📊 LINC Key Takeaways
Is Lincoln Educational Services Corp. (LINC) a Good Investment?
Lincoln Educational Services demonstrates strong revenue growth (17.8% YoY) and exceptional net income expansion (102.2% YoY), but this growth masks critical operational weaknesses. The company is burning significant free cash (-$10.1M) despite reported profitability, while maintaining below-unity liquidity ratios (0.83x current ratio), indicating potential cash constraints in a capital-intensive business model.
Fundamentals show strong momentum with 17.8% revenue growth and a doubling of net income, supported by minimal leverage and solid interest coverage. However, margins remain thin and free cash flow is negative due to heavy capex, while liquidity is tight with a sub-1.0 current ratio. Sustained margin expansion and a turn to positive FCF would justify a more constructive stance.
Lincoln Educational Services Corp. Key Strengths (LINC)
- Strong revenue growth at 17.8% YoY with accelerating net income (+102.2% YoY)
- Conservative capital structure with minimal debt (0.03x D/E ratio) and low financial risk
- Adequate interest coverage ratio of 7.7x supports debt servicing capability
- Robust top-line growth (+17.8% YoY) and earnings acceleration
- Very low leverage (0.04x D/E) with strong interest coverage (8.9x)
- Healthy operating cash generation ($59.31M OCF) indicating underlying cash profitability
LINC Stock Risks: Lincoln Educational Services Corp. Investment Risks
- Negative free cash flow of -$10.1M (FCF margin -7.0%) despite positive net income signals unsustainable profitability or working capital strain
- Current ratio of 0.83x falls below 1.0 indicating potential liquidity stress with $16.7M cash against high capex requirements
- Extremely low return on equity (2.2%) and return on assets (0.9%) suggest inefficient capital deployment despite asset base of $486.7M
- Thin net margin of 3% provides minimal buffer for operational disruptions in competitive educational services sector
- Tight liquidity (current ratio 0.86x, quick ratio 0.82x)
- Negative free cash flow driven by elevated capital expenditures
- Thin profitability (5.8% operating margin, 3.9% net margin) susceptible to cost pressures
Key Metrics to Watch
- Free cash flow trend - critical to monitor if FCF turns positive and company can fund growth internally
- Operating cash flow relative to capex - assess sustainability of capital intensity and cash burn rate
- Current ratio and days cash on hand - track liquidity cushion given below-1.0 working capital position
- FCF margin
- Current ratio
Lincoln Educational Services Corp. (LINC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LINC Profit Margin, ROE & Profitability Analysis
LINC vs Services Sector: How Lincoln Educational Services Corp. Compares
How Lincoln Educational Services Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lincoln Educational Services Corp. Stock Overvalued? LINC Valuation Analysis 2026
Based on fundamental analysis, Lincoln Educational Services Corp. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lincoln Educational Services Corp. Balance Sheet: LINC Debt, Cash & Liquidity
LINC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lincoln Educational Services Corp.'s revenue has grown significantly by 55% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.85 reflects profitable operations.
LINC Revenue Growth, EPS Growth & YoY Performance
LINC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $117.5M | $1.9M | $0.06 |
| Q3 2025 | $114.4M | -$214.0K | $0.10 |
| Q2 2025 | $102.9M | -$214.0K | $-0.02 |
| Q1 2025 | $103.4M | -$214.0K | $-0.01 |
| Q3 2024 | $99.6M | -$109.0K | $0.07 |
| Q2 2024 | $88.6M | -$109.0K | $-0.02 |
| Q1 2024 | $87.3M | -$109.0K | $0.00 |
| Q3 2023 | $91.8M | -$109.0K | $0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lincoln Educational Services Corp. Dividends, Buybacks & Capital Allocation
LINC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lincoln Educational Services Corp. (CIK: 0001286613)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LINC
What is the AI rating for LINC?
Lincoln Educational Services Corp. (LINC) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LINC's key strengths?
Claude: Strong revenue growth at 17.8% YoY with accelerating net income (+102.2% YoY). Conservative capital structure with minimal debt (0.03x D/E ratio) and low financial risk. ChatGPT: Robust top-line growth (+17.8% YoY) and earnings acceleration. Very low leverage (0.04x D/E) with strong interest coverage (8.9x).
What are the risks of investing in LINC?
Claude: Negative free cash flow of -$10.1M (FCF margin -7.0%) despite positive net income signals unsustainable profitability or working capital strain. Current ratio of 0.83x falls below 1.0 indicating potential liquidity stress with $16.7M cash against high capex requirements. ChatGPT: Tight liquidity (current ratio 0.86x, quick ratio 0.82x). Negative free cash flow driven by elevated capital expenditures.
What is LINC's revenue and growth?
Lincoln Educational Services Corp. reported revenue of $144.0M.
Does LINC pay dividends?
Lincoln Educational Services Corp. does not currently pay dividends.
Where can I find LINC SEC filings?
Official SEC filings for Lincoln Educational Services Corp. (CIK: 0001286613) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LINC's EPS?
Lincoln Educational Services Corp. has a diluted EPS of $0.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LINC's fundamental grade?
Based on our AI fundamental analysis in May 2026, Lincoln Educational Services Corp. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LINC stock overvalued or undervalued?
Valuation metrics for LINC: ROE of 2.2% (sector avg: 16%), net margin of 3.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is LINC's AI grade for 2026?
Our dual AI analysis gives Lincoln Educational Services Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LINC's free cash flow?
Lincoln Educational Services Corp.'s operating cash flow is $4.6M, with capital expenditures of $14.6M. FCF margin is -7.0%.
How does LINC compare to other Services stocks?
Vs Services sector averages: Net margin 3.0% (avg: 10%), ROE 2.2% (avg: 16%), current ratio 0.83 (avg: 1.5).