Lincoln Educational Services : LINC Q4 2025 Investor Presentation

About this update from Lincoln Educational Services Corporation

Q4 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 Finished Strong Year with Continued Growth Revenue 1 +21.4% Q4 2025: $142.9M Starts 1 +15.7% ~3,900 Q4 2025 Starts $29.1M Adj EBITDA 2 +51.2% vs prior year EPS 3 : $0.40 vs $0.22 PY Q4 2025 NI: $12.7M Adj. EPS 3 : $0.50 vs $0.31 PY Q4 2025 Adj NI: $15.8M 2025 Full Year Guidance Guidance Actual Revenue $505M to $510M $518.2 Adjusted EBITDA $65M to $67M $67.1 Net Income $17M to $19M $20.0 Starts +15% to +16% +15.2% Capital Expenditures $75M to $80M $88.0M ~70% of Capital Expenditures relates to growth initiatives: new campuses, campus relocations, and new programs Exceeded guidance for Revenue, Adjusted EBITDA, and Net Income New campus in Houston, Texas and relocated campuses in Nashville, Tennessee and Levittown, Pennsylvania meeting or exceeding expectations Strong momentum entering 2026 Prior year excludes Transitional segment (Euphoria campus) See appendix for reconciliation Based on 31,381 diluted shares and 31,144 diluted shares for the three months ending December 31, 2025 and December 31, 2024, respectively Company Outlook Full Year 2026 Outlook FY25 Actual 2026 Guidance Year-Over-Year Growth 2 Revenue $518.2M $580M to $590M +13% Adjusted EBITDA 1 $57.1M $72M to $76M +30% Net Income $20.0M $20M to $23M +8% Diluted EPS $0.64 $0.64 to $0.74 +8% Capital Expenditures 3 $88.0M $70M to $75M -18% Starts 20,906 8% to 13% Due to a methodology change in 2026, 2025 adjusted EBITDA has been restated to reflect add back only for stock-based compensation expense, pension adjustment and other one-time costs. See appendix for reconciliations. Year-over-year growth percentages are calculated using the fiscal 2026 guidance midpoint. Approximately 70% of capital expenditures are related to growth initiatives, new campuses, and program expansions. Well-Positioned to Exceed Long-Term Goals Projected to exceed original 2027 targets of $550M revenue and $90M adjusted EBITDA Successful implementation of growth initiatives including new campuses and program replications & expansions driving revenue expectations of over $600M by 2027 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 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 $1M after 24 months of operations Inorganic Growth Opportunities Acquisitions Continue to evaluate strategic opportunities to expand market share Leverage cost-saving synergies Diversify program offerings Existing Campuses & Programs Efficiencies through Lincoln 10.0 hybrid teaching model, centralization, and automation Expansion of high school student initiatives & partnerships Organic Growth Opportunities 24 campuses to be open as of 2027 (including Hicksville, New York - projected opening Q4 2026 and Rowlett, Texas - projected opening Q1 2027) The Company looks forward to sharing its updated five-year outlook at Investor Day on March 19 th at our newly relocated Nashville, Tennessee campus The Campus will offer a mix of Automotive and Skilled Trade Programs in the Hybrid Learning Model. Blended Programs Revenue ($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 24% US Employment by Skill Level (2024-2034) Middle Skill 46% 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 Drivers of Organic Demand for Training Supply Declining societal pressure to attend traditional college Elimination of Vo-Tec programs GAP Demand New appreciation for skills-trade training Silver Tsunami - aging baby-boomers retiring from the workplace Growing skepticism of the value of college Employers struggle to find interested candidates Simple jobs have become more complex with technology Strong demand in healthcare, manufacturing, and construction Infrastructure spending will exacerbate the shortage Less stigma - Essential Workers Significant Opportunity for Organic Growth BLS data for Lincoln's top programs Annual New Hires Electrical 81,000 Automotive Technology 70,000 Welding 45,600 HVAC 40,100 Diesel Technology 26,500 Medical Assisting 112,300 Practical Nursing 54,400 Dental Assisting 52,900 Lincoln's Market Share ~2.3% Source: U.S. Bureau of Labor Statistics, Occupational Projections 2024-2034 Employment Assistance Graduation and Placement Engaging Curriculum Build labs and shops that replicate the working environment using professional grade equipment and tools Incorporate cutting edge education technology with animations, videos and simulations to make learning active and engaging Industrial Infrastructure Student