Legacy Education (LGCY) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 with 50.7% revenue growth to $18.6 million and a 49.8% increase in enrollment to 3,245 students, driven by strong demand, strategic focus, and the acquisition of Contra Costa Medical Career College (CCMCC), which contributed 468 students.

• Net income for Q3 2025 rose to $2.8 million, with adjusted EBITDA of $3.9 million and diluted EPS of $0.21; for the nine months ended March 31, 2025, net income was $6.3 million and diluted EPS was $0.51.

• Completed IPO in September 2024, raising $10 million plus $1.5 million from an over-allotment option, and implemented a 1-for-2 reverse stock split.

• Maintained high educational outcomes, including an 83% nursing NCLEX pass rate and placement rates of 75% and 76%.

• Operates six nationally accredited campuses in California, focusing on allied healthcare, veterinary, and business programs.

Financial highlights

• Q3 2025 revenue reached $18.6 million, up 50.7% year-over-year; nine-month revenue was $46.2 million, up 39% year-over-year.

• Net income for the nine months ended March 31, 2025 was $6.3 million, up from $4.2 million in the prior-year period.

• Adjusted EBITDA for Q3 was $3.9 million, and for the last twelve months was $11.4 million, a 170% increase year-over-year.

• Cash and cash equivalents stood at $17.3 million as of March 31, 2025, with $22 million in working capital and minimal debt of $1 million.

• Student acquisition cost for Q3 2025 was $1,000, with annual revenue per student at $22,000.

Outlook and guidance

• Strategic priorities include driving enrollment growth, expanding program offerings, optimizing operational efficiency, and pursuing accretive acquisitions.

• Management expects continued strong enrollment trends and sufficient liquidity for ongoing operations and planned capital expenditures for at least the next 12 months.

• New programs in sterile processing, surgical technician, and EMT are being launched.

• Seasonality expected to impact Q4, with Q1 and Q3 typically being the strongest quarters.

• Management expects to leverage scale and efficiencies to sustain profitability.