LINC Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-10T23:12:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available (earnings release 3688221, 10 pages; quarterly report 3688223 not read) | financials=earnings release only | transcript=available and complete (call 2026-08-10 14:00Z)

Consensus scorecard

• Consensus scorecard, bulleted equivalent:
  • Revenue / consolidated total revenue: Quartr actual $142.560m against API Ninjas consensus $139.491m - Beat +$3.069m, +2.2%.
  • EPS / GAAP diluted: Quartr actual $0.06 against API Ninjas consensus $0.0008 - Beat +$0.0592, +7,400%. The consensus figure is effectively zero, so the percentage is arithmetically correct but not a meaningful measure of the surprise; see Source limitations.

Reported results and guidance

• Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): revenue $142,560k vs $116,474k (+22.4%); educational services and facilities expense $59,632k vs $46,791k (+27.4%); selling, general and administrative expense $79,649k vs $67,061k (+18.8%); gain on sale of assets $(33)k vs $(256)k; total costs and expenses $139,248k vs $113,596k; operating income $3,312k vs $2,878k (+15.1%); interest income $7k vs $11k; interest expense $(1,058)k vs $(813)k; income before income taxes $2,261k vs $2,076k (+8.9%); provision for income taxes $315k vs $522k; net income $1,946k vs $1,554k (+25.2%); basic and diluted net income per share $0.06 vs $0.05; weighted average basic shares 31,258k vs 30,990k and diluted 31,419k vs 31,271k; depreciation and amortization $7,789k vs $4,710k (+65.4%); EBITDA $11,101k vs $7,588k; adjusted EBITDA $12,716k vs $8,931k (+42.4%); ending student population approximately 18,900 against approximately 17,100 (+10.4%), an increase of nearly 1,800; student starts up 1%; corporate and other expenses $18.2m vs $16.4m.

• Segment reconciliation, bulleted equivalent (Q2 2026 vs Q2 2025): Campus Operations net income $20,946k vs $18,704k (+12.0%), EBITDA and adjusted EBITDA both $29,204k vs $23,854k (+22.4%); Corporate net loss $(19,000)k vs $(17,150)k, EBITDA $(18,103)k vs $(16,266)k and adjusted EBITDA $(16,488)k vs $(14,923)k after $1,615k of stock-based compensation against $1,343k. For the six months, Campus Operations net income was $48,119k vs $39,782k with adjusted EBITDA of $64,452k vs $49,126k (+31.2%), and Corporate net loss was $(41,817)k vs $(36,283)k with adjusted EBITDA of $(36,253)k vs $(31,814)k.

• Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): revenue $286,518k vs $233,980k (+22.5%); educational services and facilities expense $118,025k vs $94,199k; SG&A $158,801k vs $133,965k; gain on sale of assets $(27)k vs $(476)k; total costs and expenses $276,799k vs $227,688k; operating income $9,719k vs $6,292k (+54.5%); interest income $37k vs $125k; interest expense $(1,895)k vs $(1,514)k; income before income taxes $7,861k vs $4,903k; provision for income taxes $1,559k vs $1,404k; net income $6,302k vs $3,499k (+80.1%); basic and diluted EPS $0.20 vs $0.11; EBITDA $25,140k vs $14,764k and adjusted EBITDA $28,199k vs $17,312k (+62.9%); depreciation and amortization $15,421k vs $8,472k; provision for credit losses $29,717k vs $25,012k; accounts receivable used $(39,056)k of cash against $(30,797)k; unearned tuition provided $7,761k against $(2,548)k; net cash provided by operating activities $26,633k against $(8,079)k used; capital expenditures $(29,132)k vs $(46,276)k; net cash used in investing $(29,105)k vs $(45,772)k; proceeds from borrowings $70,000k vs $25,000k against payments on borrowings of $(44,000)k vs $(12,000)k; net share settlement for equity-based compensation $(6,660)k vs $(3,633)k; net cash provided by financing $18,131k vs $11,279k; cash rose $15,659k to $44,178k against a $(42,572)k decline to $16,701k a year earlier. Average student population rose 16.3% to over 18,300, an increase of almost 2,600, and student starts grew 9%. Corporate and other expenses were $39.6m vs $34.7m.

