Legacy Education Delivers Strong Second Quarter Fiscal 2026 Results with 40% Revenue Growth and Impressive Enrollment Gains

Rhea-AI Summary

Legacy Education (NYSE: LGCY) reported strong fiscal Q2 2026 results: revenue $19.2M (+40.7%), new student starts 593 (+49.4%), adjusted EBITDA $3.0M (+61.6%), and net income $2.0M (+46%). Diluted EPS was $0.15 (+50%); ending student population was 3,234 (+16.8%).

Six‑month revenue was $38.6M (+39.6%) and adjusted EBITDA was $6.1M (+30.3%). Cash and cash equivalents were $21.1M with working capital of $27.8M. The company attributed growth to higher enrollments and expanded operations.

Positive

• Revenue +40.7% to $19.2M (Q2)
• New student starts +49.4% to 593 (Q2)
• Adjusted EBITDA +61.6% to $3.0M (Q2)
• Net income +46% to $2.0M (Q2)
• Cash balance $21.06M at Dec 31, 2025

Negative

• Educational services expense +37.6%
• General and administrative expense +40.4% (Q2)
• Six‑month G&A +46.9% to $12.2M
• Diluted weighted shares +16.5% (six months)

Market Reaction

+9.74% $11.02 1.5x vol

15m delay 2 alerts

+9.74% Since News

+1.3% Peak Tracked

$11.02 Last Price

$10.00 $11.90 Day Range

+$11M Valuation Impact

$126M Market Cap

1.5x Rel. Volume

Following this news, LGCY has gained 9.74%, reflecting a notable positive market reaction. Argus tracked a peak move of +1.3% during the session. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $11.02. This price movement has added approximately $11M to the company's valuation. Trading volume is above average at 1.5x the average, suggesting increased trading activity.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q2 2026 revenue: $19.2 million Q2 new student starts: 593 Q2 adjusted EBITDA: $3.0 million +5 more

8 metrics

Q2 2026 revenue $19.2 million Three months ended December 31, 2025; revenue grew 40.7% YoY

Q2 new student starts 593 Three months ended December 31, 2025; up 49.4% YoY

Q2 adjusted EBITDA $3.0 million Three months ended December 31, 2025; up 61.6% YoY

Q2 net income $2.0 million Three months ended December 31, 2025; up 46% YoY

Q2 diluted EPS $0.15 Three months ended December 31, 2025; up 50% YoY

Six-month revenue $38.6 million Six months ended December 31, 2025; revenue grew 39.6% YoY

Six-month net income $4.2 million Six months ended December 31, 2025; net income up 21.2% YoY

Cash and equivalents $21,057,325 Balance sheet at December 31, 2025

Market Reality Check

Price: $10.04 Vol: Volume 40,601 is close to...

normal vol

$10.04 Last Close

Volume Volume 40,601 is close to its 20-day average of 38,634 (1.05x), suggesting no major pre-news repositioning. normal

Technical Shares at $10.632 are trading above the 200-day MA of $10.20, but sit 23.46% below the 52-week high and 82.47% above the 52-week low.

Peers on Argus

LGCY showed a modest -1.41% move pre-results while education peers were mixed: C...

1 Up

LGCY showed a modest -1.41% move pre-results while education peers were mixed: CHGG -11.23%, SKIL -14.57%, FC -3.6%, IH +0.79%, and STG flat. Momentum scans only flagged GNS (+4.74%) elsewhere in the space, reinforcing this as a company-specific setup rather than a broad sector move.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	Leadership appointment	Positive	-1.0%	New SVP of Operations hired to support scalable multi-campus growth.
Jan 27	Earnings call notice	Neutral	-4.5%	Announcement of Q2 FY2026 earnings release and conference call schedule.
Nov 13	Q1 earnings results	Positive	-6.0%	Strong Q1 FY2026 revenue and enrollment growth with solid profitability.
Oct 30	Earnings call notice	Neutral	-1.2%	Scheduling of Q1 FY2026 results release and investor conference call.
Oct 30	Correction notice	Neutral	-1.2%	Correction press release clarifying timing for Q1 FY2026 earnings call.

Pattern Detected

Multiple prior positive or neutral announcements were followed by negative price reactions, suggesting a recent pattern of selling into news.

