LANCASTER, Calif., Feb. 5, 2026 /PRNewswire/ -- Legacy Education Inc. ("Legacy Education" or the "Company") (NYSE American: LGCY), a leading provider of career education healthcare programs, today announced the appointment of Joe Bartolome as Senior Vice President of Operations. Joe will report to Chief Executive Officer LeeAnn Rohmann and will serve as a member of the company's Senior Leadership Team. Joe brings more than 24 years of senior leadership experience in career and healthcare education, with a ...

LANCASTER, Calif., Jan. 27, 2026 /PRNewswire/ -- Legacy Education Inc. ("Legacy Education" or the "Company") (NYSE American: LGCY), a leading provider of career education healthcare programs, announced today that it will host a conference call to discuss its second quarter financial results on Thursday, February 12, 2026 at 4:30 p.m. Eastern time. A news release outlining Legacy Education's results is anticipated to be issued by 4:05 p.m. Eastern time on that day. To access the live webcast of the conferen ...

Core Insights - The U.S. education market is transitioning from traditional methods to digital and career-focused programs, driven by student demand and government initiatives [2][11] - The Zacks Schools industry shows resilience, with median share prices above the S&P 500 composite, indicating promising mid to long-term prospects despite current stock performance [3] - Five education stocks are identified with expected earnings growth of over 10% year-over-year by 2026, including Chegg, Adtalem Global Education, Grand Canyon Education, Nerdy, and Legacy Education [4] Market Trends - The shift towards hybrid and AI-based learning models is gaining traction, with education companies adapting to meet the demand for flexible learning formats [5][8] - Companies like Chegg and Nerdy are benefiting from the rise of online and hybrid learning, leveraging AI-enhanced tools and subscription-based digital offerings [6][8] - The focus on career-oriented programs is increasing, particularly in high-demand fields like healthcare, aligning with workforce needs and supporting enrollment growth [9][10] Government Support - Federal and state initiatives are promoting EdTech adoption and workforce development, enhancing the prospects for education companies [11] - New interagency agreements aim to streamline program delivery and reduce administrative burdens, while a national policy established in April 2025 focuses on advancing AI education [11][12] Stock Performance - Chegg (CHGG) has a Zacks Rank of 1, with a projected earnings growth of 228.6% for 2026 despite a year-to-date drop of 42.9% [16] - Adtalem (ATGE) holds a Zacks Rank of 2, with a fiscal 2026 EPS estimate of $7.85 and expected growth of 17.7% [17] - Grand Canyon Education (LOPE) has a Zacks Rank of 2, with a projected earnings growth of 11.2% for 2026 [18] - Nerdy (NRDY) carries a Zacks Rank of 2, with an expected growth of 35.9% for 2026 despite a year-to-date decline of 16.7% [19] - Legacy Education (LGCY) also holds a Zacks Rank of 2, with a projected earnings growth of 11.9% for 2026 and a year-to-date gain of 23.8% [20]

Company Overview - Legacy Education Inc. (LGCY) is part of the Consumer Discretionary sector, which includes 265 companies and is currently ranked 12 in the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Over the past three months, the Zacks Consensus Estimate for LGCY's full-year earnings has increased by 5.6%, reflecting improved analyst sentiment [4] - Year-to-date, LGCY has returned approximately 19.7%, significantly outperforming the Consumer Discretionary sector's average return of 0.7% [4] Industry Context - Legacy Education Inc. operates within the Schools industry, which consists of 19 stocks and is currently ranked 66 in the Zacks Industry Rank [6] - The Schools industry has experienced an average decline of 6.7% year-to-date, indicating that LGCY is performing better than its industry peers [6] Comparative Analysis - Another notable stock in the Consumer Discretionary sector is H World Group (HTHT), which has returned 39.9% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - H World Group is part of the Hotels and Motels industry, which is ranked 188 and has seen a decline of 4.3% year-to-date [6] Investment Outlook - Investors interested in Consumer Discretionary stocks should continue to monitor Legacy Education Inc. and H World Group for their strong performance [7]

