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Legacy Education Inc. (LGCY)
:LGCY
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Legacy Education Inc.
(LGCY)
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Rating:78Outperform
Price Target:
$13.50
▲(33.93% Upside)
Legacy Education Inc. scores highly due to its strong financial performance and positive earnings call. The company's growth in revenue and enrollment, alongside strategic expansion efforts, are key strengths. Technical indicators support a bullish outlook, though the valuation suggests moderate pricing relative to peers. The absence of a dividend yield is a minor drawback.
Positive Factors
Revenue Growth
Consistent double-digit revenue growth over 11 quarters highlights strong market demand and effective business strategies, ensuring long-term sustainability.
Enrollment Growth
Significant enrollment growth indicates successful market penetration and demand for educational offerings, supporting future revenue streams.
Strong Financial Position
A robust cash position and working capital provide financial flexibility for strategic growth initiatives and mitigate risks from market fluctuations.
Negative Factors
Increased Expenses
Rising administrative costs could pressure margins and profitability, requiring careful management to maintain financial health.
Seasonality Impact
Seasonal revenue fluctuations could affect cash flow predictability, necessitating strategic planning to manage operational costs effectively.
Asset Management Fluctuations
Inconsistent asset management could impact financial stability, requiring improved oversight to ensure long-term asset utilization and growth.
Legacy Education Inc. (LGCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$112.68M
Dividend YieldN/A
Average Volume (3M)73.67K
Price to Earnings (P/E)14.6
Beta (1Y)1.19
Revenue Growth40.14%
EPS Growth16.61%
CountryUS
Employees195
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.16
Shares Outstanding12,561,684
10 Day Avg. Volume58,205
30 Day Avg. Volume73,669
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.13
Price to Sales (P/S)1.04
P/FCF Ratio38.94
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$14.40Price Target Upside42.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Legacy Education Inc. Business Overview & Revenue Model
Company DescriptionLegacy 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 MoneyLegacy Education Inc. generates revenue primarily through the sale of educational products and services, including online courses, live seminars, and coaching programs. The company typically employs a tiered pricing model, where customers can select from various packages that offer different levels of access to materials and personal instruction. Additionally, LGCY may earn revenue from partnerships with other educational institutions or financial service providers that offer complementary services. Upselling premium services and products, such as one-on-one coaching or advanced training sessions, also contributes significantly to its earnings.
Legacy Education Inc. Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong start to the fiscal year with significant revenue and enrollment growth. Strategic investments are paving the way for future expansion, although they have temporarily impacted margins and increased expenses. The balance sheet remains robust, supporting long-term growth and shareholder value. While there are some challenges with margins and accounts receivable, the company's operational and strategic initiatives are well-aligned for continued success.Q1-2026 Updates
Positive Updates
Revenue Growth
Revenue grew 38.5% to $19.4 million, driven by a 31.6% increase in new student starts to 1,117 and a 37.7% rise in ending student population to 3,495.
Enrollment and Program Expansion
Enrollment initiatives led to an all-time high in student population, with new program approvals in high-demand fields like MRI and cardiac sonography.
Strategic Investments
Investments in program offerings and capacity expansion are expected to yield future growth, with new programs set to launch in Q2 and beyond.
Strong Balance Sheet
The company maintains a strong balance sheet with $20.6 million in cash, low debt, and a high liquidity position.
Operational Excellence
Graduate placement rates remain above industry standards, with students securing jobs within 6 months of graduation.
Negative Updates
Margin Decline
Adjusted EBITDA margin decreased from 20.1% to 15.9%, reflecting strategic front-loaded investments and nonrecurring charges.
Increased G&A Expenses
General and administrative expenses increased to 31.5% of revenue from 28.3%, driven by professional services, marketing, and nonrecurring costs.
Accounts Receivable Challenges
Recorded a $178,000 reserve for accounts receivable, with delinquency trends stabilizing but still requiring enhanced collections processes.
