Lincoln Educational Services: LINC Q4 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 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

~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

1. Prior year excludes Transitional segment (Euphoria campus)

2. See appendix for reconciliation

3. 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%

   1. 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.

   2. Year-over-year growth percentages are calculated using the fiscal 2026 guidance midpoint.

   3. Approximately 70% of capital expenditures are related to growth initiatives, new campuses, and program expansions.

• 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 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

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

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

BLS data for Lincoln's top programs

Source: U.S. Bureau of Labor Statistics, Occupational Projections 2024-2034

Largest Provider of Automotive and Skilled Trade Graduates in the East

Source: IPEDS completions survey 2023-24

• 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

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.

• This data is the annual data reported to ACCSC for completion and employment rates as of July 1, 2025

• 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

1. Prior year excludes Transitional segment (Euphoria campus)

2. 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.

($ in millions)

$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 2022

Q4 2023

Q4 2024

Q4 2025

2022

2023

2024

2025

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

15.7%

20.5%

11.1%

3,930

3,058

3,397

2,538

Q4 2022

Q4 2023

Q4 2024

Q4 2025

131.6.3%%

1186..49%

1155..02%%

20,906

18,153

13,709

15,526

YTD2Q0322 022 YTD2Q03232023 YTD2Q03242024 YTD2Q03252025

17.0%

14.8%

8.9%

18,243

15,586

12,469

Q4 2022

Q4 2023

Q4 2024

Q4 2025

13.4%

17.9%

3.0%

14,100

12,079

12,436

2022

2023

2024

2025

Prior years exclude Transitional segment (Somerville and Euphoria campuses). See appendix for reconciliations.