Legacy Education Delivers Strong Second Quarter Fiscal 2026 Results with 40% Revenue Growth and Impressive Enrollment Gains
MWN-AI** Summary
Legacy Education Inc. reported impressive financial results for the second quarter of fiscal 2026, showcasing a remarkable 40.7% increase in revenue, totaling $19.2 million compared to $13.6 million in the same period last year. This surge in revenue can be attributed to a significant rise in new student enrollments, which climbed by 49.4%, reaching 593 new starts. The company's enrollment growth led to an overall student population increase of 16.8%, totaling 3,234 students.
Adjusted EBITDA for the quarter also witnessed substantial growth, soaring by 61.6% to $3.0 million, while net income increased by 46% to $2.0 million, translating to diluted earnings per share of $0.15—a 50% increase year-over-year. For the six months ending December 31, 2025, revenues rose by 39.6% to $38.6 million, driven by a 37.2% increase in new student starts, totaling 1,710.
CEO LeeAnn Rohmann highlighted the quarter's success as a testament to the increasing demand for Legacy's healthcare education programs. The company effectively managed its operational costs, which included educational services and administrative expenses correlating with its enrollment growth. Educational service expenses rose to $10.3 million, mainly due to increased staffing and instructional needs.
The ongoing success underscores Legacy Education's commitment to providing quality educational services in the healthcare sector, positioning itself well for future growth. As the company expands, it remains focused on enhancing its offerings and reaching more students through both organic growth and strategic acquisitions. Investors can access further details through a conference call scheduled for February 12, 2026.
MWN-AI** Analysis
Legacy Education Inc. has reported a robust second quarter for fiscal 2026, showcasing a remarkable 40.7% year-over-year revenue growth, reaching $19.2 million, coupled with a significant 49.4% increase in new student enrollments. This growth reinforces the company's position as a critical player in career-focused healthcare education. As demand accelerates for such programs, Legacy Education’s ability to expand its student population to 3,234—an increase of 16.8%—highlights both the effectiveness of its outreach and operational execution.
Strong financial results, with a net income increase of 46% to $2 million and an adjusted EBITDA of $3 million, reflect heightened operational efficiency. The company's commitment to enhancing educational services, driven by increased staffing and marketing expenses, indicates a willingness to invest in growth avenues that should yield long-term benefits. However, the increase in operating expenses, particularly a 40.4% rise in general and administrative costs, underscores the need for careful management moving forward.
Given these results, investors should view Legacy Education as a potentially lucrative option. With continued focus on organic enrollment growth and program expansion, the company is well-positioned to sustain its strong performance. The current high demand for healthcare education aligns favorably with industry trends, suggesting that Legacy could capitalize on ongoing labor market needs.
Looking ahead, investors might consider increasing their positions in Legacy Education, especially while the stock remains responsive to overall market conditions. However, attention should also be paid to the company's management of rising costs, ensuring that operational efficiency does not compromise future profitability. Monitoring future quarterly earnings will be crucial as Legacy navigates its growth trajectory in an evolving educational landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
LANCASTER, Calif., Feb. 12, 2026 /PRNewswire/ -- Legacy Education Inc. ("Legacy Education" or the "Company") (NYSE American: LGCY), a leading provider of career education healthcare programs, today announced financial and operating results for the fiscal second quarter ended December 31, 2025.
Legacy Education Inc. will host a conference call to discuss its second quarter financial results on Thursday, February 12, 2026 at 4:30 p.m. Eastern time.
To access the live webcast of the conference call, please go to the investor relations section of the Legacy Education website at www.legacyed.com. Participants may also register via teleconference at: Q2 2026 Legacy Education Inc. Earnings Conference Call. Once registration is completed, participants will be provided with a calendar invitation and link to join the call. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. An archived version of the webcast will be accessible for 90 days at www.legacyed.com. Toll-free dial-in number is (877) 407-9785 and international dial-in number is (201) 689-8843.
Second Quarter 2026 Financial Highlights
- Revenue grew 40.7% to $19.2 million
- New student starts increased 49.4% to 593
- Adjusted EBITDA of $3.0 million, up 61.6%
- Net income of $2.0 million, up 46%
- Diluted earnings per share of $0.15, up 50%
- Student population increased 16.8% to 3,234
Six months ended December 31, 2025 Financial Highlights
- Revenue grew 39.6% to $38.6 million
- New student starts increased 37.2% to 1,710
- Adjusted EBITDA of $6.1 million, up 30.3%
- Net income of $4.2 million, up 21.2%
"This was a standout quarter for Legacy Education, highlighted by strong revenue growth, significant increases in student starts, and expanding profitability," said LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc. "Demand for our healthcare programs continues to accelerate, and our team executed exceptionally well across enrollment, operations, and student support. We believe the momentum we are seeing positions us well for continued growth as we scale our platform and expand access to career-focused healthcare education."
