Legacy Education (LGCY) Q2 2026 earnings summary

Executive summary

• Revenue grew 40.7% year-over-year to $19.2 million in Q2 2026, driven by a 49.4% rise in new student starts and a 16.8% increase in enrollment, marking the fourteenth consecutive quarter of double-digit revenue growth.

• Net income rose 46% to $2.0 million in Q2, with diluted EPS up 50% to $0.15; adjusted EBITDA increased 61.6% to $3.0 million.

• For the six months ended December 31, 2025, revenue grew 39.6% to $38.6 million, net income increased 21.2% to $4.2 million, and adjusted EBITDA rose 30.3% to $6.1 million.

• The company operates four accredited institutions in California, with a total student population of 3,234 as of December 31, 2025.

• Strategic expansion included new MRI and Cardiac Sonography programs, hybrid delivery models, and successful campus integrations.

Financial highlights

• Q2 revenue increased to $19.2 million from $13.6 million, driven by a 49.4% rise in new student starts; six-month revenue rose to $38.6 million from $27.6 million.

• Adjusted EBITDA margin improved to 15.8% from 13.7% year-over-year.

• Net income advanced to $2.0 million from $1.4 million, with diluted EPS up to $0.15 from $0.10; six-month net income: $4.2 million (up from $3.5 million).

• Operating income for the six months was $5.3 million, up from $4.3 million in the prior year.

• Cash and cash equivalents at quarter end: $21.1 million; total assets: $73.1 million; total stockholders' equity: $46.1 million.

Outlook and guidance

• Continued focus on scaling enrollment, optimizing marketing, and expanding referral channels.

• Full deployment of four new allied health programs and pursuit of additional regulatory approvals, including registered nursing.

• Measured approach to growth through accretive acquisitions and organic expansion, with a goal to announce a new deal within the fiscal year.

• Management expects ongoing regulatory changes to impact operations but is actively monitoring and evaluating the effects of new Department of Education rules.

• The company believes current liquidity and cash flow from operations are sufficient for at least the next 12 months.