Part I [Business Overview](index=8&type=section&id=Item%201.%20Business) Legacy Education Inc. provides career-focused post-secondary education in healthcare across California through accredited institutions, focusing on workforce needs and strategic growth - Legacy Education Inc. operates four accredited academic institutions: High Desert Medical College (acquired July 2010), Central Coast College (acquired January 2019), Integrity College of Health (acquired September 2020), and Contra Costa Medical Career College (acquired December 2024)[24](index=24&type=chunk)[30](index=30&type=chunk) - The company's institutions primarily offer career-focused post-secondary education services in healthcare and related fields, with a strong presence in California[24](index=24&type=chunk)[34](index=34&type=chunk) - As of June 30, 2025, total student enrollment across all programs was **3,101**, a **42% increase** from **2,187 students** as of June 30, 2024[52](index=52&type=chunk) - The company reported an average program retention rate of **86%** and an average placement rate of **74.5%** as of June 30, 2025[54](index=54&type=chunk)[55](index=55&type=chunk) Student Enrollment and Starts (Quarterly) | | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | **Consolidated Starts** | 760 | 415 | 719 | 623 | 849 | 397 | 1,227 | 721 | | **Ending Enrollment** | 2,024 | 1,912 | 2,166 | 2,187 | 2,539 | 2,768 | 3,245 | 3,101 | | **Starts YoY (%)** | 52% | 52% | 43% | 59% | 12% | -4% | 71% | 16% | | **Ending Enrollment YoY (%)** | 17% | 16% | 20% | 28% | 25% | 45% | 50% | 42% | [Overview](index=8&type=section&id=Overview) Legacy Education Inc. delivers career-focused post-secondary education through its accredited institutions, primarily in healthcare fields - Legacy Education Inc. provides career-focused, post-secondary education services to students through its accredited academic institutions: High Desert Medical College, Central Coast College, Integrity College of Health, and Contra Costa Medical Career College[24](index=24&type=chunk) [High Desert Medical College (HDMC)](index=8&type=section&id=High%20Desert%20Medical%20College%20%28%22HDMC%22%29) HDMC offers diverse healthcare programs across three California campuses, serving 1,956 students as of June 30, 2025 - HDMC, established in California in 2002, offers a wide range of programs including ultrasound tech, vocational nursing, and medical assisting across its Lancaster, Bakersfield, and Temecula campuses. As of June 30, 2025, HDMC had **1,956 students**[25](index=25&type=chunk) [Central Coast College (CCC)](index=8&type=section&id=Central%20Coast%20College%20%28%22CCC%22%29) CCC, located in Salinas, California, offers certificate and degree programs to 495 students as of June 30, 2025 - CCC, established in California in 1983 and located in Salinas, offers certificate and degree programs such as medical assisting, veterinary technology, and vocational nursing. As of June 30, 2025, CCC had **495 students**[26](index=26&type=chunk)[27](index=27&type=chunk) [Integrity College of Health (Integrity)](index=8&type=section&id=Integrity%20College%20of%20Health%20%28%22Integrity%22%29) Integrity, based in Pasadena, California, offers various healthcare programs and achieved initial RN-BSN accreditation in June 2025, serving 202 students - Integrity, established in California in 2007 with a campus in Pasadena, offers programs including vocational nursing, medical assisting, and Diagnostic Medical Sonography. It earned initial accreditation for its Bachelor of Science in Nursing RN-BSN Track in June 2025. As of June 30, 2025, Integrity had **202 students**[28](index=28&type=chunk) [Contra Costa Medical Career College (CCMCC)](index=9&type=section&id=Contra%20Costa%20Medical%20Career%20College%20%28%22CCMCC%22%29) CCMCC provides certificate and degree programs in healthcare, enrolling 448 students as of June 30, 2025 - CCMCC offers certificate and degree programs such as surgical technology, sterile processing technician, and vocational nursing. As of June 30, 2025, CCMCC had **448 students** enrolled[29](index=29&type=chunk) [Our History](index=9&type=section&id=Our%20History) The company's history involves strategic acquisitions and accreditations, expanding its educational offerings and institutional footprint - The company's history includes the founding of HDMC in 2002, its acquisition in 2010, and subsequent acquisitions of CCC in 2019, Integrity in 2020, and CCMCC in 2024. Key milestones include obtaining various accreditations and approvals, and launching new programs[30](index=30&type=chunk) - In June 2025, Integrity College of Health earned initial accreditation from the National League for Nursing Commission for Nursing Education Accreditation (NLN CNEA) for its Bachelor of Science in Nursing RN-BSN Track[30](index=30&type=chunk) [Industry Background](index=10&type=section&id=Industry%20Background) The U.S. post-secondary education market is competitive and growing, with increasing demand for skilled workers, especially in healthcare - The U.S. post-secondary education market is large, fragmented, and competitive, with proprietary colleges serving approximately **8.0%** of undergraduates in 2022-23. Total enrollments in higher education increased by **2.4%** and **3.2%** in Spring 2024 and 2025, respectively, with proprietary colleges seeing increases of **5.1%** and **3.7%**[31](index=31&type=chunk) - Demand for post-secondary education is expected to increase due to demographic, economic, and social trends, including a significant number of adults without college degrees