn from expansion capex

“As of September 30, 2025, the Company had $13.5 million in cash and cash equivalents, compared to $54.0 million in cash and cash equivalents as of September 30, 2024.” · word for word