LEGACY EDUCATION INC. ACHIEVES RECORD Q3 WITH 50% REVENUE GROWTH AND SURPASSES 3,000 ENROLLED STUDENTS

Rhea-AI Summary

Legacy Education (NYSE: LGCY) reported strong Q3 FY2025 results with significant growth across key metrics. Revenue increased 50.7% to $18.6 million compared to Q3 FY2024. The company achieved net income of $2.8 million with diluted EPS of $0.21. Student enrollment grew substantially, reaching 3,245 students, representing a 49.8% increase year-over-year. New student starts surged 70.7% to 1,227, including 468 students from the CCMCC acquisition. For the nine months ended March 31, 2025, revenue grew 39% to $46.2 million with net income of $6.3 million. The company maintained strong financial health with $17.3 million in cash and cash equivalents and total stockholders' equity of $39.3 million.

Positive

• Revenue growth of 50.7% YoY to $18.6 million in Q3
• 70.7% increase in new student starts to 1,227
• 49.8% growth in student enrollment to 3,245 students
• Net income increased 57% YoY to $2.8 million
• Strong cash position with $17.3 million in cash and cash equivalents
• Successful integration of CCMCC acquisition adding 468 students

Negative

• Educational services expenses increased 54.6% YoY, outpacing revenue growth
• General and administrative expenses rose 39.5% YoY
• Increased bad debt expense reported in Q3
• Higher marketing expenses required to drive growth

Insights

Financial Analyst

Legacy Education posted exceptional Q3 results with 50.7% revenue growth, 70.7% student growth, and solid profitability metrics.

Legacy Education's Q3 FY2025 results demonstrate remarkable growth momentum across all key financial metrics. Revenue surged 50.7% year-over-year to $18.6 million, driven by a 70.7% increase in new student starts and total enrollment reaching 3,245 students - nearly 50% higher than the same period last year.

The company's profitability metrics are equally impressive. Q3 net income reached $2.8 million (up from $1.8 million in Q3 2024), translating to diluted EPS of $0.21. EBITDA increased to $3.8 million with adjusted EBITDA at $3.9 million.

What's particularly encouraging is the operational leverage in Legacy's business model. While educational services expenses grew 54.6% to support higher enrollment, general and administrative expenses increased at a slower rate of 39.5%. This demonstrates effective cost management while scaling operations.

Balance sheet metrics also reflect financial strength, with $17.3 million in cash and cash equivalents and a healthy working capital position of $22 million. The acquisition of Contra Costa Medical Career College appears well-integrated, contributing 468 students to the overall enrollment figure.

Year-to-date performance follows similar patterns with nine-month revenue up 39% to $46.2 million and net income reaching $6.3 million (diluted EPS of $0.51). The company is effectively balancing growth investments with profitability, as evidenced by the 16% increase in marketing expenses supporting a 30.6% increase in student starts.

This growth trajectory demonstrates Legacy Education's successful positioning in the career-focused education sector, with strong execution across student acquisition, enrollment management, and financial operations.

LANCASTER, Calif., May 15, 2025 /PRNewswire/ -- Legacy Education Inc. (NYSE American: LGCY), a leading provider of career-focused education and training, today announced financial and operating results for the third fiscal quarter ended March 31, 2025.

Legacy Education Inc. will host a conference call to discuss third quarter financial results today, Thursday, May 15, 2025, at 4:30 p.m. Eastern time. Toll-free dial-in number is (877) 407-9785 and international dial-in number is (201) 689-8843.

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 Q3 FY 2025 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 at least 15 minutes before the start of the call. An archived version of the webcast will be accessible for 90 days at www.legacyed.com.

Third Quarter Fiscal 2025 Financial Highlights

• Revenue grew 50.7% to $18.6 million
• New student starts increased 70.7%
• EBITDA of $3.8 million and adjusted EBITDA of $3.9 million
• Net income of $2.8 million
• Diluted earnings per share of $0.21
• Student population of 3,245 (including Contra Costa Medical Career College ("CCMCC")), a 49.8% increase from the third fiscal quarter of 2024

Nine months ended March 31, 2025 Financial Highlights

• Revenue grew 39.0% to $46.2 million
• New student starts increased 30.6%
• EBITDA of $8.3 million and adjusted EBITDA of $8.6 million
• Net income of $6.3 million
• Diluted earnings per share of $0.51

"This is an excellent quarter for Legacy Education," said LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc. "Surpassing 3,000 enrolled students and achieving more than 50% revenue growth reflect the success of our strategic focus and the growing demand for career-focused education. Our team's commitment to quality, innovation, and student outcomes continues to drive momentum and position us for sustained long-term growth."

QUARTER END FINANCIAL RESULTS

Third Quarter ended March 31, 2025 compared to March 31, 2024

• Revenue was $18.6 million for the three months ended March 31, 2025 compared to $12.3 million for the three months ended March 31, 2024, an increase of $6.3 million, or 50.7%. The increase is primarily due to a 49.8% increase in ending enrollment from 2,166 to 3,245 supported by a 70.7% increase in starts from 719 to 1,227 in the quarter compared to prior year, which includes the impact of the acquisition of CCMCC adding 468 students.
• Educational services expense was $10.1 million for the three months ended March 31, 2025, compared to $6.5 million for the three months ended March 31, 2024, an increase of $3.6 million, or 54.6%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments as well as increased rent and externship fees and our investments in our RN program.
• General and administrative expense was $4.6 million for the three months ended March 31, 2025, compared to $3.3 million for the three months ended March 31, 2024, an increase of $1.3 million, or 39.5%. The increase was primarily attributable to an increase in marketing expense, professional fees and bad debt expense. Of the total general and administrative expense, $1.2 million and $0.9 million relate to marketing expense for the third quarter of fiscal 2025 and 2024, respectively.