Recent Company History

Over the last few quarters, Legacy Education has consistently reported strong enrollment-driven growth. Q1 FY2026 delivered $19.4M revenue and solid profitability, yet the stock fell after that release. Scheduling notices for earnings calls and leadership updates, such as the appointment of a Senior Vice President of Operations, also coincided with modest declines. Today’s second quarter results continue the theme of double-digit revenue and profit growth, set against a backdrop where shares often traded lower following otherwise constructive updates.

Market Pulse Summary

The stock is up +9.7% following this news. A strong positive reaction aligns with the company’s repo...

Analysis

The stock is up +9.7% following this news. A strong positive reaction aligns with the company’s reported acceleration in revenue, enrollment, and profitability. Q2 revenue reached $19.2 million with net income of $2.0 million, while cash stood at $21.1 million. Historically, shares often traded lower after good news, so a sharp upside move would mark a shift from that pattern. Investors would still need to watch execution on continued enrollment growth and operating expenses that have been rising with program expansion.

Key Terms

adjusted ebitda, ebitda, non-gaap, gaap, +2 more

6 terms

adjusted ebitda financial

"Adjusted EBITDA of $3.0 million, up 61.6%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

ebitda financial

"RECONCILIATION OF NET INCOME, EBITDA, AND ADJUSTED EBITDA"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

non-gaap financial

"Important Information Regarding Non-GAAP Financial Information"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

gaap financial

"presented in accordance with GAAP, Legacy Education furnishes certain adjusted non-GAAP"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

stock-based compensation financial

"Stock-based compensation - We exclude stock-based compensation to be consistent"

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

depreciation and amortization financial

"Depreciation and amortization | 173,514 | 105,839 | 297,342 | 186,980"

Depreciation and amortization are accounting methods that spread the cost of long-term assets over the years they help generate revenue: depreciation applies to physical items like equipment, while amortization applies to intangible items like patents or software. Investors watch these charges because they reduce reported profit without using cash right away, so comparing them to cash flow helps reveal whether earnings come from real business performance or just accounting allocation — like spreading the price of a car or a license over many years.

AI-generated analysis. Not financial advice.

LANCASTER, Calif., Feb. 12, 2026 /PRNewswire/ -- Legacy Education Inc. ("Legacy Education" or the "Company") (NYSE American: LGCY), a leading provider of career education healthcare programs, today announced financial and operating results for the fiscal second quarter ended December 31, 2025.

Legacy Education Inc. will host a conference call to discuss its second quarter financial results on Thursday, February 12, 2026 at 4:30 p.m. Eastern time.

To access the live webcast of the conference call, please go to the investor relations section of the Legacy Education website at www.legacyed.com. Participants may also register via teleconference at: Q2 2026 Legacy Education Inc. Earnings Conference Call. Once registration is completed, participants will be provided with a calendar invitation and link to join the call. Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. An archived version of the webcast will be accessible for 90 days at www.legacyed.com. Toll-free dial-in number is (877) 407-9785 and international dial-in number is (201) 689-8843.

Second Quarter 2026 Financial Highlights

• Revenue grew 40.7% to $19.2 million
• New student starts increased 49.4% to 593
• Adjusted EBITDA of $3.0 million, up 61.6%
• Net income of $2.0 million, up 46%
• Diluted earnings per share of $0.15, up 50%
• Student population increased 16.8% to 3,234

Six months ended December 31, 2025 Financial Highlights

• Revenue grew 39.6% to $38.6 million
• New student starts increased 37.2% to 1,710
• Adjusted EBITDA of $6.1 million, up 30.3%
• Net income of $4.2 million, up 21.2%

"This was a standout quarter for Legacy Education, highlighted by strong revenue growth, significant increases in student starts, and expanding profitability," said LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc. "Demand for our healthcare programs continues to accelerate, and our team executed exceptionally well across enrollment, operations, and student support. We believe the momentum we are seeing positions us well for continued growth as we scale our platform and expand access to career-focused healthcare education."

QUARTER END FINANCIAL RESULTS

Quarter ended December 31, 2025 compared to December 31 , 2024

• Revenue was $19.2 million for the three months ended December 31, 2025 compared to $13.6 million for the three months ended December 31, 2024, an increase of $5.6 million, or 40.7% driven by a 49.4% increase in new student starts to 593 from 397 last year resulting in a 16.8% increase in ending student population.
• Educational services expense was $10.3 million for the three months ended December 31, 2025 compared to $7.5 million for the three months ended December 31, 2024, an increase of $2.8 million, or approximately 37.6%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments as well as increased rent, externship fees and non-cash compensation charges.
• General and administrative expense was $6.1 million for the three months ended December 31, 2025 compared to $4.3 million for the three months ended December 31, 2024, an increase of $1.8 million, or 40.4%. The increase was primarily attributable to an increase in marketing expense, professional fees and bad debt.

