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olivLaw · US equity research

Legacy Education Inc. LGCY

Services-Educational Services · SIC 8200 · Vertical: Services-Educational Services (SIC 8200)

9.22USD−2.12% · 1 dayClose 04 Nov 2026

Legacy Education Inc. runs four career-focused post-secondary colleges in California, centred on healthcare and medical programs for adults who want to enter the job market quickly. In fiscal 2026 revenue grew 24.8% to 80.1 million USD, showing continued demand for these programs in a heavily regulated sector that depends on federal Title IV funding.

At the close of 04 Nov 2026, Legacy Education Inc. (LGCY) stock was 9.22 USD (−2.12% on the day), with market capitalisation 118.1 m USD, P/E 14.0 on diluted EPS of 0.66 USD over the last 12 months, beta 0.94, 52-week range 8.15–14.33 USD. Latest reported quarter (Q4 2026): revenue of 20.1 m USD (+12.0% YoY), net income of 1.9 m USD (+53.3% YoY), diluted EPS 0.14 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
118.1 m USD
shares as of 23 Sept 2026
P/E (TTM)
14.0
Diluted EPS TTM 0.66 · TTM to 30 Jun 2026
E/P (TTM)
7.16%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.94
Volatility (1y) 48%
52-week range
8.1514.33

Price history

Loading chart…

Technical reading

RSI (14)
32.4
weak (30–45)
Bollinger (20, 2)
9.42 – 10.77
below the lower band · %B -0.15 · band width 13.4%
SMA 50 / 200
10.18 / 11.41
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.18 / -0.08
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−5.7%−1.1%−4.6 pp—
3 months−23.0%−0.5%−22.6 pp—
6 months−18.3%+4.4%−22.7 pp—
Year to date−9.5%+12.3%−21.8 pp—
1 year+6.5%+13.5%−7.1 pp−30.6%
3 yearsunavailable+76.4%unavailable−16.5%
5 yearsunavailable+63.7%unavailable—
Max drawdown (1y)
−36.7%
04 Mar 2026 → 28 Sept 2026
Max drawdown (5y)
−39.4%
15 Sept 2025 → 06 Nov 2025
Compound annual growth (5y)
unavailable
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 30 Jun 2026

Revenue
20.1 m USD
+12.0% YoY
Net income
1.9 m USD
+53.3% YoY
Diluted EPS
0.14
+47.4% YoY
net / operating
9.4% / 13.0%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue14.0 m13.6 m18.6 m18.0 m19.4 m19.2 m21.4 m20.1 m
Operating income2.7 m1.7 m3.7 m2.0 m2.7 m2.6 m3.9 m2.6 m
Depreciation & amortisation81.1 k105.8 k130.1 k124.7 k123.8 k173.5 k155.8 k191.0 k
Interest expense29.4 k28.3 k26.3 k28.7 k44.0 k8.2 k8.1 k7.9 k
Pre-tax income2.9 m1.9 m3.9 m2.2 m3.0 m2.9 m4.2 m2.6 m
Income tax813.1 k526.0 k1.1 m1.0 m786.6 k831.7 k1.2 m706.0 k
Net income2.1 m1.4 m2.8 m1.2 m2.2 m2.0 m3.0 m1.9 m
Diluted EPS0.210.100.210.09 ≈0.160.150.220.14 ≈
Operating cash flow3.2 m659.0 k ≈918.7 k ≈3.0 m1.1 m1.1 m ≈764.4 k ≈1.2 m
Capex235.8 k192.3 k ≈322.1 k ≈94.2 k246.7 k542.9 k ≈248.6 k ≈307.7 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 38 percentile of its own 8-quarter history (min 7.3, median 16.8, max 20.1; quarters with earnings only).

