LINC Stock Forecast & Price Target

Lincoln Educational Services Corp reported a strong performance with fourth-quarter revenue increasing by 16.4% to $119.4 million, primarily driven by a 13.7% rise in average student population and a consistent nine-quarter growth in student starts. For the full year, the company achieved a 16% revenue increase and a 15% rise in student starts, indicating robust demand for its career-oriented programs. Looking ahead, Lincoln forecasts substantial growth, projecting 2027 revenue of $550 million with an adjusted EBITDA of $90 million, a notable increase from 2023 figures, underscoring the positive trajectory of its Campus Operations segment.

Lincoln Educational Services Corp reported a 5.0% decline in adjusted net income, falling to $9.5 million from $10.0 million year-over-year, signaling weakened profitability despite beating internal estimates. Additionally, revenue saw a significant decline of 20.6% in the fourth quarter, from $2.1 million to $0.4 million, raising concerns about the company's ability to sustain core operations. The financial outlook is further complicated by increased scrutiny from Congress on the for-profit education sector and a heavy reliance on Title IV funding, which accounted for 81% of revenue—a percentage that remains precariously below the government's 90% threshold.