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Legacy Education Inc.
(LGCY)
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Rating:54Neutral
Price Target:
$9.50
▼(-9.70% Downside)
Action:Reiterated
Date:09/29/26
Overall score reflects (1) mixed financial quality—good growth and manageable leverage but weak cash conversion and unusually inconsistent latest reporting, (2) weak technical momentum with price below key moving averages, partially offset by (3) a reasonable P/E valuation and (4) a constructive earnings-call outlook emphasizing growth initiatives and margin improvement.
Positive Factors
Strong revenue growth and operating leverage
The combination of strong revenue growth and faster adjusted EBITDA expansion indicates improving scale economics across the platform. Growth from existing brands, alongside disciplined spending, can support durable earnings progression as campuses, programs, and enrollment capacity continue to develop.
Negative Factors
Weak cash conversion and receivables exposure
Operating cash flow remains modest relative to reported earnings and is affected by working-capital growth as enrollment expands. Elevated receivables and recurring bad-debt expense could limit internally funded investment and make earnings less dependable if collections weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and operating leverage
The combination of strong revenue growth and faster adjusted EBITDA expansion indicates improving scale economics across the platform. Growth from existing brands, alongside disciplined spending, can support durable earnings progression as campuses, programs, and enrollment capacity continue to develop.
Read all positive factors
Legacy Education Inc. Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down the company’s sales across business lines—events, online products, services and partnerships—revealing which areas drive growth and profits. Highlights concentration risk if one segment dominates, and shows whether revenue is shifting toward higher‑margin or more recurring sources, which affects cash flow stability and long‑term valuation.
Breaks down the company’s sales across business lines—events, online products, services and partnerships—revealing which areas drive growth and profits. Highlights concentration risk if one segment dominates, and shows whether revenue is shifting toward higher‑margin or more recurring sources, which affects cash flow stability and long‑term valuation.
Data provided by:
The Fly
The FlyLegacy Education Inc. (LGCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$131.08M
Dividend Yield36.32%
Average Volume (3M)61.43K
Price to Earnings (P/E)14.0
Beta (1Y)0.88
Revenue Growth24.76%
EPS Growth17.67%
CountryUS
Employees354
SectorGeneral
Sector StrengthN/A
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.73
Shares Outstanding12,813,238
10 Day Avg. Volume98,008
30 Day Avg. Volume61,430
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)2.81
Price to Sales (P/S)1.85
P/FCF Ratio55.27
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda12.74
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.8
Revenue Forecast (FY)$91.58M
Legacy Education Inc. Business Overview & Revenue Model
Company Description
Legacy Education Inc. provides education services to students, high school graduates, and working parents in the United States. The company offers degree programs, including Ultrasound Technician, Cardiac Sonography, and Vocational Nursing Associa...
Legacy Education Inc. Earnings Call Summary
Earnings Call Date:Sep 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. Legacy reported record fiscal-year revenue, double-digit organic growth, broad-based earnings increases, fourth-quarter operating leverage, margin expansion, a larger student population, accreditation progress, multiple growth initiatives, and a strong cash position with minimal debt. The main challenges were student starts remaining below prior-year levels, dependence of planned launches on readiness and approvals, limited operating cash flow relative to earnings, and ongoing receivables and bad-debt monitoring.Positive Updates
Record Fiscal-Year Revenue and Organic Growth
Fiscal 2026 revenue increased 24.8% to $80.1 million from $64.2 million. Of the $15.9 million year-over-year increase, $9.9 million came from Legacy's pre-existing brands, which grew 16.5%, while $6 million reflected a full year of Contra Costa Medical Career College compared with six months in fiscal 2025. Approximately 62% of the annual revenue increase came from the pre-existing platform.
Negative Updates
Student Starts Remained Below Prior-Year Levels
Although the trend improved, student starts were down 12% year-over-year in the third quarter and remained down 4% year-over-year in the fourth quarter. Management attributed the trend to the timing of starts, Surgical Technology and Sterile Processing programs still ramping, and the implementation of new Vocational Nursing entrance requirements.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fiscal-Year Revenue and Organic Growth
Fiscal 2026 revenue increased 24.8% to $80.1 million from $64.2 million. Of the $15.9 million year-over-year increase, $9.9 million came from Legacy's pre-existing brands, which grew 16.5%, while $6 million reflected a full year of Contra Costa Medical Career College compared with six months in fiscal 2025. Approximately 62% of the annual revenue increase came from the pre-existing platform.
