Legacy Education (LGCY) investor relations material

Executive summary

• Achieved a 38.5% year-over-year revenue increase to $19.4 million, driven by a 31.6% rise in new student starts and a 37.7% increase in total student population to 3,495, with record enrollment and robust financial performance.

• Net income rose 4.6% to $2.2 million, with diluted EPS at $0.16; adjusted EBITDA increased 9.6% to $3.1 million, reflecting upfront expansion and infrastructure costs.

• The acquisition of Contra Costa Medical Career College in December 2024 contributed to growth and expanded program offerings.

• Strategic investments in four new healthcare programs and expansion initiatives contributed to lighter Q1 margins but are expected to drive sequential improvements.

• The company operates accredited career-focused institutions in California, with a focus on allied health education.

Financial highlights

• Revenue for Q1 FY2026 was $19.4 million, up from $14.0 million in Q1 FY2025, driven by enrollment growth.

• Adjusted EBITDA reached $3.1 million (15.9% margin), up from $2.8 million; net income was $2.2 million, up from $2.1 million.

• Diluted EPS was $0.16, impacted by increased share count post-IPO; normalized EPS would have been $0.22 vs. $0.21 last year.

• Cash and cash equivalents stood at $20.6 million, with $40.9 million in current assets and minimal debt of $0.7 million.

• Operating cash flow was positive but lower year-over-year due to timing of federal Title IV disbursements.

Outlook and guidance

• Management anticipates sequential margin improvements as investments in new programs mature and revenue scales.

• Strong balance sheet and liquidity position the company to sustain enrollment momentum and pursue further expansion in allied health offerings.

• Acquisition pipeline remains strong, with multi-campus deals targeted inside and outside California; next acquisition expected within the fiscal year.

• Management expects current cash flow, IPO proceeds, and operations to fund ongoing needs and planned capital expenditures for at least the next 12 months.

• The company is monitoring regulatory changes, including new federal student aid rules and gainful employment regulations, which may impact future operations.