Support Develop training programs with feedback from employers and key industry associations to understand gaps and needs Integrate industry preferred licensing and certifications into the curriculum Provide robust student support services to ensure strong outcomes Feedback Integration Superior graduation rates and placement rates Expect students to meet employability standards for appearance, attendance and professional attitude while in school Offer an accelerated program with multiple entry points to allow students to graduate quickly and enter the workforce earlier Our Superior Educational Approach Lincoln Tech Largest Provider of Automotive and Skilled Trade Graduates in the East Source: IPEDS completions survey 2023-24 Strong Industry Partner Relationships Positions Lincoln as long-term solutions provider for both entry level technicians and advanced workforce training Employers appreciate the technical and soft skills of our students Partners provide validation of the quality of our education Co-branding opportunities with elite partners helps attract new students Partners provide better job opportunities for our graduates Compliance Stats 90/10 Rule : This rule caps the percentage of revenue that a proprietary institution can receive from federal financial aid sources at 90%; the other 10% of revenue must come from alternative sources. Starting in 2023, the Veteran Affairs benefits are counted as federal financial aid in the numerator. CDR : It is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1st to September 30th, and default or meet other specified conditions prior to the end of the second following fiscal year. Composite Score : the DOE composite score reflects the overall financial health of an institution. The score can be anywhere along the scale from negative 1.0 to positive 3.0. If an institution receives a score greater than or equal to 1.5, the institution is considered financially responsible. FY 2025 FY 2024 Metrics Company Overall New Britain OPEID Indianapolis OPEID Iselin OPEID Company Overall New Britain OPEID Indianapolis OPEID Iselin OPEID 90/10 Actual 84% 85% 82% 87% 82% 84% 80% 84% CDR* 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Composite Score 2.0 2.5 This data is the annual data reported to ACCSC for completion and employment rates as of July 1, 2025 Total Students Available for Grad Total Grads Completion Percentage Grads Available for Employment Total Employed Employment Percentage 14,860 10,145 68.3% 9,857 7,945 80.6% Cohort Default Rate is 0% as a result of Department of Education pausing federal student loan payments due to the pandemic. 2022 cohort reported in FY25, 2021 cohort reported in FY24. Financial Review Starts 1 3,930 +15.7% Revenue 1 $142.9M +$25.2M Adj. EBITDA 2 $29.1M +$9.9M Net Income $12.7M +$5.9M Q4 Results from Operations Three Months Ended December 31, 2025 compared to Three Months Ended December 31, 2024 Balance Sheet Strength Nearly $29M cash at year-end Strong liquidity of almost $90M No debt outstanding Well-positioned to implement growth initiatives Prior year excludes Transitional segment (Euphoria campus) Excludes new campus / new program start-up costs and other items not considered part of the Company's normal recurring operations. Refer to appendix for reconciliations. Revenue, EBITDA & Margin ($ in millions) Q4 Adj. Revenue & Margin FY Adj. Revenue & Margin $87.5 $100.4 17.9% 15.7% 16.3% 20.4% Q4 2022 Q4 2023 Adj. Revenue Q4 2024 Q4 2025 Adj. EBITDA Margin $117.7 $142.9 $330.9 $367.2 13.0% 8.6% 9.7% 7.2% 2022 2023 Adj. Revenue 2024 2025 Adj. EBITDA Margin $433.0 $518.2 Q4 Adj. EBITDA FY Adj. EBITDA Q4 2022 Q4 2023 Q4 2024 Q4 2025 $15.7 $15.7 $19.2 $29.1 2022 2023 2024 2025 $26.5 $28.3 $42.2 $67.1 Excludes new campus / new program start-up costs and other items not considered part of the Company's normal recurring operations. Refer to appendix for reconciliations. 11,171 12,468 14,756 16,976 Starts & Average Population Q4 Starts FY Starts 15.7% 20.5% 11.1% 3,930 3,058 3,397 2,538 Q4 2022 Q4 2023 Q4 2024 Q4 2025 13 1.6 .3 % % 1 1 8 6 . . 4 9% 1 15 5 . . 0 2 % % 20,906 18,153 13,709 15,526 YTD 2 Q 0 3 22 022 YTD 2 Q 0 3 23 2023 YTD 2 Q 0 3 24 2024 YTD 2 Q 0 3 25 2025 Q4 Avg Pop FY Avg Pop 17.0% 14.8% 8.9% 18,243 15,586 12,469 Q4 2022 Q4 2023 Q4 2024 Q4 2025 13,581 13.4% 17.9% 3.0% 14,100 12,079 12,436 2022 2023 2024 2025 16,622 Prior years exclude Transitional segment (Somerville and Euphoria campuses). See appendix for reconciliations. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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