• Balance sheet, bulleted equivalent (June 30, 2026 vs December 31, 2025): cash and cash equivalents $44,178k vs $28,519k; accounts receivable net of allowances of $41,378k and $43,975k respectively $45,871k vs $36,929k; inventories $4,077k vs $3,986k; income tax receivable $1,923k vs $1,599k; tenant allowance receivable $5,587k vs $8,127k; prepaid and other assets $4,613k vs $7,872k; total current assets $106,249k vs $87,032k; property, plant and equipment net $190,686k vs $171,603k; noncurrent receivables net of allowances of $26,865k and $26,371k $21,645k vs $21,248k; deferred finance charges $1,204k vs $302k; deferred income taxes net $21,668k in both periods; operating lease right-of-use assets $151,565k vs $154,223k; finance lease right-of-use assets $24,240k vs $25,075k; goodwill $10,742k in both periods; other assets net $1,781k vs $1,271k; total other assets $232,845k vs $234,529k; total assets $529,780k vs $493,164k; unearned tuition $51,920k vs $44,159k; accounts payable $30,677k vs $27,023k; accrued expenses $16,695k vs $18,430k; current portion of operating lease liabilities $11,127k vs $10,634k; current portion of finance lease liabilities $534k vs $463k; total current liabilities $110,953k vs $100,709k; long-term portion of operating lease liabilities $160,074k vs $162,113k; long-term portion of finance lease liabilities $30,364k vs $30,654k; long-term debt $26,000k against none; total liabilities $327,391k vs $293,476k; common stock $48,181k in both periods; additional paid-in capital $48,738k vs $52,339k; retained earnings $105,470k vs $99,168k; total stockholders' equity $202,389k vs $199,688k. Total liquidity was $143,178k, being $44,178k of cash plus $99,000k of availability under the credit facility, against $26,000k drawn on the revolver at June 30, 2026.

• Guidance, bulleted equivalent: the company reiterated full-year 2026 guidance for revenue of $590.0m to $600.0m, adjusted EBITDA of $76.0m to $80.0m, net income of $23.0m to $26.0m, diluted EPS of $0.74 to $0.83, and student start growth of 10% to 14%. Capital expenditure guidance was raised by approximately $25m to $95.0m to $100.0m to reflect the Melrose Park, Illinois property acquisition and the new Suitland, Maryland campus; the release states the increase as approximately $25m but does not print the superseded range. The 2026 adjusted EBITDA guidance is stated to include approximately $10.0m of losses related to new campus openings and strategic growth initiatives. Management also restated 2030 targets of $850m in revenue and $150m in adjusted EBITDA.

Key bullish aspects

• Revenue of $142.560m beat the API Ninjas consensus of $139.491m by $3.069m, or 2.2%, and GAAP diluted EPS of $0.06 beat the $0.0008 consensus.
• Revenue rose 22.4% in the quarter and 22.5% for the half, with the company attributing the increase primarily to a 14.5% rise in average student population in the quarter and the remainder to tuition increases.
• Adjusted EBITDA rose 42.4% to $12.716m in the quarter and 62.9% to $28.199m for the half, both well ahead of revenue growth. Adjusted EBITDA margin improved to 8.9% from 7.7% in the quarter.
• Six-month operating cash flow swung to $26.633m provided from $8.079m used a year earlier, a $34.7m improvement, and the company reports $22.1m of operating cash generated in the quarter against $0.3m.
• Ending student population rose 10.4% to approximately 18,900, an increase of nearly 1,800, and six-month average student population rose 16.3% to over 18,300.
• Campus Operations adjusted EBITDA rose 22.4% to $29.204m in the quarter and 31.2% to $64.452m for the half.
• The balance sheet strengthened on cash: $44.178m against $28.519m at December 31, 2025, with total liquidity of $143.178m including $99.000m of undrawn revolver capacity.
• Six-month capital expenditures fell 37.1% to $29.132m from $46.276m even as the campus footprint expanded, and the prior-year period's $42.572m cash decline reversed to a $15.659m increase.
• Full-year guidance was reiterated across revenue, adjusted EBITDA, net income, diluted EPS and student start growth, and management says the August class is expected to be one of the largest in the company's history.
• The company completed the $18.8m purchase of its previously leased Melrose Park, Illinois campus in July and signed a lease for a second Washington, D.C.-area campus in Suitland, Maryland, which it says costs less than half a traditional campus buildout.
• Adjusted EBITDA is now computed on a stricter definition: beginning in fiscal 2026 the company no longer adds back pre-opening costs or new-campus operating losses, and prior periods were recast, so the 42.4% and 62.9% growth rates are on a like-for-like and more conservative basis.

