Legacy Education Inc. will host a conference call to discuss its first quarter financial results on Thursday, November 13, 2025 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: Q1 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 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 An archived version of the webcast will be accessible for 90 days at www.legacyed.com.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.
First Quarter Fiscal 2026 Financial and Operational Highlights
Financial Highlights
Revenue grew $5.4 million, or 38.5% to $19.4 million
Adjusted EBITDA of $3.1 million, up 9.6%
Adjusted EBITDA margin of 15.9%, reflecting Q1 upfront expansion and infrastructure costs
Net income of $2.2 million, up 4.6%
Diluted earnings per share of $0.16. Based on a comparable prior-year share count, diluted EPS would have been approximately $0.22
Strong balance sheet with $20.6 million in cash and cash equivalents, $40.9 million in current assets, $25.9 million in working capital, and minimal debt of approximately $0.7 million net of current portion
Key Achievements and Strategic Developments
New student starts increased 31.6% to 1,117
Student population of 3,495, 37.7% higher than the first quarter of fiscal 2025
New program approvals at Central Coast College, MRI AAS & Cardiac Sonography AAS
New program approval at High Desert Medical College, Surgical Technology AAS
Sterile Processing Technician approval at Integrity College of Health and High Desert Medical College
"We are pleased to report a strong start to fiscal 2026, building on the transformative momentum from 2025, a year marked by record enrollment, robust financial performance, and strategic advancements that enhanced our position in the resilient and high-demand healthcare education sector," said LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc. "Our Q1 results demonstrate the strength of our execution and the effectiveness of our growth strategies. We achieved significant year-over-year improvements across key metrics, including revenue, enrollment, and new student starts, while maintaining a disciplined approach to investments that we anticipate will drive long-term value. This performance reaffirms that we are starting the fiscal year right on track, with enrollments, EBITDA, margins, and EPS aligning with expectations. We addressed key areas from the prior quarter, including increasing our accounts receivable reserve by $178,000 as planned and benefiting from an effective tax rate of 26.5% due to stock option exercises. Our lighter Q1 margins reflect strategic investments in four new programs and expansion costs, which we believe positions us for sequential improvements throughout the year. With a strong balance sheet, including $20.6 million in cash and cash equivalents and minimal debt, we believe we are well-equipped to sustain enrollment momentum, expand our allied health offerings, and pursue accretive opportunities in this vital sector."
QUARTER END FINANCIAL RESULTS
Quarter ended September 30, 2025 compared to September 30, 2024
Revenue was approximately $19.4 million for the three months ended September 30, 2025 compared to approximately $14.0 million for the three months ending September 30, 2024, an increase of approximately $5.4 million, or approximately 38.5%. The increase is primarily due to a 37.7% increase in student population to 3,495 students, driven by a 31.6% rise in new student starts within the period.
Educational services expense was approximately $10.3 million for the three months ending September 30, 2025 compared to approximately $7.2 million for the three months ended September 30, 2024, an increase of approximately $3.1 million, or approximately 43.3%. The increase was primarily attributable to the increased instructional and staffing required to support the increase in enrollments including investments in new programs, new hires, annual merit increases as well as increased rent, externship fees and non-cash compensation charge.
General and administrative expense was approximately $6.1 million for the three months ending September 30, 2025 compared to approximately $4.0 million for the three months ended September 30, 2024, an increase of approximately $2.1 million, or approximately 54%. The increase was primarily attributable to increases in marketing costs, professional fees relating to annual audits, legal, compliance, valuations related to acquisition as well as bad debt expense and D&O insurance costs. Of the total general and administrative expense $1.6 million and $1.2 million relate to marketing expenses for fiscal 2026 and 2025, respectively.
Operating cash flow was positive but down year-over-year, primarily due to the timing of Title IV disbursements, which can vary quarter-to-quarter based on enrollment cycles and regulatory processing unrelated to the government shutdown. This was supported by strong collections from enrollment growth, while capital expenditure was approximately $0.2 million for program expansions and technology.
Balance sheet highlights include $20.6 million in cash and cash equivalents (up slightly from $20.3 million at fiscal year-end), $40.9 million in current assets, $72.1 million in total assets, $43.7 million in stockholders' equity, and minimal debt of approximately $0.7 million net of current portion, providing liquidity for ongoing investments.
Three Months Ended
September 30,
2025
2024
Revenues:
