All references in this Quarterly Report on Form 10-Q (“Form 10-Q”) to “we,” “our,” “us” and the “Company” refer to Lincoln Educational Services Corporation and its subsidiaries unless the context indicates otherwise. This discussion may contain forward-looking statements that are based on management's current expectations, estimates and projections about our business and operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements, which are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects, and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Such statements may be identified by the use of words such as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “may,” “will,” “forecast,” “outlook,” “plan,” “project,” or similar words and include, without limitation, statements relating to future enrollment, revenues, revenues per student, earnings growth, operating expenses, capital expenditures, and the effect of pandemics and its ultimate effect on the Company’s business and results. These statements are based on the Company’s current expectations and are subject to a number of assumptions, risks and uncertainties. Additional factors that could cause or contribute to differences between our actual results and those anticipated include, but are not limited to, those described in the “Risk Factors” section of our Form 10-K and in our other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this Form 10-Q and in our other reports filed with the SEC that advise interested parties of the risks and factors that may affect our business. The Company’s business is organized into two reportable business segments: Campus Operations; and Transitional. The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance. The Transitional segment refers to campuses that have been marked for closure and are being taught out. As of June 30, 2026 no campuses were classified in the Transitional segment. We evaluate performance based on operating results. Adjustments to reconcile segment results with consolidated results are included in the caption “Corporate,” which primarily includes unallocated corporate activity. The interim financial statements and related notes thereto appearing elsewhere in this Form 10-Q and the discussions contained herein should be read in conjunction with the annual financial statements and notes thereto included in our Form 10-K, which includes audited Consolidated Financial Statements for the last three fiscal years ended December 31, 2025. General Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company,” “we,” “our,” and “us,” as applicable) provide diversified career-oriented postsecondary education to recent high school graduates and working adults. The Company, which currently operates 22 campuses in 12 states, recently entered into leases for three new campuses: one in Hicksville, New York, with programs expected to begin by the end of 2026; one in Rowlett, Texas, a northern suburb of Dallas, with programs expected to begin in the first quarter of 2027; and one in Suitland, Maryland, located in the Washington, D.C. metropolitan area with programs expected to begin in the fourth quarter of 2027. The Company offers programs in skilled trades, automotive, health sciences and information technology. The schools operate under the brands Lincoln Technical Institute, Lincoln College of Technology, and Nashville Auto Diesel College. Most of the Company’s campuses serve major metropolitan markets and each typically offers courses in multiple areas of study. Five of our campuses are destination schools, which attract students from across the United States and, in some cases, from abroad. The Company’s other campuses primarily attract students from their local communities and surrounding areas. All of our campuses are nationally accredited and are eligible to participate in federal financial aid programs administered by the U.S. Department of Education (the "DOE”) and applicable state education agencies and accrediting commissions, which allow students to apply for and access federal student loans as well as other forms of financial aid. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired schools including Lincoln Technical Institute, Inc., which opened its first campus in Newark, New Jersey in 1946. Critical Accounting Policies and Estimates For a description of our critical accounting policies and estimates, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” and Note 1 to the Consolidated Financial Statements included in our Form 10-K and Note 1 to the Condensed Consolidated Financial Statements included in this Form 10-Q. 21 Index Effect of Inflation Inflation has not had a material effect on our operations. Business Strategy We strive to strengthen our position as a leading provider of career‑oriented postsecondary education by continuing to pursue the following strategy: • Expand Geographically. We plan to open new campuses and enter new markets using existing resources or acquisitions. We opened a new campus in Houston, Texas in August 2025, and have signed leases for new campuses in Hicksville, New York, where programs are expected to begin by the end of 2026; Rowlett, Texas, which is expected to open in the first quarter of 2027, and Suitland, Maryland, with programs expected to begin in the fourth quarter of 2027. We continue to evaluate opportunities to expand our footprint in markets that support our long-term growth objectives. • Replicate Programs and Expand Existing Areas of Study. We are expanding our program portfolio by introducing in-demand programs across locations. This approach allows us to serve local market needs while leveraging our existing curriculum, faculty expertise, and infrastructure. • Increase Operating Efficiency. We aim to improve margins and scalability by centralizing operations, standardizing curricula, and leveraging technology such as artificial intelligence to streamline campus functions. By continuing to simplify and standardize our operating model, we believe we can enhance efficiency and support sustainable growth across our organization. • Maximize Utilization of Existing Facilities. We focus on increasing facility usage through enrollment growth, the introduction of new programs, and expanded industry partnerships. In addition, our hybrid teaching model provides increased flexibility to align our real estate footprint with evolving instructional needs. • Expand Teaching Platform. We are transitioning to a hybrid teaching platform, Lincoln 10.0, the implementation of which has been substantially completed and is expected to be finalized by the end of 2026 for all planned programs, except for our Licensed Practical Nurse program which should be completed by 2027. This platform is designed to provide greater flexibility, efficiency, and value to students, while supporting a more scalable and standardized academic delivery model. Recent and Planned Campus Openings Campus Location Type Status Opening Date Nashville, TN Campus Relocation Opened March 2025 Levittown, PA Campus Relocation Opened August 2025 Houston, TX New Campus Opened August 2025 Hicksville, NY New Campus In Progress By the end of 2026 Rowlett, TX New Campus In Progress First quarter of 2027 Suitland, MD New Campus In Progress Fourth quarter of 2027 Results of Operations for the Three and Six Months Ended June 30, 2026 The following table sets forth selected Condensed Consolidated Statements of Operations data as a percentage of revenues for each of the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue 100 % 100 % 100 % 100 % Costs and expenses: Educational services and facilities 41.8 % 40.2 % 41.2 % 40.3 % Selling, general and administrative 55.9 % 57.6 % 55.4 % 57.3 % Gain on sale of assets 0.0 % (0.2 )% 0 % (0.2 )% Total costs and expenses 97.7 % 97.5 % 96.6 % 97.3 % Operating income 2.3 % 2.5 % 3.4 % 2.7 % Interest expense, net (0.7 )% (0.7 )% (0.6 )% 2.7 % Income from operations before income taxes 1.6 % 1.8 % 2.7 % 5.4 % Provision for income taxes 0.2 % 0.4 % 0.5 % 0.6 % Net income 1.4 % 1.3 % 2.2 % 4.8 % 22 Index Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 Consolidated Results of Operations Revenue. Revenue increased $26.1 million, or 22.4% to $142.6 million for the three months ended June 30, 2026, from $116.5 million in the prior year comparable period. Revenue growth was primarily due to a 14.5% increase in average student population, with the remainder attributable to tuition increases. Three Months Ended June 30, Consolidated 2026 2025 7/1/25 starts* 2025 * % change % change * Revenue (millions) $ 142.6 $ 116.5 22.4 % Total new student starts 5,969 3,157 2,764 5,921 89.1 % 0.8 % Average student population 18,343 15,554 460 16,014 17.9 % 14.5 % End of period student population 18,905 14,356 2,764 17,120 31.7 % 10.4 % * 2025 figures include 2,764 student starts on July 1, 2025, to align with comparable student start activity in the current year during the last week of June 2026, returning to our typical start schedule. Three Months Ended June 30, Consolidated Campus Operations Corporate 2026 2025 2026 2025 2026 2025 REVENUE $ 142,560 $ 116,474 $ 142,560 $ 116,474 $ - $ - COSTS AND EXPENSES: Instructional 28,153 23,544 28,153 23,544 - - Books and tools 10,380 6,769 10,380 6,769 - - Facilities 13,444 11,933 13,444 11,933 - - Depreciation and amortization 7,655 4,545 7,655 4,545 - - Educational services and facilities 59,632 46,791 59,632 46,791 - - Sales and marketing 24,745 18,872 24,745 18,872 - - Student services 7,903 6,363 7,903 6,363 - - Provision for credit losses 16,035 13,177 16,035 13,177 - - Administrative 30,832 28,484 12,707 12,218 18,125 16,266 Depreciation and amortization 134 165 - - 134 165 Selling, general and administrative 79,649 67,061 61,390 50,630 18,259 16,431 Gain on sale of assets (33 ) (256 ) (10 ) (256 ) (23 ) - Total costs and expenses 139,248 113,596 121,012 97,165 18,236 16,431 OPERATING INCOME (LOSS) $ 3,312 $ 2,878 $ 21,548 $ 19,309 $ (18,236 ) $ (16,431 ) Educational services and facilities expense. Educational services and facilities expense increased by $12.8 million, or 27.4%, to $59.6 million for the three months ended June 30, 2026, compared to $46.8 million for the prior year comparable period. This includes a $2.9 million increase in costs related to our new campuses in Houston, Hicksville, and Rowlett. The increase was primarily driven by costs associated with a larger student population as well as higher books and tools expense primarily due to the timing of program starts. The remaining increase was attributable to $3.1 million in higher depreciation expense, including $0.8 million related to new campuses, largely resulting from capital investments to support our growth initiatives. Educational services and facilities expense as a percentage of revenue increased to 41.8% from 40.2% in the prior year comparable period. Selling, general and administrative expense. Selling, general and administrative expense increased $12.6 million, or 18.8% to $79.7 million for the three months ended June 30, 2026, compared to $67.1 million in the prior year comparable period. This includes a $2.1 million increase in costs related to our new campuses in Houston, Hicksville, and Rowlett. The increase was primarily driven by a larger student population, higher sales and marketing expense, and an increased provision for credit losses. 23 Index Sales and marketing expense increased by $5.9 million, or 31.1%, including $1.2 million related to our new campuses, due to higher student acquisition costs. Selling, general and administrative expenses continued to decline as a percentage of revenue, at 55.9% for the three months ended June 30, 2026, compared to 57.6% for the same period in 2025. Provision for credit losses. While the provision increased by $2.9 million, it was slightly lower as a percentage of revenue at 11.2% compared to 11.3% in the prior year. Income taxes. Income tax provision was $0.3 million for the three months ended June 30, 2026, representing an effective tax rate of 13.9% of pre-tax income, compared to an income tax provision of $0.5 million and an effective tax rate of 25.1% for the prior year comparable period. The lower effective tax rate in the current period was primarily due to a discrete tax benefit related to restricted stock vesting. Corporate and Other This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $18.2 million for the three months ended June 30, 2026, compared to $16.4 million in the prior year comparable period. The increase was primarily driven by higher salaries and benefits to support a larger student population and the execution of our growth initiatives. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 Consolidated Results of Operations Revenue. Revenue increased $52.5 million, or 22.4% to $286.5 million for the six months ended June 30, 2026, from $234.0 million in the prior year comparable period. Revenue growth was primarily due to a 16.3% increase in average student population, with the remainder attributable to tuition increases. Six Months Ended June 30, Consolidated 2026 2025 7/1/25 starts* 2025 * % change % change * Revenue (millions) $ 286.5 $ 234.0 22.4 % Total new student starts 11,478 7,767 2,764 10,531 47.8 % 9.0 % Average student population 18,314 15,511 231 15,742 18.1 % 16.3 % End of period student population 18,905 14,356 2,764 17,120 31.7 % 10.4 % * 2025 figures include 2,764 student starts on July 1, 2025, to align with comparable student start activity in the current year during the last week of June 2026, returning to our typical start schedule. Six Months Ended June 30, Consolidated Campus Operations Corporate 2026 2025 2026 2025 2026 2025 REVENUE $ 286,518 $ 233,980 $ 286,518 $ 233,980 $ - $ - COSTS AND EXPENSES: Instructional 55,776 46,559 55,776 46,559 - - Books and tools 20,211 14,477 20,211 14,477 - - Facilities 26,883 25,018 26,883 25,018 - - Depreciation and amortization 15,155 8,145 15,155 8,145 - - Educational services and facilities 118,025 94,199 118,025 94,199 - - Sales and marketing 48,642 38,573 48,642 38,573 - - Student services 15,259 12,601 15,259 12,601 - - Provision for credit losses 29,717 25,012 29,717 24,975 - 37 Administrative 64,917 57,452 25,582 23,160 39,335 34,292 Depreciation and amortization 266 327 - - 266 327 Selling, general and administrative 158,801 133,965 119,200 99,309 39,601 34,656 (Gain) loss on sale of assets (27 ) (476 ) (4 ) (510 ) (23 ) 34 Total costs and expenses 276,799 227,688 237,221 192,998 39,578 34,690 OPERATING INCOME (LOSS) $ 9,719 $ 6,292 $ 49,297 $ 40,982 $ (39,578 ) $ (34,690 ) 24 Index Educational services and facilities expense. Educational services and facilities expense increased by $23.8 million, or 25.3%, to $118.0 million for the six months ended June 30, 2026, compared to $94.2 million for the prior year comparable period. This includes a $5.7 million increase in costs related to our new campuses in Houston, Hicksville, and Rowlett. The primary driver of the increase was attributable to higher costs associated with supporting a larger student population. The remaining increase was attributable to higher depreciation expense, largely resulting from capital investments to support our growth initiatives. Educational services and facilities expense as a percentage of revenue increased to 41.2% from 40.3% in the prior year comparable period. Selling, general and administrative expense. Selling, general and administrative expense increased $24.8 million, or 18.5%, to $158.8 million for the six months ended June 30, 2026, compared to $134.0 million for the prior year comparable period. This includes a $4.0 million increase in costs related to our new campuses in Houston, Hicksville, and Rowlett. Selling, general and administrative expenses continued to decline as a percentage of revenue to 55.4% for the six months ended June 30, 2026, compared to 57.3% for the same period in 2025. Sales and marketing expense increased by $10.1 million, or 26.1%, including $2.4 million related to our new campuses, due to higher student acquisition costs. Provision for credit losses. While the provision increased in absolute terms, it declined as a percentage of revenue from 10.7% to 10.4% year-over-year reflecting continuing efficiencies from our financial aid processes and stronger collections. Net interest expense. Net interest expense was $1.9 million for the six months ended June 30, 2026, compared to net interest expense of $1.4 million for the six months ended June 30, 2025, primarily driven by higher interest expense on borrowings. Income taxes. Income tax provision was $1.6 million for the six months ended June 30, 2026, representing an effective tax rate of 19.8% of pre-tax income, compared to an income tax provision of $1.4 million and an effective tax rate of 28.6% in the prior year comparable period. We evaluate performance based on operating results. Adjustments to reconcile segment results with consolidated results are included in the caption “Corporate,” which primarily includes unallocated corporate activity. Corporate and Other This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $39.6 million for the six months ended June 30, 2026, compared to $34.7 million in the prior year comparable period. The increase was primarily driven by higher salaries and benefits to support a larger student population and the execution of our growth initiatives. LIQUIDITY AND CAPITAL RESOURCES Our primary capital requirements are for maintenance and expansion of our facilities and the development of new programs. Our principal source of liquidity has been cash provided by operating activities. The following chart summarizes the principal elements of our cash flow for each of the six months ended June 30, 2026, and 2025: Six Months Ended June 30, 2026 2025 Net cash provided by (used in) operating activities $ 26,633 $ (8,079 ) Net cash used in investing activities $ (29,105 ) $ (45,772 ) Net cash provided by financing activities $ 18,131 $ 11,279 As of June 30, 2026, the Company had $44.2 million in cash and cash equivalents, compared to $16.7 million in cash and cash equivalents as of June 30, 2025. The change in cash position from the prior year comparable period was primarily driven by higher net cash provided by operating activities, along with increased net borrowings under the Company's financing arrangements, partially offset by continued capital expenditures related to campus expansion. 25 Index Our primary source of cash is tuition collected from our students. The majority of students enrolled at our schools rely on funds received under various government-sponsored student financial aid programs to pay a substantial portion of their tuition and other education-related expenses. The most significant source of student financing is Title IV Programs, which represented approximately 85% of our cash receipts relating to revenues in 2025. Pursuant to applicable regulations, students must apply for a new loan for each academic period. Federal regulations dictate the timing of disbursements of funds under Title IV Programs and loan funds are generally provided by lenders in two disbursements for each academic year. The first disbursement is usually received approximately 31 days after the start of a student’s academic year and the second disbursement is typically received at the beginning of the sixteenth week from the start of the student's academic year. Certain types of grants and other funding are not subject to a 31-day delay. In certain instances, if a student withdraws from a program prior to a specified date, any paid but unearned tuition or prorated Title IV Program financial aid is refunded according to federal, state and accrediting agency standards. As a result of the significant amount of Title IV Program funds received by our students, we are highly dependent on these funds to operate our business. Any reduction in the level of Title IV Program funds that our students are eligible to receive for tuition payment to us or any restriction on our eligibility to receive Title IV Program funds would have a significant impact on our operations and our financial condition. For more information, see Part I, Item 1A. “Risk Factors - Risks Related to Our Industry” of our Form 10-K. Operating Activities Operating cash flow is generated primarily from cash received from our students, offset by changes in working capital demands. Working capital can vary at any point in time based on several factors including seasonality, timing of cash receipts and payments and vendor payment terms. Net cash provided by operating activities for the six months ended June 30, 2026 was $26.7 million, compared to net cash used in operating activities of $8.1 million in the prior year comparable period, primarily driven by favorable changes in working capital, depreciation and amortization, and the provision for credit losses, as well as higher net income. Investing Activities Net cash used in investing activities was $29.1 million for the six months ended June 30, 2026 compared to $45.8 million in the prior year comparable period, primarily related to capital expenditures associated with growth initiatives. Capital expenditures for the six months ended June 30, 2026 were $29.1 million compared to $46.3 million in the prior year comparable period. The decrease resulted from a shift in the timing of planned capital expenditures which includes the buildout for the new Rowlett, Texas and Hicksville, New York campuses. In addition, we continue to invest to expand programs at existing campuses that demonstrate high market demand and successful student outcomes. We expect to fund future capital expenditures with cash generated from operating activities, cash on hand, and utilization of the credit facility. Financing Activities Net cash provided by financing activities for the six months ended June 30, 2026 was $18.1 million, compared to $11.3 million in the prior year comparable period, primarily due to an increase in net borrowings in the current period, partially offset by higher net share settlements for equity-based compensation. Credit Facility The Company maintains a revolving credit facility to support working capital and general corporate purposes. In April 2026, the Company entered into an amended and restated credit agreement, which increased total borrowing capacity from $60.0 million to $125.0 million and extended the maturity of the credit facility from March 7, 2028 to April 11, 2031. As of June 30, 2026, the Company had $26.0 million outstanding under the credit facility. For additional information regarding the terms of the facility, see Note 7, Long-Term Debt. Melrose Park Property Acquisition On July 7, 2026, the Company completed the acquisition of our Melrose Park, Illinois campus building, funded primarily through a mortgage loan, converting the location from a leased to an owned facility. See Note 13, Subsequent Events, to the Condensed Consolidated Financial Statements for further discussion. We do not expect this transaction to have a material impact on our future results of operations. 26 Index Contractual Obligations Current portion of Long-Term Debt, Long-Term Debt and Lease Commitments. As of June 30, 2026, the Company had $26.0 million in debt outstanding under the revolving credit facility. The Company leases offices, educational facilities and various items of equipment for varying periods through the year 2045 at basic annual rental rates (excluding taxes, insurance, and other expenses under certain leases). As of June 30, 2026, the Company had outstanding loan principal commitments to our active students of $62.1 million. These are institutional loans, and no cash is advanced to students. The full loan amount is not guaranteed unless the student completes the program. The institutional loans are considered commitments because the students are required to fund their education using these funds and they are not reported on our financial statements. Regulatory Updates Negotiated Rulemaking In 2025, the DOE announced its intention to establish two negotiated rulemaking committees: the Reimagining and Improving Student Education (RISE) Committee and the Access through Demand-driven Workforce Pell (AHEAD) Committee. The RISE Committee considered changes to federal student loan programs and the Accountability in Higher Education, and the AHEAD Committee considered changes to institutional and programmatic accountability, the Pell Grant Program, and Title IV Programs. This rulemaking was necessary to implement recent statutory changes to the Title IV and HEA programs included in the One Big Beautiful Bill Act ("OBBB Act") as well as to propose other changes. See 10-K “Regulatory Environment – Negotiated Rulemaking” and “Regulatory Environment – Gainful Employment and Accountability.” The proposed RISE regulations were subject to a public notice and comment period, which ended March 2, 2026, and the DOE published the final version of the regulations on May 1, 2026, with a general effective date of July 1, 2026. Among other topics, the new regulations place a $20,000 annual limit and a $65,000 aggregate limit on PLUS loans that parents may borrow for undergraduate programs and impose a requirement to prorate loans to