Revenue and Growth - Revenue increased by $5.4 million, or 38.5%, to $19.4 million for the first quarter ended September 30, 2025, compared to $14.0 million for the same period in 2024[6] - New student starts rose by 31.6% to 1,117, contributing to a total student population of 3,495, which is 37.7% higher than the first quarter of fiscal 2025[6] - Net income for the quarter was $2.2 million, up 4.6% from $2.1 million in the prior year[6] Financial Performance - Adjusted EBITDA was $3.1 million, reflecting a 9.6% increase year-over-year, with an adjusted EBITDA margin of 15.9%[6] - The company maintained a strong balance sheet with $20.6 million in cash and cash equivalents and minimal debt of approximately $0.7 million[6] - Operating cash flow was positive but decreased year-over-year due to the timing of Title IV disbursements[9] - The effective tax rate was 26.5%, benefiting from stock option exercises[5] Expenses - Educational services expenses increased by approximately $3.1 million, or 43.3%, to $10.3 million, driven by increased staffing and instructional costs[9] - General and administrative expenses rose by approximately $2.1 million, or 54%, to $6.1 million, primarily due to higher marketing costs and professional fees[9] Program Development - The company approved new programs including MRI AAS and Cardiac Sonography AAS at Central Coast College, and Surgical Technology AAS at High Desert Medical College[6]

Core Insights - Legacy Education Inc. reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.21 per share a year ago, indicating an earnings surprise of +6.67% [1] - The company achieved revenues of $19.4 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.79% and up from $14.01 million year-over-year [2] - Legacy Education Inc. has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $18.05 million, while the estimate for the current fiscal year is $0.64 on revenues of $75.1 million [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Schools industry, to which Legacy Education Inc. belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue increased by 38.5% to $19.4 million, driven by a 31.6% rise in new student starts to 1,117 and a 37.7% increase in ending student population to 3,495, marking an all-time high [6][16] - Adjusted EBITDA rose 9.6% to $3.1 million, with a margin of 15.9%, reflecting strategic investments and non-recurring charges [8][10] - Net income increased by 4.6% to $2.2 million, with diluted EPS at $0.16 compared to $0.21 last year, impacted by an increase in diluted shares from 9.8 million to 13.9 million following the IPO [8][17] Business Line Data and Key Metrics Changes - Educational services expense rose to 53.2% of revenue from 51.4%, reflecting enhancements in programs and new hires [11][17] - General and administrative expenses increased to 31.5% of revenue from 28.3%, primarily due to audit, legal, and compliance costs [11][18] Market Data and Key Metrics Changes - The healthcare sector continues to experience chronic shortages, with over 200,000 nursing openings annually through 2031, indicating strong demand for skilled professionals [13][22] - Graduate placement rates remain above industry standards, with graduates placed within six months, showcasing the effectiveness of the company's programs [15][22] Company Strategy and Development Direction - The company is focused on four strategic priorities: continuing enrollment momentum, curriculum expansion, operational innovation, and compliance as a competitive advantage [20][21] - The company is pursuing both organic growth and potential M&A opportunities, with a strong acquisition pipeline and plans for multi-campus acquisitions [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive despite regulatory challenges, emphasizing the critical need for job-ready graduates in the healthcare sector [22][29] - The company anticipates sequential margin improvement as investments mature and revenue scales, supported by strong policy tailwinds [22][29] Other Important Information - The company recorded a $178,000 reserve for accounts receivable, consistent with expectations, and enhanced its collections process [9][10] - The effective tax rate improved to 26.5% from 28%, benefiting from stock option exercises [10][17] Q&A Session Summary Question: About the four new programs and their capacity - Management indicated that the new programs started in the second quarter, with capacity for 20-24 students per program, but no contributions were realized in Q1 [24] Question: Acquisition pipeline status - The acquisition pipeline remains strong, with several opportunities elevated to the board level, focusing on both in-state and out-of-state acquisitions [25] Question: Capacity constraints and student population handling - Current campuses can handle 700-800 students each, with considerations for lease renewals and expansions based on increasing capacity needs [26] Question: Placement connections with healthcare facilities - The company is actively reaching out to local facilities and has partnerships with hospitals that hire graduates from their programs [27] Question: Placement of students outside the state or U.S. - The company has limited experience placing students outside the U.S., with some crossing into Canada, and primarily places students within California [27]