Company Guidance
In the first quarter of fiscal year 2026, Legacy Education, Inc. reported a robust financial performance with revenue increasing by 38.5% to $19.4 million compared to the previous year, driven by a 31.6% rise in new student starts totaling 1,117 and a 37.7% increase in the ending student population to 3,495. The company achieved a 9.6% increase in adjusted EBITDA to $3.1 million, despite a decline in EBITDA margins to 15.9% due to strategic front-loaded investments. Net income rose by 4.6% to $2.2 million, with diluted EPS at $0.16, impacted by an increase in diluted shares from 9.8 million to 13.9 million following their IPO. The effective tax rate was reported at 26.5%, an improvement influenced by stock option exercises related to the IPO. The company's accounts receivable reserve was strengthened by $178,000, reflecting 0.9% of revenue, and educational services expenses rose to 53.2% of revenue. With a robust cash position of $20.6 million, Legacy Education is strategically positioned for sustained growth, supported by strong demand in the allied health sector and ongoing program expansions.Legacy Education Inc. Financial Statement Overview
Summary
Legacy Education Inc. exhibits strong financial health with robust revenue growth and profitability improvements. The balance sheet is stable with low leverage, and cash flows are positive, supporting operational and investment needs. While there are some fluctuations in revenue and asset management, the overall financial trajectory is positive, positioning the company well for future growth.Income Statement
Legacy Education Inc. has demonstrated strong revenue growth over the years, with a significant increase from $16.4M in 2019 to $46M in 2024. The gross profit margin improved substantially, indicating effective cost management. The net profit margin also shows a positive trend, reflecting increased profitability. However, there was a dip in revenue in 2021, which could indicate potential volatility in revenue streams.85
Very Positive
Balance Sheet
The company's balance sheet shows a healthy equity ratio, with stockholders' equity consistently growing, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. Return on equity has improved, reflecting efficient use of equity capital. However, fluctuations in total assets and liabilities suggest potential instability in asset management.78
Positive
Cash Flow
Operating cash flow has been positive and growing, indicating strong cash generation capabilities. Free cash flow has also shown consistent growth, supporting the company's ability to fund operations and investments. The operating cash flow to net income ratio is healthy, suggesting effective conversion of income into cash. However, the decline in free cash flow in 2024 compared to 2023 may require monitoring.80
Positive
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.97M | 46.00M | 35.46M | 30.70M | 57.81M | 16.43M |
| Gross Profit | 25.54M | 19.65M | 35.23M | 12.59M | 30.06M | 5.04M |
| EBITDA | 10.44M | 7.37M | 4.19M | 3.67M | 12.46M | -702.79K |
| Net Income | 19.18M | 5.11M | 2.67M | 2.34M | 9.61M | -687.64K |
Balance Sheet | ||||||
| Total Assets | 67.10M | 35.17M | 27.25M | 20.61M | 17.95M | 10.76M |
| Cash, Cash Equivalents and Short-Term Investments | 17.33M | 10.38M | 9.29M | 8.77M | 7.85M | 1.42M |
| Total Debt | 17.54M | 4.84M | 5.56M | 953.24K | 1.10M | 1.21M |
| Total Liabilities | 27.82M | 12.75M | 11.82M | 7.01M | 6.95M | 4.68M |
| Stockholders Equity | 39.28M | 22.42M | 15.42M | 13.60M | 11.00M | 6.08M |
Cash Flow | ||||||
| Free Cash Flow | 2.98M | 1.23M | 1.57M | 793.73K | 4.64M | -683.43K |
| Operating Cash Flow | 3.74M | 1.65M | 1.77M | 1.09M | 4.84M | -596.95K |
| Investing Cash Flow | -6.90M | -423.71K | -195.08K | -294.87K | -199.59K | -271.01K |
| Financing Cash Flow | 9.07M | -238.55K | -1.05M | 129.03K | 1.79M | 2.06M |
Legacy Education Inc. Technical Analysis
Positive
10.08
Price Trends
9.77
Positive
10.78
Negative
9.41
Positive
Market Momentum
0.07
Negative
57.59
Neutral
76.47
Neutral
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 10.08 is above the 20-day moving average (MA) of 9.05, above the 50-day MA of 9.77, and above the 200-day MA of 9.41, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 76.47 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $112.68M | 14.56 | 23.74% | ― | 40.14% | 16.61% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | $11.63M | ― | ― | ― | ― | ― | |
51 Neutral | $102.07K | ― | ― | ― | ― | ― | |
44 Neutral | $50.67K | ― | ― | ― | ― | ― | |
43 Neutral | $7.10M | -15.26 | -4.26% | ― | -14.35% | -744.00% |
* Consumer Defensive Sector Average
LGCY
Legacy Education Inc.
10.08
1.98
24.44%
VSA
TCTM Kids IT Education
0.12
-0.71
-85.04%
AMBO
Ambow Education Holding
4.07
2.10
106.60%
WAFU
Wah Fu Education Group
1.70
-0.02
-1.16%
CLEUF
China Liberal Education Holdings
0.02
-251.26
-99.99%
GSUN
Golden Sun Education Group Limited Class A
1.48
-1.44
-49.32%
Legacy Education Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Legacy Education Inc. Releases New Presentation Materials
Neutral
May 19, 2025
Legacy Education Inc. has prepared presentation materials to be used from May 19, 2025, onwards, detailing the company’s operations and performance. These materials are intended to provide summary information within the context of the company’s filings with the SEC and other public announcements, potentially impacting stakeholder understanding of the company’s future direction.
The most recent analyst rating on (LGCY) stock is a Buy with a $8.25 price target. To see the full list of analyst forecasts on Legacy Education Inc. stock, see the LGCY Stock Forecast page.
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.