Lincoln Educational Services : LINC Q3 2025 Investor Presentation

About this update from Lincoln Educational Services Corporation

Q3 2025 Investor Presentation Investment Opportunity Skills Gap Leader Growth Profitability Balance sheet Increasing Efficiency Employers cannot find enough technically trained employees and with the infrastructure bill passed demand for skilled workers should be even greater Lincoln is a leading, technical, hands-on educator and trainer serving high demand industries (transportation, skilled trades and healthcare) facing this Skills Gap Proven ability to grow population and revenue in high and low unemployment markets Continuing our strong track record of profitability with increasing operating leverage Strong balance sheet with resources to expand programs and campuses to accelerate growth Continuing efforts to streamline and standardize operations including moving to a more efficient hybrid learning model, and standardizing curriculum. Hybrid model is more attractive to students Strong Q3 - Increasing FY 2025 Guidance Revenue +25.4% Q3 2025: $141.4M Starts* +6.0% ~6,400 Q3 2025 Starts $16.9M Adj EBITDA +65.1% vs prior year EPS: $0.12 vs $0.13 PY Q3 2025 NI: $3.8M Adj. EPS: $0.20 vs $0.13 PY Q3 2025 Adj NI: $6.3M ~80% of Capital Expenditures relates to growth initiatives: new campuses, campus relocations, and new programs New Houston, TX campus opened 2025 Full Year Guidance Revenue $505M to $510M Adjusted EBITDA $65M to $67M Net Income $17M to $19M Starts +15% to +16% Capital Expenditures $75M to $80M Completed relocation of Levittown, PA campus Signed lease for new campus in Rowlett, TX (northern suburb of Dallas) Offering automotive & skilled trade programs Scheduled to open Q1 2027 * Q3 2025 excludes 2,764 student starts on July 1, 2025 to align with comparable student start activity in the prior year that occurred in the last week of June 2024 Prior Year revenue and starts exclude Transitional segment (Euphoria campus) Organic Growth Opportunities Existing Campuses & Programs Efficiencies through Lincoln 10.0 hybrid teaching model, centralization, and automation Expansion of high school student initiatives & partnerships 21 Campuses 23 Campuses New 2027 Projections: Revenue: $600M+ Adj. EBITDA*: $90M+ *Adjusted only for stock compensation (see notes below) Well Positioned to Exceed Long-Term Goals $90M $66M Revenue: $507.5M Margin: 13% Revenue: $550M Margin: 16% New Construction Evaluating new and adjacent markets to expand footprint Relocation of existing campuses to expand program offerings Streamlined, state-of-the-art facilities New campuses expected to generate ~$7M+ after 36 months of operations 2025 Adjusted EBITDA 2027 Adjusted EBITDA Target 2027 Projections: EBITDA (non-adj) ~$82M Net Income: EPS: ~$36M Cash from Ops: ~$70M ~$1.14 New Programs Replicate profitable, high-demand programs in existing schools 2024: 4 new programs, 1 expansion 2025: 4 new programs, 2 expansions New programs expected to generate over $1M after 24 months of operations Inorganic Growth Opportunities Acquisitions Continue to evaluate strategic opportunities to expand market share Leverage cost-saving synergies Diversify program offerings Notes: 2025 Revenue and Adjusted EBITDA represent the midpoint of guidance 2027 Adjustments to EBITDA in above chart include ~$6M for non-cash stock-based compensation and ~$2M of losses related to opening the new Hicksville campus 2027 campus count includes Hicksville, which is being adjusted Beginning in 2026, we will no longer adjust our EBITDA for pre-opening costs, and net operating losses from new campus and program expansions as we currently do. 2027 adjusted EBITDA is projected to exceed $100M if we still included these adjustments The Campus will offer a mix of Automotive and Skilled Trade Programs in the Hybrid Learning Model. Blended Programs Revenue ($M) $40 $30 $20 $10 $0 Year 1 0 Year 2 Year 1 Year 2 Year 3 Year 4 Pre-Opening Campus Open Facilities State-of-the-art facilities ~60k - 80k square feet New Campus Pro-Forma Hybrid Learning Model CapEx: ~$18-$25M Classes start ~2 years from lease signing Accretive to earnings within 2 years of class start Avg Pop of ~900 students by Year 4 Financials Campus Open Pre-Opening ($5) $0 $5 $10 $15 EBITDA ($M) Year 4 Year 3 Year 2 Year 1 0 Year 2 0 Year 1 Campus EBITDA estimates above are fully burdened with marketing expenses and allocations for corporate support services Lincoln Graduates are Essential Workers Over 95% of our students are pursuing careers that the U.S Department of Homeland Security considers Essential Critical Infrastructure Workers. Company Overview Campuses Across the Country Opportunity for expansion Active Campuses: 22 New Campuses: 2 Demand for "Middle Skills Training" Low Skill 22% US Employment by Skill Level (2023-2033) Middle Skill 48% High Skill 30% Middle-skill jobs, which require education beyond high school but not a four-year degree, make up the largest part of America's labor market. (Source: U.S. Bureau of Labor Statistics) Lincoln connects employers with entry level trained professionals from the adult, high school and military sectors. Source: U.S. Bureau of Labor Statistics Employment by Typical Entry-Level Education Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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