QUARTER END FINANCIAL RESULTS
Quarter ended December 31, 2025 compared to December 31 , 2024
- Revenue was $19.2 million for the three months ended December 31, 2025 compared to $13.6 million for the three months ended December 31, 2024, an increase of $5.6 million, or 40.7% driven by a 49.4% increase in new student starts to 593 from 397 last year resulting in a 16.8% increase in ending student population.
- Educational services expense was $10.3 million for the three months ended December 31, 2025 compared to $7.5 million for the three months ended December 31, 2024, an increase of $2.8 million, or approximately 37.6%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments as well as increased rent, externship fees and non-cash compensation charges.
- General and administrative expense was $6.1 million for the three months ended December 31, 2025 compared to $4.3 million for the three months ended December 31, 2024, an increase of $1.8 million, or 40.4%. The increase was primarily attributable to an increase in marketing expense, professional fees and bad debt.
YEAR TO DATE FINANCIAL RESULTS
Six Months December 31, 2025 compared to December 31 , 2024
- Revenue was $38.6 million for the six months ended December 31, 2025 compared to $27.6 million for the six months ended December 31, 2024, an increase of $11.0 million, or 39.6% driven by a 37.2% increase in new student starts to 1,710 from 1,246 resulting in a 16.8% increase in ending student population.
- Educational services expense was $20.6 million for the six months ended December 31, 2025 compared to $14.7 million for the six months ended December 31, 2024, an increase of $5.9 million, or 40.4%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments as well as increased rent, externship fees and non-cash compensation charges.
- General and administrative expense was $12.2 million for the six months ended December 31, 2025 compared to $8.3 million for the six months ended December 31, 2024, an increase of $3.9 million, or 46.9%. The increase was primarily attributable to an increase in marketing expense, professional fees and bad debt expense. Of the total general and administrative expense, $3.0 million and $2.3 million relate to marketing expense for the six months ended December 31, 2025 and 2024, respectively.
Three Months Ended | Six Months Ended | ||||
December 31 | December 31 | ||||
2025 | 2024 | 2025 | 2024 | ||
REVENUE | |||||
Tuition and related income, net | $ 19,184,643 | $ 13,635,134 | $ 38,585,666 | $ 27,640,225 | |
OPERATING EXPENSES | |||||
Educational services | 10,292,079 | 7,479,226 | 20,613,676 | 14,683,800 | |
General and administrative | 6,105,666 | 4,349,129 | 12,213,264 | 8,315,176 | |
General and administrative - related party | 57,250 | 43,147 | 206,600 | 124,200 | |
Depreciation and amortization | 173,514 | 105,839 | 297,342 | 186,980 | |
Total costs and expenses | 16,628,509 | 11,977,341 | 33,330,882 | 23,310,156 | |
OPERATING INCOME | 2,556,134 | 1,657,793 | 5,254,784 | 4,330,069 | |
Loss on disposal of fixed assets Interest expense | (3,890) (8,183) | - (28,318) | (3,890) (52,143) | - (57,668) | |
Interest income | 330,387 | 295,522 | 649,231 | 556,418 | |
Total other income | 318,314 | 267,204 | 593,198 | 498,750 | |
INCOME BEFORE INCOME TAXES | 2,874,448 | 1,924,997 | 5,847,982 | 4,828,819 | |
Income tax expense | (831,747) | (525,951) | (1,618,321) | (1,339,020) | |
Net income (loss) | $ 2,042,701 | $ 1,399,046 | $ 4,229,661 | $ 3,489,799 | |
Net income per share | |||||
Basic net income per share | $ 0.16 | $ 0.11 | $ 0.34 | $ 0.32 | |
Diluted net income per share | $ 0.15 | $ 0.10 | $ 0.30 | $ 0.29 | |
Basic weighted average shares outstanding | 12,574,114 | 12,254,453 | 12,536,527 | 10,787,640 | |
Diluted weighted average shares outstanding | 13,858,320 | 13,417,823 | 13,923,682 | 11,951,010 | |
Selected Consolidated Balance Sheet Data: | December 31, 2025 | ||||
(unaudited) | |||||
Cash and cash equivalents | $ 21,057,325 | ||||
Current assets | 41,816,891 | ||||
Working capital | 27,767,362 | ||||
Total assets | 73,115,533 | ||||
Current liabilities | 14,049,529 | ||||
Total stockholders' equity | 46,073,908 |
Important Information Regarding Non-GAAP Financial Information
To supplement Legacy Education's consolidated financial statements presented in accordance with GAAP, Legacy Education furnishes certain adjusted non-GAAP supplemental information to our financial results regarding EBITDA and adjusted EBITDA. This reconciliation adjust the related GAAP financial measures to exclude operating income to adjust the impact of non-cash compensation in the periods presented. We use such adjusted non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that by excluding the effects of such adjusted GAAP-related items that, in their opinion, do not reflect the ordinary earnings of our operations, it enhances investors' overall understanding of our current financial performance and our prospects for the future by (i) providing a more comparable measure of our continuing business, as well as greater understanding of the results from the primary operations of our business, (ii) affording a view of our operating results that may be more easily compared to our peer companies, and (iii) enabling investors to consider our operating results on both a GAAP and adjusted non-GAAP basis (including following the integration period of our prior and proposed acquisitions). However, this adjusted non-GAAP information is not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP") and should be considered in conjunction with our GAAP results as the items excluded from the adjusted non-GAAP information may have a material impact on Legacy's financial results. A reconciliation of adjusted non-GAAP adjustments to Legacy's GAAP financial results is included in the tables at the end of this press release.
