Legacy Education Inc. Reports Third Quarter Fiscal 2026 Growth Across Revenue, Enrollment, and Earnings

Rhea-AI Summary

Legacy Education (NYSE American:LGCY) reported Q3 fiscal 2026 growth in revenue, earnings, and enrollment. Revenue rose 15% to $21.4M, net income was $3.0M and adjusted EBITDA $4.4M. Diluted EPS reached $0.22.

For the nine months, revenue was $60.0M (up 29.7%), net income $7.3M and adjusted EBITDA $10.5M. Student population grew 9.4% to 3,550. The company expanded facilities, launched new healthcare programs, and ended March 31, 2026 with $21.7M cash and $49.5M equity.

Positive

• Q3 2026 revenue $21.4M, up 15% year-over-year
• Nine-month 2026 revenue $60.0M, up 29.7% year-over-year
• Q3 net income $3.0M, up 7.5% year-over-year
• Q3 adjusted EBITDA $4.4M, up 12.6%; nine-month adjusted EBITDA $10.5M, up 22.3%
• Student population up 9.4% to 3,550; Q3 new starts 1,078
• Strong liquidity with cash $21.7M and working capital $30.9M at March 31, 2026

Negative

• Q3 general and administrative expense $6.2M, up 33.5% year-over-year
• Nine-month general and administrative expense $18.4M, up 42.1% year-over-year
• Higher marketing, bad debt and professional fees increased operating costs

News Market Reaction – LGCY

-4.64%

8 alerts

-4.64% Session close to close

-5.3% Trough in 16 hr 37 min

$157.66M Market Cap

0.3x Rel. Volume

In the May 15 session, LGCY declined 4.64%, reflecting a moderate negative market reaction. Argus tracked a trough of -5.3% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights continued top- and bottom-line expansion, with Q3 revenue of $21.4M, ne...

Analysis

This announcement highlights continued top- and bottom-line expansion, with Q3 revenue of $21.4M, net income of $3.0M, and adjusted EBITDA of $4.4M, alongside a student population of 3,550. Compared with earlier FY2026 results, Legacy Education has sustained enrollment-driven growth while investing more heavily in marketing and administrative functions. Investors may track future quarters for trends in expense leverage, enrollment growth, and balance sheet strength, including cash of $21.7M and equity of $49.5M.

Key Figures

Q3 2026 revenue: $21.4M Q3 2026 net income: $3.0M Q3 2026 adjusted EBITDA: $4.4M +5 more

8 metrics

Q3 2026 revenue $21.4M Three months ended March 31, 2026; up 15.0% YoY

Q3 2026 net income $3.0M Three months ended March 31, 2026; up 7.5% YoY

Q3 2026 adjusted EBITDA $4.4M Three months ended March 31, 2026; up 12.6% YoY

Q3 2026 diluted EPS $0.22 Three months ended March 31, 2026; up 4.8% YoY

9M 2026 revenue $60.0M Nine months ended March 31, 2026; up 29.7% YoY

9M 2026 net income $7.3M Nine months ended March 31, 2026; up 15.1% YoY

Student population 3,550 As of March 31, 2026; up 9.4% from 3,245

New student starts 1,078 Q3 2026 new starts; driver of 9.4% enrollment increase

Historical Context

5 past events · Latest: May 05 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 05	Earnings call scheduling	Neutral	+0.0%	Announced timing and access details for upcoming Q3 earnings call.
Apr 30	Reaccreditation news	Positive	-3.8%	Five-year ACCET reaccreditation for Contra Costa Medical Career College.
Mar 17	Conference participation	Positive	+1.1%	Participation in 38th Annual ROTH Conference to meet institutional investors.
Feb 17	Reaccreditation grant	Positive	+5.4%	Six-year ABHES reaccreditation for Integrity College of Health.
Feb 12	Q2 earnings beat	Positive	+15.0%	Strong Q2 FY2026 revenue, enrollment, and profitability growth metrics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent fundamentally positive updates, especially earnings and accreditation wins, have more often coincided with positive price reactions, though there has been at least one divergence where good accreditation news met a negative move.

Recent Company History

Over the past six months, Legacy Education has steadily reported operational and financial progress. Accreditation milestones for Integrity College of Health and Contra Costa Medical Career College in February and April 2026 reinforced academic quality. Participation in the 38th Annual ROTH Conference in March 2026 supported investor outreach. The strong Q2 FY2026 results on Feb 12, 2026 drove a notable positive reaction. Today’s Q3 release continues this sequence of growth-focused updates building on prior enrollment and earnings momentum.

Key Terms

ebitda, adjusted ebitda, non-gaap, stock-based compensation

4 terms

ebitda financial

"Legacy Education furnishes certain adjusted non-GAAP supplemental information to its financial results regarding 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.

