📊 LINC Key Takeaways
Is Lincoln Educational Services Corp. (LINC) a Good Investment?
Lincoln Educational Services demonstrates exceptional growth (17.8% revenue, 102% net income) with minimal debt, but faces critical operational challenges: negative free cash flow of -$27.3M despite positive operating cash flow, and liquidity ratios below 0.86x indicate the company is burning cash despite headline growth. Low margins (3.9% net) combined with weak short-term solvency pose sustainability risks.
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.
Why Buy Lincoln Educational Services Corp. Stock? LINC Key Strengths
- Strong revenue growth of 17.8% YoY with net income doubling at 102.2%
- Minimal financial leverage with debt-to-equity ratio of 0.04x and interest coverage of 8.9x
- Positive operating cash flow of $59.3M demonstrates underlying business generates cash from operations
- 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 -$27.3M with FCF margin of -5.3% is unsustainable; company spending $86.6M CapEx against $59.3M operating cash flow
- Liquidity crisis indicators: current ratio 0.86x and quick ratio 0.82x, both well below 1.0x threshold signals potential difficulty meeting short-term obligations
- Thin profitability margins (3.9% net, 5.8% operating) leave minimal buffer for operational challenges or market downturns
- 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 and CapEx intensity to assess if high capital spending translates to future cash generation
- Current ratio and quick ratio improvement toward 1.0x+ to resolve liquidity concerns
- Net and operating margin expansion to improve resilience and verify growth quality
- 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $82.1M | -$109.0K | $0.00 |
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 Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LINC's key strengths?
Claude: Strong revenue growth of 17.8% YoY with net income doubling at 102.2%. Minimal financial leverage with debt-to-equity ratio of 0.04x and interest coverage of 8.9x. 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 -$27.3M with FCF margin of -5.3% is unsustainable; company spending $86.6M CapEx against $59.3M operating cash flow. Liquidity crisis indicators: current ratio 0.86x and quick ratio 0.82x, both well below 1.0x threshold signals potential difficulty meeting short-term obligations. 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 $518.2M.
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 $0.64.
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 rating reflects both perspectives for balanced insights.
Is LINC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lincoln Educational Services Corp. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LINC stock overvalued or undervalued?
Valuation metrics for LINC: ROE of 10.0% (sector avg: 16%), net margin of 3.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy LINC stock in 2026?
Our dual AI analysis gives Lincoln Educational Services Corp. a combined SELL rating 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 $59.3M, with capital expenditures of $86.6M. FCF margin is -5.3%.
How does LINC compare to other Services stocks?
Vs Services sector averages: Net margin 3.9% (avg: 10%), ROE 10.0% (avg: 16%), current ratio 0.86 (avg: 1.5).