Key bearish aspects

• Student starts grew only 1% in the quarter against management's own expectation of roughly half the first quarter's near-20% growth, and against reiterated full-year guidance of 10% to 14%. Management attributes the shortfall to fewer enrolled students than expected attending the first day of class and to changes in the student decision-making process affecting enrollment-to-start conversion.
• Operating margin fell despite the revenue growth: operating income of $3.312m on $142.560m of revenue is 2.3%, against $2.878m on $116.474m, or 2.5%, a year earlier. Educational services and facilities expense grew 27.4%, faster than the 22.4% revenue growth.
• The full-year guidance implies a very back-half-weighted year. Six-month net income of $6.302m against full-year guidance of $23.0m to $26.0m leaves 73% to 76% of full-year earnings in the second half, and six-month diluted EPS of $0.20 against a $0.74 to $0.83 guide leaves $0.54 to $0.63.
• The six-month provision for credit losses was $29.717m, or 10.4% of six-month revenue, and rose 18.8% year over year. The allowance against current accounts receivable was $41.378m at June 30, 2026 against gross receivables implying an allowance close to half of the gross balance.
• Accounts receivable rose 24.2% to $45.871m over six months, faster than revenue growth, and consumed $39.056m of operating cash in the half against $30.797m a year earlier.
• The company took on debt: long-term debt of $26.000m at June 30, 2026 against none at December 31, 2025, with $70.000m of six-month borrowings against $44.000m of repayments. Interest expense rose 30.1% in the quarter.
• Depreciation and amortization rose 65.4% in the quarter to $7.789m and 82.0% for the half to $15.421m, a fixed cost that will persist regardless of enrollment outcomes.
• Corporate and other expenses rose to $18.2m in the quarter from $16.4m and to $39.6m for the half from $34.7m, and corporate adjusted EBITDA drag widened to $(16.488)m in the quarter from $(14.923)m.
• Capital expenditure guidance was raised approximately $25m to $95.0m to $100.0m, above the $76.0m to $80.0m adjusted EBITDA guide, so the company is investing more than its adjusted EBITDA in 2026.
• Total stockholders' equity rose only $2.701m to $202.389m over six months despite $6.302m of net income and $3.059m of stock-based compensation, because additional paid-in capital fell $3.601m on $6.660m of net share settlement for equity-based compensation.
• Net income of $1.946m on revenue of $142.560m is a 1.4% net margin, and adjusted EBITDA guidance already includes approximately $10.0m of losses from new campus openings and growth initiatives.

Key uncertainties

• The reiterated 10% to 14% full-year student start growth requires a sharp reacceleration from the 1% posted in the quarter. Management's support for it is the expectation that the August class will be one of the largest in company history, which is a forward statement with no figure attached in the release.
• The prior-year student start comparison is explicitly adjusted: 2025 figures include 2,764 student starts on July 1, 2025 to align with start activity that fell in the last week of June 2026. The release does not show the unadjusted comparison, so the underlying start trend cannot be independently recomputed.
• The stated change in the student decision-making process affecting enrollment-to-start conversion is not quantified, dated, or attributed to a cause, so whether it is timing, affordability, or competitive is unresolved.
• The provision for credit losses at 10.4% of six-month revenue is large relative to the 2.3% operating margin, and the release does not explain the driver of the 18.8% increase or disclose collection or cohort-level metrics.
• Second-half guidance implies roughly $303.5m to $313.5m of revenue against $286.5m in the first half and a large step-up in profitability. The release does not bridge the implied second-half margin expansion beyond the reiteration itself.
• The release does not print the superseded capital expenditure range, only the approximately $25m increase, so the prior guide is not reproducible from this document.
• The new focused-program campus model in Suitland, Maryland is described as costing less than half a traditional buildout with an expected fourth-quarter 2027 opening, but no capital cost, capacity, or expected economics are disclosed.
• The six-month cash flow statement contains a prior-year line item of $(1,072)k whose label is not legible in the extracted text; it is included in the footing check but is not reproduced above by name.
• Total liquidity of $143.178m is stated as of June 30, 2026, before the July $18.8m Melrose Park acquisition, and the release does not state pro forma liquidity after that purchase.
• The 2030 targets of $850m revenue and $150m adjusted EBITDA imply a 17.6% adjusted EBITDA margin against roughly 13.1% implied by the 2026 guidance midpoint, with no bridge disclosed.