Fiscal years

Fiscal year2023202420252026
Revenue35.5 m46.0 m64.2 m80.1 m
Revenue YoYunavailable+29.7%+39.5%+24.8%
Net income2.7 m5.1 m7.5 m9.1 m
Net income YoYunavailable+91.8%+47.3%+21.3%
Diluted EPS0.280.530.590.66
Diluted EPS YoYunavailable+89.3%+11.3%+11.9%
net %7.5%11.1%11.7%11.4%
Free cash flow1.6 m1.2 m6.9 m2.7 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 30 Jun 2026

Cash
22.7 m USD
Financial debt
80.4 k USD
Net debt
-22.7 m USD
Equity
52.8 m USD
Total assets
78.5 m USD
Debt / equity
0.00x
Current ratio
3.70x
ROE
19.5%
ROA
12.4%
FCF margin
3.3%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
46.0 m
2025
64.2 m
2026
80.1 m

SEC (XBRL)· 24 Sept 2026verified

Operating income
2024
6.2 m
2025
10.0 m
2026
11.8 m

SEC (XBRL)· 24 Sept 2026verified

Depreciation & amortisation
2024
265.0 k
2025
441.7 k
2026
644.1 k

SEC (XBRL)· 24 Sept 2026verified

EBITDA
2024
6.5 m ≈
2025
10.4 m ≈
2026
12.5 m ≈

SEC (XBRL)· 24 Sept 2026derived

Interest expense
2024
118.2 k
2025
112.7 k
2026
68.2 k

SEC (XBRL)· 24 Sept 2026verified

Pre-tax income
2024
7.0 m
2025
11.0 m
2026
12.7 m

SEC (XBRL)· 24 Sept 2026verified

Income tax
2024
1.9 m
2025
3.5 m
2026
3.5 m

SEC (XBRL)· 24 Sept 2026verified

Net income
2024
5.1 m
2025
7.5 m
2026
9.1 m

SEC (XBRL)· 24 Sept 2026verified

Diluted EPS
2024
0.53
2025
0.59
2026
0.66

SEC (XBRL)· 24 Sept 2026verified

Weighted average diluted shares
2024
9.7 m
2025
12.7 m
2026
13.9 m

SEC (XBRL)· 24 Sept 2026verified

Balance sheet · USD

Cash
2024
10.4 m
2025
20.3 m
2026
22.7 m

SEC (XBRL)· 24 Sept 2026verified

Receivables
2024
13.0 m
2025
15.1 m
2026
19.9 m

SEC (XBRL)· 24 Sept 2026verified

Current assets
2024
24.6 m
2025
37.1 m
2026
45.8 m

SEC (XBRL)· 24 Sept 2026verified

Property, plant & equipment, net
2024
990.0 k
2025
2.5 m
2026
3.2 m

SEC (XBRL)· 24 Sept 2026verified

Goodwill
2024
1.9 m
2025
6.9 m
2026
6.8 m

SEC (XBRL)· 24 Sept 2026verified

Intangibles (excl. goodwill)
2024
1.1 m
2025
3.9 m
2026
3.8 m

SEC (XBRL)· 24 Sept 2026verified

Total assets
2024
35.2 m
2025
69.2 m
2026
78.5 m

SEC (XBRL)· 24 Sept 2026verified

Accounts payable
2024
3.9 m
2025
4.9 m
2026
5.0 m

SEC (XBRL)· 24 Sept 2026verified

Short-term debt
2024
574.2 k
2025
875.4 k
2026
53.4 k

SEC (XBRL)· 24 Sept 2026verified

Long-term debt
2024
123.9 k
2025
481.3 k
2026
27.0 k

SEC (XBRL)· 24 Sept 2026verified

Current liabilities
2024
10.5 m
2025
13.8 m
2026
12.4 m

SEC (XBRL)· 24 Sept 2026verified

Total liabilities
2024
12.8 m
2025
28.2 m
2026
25.8 m

SEC (XBRL)· 24 Sept 2026verified

Equity
2024
22.4 m †
2025
41.0 m †
2026
52.8 m †

SEC (XBRL)· 24 Sept 2026verified

Cash flow · USD

Operating cash flow
2024
1.6 m
2025
7.8 m
2026
4.0 m

SEC (XBRL)· 24 Sept 2026verified

Capex
2024
423.7 k
2025
844.3 k
2026
1.3 m

SEC (XBRL)· 24 Sept 2026verified

Free cash flow
2024
1.2 m ≈
2025
6.9 m ≈
2026
2.7 m ≈

SEC (XBRL)· 24 Sept 2026derived

Investing cash flow
2024
-423.7 k
2025
-7.0 m
2026
-1.3 m

SEC (XBRL)· 24 Sept 2026verified

Financing cash flow
2024
-238.5 k
2025
9.1 m
2026
-266.3 k

SEC (XBRL)· 24 Sept 2026verified

Dividends paid
2024
—
2025
—
2026
—

SEC (XBRL)· 01 Oct 2024verified

Computed indicators

Growth

Revenue growth (YoY)
24.8%
computed by olivLawFY 2026
Revenue CAGR 3Y
31.2%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
18.3%
computed by olivLawFY 2026
Net income growth (YoY)
21.3%
computed by olivLawFY 2026
Net income CAGR 3Y
50.8%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
11.9%
computed by olivLawFY 2026
EPS CAGR 3Y
33.1%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
-61.3%
computed by olivLawFY 2026

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
