Legacy Education Inc. (LGCY) AI Stock Analysis

• Market Cap: $159.56M
• Dividend Yield: N/A
• Average Volume (3M): 79.06K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.08
• Revenue Growth: 40.14%
• EPS Growth: 16.61%
• Country: US
• Employees: 195
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.15
• Shares Outstanding: 12,613,086
• 10 Day Avg. Volume: 40,489
• 30 Day Avg. Volume: 79,061
• PEG Ratio: 0.00
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 18.70
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: 14.74
• 1Y Price Target: $14.30
• Price Target Upside: 13.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.67
• Revenue Forecast (FY): $78.23M

• Rating: 74 Outperform
• Price Target: $15.00 ▲(18.58% Upside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is driven primarily by solid financial performance and a notably strong, growth- and margin-positive earnings call with a healthy balance sheet. Technicals are supportive but not decisive, while valuation appears moderate with no dividend yield data to add support.

Positive Factors

Sustained Enrollment & Revenue Growth

Fourteen consecutive quarters of double-digit revenue growth and strong new-student starts indicate durable product-market fit and repeatable enrollment funnels. Persistent organic top-line momentum supports scalable revenue predictability, enabling investment in programs and steady long-term expansion across campuses and offerings.

Margin Expansion & Cash Generation

Material EBITDA and margin expansion coupled with very strong free cash flow growth show improving unit economics and cash conversion. Reliable cash generation and expanding margins provide durable capacity to fund organic growth, invest in curriculum and technology, and pursue accretive M&A without over-reliance on external financing.

Program Expansion & Delivery Innovation

Accredited program launches, hybrid delivery rollout and AI-enabled tools strengthen competitive moats by increasing capacity, improving instructional consistency and lowering marginal delivery costs. Accreditation wins cement regulatory standing and long-term enrollment pipelines across multiple campuses, supporting sustainable growth.

Negative Factors

Rising AR Reserve & Bad Debt

Elevated receivables reserves and persistent bad-debt levels indicate collection and credit risks that erode cash conversion and operating margins. If structural rather than timing-related, higher reserves can force stricter credit policies or increased working capital needs, constraining organic scaling and cash available for growth initiatives.

Rising G&A and Cost Pressure

Sustained higher G&A and non-cash compensation reduce operating leverage as revenue grows, limiting margin upside. If professional fees, facilities and recurring costs remain elevated, they can compress long-term profitability and require continued productivity improvements or revenue scale to restore prior margin trajectories.

Cash-flow Volatility & Rising Debt Trend

Timing sensitivity from Title IV disbursements, performance pay and historical cash-flow swings raise the risk of quarter-to-quarter funding gaps. A trend of increasing debt, even from low levels, can limit flexibility for M&A or investment and makes sustained capital planning more vulnerable to enrollment or reimbursement shifts.

Legacy Education Inc. Business Overview & Revenue Model

Company Description

Legacy Education Inc. provides education services to students, high school graduates, and working parents in the United States. The company offers a range of certificate or degree programs, including ultrasound technician (UT), vocational nursing (VN), VN Associate of Applied Science degree, Associate degree of nursing, nursing assistant, magnetic resonance imaging (MRI) Associate of Applied Science, cardiac sonography, pharmacy technician, dental assisting, clinical medical assisting, medical administrative assisting, medical billing and coding, and veterinary assistant. It also provides a range of certificate or degree programs, such as phlebotomy technician avocational, nursing assistant avocational, UT Associate of Applied Science degree, business administrative specialist, computer specialist, accounting, medical administrative assistant, medical assisting, veterinary technology Associate of Applied Science, avocational phlebotomy technician program, registered nurse to Bachelor of Science in nursing, and diagnostic medical sonography program. The company operates under the High Desert Medical College, Central Coast College, and Integrity College of Health academic institutions. Legacy Education Inc. was incorporated in 2020 and is based in Temecula, California.

How the Company Makes Money

Legacy Education Inc. generates revenue through multiple channels, primarily by selling educational courses and training programs. Their revenue model includes tuition fees from in-person and online seminars, workshops, and coaching sessions. The company may also earn income from the sale of related educational materials and resources. Additionally, partnerships with real estate professionals and industry experts can enhance their offerings and attract more customers, contributing to overall revenue growth. The company's ability to attract and retain students through effective marketing strategies and high-quality educational content plays a crucial role in its financial performance.

Legacy Education Inc. Financial Statement Overview

Summary

Strong profitability and improving cash generation support the score (gross margin 45.94%, net margin 11.74%, free cash flow growth 132.73%). Balance sheet leverage is conservative (debt-to-equity 0.43), but prior revenue/cash-flow volatility and rising debt trend noted in the statements temper the rating.