students attending on a less than full-time basis. We are evaluating these and other new limits and cannot currently predict the extent to which these new limits may impact our schools, programs, enrollments, and revenues, but the reduction in availability of funding could impact the ability of some of our prospective students to enroll and finance their education without access to loans in excess of the new loan limits. The AHEAD Committee reached a consensus on two sets of proposed regulations on December 12, 2025, and January 9, 2026, respectively. The first set of proposed regulations implements the new Workforce Pell program authorized by the OBBB Act. See 10-K at “Regulatory Environment – Negotiated Rulemaking.” Under these regulations, short-term workforce programs (as defined in the regulations) will be eligible to disburse Pell Grants if they meet various requirements such as applicable program length requirements, certain limitations on outsourcing instruction to ineligible providers, and obtaining requisite DOE and state approval in the state in which the institution is located. The second set of proposed regulations would establish new uniform accountability requirements applicable to all educational programs across all education sectors. See 10-K at “Regulatory Environment – Negotiated Rulemaking” and “Regulatory Environment – Gainful Employment and Accountability.” The DOE published the regulations in final form on July 1, 2026. The regulations eliminate the “debt-to-earnings” measures under the gainful employment regulations. Instead, the regulations establish and describe an earnings premium framework for undergraduate certificate and degree programs that would compare graduate earnings to those of holders of high school diplomas and for graduate programs that would compare graduate earnings to those of bachelor’s degree holders. Under the framework described in the regulations, an educational program would lose access to the Direct Loan program if it fails to achieve a positive earnings premium for two out of three consecutive years. The regulations outlining the new accountability framework, known as the Student Tuition and Transparency System (“STATS”) and Earnings Accountability rule, address several other topics including, for example, the complex rules for the earnings calculations and premiums, data and calculation appeals, warning and disclosure requirements for programs that fail the earnings test and that are at risk of losing eligibility, sanctions for programs that fail the earnings tests, informational reporting requirements, requirements for DOE to publicly disclose certain institutional data, requirements for institutions to certify program compliance, and provisional certification requirements for institutions with failing programs exceeding new administrative capability thresholds. The regulations have a general effective date of July 1, 2027, with some portions taking effect on August 31, 2026. The first earnings test calculations are expected to occur in early 2027, and July 1, 2028, is expected to be the first date on which a program could fail the earnings test for two consecutive years. 27 Index We cannot predict how our educational programs will perform under the new metrics, but our failure to comply with the new regulations, including the failure of some of our educational programs to comply with the earnings tests, and the potential loss of Direct Loan and potentially all Title IV eligibility for impacted programs, could have a significant impact on our business and results of operations. We cannot predict whether the DOE could publish amended regulations in the future under current or future leadership that make the accountability regulations stricter or seek to reinstitute the old gainful employment requirements. We also cannot predict the outcome or impact of any litigation that might seek to challenge the legality and enforceability of the final regulations. Seasonality Our revenue and operating results normally fluctuate as a result of seasonal variations in our business, principally due to changes in total student population. Student population varies due to new student enrollments, graduations and student attrition. Historically, our schools have had lower student populations in our first and second quarters and we have experienced larger class starts in the third quarter and higher student attrition in the first half of the year. The growth that we generally experience in the second half of the year is largely dependent on a successful high school recruiting season. We recruit high school students several months ahead of their scheduled start dates and, as a consequence, while we have visibility on the number of students who have expressed interest in attending our schools, we cannot predict with certainty the actual number of new student enrollments in any given year and the related impact on revenue. Our expenses, however, typically do not vary significantly over the course of the year with changes in our student population and revenue.