Read all positive updates
Company Guidance
Management said September could look a little bit like June, with improvement from there as Surgical Technology and Sterile Processing mature and new Vocational Nursing entrance requirements take effect. Surgical Technology is expected to begin at the third High Desert Medical College campus by the end of the first quarter of fiscal 2027, subject to final operational readiness. CCC currently projects to open the Houston branch in November 2026, subject to receipt of the required regulatory and accreditation approvals, and management expects between 400 and 600 students in the Houston location after a 1 to 2 year period. Brandon Pope said, “We expect margin to continue to increase and grow accretively,” with that probably mostly seen in the second half of the year.Legacy Education Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
42
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 80.06M | 64.17M | 46.00M | 35.46M | 30.70M |
| Gross Profit | 36.49M | 29.92M | 19.65M | 14.67M | 12.59M |
| EBITDA | 12.45M | 11.58M | 7.37M | 4.19M | 3.67M |
| Net Income | 80.06M | 7.53M | 5.11M | 2.67M | 2.34M |
Balance Sheet | |||||
| Total Assets | 78.55M | 69.21M | 35.17M | 27.25M | 20.61M |
| Cash, Cash Equivalents and Short-Term Investments | 22.73M | 20.32M | 10.38M | 9.29M | 8.77M |
| Total Debt | 15.39M | 17.68M | 4.84M | 5.56M | 953.24K |
| Total Liabilities | 25.78M | 28.16M | 12.75M | 11.82M | 7.01M |
| Stockholders Equity | 52.77M | 41.04M | 22.42M | 15.42M | 13.60M |
Cash Flow | |||||
| Free Cash Flow | 2.68M | 6.92M | 1.23M | 1.57M | 793.73K |
| Operating Cash Flow | 4.03M | 7.77M | 1.65M | 1.77M | 1.09M |
| Investing Cash Flow | -1.35M | -6.98M | -423.71K | -195.08K | -294.87K |
| Financing Cash Flow | -266.33K | 9.15M | -238.55K | -1.05M | 129.03K |
Legacy Education Inc. Technical Analysis
Neutral
10.52
Price Trends
10.52
Negative
11.00
Negative
11.43
Negative
Market Momentum
-0.17
Negative
51.68
Neutral
89.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGCY, the sentiment is Neutral. The current price of 10.52 is above the 20-day moving average (MA) of 9.99, below the 50-day MA of 10.52, and below the 200-day MA of 11.43, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 89.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LGCY.
Legacy Education Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $58.79M | 3.28 | 2.54% | 8.70% | -12.17% | -78.28% | |
73 Outperform | $57.81M | 19.72 | 26.49% | ― | 13.83% | 7.79% | |
71 Outperform | $34.23M | 0.74 | 32.87% | 11.35% | -5.26% | -3.04% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $131.08M | 14.01 | 19.04% | 36.32% | 24.76% | 17.67% | |
46 Neutral | $28.62M | -0.63 | -14.33% | 134.23% | 106.42% | 56.99% | |
42 Neutral | $55.60M | -0.33 | 339.96% | ― | -13.66% | -10.94% |
* General Sector Average
LGCY
Legacy Education Inc.
10.23
0.84
8.95%
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2.68
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6.11
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IH
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1.15
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-58.35%
GNS
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0.15
-0.71
-82.67%
LFS
LEIFRAS Co., Ltd. Sponsored ADR
2.21
-1.48
-40.11%
Legacy Education Inc. Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Legacy Education Announces New Investor Presentation Materials Initiative
Neutral
Aug 5, 2026
Legacy Education Inc. has prepared a new set of presentation materials that its management plans to use from time to time beginning on August 5, 2026, to discuss the company’s operations and performance with stakeholders. These materials, wh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.