YEAR TO DATE FINANCIAL RESULTS

Nine Months Ended March 31, 2025 compared to March 31, 2024

• Revenue was $46.2 million for the nine months ended March 31, 2025, compared to $33.2 million for the nine months ended March 31, 2024, an increase of $12.9 million, or 39%. The increase is primarily due to a 49.8% increase in ending enrollment from 2,166 to 3,245 students supported by a 30.6% increase in starts from 1,894 to 2,473 students in the nine months ended March 31, 2025, compared to the year nine months ended March 31, 2024, which includes the acquisition of CCMCC adding 468 students.
• Educational services expense was $24.8 million for the nine months ended March 31, 2025, compared to $17.8 million for the nine months ended March 31, 2024, an increase of $7.0 million, or 39.3%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments as well as increased rent and externship fees and our investments in our RN program.
• General and administrative expense was $12.9 million for the nine months ended March 31, 2025, compared to $9.7 million for the nine months ended March 31, 2024, an increase of $3.2 million, or 32.7%. The increase was primarily attributable to an increase in marketing expense, professional fees and bad debt expense. Of the total general and administrative expense, $3.5 million and $3.0 million relate to marketing expense for the first nine months ended March 31, 2025 and 2024, respectively.

		Three Months Ended		Nine Months Ended
		March 31		March 31
		2025	2024	2025	2024
REVENUE
	Tuition and related income, net	$     18,577,565	$              12,329,665	$      46,217,790	$      33,247,896
OPERATING EXPENSES
	Educational services	10,116,976	6,544,156	24,800,776	17,802,629
	General and administrative	4,618,026	3,310,191	12,933,202	9,745,797
	General and administrative - related party	46,500	42,000	170,700	126,000
	Depreciation and amortization	130,066	68,010	317,046	189,172
Total costs and expenses		14,911,568	9,964,357	38,221,724	27,863,598
OPERATING INCOME		3,665,997	2,365,308	7,996,066	5,384,298
Interest expense		(26,342)	(39,763)	(84,010)	(103,298)
Interest income		305,382	205,311	861,800	527,020
Total other income		279,040	165,548	777,790	423,722
INCOME BEFORE INCOME TAXES		3,945,037	2,530,856	8,773,856	5,808,020
Income tax expense		(1,127,572)	(736,905)	(2,466,592)	(1,654,512)
Net income (loss)		$       2,817,465	$                1,793,951	$        6,307,264	$        4,153,508
	Net income per share
	Basic net income per share	$                0.23	$                         0.19	$                 0.56	$                 0.45
	Diluted net income per share	$                0.21	$                         0.19	$                 0.51	$                 0.43
	Basic weighted average shares outstanding	12,377,420	9,291,149	11,309,831	9,291,149
	Diluted weighted average shares outstanding	13,528,144	9,691,149	12,460,555	9,691,149
	Selected Consolidated Balance Sheet Data:		March 31, 2025
			(unaudited)
	Cash and cash equivalents		$              17,326,998
	Current assets		35,274,661
	Working capital		21,951,513
	Total assets		67,099,260
	Current liabilities		13,323,148
	Total stockholders' equity		39,277,602

Important Information Regarding Non-GAAP Financial Information

To supplement Legacy Education's consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Legacy Education furnishes certain adjusted non-GAAP supplemental information to our financial results regarding EBITDA and adjusted EBITDA. This reconciliation adjusts 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, 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

Below is a reconciliation of adjusted EBITDA from net income, which we believe is the most directly comparable U.S. GAAP measure.

		Three Months Ended		Nine Months Ended
		March 31		March 31
		2025	2024	2025	2024
	Net income	$       2,817,465	$            1,793,951	$       6,307,264	$        4,153,508
	Interest expense (income), net	(279,040)	(165,548)	(777,790)	(423,722)
	Provision for income taxes	1,127,572	736,905	2,466,592	1,654,512
	Depreciation and amortization	130,066	68,010	317,046	189,172
	EBITDA	3,796,063	2,433,318	8,313,112	5,573,470
	Non cash compensation	107,364	0	283,553	0
	Adjusted EBITDA	$       3,903,427	$            2,433,318	$       8,596,665	$        5,573,470

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 administrative, 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 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 and business strategy and the company's expected financial results. 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 as a result 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

View original content to download multimedia:https://www.prnewswire.com/news-releases/legacy-education-inc-achieves-record-q3-with-50-revenue-growth-and-surpasses-3-000-enrolled-students-302456064.html

SOURCE Legacy Education Inc.

FAQ

What was Legacy Education's (LGCY) revenue growth in Q3 2025?

Legacy Education reported a 50.7% revenue growth in Q3 2025, reaching $18.6 million compared to $12.3 million in Q3 2024.

How many students were enrolled at Legacy Education (LGCY) in Q3 2025?

Legacy Education had 3,245 enrolled students in Q3 2025, representing a 49.8% increase from 2,166 students in Q3 2024.

What was LGCY's earnings per share (EPS) for Q3 2025?

Legacy Education reported diluted earnings per share of $0.21 for Q3 2025.

How much net income did Legacy Education (LGCY) generate in Q3 2025?

Legacy Education generated net income of $2.8 million in Q3 2025, up from $1.8 million in Q3 2024.

What is Legacy Education's (LGCY) cash position as of March 31, 2025?

Legacy Education had $17.3 million in cash and cash equivalents as of March 31, 2025.