Legacy Education Inc. (LGCY)
:LGCY
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Legacy Education Inc.
(LGCY)
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Rating:74Outperform
Price Target:
$15.00
▲(19.43% Upside)
Action:UpgradedDate: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 Revenue Growth
Fourteen consecutive quarters of double‑digit revenue growth, driven by enrollment and new program starts, signal durable demand and scalable unit economics. This sustained top‑line momentum supports multi‑period planning, funding of program rollouts, and predictable revenue tailwinds for 2–6 months and beyond.
Negative Factors
Rising AR Reserve
A materially higher AR reserve indicates growing collection risk or timing shifts in receivables; if persistent this erodes cash conversion and compresses free cash flow. For a tuition‑driven model, worsening receivables ratios signal structural collections or credit issues that can pressure margins over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Fourteen consecutive quarters of double‑digit revenue growth, driven by enrollment and new program starts, signal durable demand and scalable unit economics. This sustained top‑line momentum supports multi‑period planning, funding of program rollouts, and predictable revenue tailwinds for 2–6 months and beyond.
Read all positive factors
Legacy Education Inc. (LGCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$158.42M
Dividend YieldN/A
Average Volume (3M)62.58K
Price to Earnings (P/E)15.7
Beta (1Y)1.05
Revenue Growth40.14%
EPS Growth16.61%
CountryUS
Employees195
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.15
Shares Outstanding12,613,086
10 Day Avg. Volume30,029
30 Day Avg. Volume62,575
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.15
Price to Sales (P/S)2.02
P/FCF Ratio18.70
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.59
Enterprise Value/Gross Profit5.98
Enterprise Value/Ebitda14.63
Forecast
1Y Price Target
$14.30Price Target Upside13.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.67
Revenue Forecast (FY)$78.23M
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 ...
How the Company Makes Money
null...
Legacy Education Inc. Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call emphasized robust top-line growth (Q2 revenue +40.7%), strong margin and profitability expansion (substantial Adjusted EBITDA and EPS gains), program expansion, accreditation successes, and a solid balance sheet (cash $21.1M, low debt). Operational innovations (hybrid delivery, AI integration) and a healthy M&A pipeline further support the growth outlook. Headwinds noted were manageable: higher AR reserves due to timing, increased G&A and bad debt, some cost pressures (non-cash comp, excursion fees), and a modest rise in the effective tax rate. Overall, positives substantially outweigh the few operational and timing-related challenges.Positive Updates
Strong Revenue Growth
Q2 revenue increased 40.7% year-over-year to $19.2M, marking the company's fourteenth consecutive quarter of double-digit revenue growth. Year-to-date revenue grew 39.6% to $38.6M.
Negative Updates
Increase in AR Reserve
Accounts receivable reserve increased to 11.5% of AR from 9.5% last quarter, reflecting a change in reserve methodology (quarterly analysis) and timing of write-offs — a potential sign of receivables timing/collection variability.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Q2 revenue increased 40.7% year-over-year to $19.2M, marking the company's fourteenth consecutive quarter of double-digit revenue growth. Year-to-date revenue grew 39.6% to $38.6M.
Read all positive updates
Company Guidance
Management guided to continued enrollment-driven growth and margin expansion as it scales four new allied‑health programs, advances hybrid delivery, and pursues at least one acquisition before year‑end; key metrics cited include Q2 revenue up 40.7% to $19.2M (14th consecutive quarter of double‑digit growth), Q2 adjusted EBITDA +61.6% to $3.3M (adjusted EBITDA margin 15.8% vs. 13.7 LY), EBITDA $2.7M (+54.8%), net income $2.0M (+46%) or $0.15 diluted EPS (vs. $0.10), ending population +6.8% to 3,234, Q2 new student starts +49.4% to 593 (YTD starts +37.2% to 1,710), six‑month revenue +39.6% to $38.6M with six‑month adjusted EBITDA $6.1M (+30.3%), cash $21.1M, working capital >$27M, debt $0.6M, operating cash flow $2.1M, AR reserve 11.5% (vs. 9.5% last quarter), bad debt ~5% of revenue, effective tax rate Q2 28.9% (YTD 27.7%; annual excl. stock benefits 29.6%), cohort sizes typically 20–30 (MRI launched with 33), Contra Costa enrollment >500, and Integrity campus granted a six‑year reaccreditation.Legacy Education Inc. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| 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
Positive
12.56
Price Trends
12.22
Positive
11.06
Positive
11.04
Positive
Market Momentum
-0.04
Positive
46.44
Neutral
18.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCY, the sentiment is Positive. The current price of 12.56 is below the 20-day moving average (MA) of 13.20, above the 50-day MA of 12.22, and above the 200-day MA of 11.04, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGCY.
Legacy Education Inc. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $158.42M | 15.68 | 19.46% | ― | 40.14% | 16.61% | |
68 Neutral | $47.81M | 1.57 | 51.85% | ― | -0.84% | -11.01% | |
67 Neutral | $82.83M | 2.45 | 11.71% | 3.93% | -8.09% | -15.28% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $64.36M | 17.38 | 36.13% | ― | 12.19% | 72.87% | |
44 Neutral | $28.22M | -1.05 | -37.31% | ― | -64.39% | -305.82% | |
42 Neutral | $37.57M | -0.69 | -264.56% | ― | -3.55% | 61.83% |
* Consumer Defensive Sector Average
LGCY
Legacy Education Inc.
12.56
5.91
88.87%
STG
Sunlands Online Education Group
3.57
-1.75
-32.83%
SKIL
Skillsoft
4.29
-10.62
-71.23%
IH
iHuman
1.62
-0.12
-6.90%
GNS
Genius Group Limited
0.34
0.08
32.31%
LFS
LEIFRAS Co., Ltd. Sponsored ADR
2.46
-1.74
-41.43%
Legacy Education Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Legacy Education Updates Investor Presentation and Disclosure Materials
Neutral
Mar 17, 2026
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 ha...
Business Operations and StrategyRegulatory Filings and Compliance
Legacy Education releases updated investor presentation materials
Neutral
Jan 7, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.