Lincoln Educational Services: LINC Q3 2025 Investor Presentation

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

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

$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

• 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

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

Over 95% of our students are pursuing careers that the U.S Department of Homeland Security considers Essential Critical Infrastructure Workers.

• Opportunity for expansion

  
  
  

• Active Campuses: 22

• New Campuses: 2

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