LINCOLN EDUCATIONAL SERVICES CORPLINC
LINCOLN EDUCATIONAL SERVICES CORP Segments Disclosure
16. SEGMENT REPORTING
The Company’s manages its business, evaluates performance and allocates resources based on two reportable business segments, Campus Operations and Transitional.
Campus Operations - The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance. All of our campuses continuing in operation are classified in this segment. All of our campuses offer programs across various areas of study.
Transitional – The Transitional segment refers to campuses that
are marked for closure and are currently being taught out, in addition to
campuses that are held-for-sale. As of December 31, 2025, none of our campuses
were classified in the Transitional segment. As of December 31, 2024, the net
assets for the Summerlin, Las Vegas campus were classified as held for sale,
with operating results classified within the Transitional segment. The sale of
the Summerlin campus was consummated effective January 1, 2025. In addition,
the Company closed the Somerville, Massachusetts campus in the prior year. The
Somerville campus was fully taught out as of December 31, 2023. This Somerville
campus was classified in the Transitional segment in the Company's 2023
statement of operations.
The individual operating segments have been aggregated into the two main reportable segments based on the method by which our Chief Operating Decision Maker (“CODM”) 1) evaluates performance and allocates resources and 2) as a result of the Company’s judgment, that the reporting units have similar products, production processes, types of customers, methods of distribution, regulatory environment and economic characteristics. The Company’s CODM is comprised of a team of executives deemed the “Executive Committee” which is made up of the following individuals:
1.
Scott M. Shaw – Chief Executive Officer and Director
2.
Brian Meyers – Executive Vice President, Chief Financial Officer, and Treasurer
The CODM assesses segment financial performance by reviewing segment revenue and segment operating income, which includes certain Corporate overhead allocations relating directly to the segments disclosed. Some of the allocated costs include the centralization of the Company’s financial aid process, national sales and receivables and default costs. The CODM will make decisions to allocate resources based on the review of monthly, quarterly and annual financial information categorized by segment. The financial information is presented to the CODM using actual-to-actual results and budget-to-actual results.
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated | Campus Operations | Transitional | Corporate | |||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||
|
REVENUE
|
$ | 518,241 | $ | 440,064 | $ | 378,070 | $ | 518,241 | $ | 432,966 | $ | 367,233 | $ | - | $ | 7,098 | $ | 10,837 | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
|
COSTS AND EXPENSES:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Instructional
|
98,460 | 90,566 | 85,311 | 98,460 | 88,207 | 82,228 | - | 2,359 | 3,083 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Books and Tools
|
36,603 | 32,146 | 26,177 | 36,603 | 31,161 | 24,802 | - | 985 | 1,375 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Facilities
|
50,098 | 46,791 | 44,647 | 50,098 | 45,842 | 42,475 | - | 949 | 2,172 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Depreciation and amortization
|
20,228 | 12,256 | 6,140 | 20,228 | 12,200 | 6,030 | - | 56 | 110 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Educational services and facilities
|
205,389 | 181,759 | 162,275 | 205,389 | 177,410 | 155,535 | - | 4,349 | 6,740 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Sales and marketing
|
84,551 | 75,236 | 65,553 | 84,551 | 73,532 | 64,159 | - | 1,704 | 1,394 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Student services
|
25,424 | 21,874 | 18,693 | 25,424 | 21,012 | 17,314 | - | 862 | 1,379 | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Provision for credit losses
|
58,085 | 56,578 | 41,637 | 58,050 | 55,600 | 39,978 | - | 975 | 1,659 | 35 | 3 | - | ||||||||||||||||||||||||||||||||||||
|
Administrative
|
114,283 | 89,415 | 82,622 | 46,571 | 41,235 | 37,976 | - | 1,236 | 2,030 | 67,712 | 46,944 | 42,616 | ||||||||||||||||||||||||||||||||||||
|
Depreciation and amortization
|
603 | 700 | 630 | - | - | - | - | - | - | 603 | 700 | 630 | ||||||||||||||||||||||||||||||||||||
|
Selling, general and administrative
|
282,946 | 243,803 | 209,135 | 214,596 | 191,379 | 159,427 | - | 4,777 | 6,462 | 68,350 | 47,647 | 43,246 | ||||||||||||||||||||||||||||||||||||
|
(Gain) loss on sale of assets
|
(406 | ) | 2,119 | (30,918 | ) | (442 | ) | 619 | - | - | 11 | 1 | - | 1,489 | (30,939 | ) | ||||||||||||||||||||||||||||||||
|
Gain on insurance proceeds
|
- | (2,794 | ) | - | - | - | 20 | - | - | - | 36 | (2,794 | ) | - | ||||||||||||||||||||||||||||||||||
|
Impairment of goodwill and long-lived assets
|
- | - | 4,220 | - | - | 4,220 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
|
Total costs and expenses
|
487,929 | 424,887 | 344,712 | 419,543 | 369,408 | 319,202 | - | 9,137 | 13,203 | 68,386 | 46,342 | 12,307 | ||||||||||||||||||||||||||||||||||||
|
OPERATING INCOME (LOSS)
|
$ | 30,312 | $ | 15,177 | $ | 33,358 | $ | 98,698 | $ | 63,558 | $ | 48,031 | $ | - | $ | (2,039 | ) | $ | (2,366 | ) | $ | (68,386 | ) | $ | (46,342 | ) | $ | (12,307 | ) | |||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 10, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.