Lincoln Educational Services Corporation reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with revenues reaching $440.1 million, a 16.4% increase from $378.1 million in the previous year. This growth was attributed to an 11.5% rise in average student enrollment, which averaged 14,426 students during the year. The company also noted a 15.2% increase in student starts, bolstered by the opening of a new campus in East Point, Georgia, which contributed $9.6 million to the revenue.
In terms of operational changes, Lincoln Educational Services is expanding its footprint with plans to open two new campuses in Houston, Texas, and Hicksville, New York, by 2025 and 2026, respectively. The company currently operates 21 campuses across 12 states, with five of these being destination schools that attract students from across the U.S. and abroad. As of December 31, 2024, the company had 15,138 students enrolled, reflecting a 14.1% increase in total end-of-period population compared to the previous year.
The company's operational efficiency improved, as evidenced by a decrease in educational services and facilities expenses as a percentage of revenue, which fell to 41.3% from 42.9% in the prior year. However, selling, general, and administrative expenses increased slightly to 55.4% of revenue, up from 55.3% in 2023, primarily due to increased administrative costs and marketing investments aimed at driving student enrollment. The company also reported a loss on the sale of assets amounting to $2.1 million, primarily related to the sale of the Summerlin, Las Vegas campus.
Looking ahead, Lincoln Educational Services faces several challenges, including regulatory scrutiny and compliance with Title IV Programs, which accounted for approximately 82% of its revenue in 2024. The company is currently under provisional certification status with the Department of Education, which may impose additional regulatory burdens. Furthermore, the recent changes in regulations regarding gainful employment and the 90/10 Rule could impact the company's financial stability and operational flexibility.
Overall, Lincoln Educational Services is optimistic about its growth trajectory, driven by strategic expansions and a focus on enhancing the student experience. However, the company remains cautious about potential regulatory changes and their implications for future operations and financial performance.
About LINCOLN EDUCATIONAL SERVICES CORP
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