View in glossary

adjusted ebitda financial

"Legacy Education furnishes certain adjusted non-GAAP supplemental information to its financial results regarding EBITDA and adjusted EBITDA."

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.

non-gaap financial

"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..."

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.

View in glossary

stock-based compensation financial

"Stock-based compensation - We exclude stock-based compensation to be consistent with the way management..."

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.

View in glossary

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LANCASTER, Calif., May 14, 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 third quarter ended March 31, 2026.

Legacy Education Inc. will host a conference call to discuss its third quarter financial results on Thursday, May 14, 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: Q3 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.

Third Quarter Fiscal 2026 Financial Highlights

• Revenue grew 15.0% to $21.4 million
• New student starts were 1,078
• Net income of $3.0 million, up 7.5%
• Adjusted EBITDA of $4.4 million, up 12.6%
• Diluted earnings per share of $0.22, up 4.8%

Nine months ended March 31, 2026 Financial Highlights

• Revenue grew 29.7% to $60.0 million
• New student starts increased 12.7%, to 2,788
• Net income of $7.3 million, up 15.1%
• Adjusted EBITDA of $10.5 million, up 22.3%
• Diluted earnings per share of $0.52, up 2.0%

Key Achievements and Strategic Developments

• Student population as of March 31, 2026, increased 9.4% to 3,550 from 3,245
• Facility expansion at High Desert Medical College Lancaster and Temecula campuses
• Branch Letter of Intent executed
• New programs launched at High Desert Medical College – Surgical Technology AAS and Sterile Processing Technician
• New program launched at Integrity College of Health – Sterile Processing Technician

"We continue to see strong interest in healthcare career training across our markets, supported by student demand and steady enrollment trends," said LeeAnn Rohmann, Chief Executive Officer of Legacy Education. "During the quarter, we remained focused on disciplined execution, operational improvements, and expanding access to career-focused programs that align with workforce needs. We believe our strong balance sheet and growing student population continues building scale across the organization."

QUARTER END FINANCIAL RESULTS
Third Quarter ended March 31, 2026 compared to March 31, 2025

• Revenue for the three months ended March 31, 2026 increased by $2.8 million, or 15%, to $21.4 million, compared to $18.6 million for the same period in 2025 driven by new student starts of 1,078 resulting in a 9.4% increase in student enrollment to 3,550.
• Educational services expense for the three months ended March 31, 2026 increased by  $0.9 million, or 9%, to $11.0 million, compared to $10.1 million in the prior year period. The increase was primarily driven by increased instructional and staffing costs associated with increased student enrollment, including externship fees and non-cash compensation charge. As a percentage of revenue, educational expenses declined from 54.4% to 51.7% primarily due to operating efficiencies in employee compensation and facility costs offset by increases in externship fees and non-cash compensation.
• General and administrative expense was $6.2 million for the three months ended March 31, 2026 compared to $4.6 million for the three months ended March 31, 2025, an increase of $1.5 million, or  33.5%. The increase was primarily attributable to an increase in marketing expense, bad debt and professional fees. Of the total general and administrative expense,  $1.5 million and $1.2 million related to advertising expense for the three months ended March 31, 2026 and 2025, respectively.

YEAR TO DATE FINANCIAL RESULTS
Nine Months Ended March 31, 2026 compared to March 31, 2025

• Revenue for the nine months ended March 31, 2026 increased by  $13.7 million, or 29.7%, to $60.0 million, compared to $46.2 million for the same period in 2025 driven by a 12.7% increase in new student starts to 2,788 from 2,473 last year resulting in a 9.4% increase in student population to 3,550.
• Educational services expense for the nine months ended March 31, 2026, increased by  $6.9 million, or 28%, to $31.7 million compared to $24.8 million for the same period in 2025. The increase was primarily driven by increased instructional and staffing costs required to support increased student enrollment, as well as rent, externship fee and non-cash compensation charge. As a percentage of revenue, educational expenses declined from 53.6% to 52.8% primarily due to operating efficiencies in employee compensation and facility costs offset by increases in externship fees and non-cash compensation.
• General and administrative expense for the nine months ended March 31, 2026, was  $18.4 million compared to  $12.9 million for the nine months ended March 31, 2025, an increase of  $5.4 million, or  42.1%. The increase was primarily attributable to increased marketing expense, bad debt expense and professional fees. Of the total general and administrative expense,  $4.8 million and $3.5 million related to advertising expense for the nine months ended March 31, 2026 and 2025, respectively.

