Executive Summary

Strong Q1: revenue +13.7% to $117.5M, adjusted EBITDA +63% to $10.6M, diluted EPS $0.06; student starts +16.2% and end-of-period population +15.2% .
Clear beat vs S&P Global consensus: revenue $117.5M vs $114.7M, Primary EPS $0.113 vs -$0.044, while EBITDA trailed SPGI’s consensus (methodology differs from company’s adjusted EBITDA) — estimates likely to move higher on raised FY25 guide* *.
Guidance raised: FY25 revenue $485–$495M (from $480–$490M), adjusted EBITDA $58–$63M (from $55–$60M), net income $10–$15M (from $8–$13M), starts +10–14% (from +8–12%); capex unchanged at $70–$75M .
Catalysts: accelerating transportation/skilled trades demand (+32% starts), operating leverage (marketing cost/start -20%), and campus expansion; Q2/Q3 start timing shift (2,300 students to Q3) should not materially impact revenue cadence .

What Went Well and What Went Wrong

What Went Well
- Demand and mix: Transportation & Skilled Trades starts +32.4%; total starts +16.2%; end-of-period population +15.2% .
- Operating leverage: educational services & facilities as % of revenue declined YoY; marketing cost per start ~20% lower; adj. EBITDA margin cited ~9% .
- Expansion execution: Nashville relocation completed; Levittown on track for 2H; Houston targeted by YE25; raised FY25 outlook .
- Management quote: “We delivered a strong start to 2025… and a 63% increase in adjusted EBITDA… raising our full-year guidance.” — CEO Scott Shaw .
What Went Wrong
- Healthcare softness: Healthcare & Other Professions starts -6.3%, partly due to suspended nursing enrollments (Paramus) and discontinued massage/culinary; ex-these, HOPS ~+6% .
- Corporate & other expense: increased to $18.3M from $12.8M, pressuring consolidated operating income .
- Cash usage and capex ramp: Q1 operating cash flow -$8.4M and capex -$19.9M as growth investments ramp; cash fell to $28.7M (total liquidity $88.7M including $60M undrawn revolver) .

Financial Results

Headline P&L and profitability (chronological: Q3 2024 → Q4 2024 → Q1 2025)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$114.4	$119.4	$117.5
Operating Income ($USD Millions)	$5.8	$10.9	$3.4
Net Income ($USD Millions)	$4.0	$6.8	$1.9
Diluted EPS ($)	$0.13	$0.22	$0.06
EBITDA ($USD Millions)	$9.1	$14.4	$7.2
Adjusted EBITDA ($USD Millions)	$10.2	$19.2	$10.6
Adjusted EBITDA Margin (%)	—	—	~9% (management)

Q1 2025 vs S&P Global consensus (EPS/EBITDA use SPGI “Primary” and “EBITDA” conventions; company’s adjusted EBITDA differs methodologically)

Metric	Consensus	Reported
Revenue ($USD Millions)	$114.7M*	$117.5M
Primary EPS ($)	-$0.044*	$0.1133* (Company GAAP diluted EPS was $0.06 )
EBITDA ($USD Millions)	$7.21M*	$6.96M* (Company reported EBITDA $7.18M, Adjusted EBITDA $10.64M )

Values retrieved from S&P Global*

Segment performance and KPIs (Q1 2024 → Q1 2025)

Metric	Q1 2024	Q1 2025
Revenue – Campus Ops ($MM)	$101.3	$117.5
Revenue – Transitional ($MM)	$2.0	$0.0
Operating Income – Campus Ops ($MM)	$12.6	$21.7
Operating Income – Corporate ($MM)	-$12.8	-$18.3
Total Starts (Students)	3,967	4,610
Avg Population (Students)	13,678	15,469
End-of-Period Population (Students)	13,801	15,904

Program mix (Campus Ops) starts (Q1 2024 → Q1 2025)

Program	Q1 2024	Q1 2025	YoY
Transportation & Skilled Trades	2,682	3,551	+32.4%
Healthcare & Other Professions	1,130	1,059	-6.3%
Total Starts	3,812	4,610	+20.9%

Quarterly starts trajectory (Q3 2024 → Q4 2024 → Q1 2025)

KPI	Q3 2024	Q4 2024	Q1 2025
Total Starts (Students)	6,243	3,497	4,610

Balance sheet & liquidity

Metric	Q4 2024	Q1 2025
Cash & Cash Equivalents ($MM)	$59.3	$28.7
Total Liquidity ($MM)	$98.1 (incl. revolver)	$88.7 (incl. $60M revolver)
Debt	None	None (no debt outstanding)