15.6%
computed by olivLawFY 2026
EBIT margin
14.8%
computed by olivLawFY 2026
Net margin
11.4%
computed by olivLawFY 2026
FCF margin
3.3%
computed by olivLawFY 2026

Returns

ROE
19.5%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROA
12.4%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROIC
32.6%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROCE
17.8%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-22.7 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
-1.8x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
173.3x
computed by olivLawFY 2026

Liquidity

Current ratio
3.7x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
unavailable
input data missing
Cash ratio
1.8x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
4.0 m USD
computed by olivLawFY 2026
Capital expenditure
1.3 m USD
computed by olivLawFY 2026
Free cash flow
2.7 m USD
computed by olivLawFY 2026
FCF conversion
29.3%
computed by olivLawFY 2026
Cash conversion
32.3%
computed by olivLawFY 2026

Efficiency

Days sales outstanding
80 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
118.1 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
95.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
12.9x
computed by olivLawFY 2026
P/E (TTM)
14.0x
computed by olivLawFY 2026
Earnings yield
7.2%
computed by olivLawFY 2026
P/B
2.2x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
1.5x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
7.7x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBIT
8.1x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/Sales
1.2x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
P/FCF
44.1x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
FCF yield
2.3%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 71 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

9.22 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 118.1 m USD

Key indicators

Market capitalisation
118.1 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
14.0x
computed by olivLawFY 2026
P/B
2.2x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
7.7x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROE
19.5%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Net margin
11.4%
computed by olivLawFY 2026
Revenue growth (YoY)
24.8%
computed by olivLawFY 2026
Dividend yield
unavailable
input data missing

Coverage and freshness

29/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 23 Sept 2026
Source: SEC (XBRL)published 24 Sept 2026
verified 410derived 33

Score by group

  • Balance sheet89
  • Growth100
  • Valuation51
  • Quality60

Estimated value range

Low
5.28
USD per share
Mid
8.17
USD per share
High
10.48
USD per share
Price: 9.22 USD
The price is within the range
Potential to the central value: -11.3% (value / price − 1)
Margin of safety: -12.8% (1 − price / value)
Agreement between methods: medium · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 4.31 – 11.36 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)5.28 – 7.12 (Mid 6.00)
    WACC 9.3% · starting FCFF 2.7 m USD · terminal value share of EV 74%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDA9.41 – 10.48 (Mid 9.94)
    5 companies used · median multiple 8.4x · quartiles 7.9x – 9.0x
    APEI, LAUR, LFS, LINC, LRN
  • Peers: P/E4.31 – 11.36 (Mid 8.17)
    15 companies used · median multiple 12.4x · quartiles 6.5x – 17.2x
    APEI, CVSA, IH, LAUR, LFS, LINC, LOPE, LRN, PRDO, PXED, STG, STRA, TAL, VSA, YOUL
  • Dividend discount (DDM)unavailable · input data missing
Multiple comparisons use the SIC vertical: Services-Educational Services (SIC 8200)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 71/100