YEAR TO DATE FINANCIAL RESULTS

Six Months December 31, 2025 compared to December 31 , 2024

• Revenue was $38.6 million for the six months ended December 31, 2025 compared to $27.6 million for the six months ended December 31, 2024, an increase of $11.0 million, or 39.6% driven by a 37.2% increase in new student starts to 1,710 from 1,246 resulting in a 16.8% increase in ending student population.
• Educational services expense was $20.6 million for the six months ended December 31, 2025 compared to $14.7 million for the six months ended December 31, 2024, an increase of $5.9 million, or 40.4%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments as well as increased rent, externship fees and non-cash compensation charges.
• General and administrative expense was $12.2 million for the six months ended December 31, 2025 compared to $8.3 million for the six months ended December 31, 2024, an increase of $3.9 million, or 46.9%. The increase was primarily attributable to an increase in marketing expense, professional fees and bad debt expense. Of the total general and administrative expense, $3.0 million and $2.3 million relate to marketing expense for the six months ended December 31, 2025 and 2024, respectively.

		Three Months Ended		Six Months Ended
		December 31		December 31
		2025	2024	2025	2024
REVENUE
	Tuition and related income, net	$ 19,184,643	$ 13,635,134	$ 38,585,666	$ 27,640,225
OPERATING EXPENSES
	Educational services	10,292,079	7,479,226	20,613,676	14,683,800
	General and administrative	6,105,666	4,349,129	12,213,264	8,315,176
	General and administrative - related party	57,250	43,147	206,600	124,200
	Depreciation and amortization	173,514	105,839	297,342	186,980
Total costs and expenses		16,628,509	11,977,341	33,330,882	23,310,156
OPERATING INCOME		2,556,134	1,657,793	5,254,784	4,330,069
Loss on disposal of fixed assets Interest expense		(3,890) (8,183)	- (28,318)	(3,890) (52,143)	- (57,668)
Interest income		330,387	295,522	649,231	556,418
Total other income		318,314	267,204	593,198	498,750
INCOME BEFORE INCOME TAXES		2,874,448	1,924,997	5,847,982	4,828,819
Income tax expense		(831,747)	(525,951)	(1,618,321)	(1,339,020)
Net income (loss)		$ 2,042,701	$ 1,399,046	$ 4,229,661	$ 3,489,799
	Net income per share
	Basic net income per share	$ 0.16	$ 0.11	$ 0.34	$ 0.32
	Diluted net income per share	$ 0.15	$ 0.10	$ 0.30	$ 0.29
	Basic weighted average shares outstanding	12,574,114	12,254,453	12,536,527	10,787,640
	Diluted weighted average shares outstanding	13,858,320	13,417,823	13,923,682	11,951,010
	Selected Consolidated Balance Sheet Data:		December 31, 2025
			(unaudited)
	Cash and cash equivalents		$ 21,057,325
	Current assets		41,816,891
	Working capital		27,767,362
	Total assets		73,115,533
	Current liabilities		14,049,529
	Total stockholders' equity		46,073,908

Important Information Regarding Non-GAAP Financial Information

To supplement Legacy Education's consolidated financial statements presented in accordance with GAAP, Legacy Education furnishes certain adjusted non-GAAP supplemental information to our financial results regarding EBITDA and adjusted EBITDA. This reconciliation adjust the related GAAP financial measures to exclude operating income to adjust the impact of non-cash compensation in the periods presented. We use such adjusted non-GAAP financial measures to evaluate our period-over-period operating performance because our management team believes that by excluding the effects of such adjusted GAAP-related items that, in their opinion, do not reflect the ordinary earnings of our operations, it enhances investors' overall understanding of our current financial performance and our prospects for the future by (i) providing a more comparable measure of our continuing business, as well as greater understanding of the results from the primary operations of our business, (ii) affording a view of our operating results that may be more easily compared to our peer companies, and (iii) enabling investors to consider our operating results on both a GAAP and adjusted non-GAAP basis (including following the integration period of our prior and proposed acquisitions). However, this adjusted non-GAAP information is not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP") and should be considered in conjunction with our GAAP results as the items excluded from the adjusted non-GAAP information may have a material impact on Legacy's financial results. A reconciliation of adjusted non-GAAP adjustments to Legacy's GAAP financial results is included in the tables at the end of this press release.