Income Statement

Legacy Education Inc. has demonstrated strong revenue growth with an 8.81% increase in the latest year, indicating a positive trajectory. The gross profit margin of 45.94% and net profit margin of 11.74% reflect solid profitability. The EBIT and EBITDA margins are also healthy at 17.35% and 18.04%, respectively, showcasing efficient operations. However, the company experienced a significant revenue drop in 2022, which could indicate potential volatility.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.43, suggesting a conservative leverage approach. The return on equity is strong at 18.36%, indicating effective use of equity to generate profits. The equity ratio of 59.30% reflects a solid equity base relative to total assets. However, the increase in total debt over the years requires monitoring to ensure it remains sustainable.

Cash Flow

Legacy Education Inc. has shown impressive free cash flow growth of 132.73%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.56 suggests that cash flows are adequately supporting net income. The free cash flow to net income ratio of 0.89 is robust, reflecting efficient cash conversion. However, the company has experienced fluctuations in cash flow metrics in previous years, which could pose risks.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	58.97M	64.17M	46.00M	35.46M	30.70M	57.81M
Gross Profit	25.54M	29.48M	19.65M	35.23M	12.59M	30.06M
EBITDA	10.44M	11.58M	7.37M	4.19M	3.67M	12.46M
Net Income	19.18M	7.53M	5.11M	2.67M	2.34M	9.61M
Balance Sheet
Total Assets	67.10M	69.21M	35.17M	27.25M	20.61M	17.95M
Cash, Cash Equivalents and Short-Term Investments	17.33M	20.32M	10.38M	9.29M	8.77M	7.85M
Total Debt	17.54M	17.68M	4.84M	5.56M	953.24K	1.10M
Total Liabilities	27.82M	28.16M	12.75M	11.82M	7.01M	6.95M
Stockholders Equity	39.28M	41.04M	22.42M	15.42M	13.60M	11.00M
Cash Flow
Free Cash Flow	2.98M	6.92M	1.23M	1.57M	793.73K	4.64M
Operating Cash Flow	3.74M	7.77M	1.65M	1.77M	1.09M	4.84M
Investing Cash Flow	-6.90M	-6.98M	-423.71K	-195.08K	-294.87K	-199.59K
Financing Cash Flow	9.07M	9.15M	-238.55K	-1.05M	129.03K	1.79M

Legacy Education Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCY, the sentiment is Neutral. The current price of 12.65 is below the 20-day moving average (MA) of 13.63, above the 50-day MA of 11.76, and above the 200-day MA of 10.88, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 23.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LGCY.

Legacy Education Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGCY	74 Outperform	$159.56M	15.68	19.46%	―	40.14%	16.61%
STG	68 Neutral	$61.88M	1.57	51.85%	―	-0.84%	-11.01%
IH	67 Neutral	$89.93M	2.45	11.71%	3.93%	-8.09%	-15.28%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LFS	59 Neutral	$68.02M	17.38	36.13%	―	12.19%	72.87%
GNS	43 Neutral	$28.31M	―	-48.19%	―	-64.39%	-305.82%
SKIL	42 Neutral	$32.49M	-0.69	-264.56%	―	-3.55%	61.83%

Legacy Education Inc. Corporate Events

Legacy Education Updates Investor Presentation and Disclosure Materials

Legacy Education Inc. announced that it has prepared a set of presentation materials that its management intends to use periodically on and after March 17, 2026, in discussions about the company’s operations and performance. The materials have been furnished for investors as summary information meant to be reviewed alongside the company’s other public filings and announcements, with Legacy emphasizing that the content reflects conditions only as of the filing date and that it has no obligation to update the presentations.

The decision to formally furnish these materials signals an effort by Legacy Education to standardize and centralize the information it shares with stakeholders about its business and financial performance. By aligning these presentations with its broader disclosure record, the company aims to give investors a more consistent view of its position and activities, while also clearly defining the temporal limits of the information’s relevance.

The most recent analyst rating on (LGCY) stock is a Buy with a $15.50 price target. To see the full list of analyst forecasts on Legacy Education Inc. stock, see the LGCY Stock Forecast page.

Legacy Education releases updated investor presentation materials

On January 7, 2026, Legacy Education Inc. prepared a new set of investor presentation materials for use by management in ongoing discussions about the company’s operations and performance, and made these materials publicly available through a regulatory filing. The company emphasized that the presentation is summary in nature, should be read alongside its broader securities filings and public disclosures, and reflects information only as of the filing date, while expressly stating it has no obligation to update the materials for future events or circumstances, underscoring a controlled and limited-disclosure approach for investors and other stakeholders.

The most recent analyst rating on (LGCY) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Legacy Education Inc. stock, see the LGCY Stock Forecast page.