Enrollment Statistics - As of September 30, 2025, High Desert Medical College had 2,263 students enrolled in its programs[157] - As of September 30, 2025, Central Coast College had 549 students enrolled in its programs[159] - As of September 30, 2025, Integrity College of Health had 220 students enrolled in its programs[160] - As of September 30, 2025, Contra Costa Medical Career College had 463 students enrolled in its programs[161] Regulatory Environment - The company is currently evaluating the impact of new regulations on its business, including those related to Title IV programs[162] - The company expects new regulations from the RISE and AHEAD Committees to impact its operations, effective July 1, 2026[166] - The company is subject to regulatory changes that could materially affect its student population and revenues[166] - The company satisfied the composite score requirement of the financial responsibility test necessary to participate in Title IV Programs[203] Financial Performance - Revenue for the three months ended September 30, 2025, was approximately $19.4 million, an increase of approximately $5.4 million or 38.5% compared to $14.0 million for the same period in 2024, primarily due to increased enrollment[193] - Educational services expense increased to approximately $10.3 million for the three months ended September 30, 2025, up approximately $3.1 million or 43.3% from $7.2 million in the same period in 2024, driven by increased instructional and staffing costs[194] - General and administrative expense rose to approximately $6.1 million for the three months ended September 30, 2025, an increase of approximately $2.1 million or 54% compared to $4.0 million in the same period in 2024, largely due to higher marketing costs and professional fees[195] - Net income for the three months ended September 30, 2025, was approximately $2.2 million, a slight increase of approximately $0.1 million or 0.05% from $2.1 million in the same period in 2024[197] Cash Flow and Capital Expenditures - Cash and cash equivalents were approximately $20.6 million as of September 30, 2025, compared to $21.5 million as of September 30, 2024[198] - Net cash provided by operating activities decreased to approximately $1.1 million for the three months ended September 30, 2025, down from $3.2 million in the same period in 2024, primarily due to increases in accounts receivable and prepaid expenses[204] - Capital expenditures remained constant at approximately $0.2 million for both the three months ended September 30, 2025, and 2024[200] - Net cash used by financing activities was approximately $0.5 million for the three months ended September 30, 2025, compared to net cash provided of approximately $8.2 million in the same period in 2024, mainly due to debt reduction and lease payments[206] Inflation and Growth Status - The company has not experienced a material impact from inflation on its results of operations for the three months ended September 30, 2025, and 2024[208] - The company intends to rely on exemptions provided by the JOBS Act as an "emerging growth company" until it reaches total annual gross revenues of $1.235 billion or more[213] - The company will remain classified as an "emerging growth company" until the earliest of several conditions, including the issuance of more than $1 billion in nonconvertible debt in the previous three years[213] - The company is not required to provide certain market risk disclosures as it qualifies as a "smaller reporting company" under the Exchange Act[214] Acquisitions - The company has acquired multiple institutions, including Contra Costa Medical Career College in December 2024[156] Seasonal Trends - The company experienced seasonal trends, with increased enrollments typically in the first and third quarters of the fiscal year[180]

Core Points - Legacy Education Inc. will host a conference call on November 13, 2025, to discuss its fourth quarter and year-end financial results [1] - A news release detailing the financial results will be issued at 4:05 p.m. Eastern time on the same day [1] Company Overview - Legacy Education Inc. is a nationally accredited, for-profit post-secondary education company founded in 2009, focusing on career education primarily in the healthcare field [3] - The company offers a variety of programs including nursing, sonography, medical technicians, dental assisting, and business administration [3] - Legacy Education aims to provide high-quality, accessible, and affordable education while pursuing organic enrollment growth, new program additions, and accretive acquisitions [3]

Core Insights - The article emphasizes the importance of investing in quality companies at reasonable valuations, inspired by renowned investors like Warren Buffett, Peter Lynch, and Terry Smith [1] Group 1 - The focus is on long-term fundamentals driving share prices, with an emphasis on predicting earnings per share [1]