In the noted fiscal periods, we adjusted net income for the items identified from our GAAP financial results to arrive at our adjusted non-GAAP financial measures:

Stock-based compensation - We exclude stock-based compensation to be consistent with the way management and, in our view, the overall financial community, evaluates our performance and the methods used by analysts to calculate consensus estimates. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include these charges in operating plans.

RECONCILIATION OF NET INCOME, EBITDA, AND ADJUSTED EBITDA

		Three Months Ended		Six Months Ended
		December 31		December 31
		2025	2024	2025	2024
	Net income	$ 2,042,701	$ 1,399,046	$ 4,229,661	$ 3,489,799
	Other income	(318,314)	(267,204)	(593,198)	(498,750)
	Provision for income taxes	831,747	525,951	1,618,321	1,339,020
	Depreciation and amortization	173,514	105,839	297,342	186,980
	EBITDA	2,729,648	1,763,632	5,552,126	4,517,049
	Non-cash compensation	295,958	109,157	565,204	176,188
	Adjusted EBITDA	$ 3,025,606	$ 1,872,789	$ 6,117,330	$ 4,693,237

ABOUT LEGACY EDUCATION

Legacy Education (NYSE: LGCY) is an award-winning, nationally accredited, for-profit post-secondary education company founded in 2009. Legacy Education provides career-focused education primarily in the healthcare field, with certificates and degrees for nursing, sonography, medical technicians, dental assisting, business administration, and several others. The Company offers a wide range of educational programs and services to help students achieve their professional goals. Legacy Education's focus is on providing high-quality education that is accessible and affordable. Legacy Education is committed to growing its education footprint via organic enrollment growth, addition of new programs, and accretive acquisitions. For more information, please visit www.legacyed.com or on LinkedIn @legacy-education-inc.

FORWARD-LOOKING STATEMENTS

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to the Company's operations. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances. Actual results may differ materially from those indicated by these forward-looking statements because of various important factors, including, without limitation, market conditions and the factors described in the section entitled "Risk Factors" in Legacy's most recent Annual Report on Form 10-K and Legacy's other filings made with the U.S. Securities and Exchange Commission. All such statements speak only as of the date of this press release. Consequently, forward-looking statements should be regarded solely as Legacy's current plans, estimates, and beliefs. Legacy cannot guarantee future results, events, levels of activity, performance, or achievements. Legacy does not undertake and specifically declines any obligation to update or revise any forward-looking statements to reflect new information, future events or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.

Contact Legacy Education Inc.
Investor Relations
ir@legacyed.com

Amato and Partners, LLC
Investors Relations Counsel
admin@amatoandpartners.com

 

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SOURCE Legacy Education Inc.

FAQ

What were Legacy Education (LGCY) Q2 2026 revenue and growth rates?

Legacy Education reported Q2 2026 revenue of $19.2 million, a 40.7% increase. According to the company, growth was driven by a 49.4% rise in new student starts and a 16.8% larger ending student population.

How did Legacy Education (LGCY) perform on profitability in Q2 2026?

Adjusted EBITDA for Q2 2026 was $3.03 million, up 61.6% year‑over‑year. According to the company, adjusted EBITDA excludes noncash stock compensation to show underlying operating performance versus prior periods.

How many new student starts did Legacy Education (LGCY) report for Q2 2026 and why it matters?

Legacy Education reported 593 new student starts in Q2 2026, up 49.4% year‑over‑year. According to the company, higher starts expanded the student base, driving tuition revenue and operational scale benefits.

What is Legacy Education’s (LGCY) cash and balance sheet position at Dec 31, 2025?

Cash and cash equivalents were $21.06 million with working capital of $27.77 million at Dec 31, 2025. According to the company, the balance sheet supports ongoing enrollment growth and operational investments.

Why did Legacy Education (LGCY) expenses increase in Q2 2026?

Educational services and G&A rose materially to support enrollment growth and marketing, rent, and staffing needs. According to the company, higher instructional costs and increased marketing drove the expense increases.