Cash flow (Q1 2025)

Metric	Q1 2025
Cash from Operations ($MM)	-$8.38
Capital Expenditures ($MM)	-$19.89

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($MM)	FY 2025	$480–$490	$485–$495	Raised
Adjusted EBITDA ($MM)	FY 2025	$55–$60	$58–$63	Raised
Net Income ($MM)	FY 2025	$8–$13	$10–$15	Raised
Capital Expenditures ($MM)	FY 2025	$70–$75	$70–$75	Maintained
Student Starts	FY 2025	+8%–+12%	+10%–+14%	Raised

Notes: Company reconciled adjusted EBITDA/net income to guidance midpoints and excludes non-cash stock comp and certain pre-opening/relocation and program launch losses; details and location-specific adjustments provided in release .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Lincoln 10.0 hybrid model	Efficiency gains; plan to extend to nursing over 18 months	Drove leverage; enabled start timing shift (June → July 1) with minimal revenue impact	Scaling, broadening to programs; operational cadence adjustments
Demand for skilled trades	Strong demand; raised FY24 guide	Transportation/Skilled Trades starts +32.4%; robust overall demand and lead flow	Strengthening
New campuses/relocations	East Point ramp; Nashville/Levittown/Houston in-flight; Hicksville lease signed	Nashville relocation complete; Levittown on track 2H; Houston targeted 4Q; Hicksville 2026	Executing to plan
Marketing efficiency	Costs per start improving	Cost/start ~ -20% YoY; total marketing spend declined	Efficiency accelerating
Bad debt / cash collections	Not highlighted	Bad debt improving; Q1 ~10% vs 12% prior year; process/tech changes cited	Improving
Regulatory environment	Ongoing oversight	Management sees constructive posture for trades; nursing program reinstatement pursued after improved pass rates	Cautiously favorable
Tariffs/macro	Noted generally	Minimal cost increases notified; no material 2025 impact expected	Neutral

Management Commentary

Strategy and momentum: “We delivered a strong start to 2025 with exceptional student start growth, double digit revenue growth and a 63% increase in adjusted EBITDA… Given our strong first quarter performance and positive momentum, we are raising our full-year guidance.” — Scott Shaw, CEO .
Operating leverage: “Education service and facility costs as a percentage of revenue declined… marketing efficiencies improved significantly with… 20% reduction in cost per start… adjusted EBITDA margin… 9%.” — Brian Meyers, CFO .
Capacity expansion: “Nashville… relocation… Levittown… on track… Houston… expected to open… by year-end, followed by Hicksville… by end of 2026.” — Scott Shaw .
Long-term targets reiterated: “Confident in… 2027 targets of approximately $550M in revenue and $90M in adjusted EBITDA.” — Scott Shaw .

Q&A Highlights

Demand/marketing: Strong demand continued into April/May; marketing cost/start down ~20% due to vendor optimization and higher organic interest/referrals .
Regulatory: Tone seen as constructive for trades; nursing program at Paramus improving (87–88% pass rate vs 75% benchmark) — seeking earlier reinstatement .
Program approvals: Most 2025 replications greenlit; Rhode Island welding pending due to OPID novelty, expected in 4–5 months .
Start timing shift: ~2,300-student start moved from late June to July 1; Q2 starts down, Q3 up; combined Q2+Q3 starts high single-digit growth; minimal revenue impact from 4-day timing difference .
Capex cadence: Heaviest in Q2 (slightly above $25M), then moderates through year; FY capex $70–$75M maintained .
Campus contribution: East Point (Atlanta) Q1 revenue slightly over $4M vs ~$0.1M in prior-year Q1; profitable as of Q3 2024 .

Estimates Context

Q1 2025 beats/misses vs S&P Global: Revenue $117.5M vs $114.7M consensus (beat); Primary EPS $0.113 vs -$0.044 (beat); EBITDA $6.96M vs $7.21M (slight miss). Company’s adjusted EBITDA was $10.6M (non-GAAP), which is not directly comparable to SPGI’s EBITDA convention .
Street revisions: With raised FY25 guidance (revenue, adj. EBITDA, net income, starts), estimate revisions likely bias upward for revenue/EPS; note Q2/Q3 start timing mechanics when modeling seasonality .