FactorValueScoreWeight used
ROIC · Quality32.6%89 (vs peers)12%
Net margin · Quality11.4%71 (vs peers)7%
FCF conversion · Quality29.3%0 (on a fixed band)7%
Revenue CAGR 3Y · Growth31.2%100 (on a fixed band)9%
EPS CAGR 3Y · Growth33.1%100 (on a fixed band)9%
Net debt / EBITDA · Balance sheet-1.8x78 (vs peers)12%
Interest coverage · Balance sheet173.3x100 (on a fixed band)7%
Current ratio · Balance sheet3.7x100 (on a fixed band)5%
P/E (TTM) · Valuation14.0x53 (vs peers)12%
EV/EBITDA · Valuation7.7x67 (vs peers)12%
FCF yield · Valuation2.3%28 (on a fixed band)9%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet89/100 · 3/3 factors with a value
  • Growth100/100 · 2/2 factors with a value
  • Quality60/100 · 3/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation51/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

LEGACY EDUCATION INC. (LGCY). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 80.1 m USD in 2026; YoY growth 24.8%; net margin 11.4%; ROE 19.5%; net debt/EBITDA -1.8x.

The estimated value range is 5.28–10.48 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 8.17 USD, the price of 9.22 USD leaves a potential of -11.3% (value / price − 1) and a margin of safety of -12.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 71/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 32.6%
  • Net margin: 11.4%
  • Revenue CAGR 3Y: 31.2%
  • EPS CAGR 3Y: 33.1%
  • Net debt / EBITDA: -1.8x
  • Interest coverage: 173.3x
  • Current ratio: 3.7x

What contradicts it

  • FCF conversion: 29.3%
  • FCF yield: 2.3%

Not assessed (insufficient data or a ratio without meaning): Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Services-Educational Services (SIC 8200) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
14.0x
vertical median 16.1x
below median (−13.2%)
EV/EBITDA
7.7x
vertical median 8.4x
below median (−8.8%)
P/S
1.5x
vertical median 2.1x
below median (−28.4%)
P/B
2.2x
vertical median 3.0x
below median (−24.8%)
ROE
19.5%
vertical median 8.2%
above median (+139.0%)
Net margin
11.4%
vertical median 3.0%
above median (+276.7%)
EBIT margin
14.8%
vertical median 1.5%
above median (+878.9%)
Revenue YoY
24.8%
vertical median 4.7%
above median (+428.1%)
Net debt/EBITDA
-1.8x
vertical median -0.3x
below median
Dividend yield
—
vertical median 2.0%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
EDUNew Oriental Education & Technology Group Inc.80.7 bn169.712.4%8.4%+15.5%+2% / −36%
LAURLaureate Education, Inc.4.8 bn12.934.1%20.3%+8.6%+14% / +168%
CVSACovista Inc.4.1 bn17.017.9%12.8%+9.3%+34% / +118%
COE51Talk Online Education Group4.1 bn——-17.6%+88.6%−73% / +43%
LOPEGrand Canyon Education, Inc.3.8 bn16.135.9%21.9%+7.1%−4% / +10%
LRNStride, Inc.3.3 bn10.920.9%13.2%+4.7%+25% / +31%
NAMIJinxin Technology Holding Company2.6 bn—-89.7%-22.8%+6.1%−89% / unavailable
DAOYoudao, Inc.2.5 bn159.2—1.6%+9.6%+105% / +397%
PRDOPerdoceo Education Corp1.9 bn10.917.6%20.6%+24.2%+7% / +72%
STRAStrategic Education, Inc.1.7 bn12.48.2%10.5%+4.0%−5% / −16%
YQ17 Education & Technology Group Inc.1.5 bn—-46.5%-145.6%−41.5%−41% / +14%
UTIUniversal Technical Institute, Inc1.2 bn36.310.5%3.9%+14.0%−3% / +91%
PXEDPhoenix Education Partners, Inc.794.4 m9.530.1%8.7%+1.0%−36% / unavailable
APEIAmerican Public Education, Inc.776.2 m17.515.6%6.8%+3.9%+22% / +439%
LINCLincoln Educational Services Corporation637.9 m28.011.9%4.0%+17.8%−2% / +117%
JZJianzhi Education Technology Group Company Limited522.3 m—-44.4%-22.4%−70.6%−98% / −100%
GOTUGaotu Techedu Inc.373.9 m—-20.8%-5.3%+40.9%−0% / −9%
IHiHuman Inc.245.2 m22.810.0%11.8%−8.7%−60% / −59%
FEDUFour Seasons Education (Cayman) Inc.210.5 m46.66.8%12.1%+7.6%−30% / +13%
LXEHLixiang Education Holding Co. Ltd.155.2 m—-83.1%-395.4%−1.9%−63% / −99%
LGCYLegacy Education Inc.118.1 m14.019.5%11.4%+24.8%+6% / unavailable
EEIQEpicQuest Education Group International Limited93.6 m—-34.8%-27.2%+9.6%−23% / −81%
VSAVisionSys AI Inc81.8 m0.3—164,963.8%−99.9%−97% / −100%
CHGGChegg, Inc71.1 m—-30.7%-17.2%−39.0%−34% / −94%
AMBOAmbow Education Holding Ltd.62.3 m—-2.9%-2.6%+0.8%−61% / −10%

