Legacy Education (LGCY) Q2 2025 earnings summary

Executive summary

• Achieved 29.2% year-over-year revenue growth in Q2 FY2025 to $13.6 million, driven by record enrollment and the acquisition of Contra Costa Medical Career College, with student population increasing 44.8% year-over-year to 2,768 and surpassing 3,000 by January 31, 2025.

• Operates six accredited campuses in California, focusing on allied healthcare, veterinary, and business programs, and maintains high student outcomes: 79% graduation rate, 78% placement rate, and 79% NCLEX pass rate.

• Achieved 45% year-over-year enrollment growth and 33% revenue growth, with a 25% four-year enrollment CAGR.

• Pursued growth through organic enrollment, new program development, and accretive acquisitions, including the recent Contra Costa Medical Career College acquisition.

• Successfully navigated operational disruptions from Los Angeles fires, maintaining continuity and supporting affected community members.

Financial highlights

• Q2 2025 revenue grew 29.2% year-over-year to $13.6 million, with net income at $1.4 million (up 8.5%), and adjusted EBITDA at $1.9 million (up 10.1%).

• For the six months ended December 31, 2024: revenue $27.6 million (up 32.1%), net income $3.5 million (up 47.9%), EBITDA $4.5 million (up 43.8%), adjusted EBITDA $4.7 million (up 49.5%).

• LTM revenue reached $52.7 million, up 33% year-over-year, with LTM adjusted EBITDA of $9.9 million (up 87%).

• Ended Q2 FY25 with $16.9 million in cash and $18.9 million in working capital.

• LTM gross student acquisition cost per student was $2,000, generating over 10x LTM annual revenue per student ($23,000).

Outlook and guidance

• Focus remains on enrollment growth, marketing expansion, and launching new healthcare and technical programs aligned with industry demand.

• Management expects current cash flow from operations and IPO proceeds to provide adequate funding for ongoing operations and planned capital expenditures for at least the next 12 months.

• Operational efficiency, selective acquisitions, and leveraging acquisitions for scale and synergy are key strategies for continued growth.

• Confident in regulatory positioning due to focus on high-need healthcare careers.

• Full financial impact of the Contra Costa acquisition expected in future quarters.