Market context

• API Ninjas price snapshot for LINC: $30.77 on NASDAQ with volume of 4,476,064, timestamped 2026-08-10T22:46:38Z. That is after the 20:00Z regular-session close on the day of the release. It is a single quote from one source, not an exchange-official close and not a measured intraday reaction, so no percentage move is characterized here.
• The release was published pre-market on August 10, 2026; the Quartr source PDF carries a 2026-08-10 12:05:18 timestamp, ahead of the 14:00Z (10:00 a.m. Eastern) conference call.

Source limitations

• Every displayed actual comes from Quartr earnings release document 3688221. The condensed consolidated balance sheets (pages 4 and 5), statements of operations (page 6), statements of cash flows (pages 6 and 7), and the EBITDA, adjusted EBITDA and liquidity reconciliations (page 8) were read directly. Pages 9 and 10 of the ten-page release were not read; the release indicates an operating income by segment table continues there, and the percentage-change columns of that table are consequently not reproduced. The separate quarterly report document 3688223 attached to this event was not read.
• The source PDF renders the financial statements in a merged layout in which the column headers separate from their data rows and the prior-year column bleeds into the following row. Column assignment was therefore verified by footing every subtotal within its own column. On the income statement, costs sum to total costs and expenses, revenue less total costs equals operating income, and each line down to net income bridges, in all four columns; EPS was independently confirmed as $1,946k over 31,419 diluted shares giving $0.062 and $6,302k over 31,375 giving $0.201 for 2026, against $1,554k over 31,271 giving $0.050 and $3,499k over 31,172 giving $0.112 for 2025. On the balance sheet, current assets, other assets, total assets, current liabilities, total liabilities and equity all foot in both columns and total liabilities plus equity equals total assets in both. On the cash flow statement, all eighteen adjustment lines sum to the stated total adjustments of $20,331k and $(11,578)k, each section foots to its stated subtotal, and the sections sum to the stated change in cash and the stated ending balances. In the segment reconciliation tables, Campus Operations plus Corporate equals Consolidated on every line in both the three-month and six-month tables, and each column bridges from net income to adjusted EBITDA.
• API Ninjas supplied only the consensus estimates. Its row for LINC is dated 2026-08-10, matching the Quartr event date exactly, and carries fiscal_year 2026 and fiscal_quarter 2, which agrees with the Quartr fiscal period of Q2 2026. The row carried no actual revenue or EPS.
• EPS basis: the company presents only GAAP basic and diluted EPS and no adjusted EPS measure, so GAAP diluted is the only available basis and no ladder choice arose.
• EPS SCORECARD CAVEAT FOR THE HUMAN OPERATOR: the provider's EPS estimate of $0.0008 is effectively zero, which makes the +7,400% percentage arithmetically correct but economically meaningless. The direction of the result is not in doubt - $0.06 exceeds any plausible reading of the estimate - but the magnitude should not be relied on. Two further points weaken confidence in this estimate series. First, the provider's EPS actuals for LINC do not consistently reconcile to the company's GAAP diluted EPS: its Q1 2026 actual of $0.14 matches the company's implied Q1 2026 diluted EPS, but its Q2 2025 actual of $0.09 does not match the company's reported Q2 2025 diluted EPS of $0.05, and its Q1 2025 actual of $0.11 does not match the implied $0.06. Revenue actuals do reconcile exactly, including Q2 2025 at $116,474,000. Second, the provider has previously published near-zero LINC EPS estimates that produced similarly degenerate percentages, including $0.0004 against a $0.02 actual for Q2 2023. The revenue row of this scorecard is not affected by any of this.
• Ending student population for Q2 2025 of approximately 17,100 shown in the results table is derived from the company's stated approximately 18,900 ending population and its stated 10.4% increase; the release states the prior-year figure only through that percentage. Six-month average student population for 2025 of approximately 15,700 is derived the same way from over 18,300 and 16.3%. Both derived figures are presented as approximations.
• The prior full-year capital expenditure guidance range is not printed in the release, only the approximately $25m increase, so the "Prior guide" cell for that row states the change rather than a range.
• Adjusted EBITDA is defined by the company as EBITDA plus stock-based compensation and non-recurring items. Beginning in fiscal 2026 it no longer adds back pre-opening costs or new-campus net operating losses, and the release states prior periods were recast to the current methodology; the recast prior-year figures are the ones reproduced here.
• The price snapshot is a single API Ninjas quote timestamped after the regular-session close, not an exchange-official close, and is presented as such.