		Three Months Ended		Nine Months Ended
		March 31,		March 31,
		2026	2025	2026	2025
REVENUE
	Tuition and related income, net	$   21,368,706	$              18,577,565	$      59,954,372	$      46,217,790
OPERATING EXPENSES
	Educational services	11,044,240	10,116,976	31,657,916	24,800,776
	General and administrative	6,164,610	4,618,026	18,377,874	12,933,202
	General and administrative - related party	61,250	46,500	267,850	170,700
	Depreciation and amortization	155,753	130,066	453,095	317,046
Total costs and expenses		17,425,853	14,911,568	50,756,735	38,221,724
OPERATING INCOME		3,942,853	3,665,997	9,197,637	7,996,066
Loss on disposal of fixed assets		(8,005)	-	(11,895)	-
Interest expense		(8,067)	(26,342)	(60,210)	(84,010)
Interest income		320,715	305,382	969,946	861,800
Total other income		304,643	279,040	897,841	777,790
INCOME BEFORE INCOME TAXES		4,247,496	3,945,037	10,095,478	8,773,856
Income tax expense		(1,218,200)	(1,127,572)	(2,836,521)	(2,466,592)
Net income		$     3,029,296	$             2,817,465	$        7,258,957	$        6,307,264
	Net income per share
	Basic net income per share	$                0.24	$             0.23	$                 0.58	$                 0.56
	Diluted net income per share	$                0.22	$             0.21	$                 0.52	$                 0.51
	Basic weighted average shares outstanding	12,617,328	12,377,420	12,563,067	11,309,831
	Diluted weighted average shares outstanding	14,064,470	13,528,144	13,949,964	12,460,555
	Selected Consolidated Balance Sheet Data:		March 31, 2026
			(unaudited)
	Cash and cash equivalents		$              21,681,064
	Current assets		43,968,809
	Working capital		30,879,885
	Total assets		75,459,848
	Current liabilities		13,088,924
	Total stockholders' equity		49,517,960

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 its 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

		Three Months Ended		Nine Months Ended
		March 31,		March 31,
		2026	2025	2026	2025
	Net income	$       3,029,296	$            2,817,465	$        7,258,957	$        6,307,264
	Other income	(304,643)	(279,040)	(897,841)	(777,790)
	Provision for income taxes	1,218,200	1,127,572	2,836,521	2,466,592
	Depreciation and amortization	155,753	130,066	453,095	317,046
	EBITDA	4,098,606	3,796,063	9,650,732	8,313,112
	Non-cash compensation	296,001	107,364	861,205	283,553
	Adjusted EBITDA	$             4,394,607	$            3,903,427	$        10,511,937	$        8,596,665

ABOUT LEGACY EDUCATION

Legacy Education (NYSE American: 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

How did Legacy Education (LGCY) perform in Q3 fiscal 2026?

Legacy Education reported higher revenue and earnings in Q3 fiscal 2026. According to Legacy Education, revenue rose 15% to $21.4 million, net income was $3.0 million, adjusted EBITDA reached $4.4 million, and diluted earnings per share were $0.22 for the quarter.

What were Legacy Education's revenue and enrollment trends for the nine months ended March 31, 2026 (LGCY)?

Legacy Education showed strong year-to-date growth in 2026. According to Legacy Education, nine-month revenue increased 29.7% to $60.0 million, new student starts rose 12.7% to 2,788, and total student population grew 9.4% to 3,550 as of March 31, 2026.

What is Legacy Education's adjusted EBITDA for Q3 2026 and year-to-date 2026 (NYSE American:LGCY)?

Legacy Education grew adjusted EBITDA in both Q3 and year-to-date 2026. According to Legacy Education, Q3 2026 adjusted EBITDA was $4.4 million, up 12.6% year-over-year, while nine-month adjusted EBITDA reached $10.5 million, representing a 22.3% increase versus the prior-year period.

How did operating expenses change for Legacy Education in Q3 2026 (LGCY)?

Legacy Education's operating expenses increased in Q3 2026 alongside higher enrollment. According to Legacy Education, educational services expense rose 9% to $11.0 million, while general and administrative expense grew 33.5% to $6.2 million, driven mainly by higher marketing costs, bad debt, and professional fees.

What does Legacy Education's March 31, 2026 balance sheet indicate about its financial position (LGCY)?

Legacy Education reported a solid balance sheet as of March 31, 2026. According to Legacy Education, cash and cash equivalents were $21.7 million, working capital totaled $30.9 million, total assets were $75.5 million, and total stockholders' equity stood at $49.5 million.

What strategic initiatives did Legacy Education pursue in Q3 fiscal 2026 (NYSE American:LGCY)?

Legacy Education advanced several growth initiatives during Q3 fiscal 2026. According to Legacy Education, it expanded facilities at High Desert Medical College campuses, executed a branch letter of intent, and launched new programs including Surgical Technology AAS and Sterile Processing Technician at its schools.