In the noted fiscal periods, we adjusted net income for the items identified from our GAAP financial results to arrive at our adjusted non-GAAP financial measures:
Stock-based compensation - We exclude stock-based compensation to be consistent with the way management and, in our view, the overall financial community, evaluates our performance and the methods used by analysts to calculate consensus estimates. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include these charges in operating plans.
RECONCILIATION OF NET INCOME, EBITDA, AND ADJUSTED EBITDA
Three Months Ended | Six Months Ended | ||||
December 31 | December 31 | ||||
2025 | 2024 | 2025 | 2024 | ||
Net income | $ 2,042,701 | $ 1,399,046 | $ 4,229,661 | $ 3,489,799 | |
Other income | (318,314) | (267,204) | (593,198) | (498,750) | |
Provision for income taxes | 831,747 | 525,951 | 1,618,321 | 1,339,020 | |
Depreciation and amortization | 173,514 | 105,839 | 297,342 | 186,980 | |
EBITDA | 2,729,648 | 1,763,632 | 5,552,126 | 4,517,049 | |
Non-cash compensation | 295,958 | 109,157 | 565,204 | 176,188 | |
Adjusted EBITDA | $ 3,025,606 | $ 1,872,789 | $ 6,117,330 | $ 4,693,237 |
ABOUT LEGACY EDUCATION
Legacy Education (NYSE: LGCY) is an award-winning, nationally accredited, for-profit post-secondary education company founded in 2009. Legacy Education provides career-focused education primarily in the healthcare field, with certificates and degrees for nursing, sonography, medical technicians, dental assisting, business administration, and several others. The Company offers a wide range of educational programs and services to help students achieve their professional goals. Legacy Education's focus is on providing high-quality education that is accessible and affordable. Legacy Education is committed to growing its education footprint via organic enrollment growth, addition of new programs, and accretive acquisitions. For more information, please visit www.legacyed.com or on LinkedIn @legacy-education-inc.
FORWARD-LOOKING STATEMENTS
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to the Company's operations. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances. Actual results may differ materially from those indicated by these forward-looking statements because of various important factors, including, without limitation, market conditions and the factors described in the section entitled "Risk Factors" in Legacy's most recent Annual Report on Form 10-K and Legacy's other filings made with the U.S. Securities and Exchange Commission. All such statements speak only as of the date of this press release. Consequently, forward-looking statements should be regarded solely as Legacy's current plans, estimates, and beliefs. Legacy cannot guarantee future results, events, levels of activity, performance, or achievements. Legacy does not undertake and specifically declines any obligation to update or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.
Contact Legacy Education Inc.
Investor Relations
ir@legacyed.com
Amato and Partners, LLC
Investors Relations Counsel
admin@amatoandpartners.com
SOURCE Legacy Education Inc.
FAQ**
How does the 40% revenue growth for Legacy Education Inc. LGCY in the second quarter of fiscal 2026 compare to historical growth rates, and what factors contributed most significantly to this increase?
What strategies is Legacy Education Inc. LGCY implementing to sustain its impressive enrollment gains of 49.4% and expand its student population moving forward?
Given the substantial increase in educational services and administrative expenses, how does Legacy Education Inc. LGCY plan to manage costs while maintaining profitability in the future?
Can Legacy Education Inc. LGCY provide insights into how the current labor market trends might affect future demand for its healthcare programs and overall growth trajectory?
**MWN-AI FAQ is based on asking OpenAI questions about Legacy Education Inc. (NYSE: LGCY).
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