1- and 3-year price returns: for LGCY from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
6.51
Total return -29% · Per year -29%
11.46
Total return 24% · Per year 24%
17.19
Total return 86% · Per year 86%
3 years
7.72
Total return -16% · Per year -6%
15.15
Total return 64% · Per year 18%
24.75
Total return 168% · Per year 39%
5 years
9.16
Total return -1% · Per year -0%
20.04
Total return 117% · Per year 17%
35.64
Total return 287% · Per year 31%
What moves the 3-year price the most
  • Exit P/E± 3.79
  • Net margin± 2.65
  • Annual revenue growth± 1.98
  • Annual dilution± 0.22

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Legacy Education Inc. runs four career-focused post-secondary colleges in California, centred on healthcare and medical programs for adults who want to enter the job market quickly. In fiscal 2026 revenue grew 24.8% to 80.1 million USD, showing continued demand for these programs in a heavily regulated sector that depends on federal Title IV funding.

SWOT

Strengths

  • Strong revenue and student growth in fiscal 2026, with a solid profitability profile.
  • Institutional accreditation maintained across all four institutions, with long reaccreditation terms.
  • Campuses located near hospitals and clinics, which facilitates externships and graduate job placement.

Weaknesses

  • Strong geographic concentration in California, exposing the company to one state's regulation.
  • High dependence on federal student financial aid programs.
  • Marketing spend and bad debt costs rise as enrollments expand.

Opportunities

  • Expansion into Texas and other states could open new student markets.
  • Launching new programs, including online and healthcare offerings, could broaden the offering.
  • Rising demand for medical workers could support long-term enrollment.

Threats

  • Changes in federal or state rules could affect institutional eligibility.
  • Growing competition from online providers and traditional colleges could pressure enrollments.
  • Heightened scrutiny by consumer protection authorities over marketing practices could raise operating risks.

Risks

  • Strict regulationhigh

    Failure to meet educational requirements could lead to fines, loss of funding access or loss of accreditation.

  • Dependence on Title IVhigh

    A change in federal funding could directly reduce revenue and students' ability to pay.

  • Geographic concentrationmedium

    Predominant operation in California exposes the company to policy changes in a single state.

