COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2026

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

9.

COMMITMENTS AND CONTINGENCIES

Legal Proceedings

On September 11, 2026, a securities class action complaint was filed in the United States District Court for the District of New Jersey against the Company and certain of its officers (Scott Shaw and Brian Meyers) on behalf of a putative class of shareholders who acquired shares of the Company’s common stock between May 11, 2026 and August 9, 2026. That action is captioned Stuart Bacha v. Lincoln Educational Services Corporation, et al., 2:26-cv-11842-MCA-CF (D.N.J.) (the “Bacha Action”). The Bacha Action alleges, among other things, that the Company, Scott Shaw, and Brian Meyers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) by, among other things, making allegedly materially false or misleading statements regarding the Company’s financial results for the first quarter of 2026. The Bacha Action seeks unspecified monetary damages on behalf of a putative class and an award of costs and expenses, including reasonable attorneys’ fees. We dispute the allegations in the Bacha Action and intend to vigorously defend ourselves in this matter. In view of the complexity and ongoing and uncertain nature of the outstanding proceedings and inquiries, at this time we are unable to estimate a reasonably possible financial loss or range of financial loss, if any, that we may incur to resolve the Bacha Action.

Other than as described above, there are no material developments relating to previously disclosed legal proceedings. See the “Legal Proceedings” section of the Company’s Form 10-K and previously filed Form 10-Qs for information regarding existing legal proceedings.

In the ordinary conduct of our business, we are subject to additional periodic lawsuits, investigations, regulatory proceedings and other claims, including, but not limited to, claims involving students or graduates, routine employment matters and business disputes. We cannot predict the ultimate resolution of these lawsuits, investigations, regulatory proceedings and other claims asserted against us, but we do not believe that any of these matters will have a material adverse effect on our business, financial condition, results of operations, or cash flows.

Student Financing Plans

As of September 30, 2026, the Company had outstanding net financing commitments to its students to assist them in financing their education of approximately $68.9 million, net of interest.