  • Receivables and credit lossesmedium

    Rising receivables and credit losses could weigh on margins if student payments slow.

  • Execution of expansionmedium

    Delays in approval of the Houston campus or new programs could postpone planned growth.

Investment thesis

What would need to be true (bull case)

  • Rapid growth in revenue and students points to solid demand for the company's healthcare programs.
  • Accreditation maintained across all institutions reduces the risk of operational interruption.
  • If the Texas expansion and new program launches succeed, the company could diversify its revenue sources.

What would break the thesis

  • Heavy dependence on federal funding could become a vulnerability if policies change.
  • Rising marketing costs and credit losses could pressure margins.
  • Competition from online providers could limit the ability to attract new students.

What to watch

  • Opening of the Houston campus and regulatory approvalsQ1 2027
  • Launch of new programs at Contra Costa Medical Career CollegeQ2 2027
  • Development of receivables and credit lossesnext 10-K
  • Trend in new student starts and total enrollment2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The company provides career-focused post-secondary education to adults at different stages of life through four accredited institutions: High Desert Medical College, Central Coast College, Integrity College of Health and Contra Costa Medical Career College. Each campus is located near hospitals and clinics to support externships and job placement. As of June 30, 2026, 3,377 students were enrolled in total.

The growth strategy combines moderate growth in existing programs, launches of new programs including online offerings, and geographic expansion. The company signed a lease for a new campus in Houston, Texas, which it projects to open in November 2026, subject to regulatory and accreditation approvals. Goals also include acquiring institutions outside California.

The business model relies heavily on revenue from federal Title IV programs, and a significant share of students depend on financial aid. The company emphasises graduate success, retention and relationship-based marketing, where referrals represent about 20% of new enrollments.

Segments

Healthcare and medical education

Most programs, from vocational nursing and ultrasound technician to MRI, pharmacy technician and sterile processing, fall in healthcare. This forms the core of the offering and the main driver of demand.

Administrative and business programs

The company also offers medical administrative assisting, medical billing and coding, and accounting programs. These are a smaller part of the portfolio but diversify it beyond clinical training.

New programs and expansion

Programs being launched, such as those at Contra Costa Medical Career College and the EMT program at Integrity, show the direction of diversification. Launches depend on state approvals and accreditation.

Market context

The US post-secondary education sector is large and fragmented, and career colleges serve a small share of total undergraduates. Enrollment at proprietary colleges has grown, suggesting sustained demand for career-oriented education.

Long-term demand for healthcare workers is supported by an ageing population and a growing prevalence of chronic conditions, according to the Bureau of Labor Statistics. The market, however, depends on continued federal student funding, a factor that could significantly influence demand.

Trends

  • Healthcare employment demandtailwind

    Growth in healthcare jobs could support enrollments in the company's medical programs if this trend continues.

  • Growing pool of high school graduatestailwind

    A larger number of high school graduates could widen the pool of potential students for career programs.

  • Dependence on federal fundingheadwind

    Any reduction in Title IV funds could limit students' ability to pay and could directly affect revenue.

  • Rising online competitionmixed

    As online learning matures, competition from traditional colleges could intensify, which could affect enrollments.

Competitive position

The for-profit post-secondary sector is highly competitive and fragmented, and the company competes with public and private colleges as well as other accredited providers. Local rivals may have greater financial resources and brand recognition, and public institutions receive government subsidies.

Key factors in competitive position include program quality, graduate employment rates, perceived cost, ease of access and reputation. Alternative providers, including free massive open online courses, add pressure on pricing and on attracting students.

  • San Joaquin Valley College

    Local competing college in the San Joaquin Valley, named as a direct rival for students in the region.

  • UEI College

    Provider of medical and technical programs present in local markets where the company operates.

  • Pima Medical Institute

    Medical institute offering healthcare programs that compete for the same candidates.

  • American Career College

    Career college with medical programs that appears among the local competitors named in the filing.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Legacy Education Inc. · 24 Sept 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Legacy Education Inc. · 29 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.