and increasing demand for skilled workers, particularly in the healthcare sector[32](index=32&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Our Market Opportunity](index=10&type=section&id=Our%20Market%20Opportunity) California's unmet workforce needs, particularly in healthcare, present a significant opportunity for the company's career-focused programs - The company believes California's community college system is not meeting current educational and workforce needs, creating an opportunity for its focused, high-quality programs, especially in the healthcare sector[33](index=33&type=chunk)[34](index=34&type=chunk) - The target demographic is early to mid-20-year-olds seeking strong job opportunities, primarily within a **100-mile radius** of each campus, with a focus on quick entry into the workforce[35](index=35&type=chunk) - Employment in the healthcare and social assistance industry is projected to grow **8.4%** from 2024 to 2034, adding over **1.9 million new jobs**, driven by an aging population and chronic conditions[36](index=36&type=chunk) [Our Growth Strategies](index=11&type=section&id=Our%20Growth%20Strategies) Growth strategies include expanding existing programs, launching new offerings, opening new campuses, and pursuing acquisitions, while enhancing curriculum and student success - Growth strategies include moderate growth in existing programs, approval of registered nursing programs, adding Associate of Applied Sciences degrees, launching new program offerings (including online), and expanding through new branch campuses and acquisitions outside California (e.g., Nevada, Colorado, New Mexico)[38](index=38&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - Operational priorities focus on refining curriculum for learner success and employer needs, improving student retention and graduate success, expanding relationship-based marketing, and investing in innovation and diversification[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [Competition](index=12&type=section&id=Competition) The post-secondary education industry is highly competitive, with various institutions vying for students based on program quality, reputation, and cost - The post-secondary education industry is highly competitive and fragmented, with competition from public and private institutions, other proprietary schools, and non-traditional programs. Key competitive factors include program quality, reputation, cost, graduate employment rates, and faculty quality[44](index=44&type=chunk)[45](index=45&type=chunk) - Public institutions often have greater financial resources and brand recognition due to government subsidies, posing a challenge for for-profit schools[46](index=46&type=chunk) [Marketing and Recruiting](index=12&type=section&id=Marketing%20and%20Recruiting) The company employs an integrated marketing approach, combining traditional and digital channels, with a significant portion of new enrollments from referrals - The company uses an integrated marketing approach, including traditional media (radio, billboards, direct mail) and digital marketing (paid search, SEO, online video, social media), which drives the majority of new student leads[48](index=48&type=chunk) - Referrals from current students, high school counselors, and satisfied graduates/employers historically account for approximately **25%** of new enrollments[

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of Legacy Education Inc.'s financial and operational performance for Q4 and the full fiscal year 2025, highlighting key growth metrics [Fourth Quarter 2025 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202025%20Financial%20Highlights) Legacy Education Inc. reported strong financial performance for Q4 2025, with significant revenue and EBITDA growth compared to the prior year, indicating robust operational expansion | Metric | Q4 2025 | Q4 2024 | Change (%) | | :---------------- | :------ | :------ | :--------- | | Revenue | $17.9M | $12.8M | 40.8% | | EBITDA | $2.1M | $0.9M | 133% | [Fiscal Year Ended June 30, 2025 Financial and Operational Highlights](index=1&type=section&id=Fiscal%20Year%20Ended%20June%2030%2C%202025%20Financial%20and%20Operational%20Highlights) For the full fiscal year 2025, Legacy Education achieved substantial growth across key financial and operational metrics, including significant increases in revenue, student enrollment, and profitability | Metric | FY 2025 | FY 2024 | Change (%) | | :---------------------- | :---------- | :---------- | :--------- | | Revenue | $64.2M | $46.0M | 39.5% | | New student starts | | | 26.9% | | EBITDA | $10.4M | | | | Adjusted EBITDA | $11.0M | | | | Net income | $7.5M | | | | Diluted earnings per share | $0.56 | | | | Student population (end of year) | 3,101 | | 41.8% | [Strategic Developments](index=2&type=section&id=Strategic%20Developments) This section outlines Legacy Education's key strategic achievements and future growth positioning, including program expansion, accreditation, and governance enhancements [Strategic Developments](index=2&type=section&id=Strategic%20Developments) Legacy Education is well-positioned for continued growth in 2026, driven by record enrollment, expanded program offerings, and strong financial performance. The company also achieved significant milestones in program accreditation and governance - CEO LeeAnn Rohmann stated that Legacy Education is well-positioned for continued growth in 2026 due to record enrollment, expanded program offerings, and strong financial performance[7](index=7&type=chunk) - The company received approval for **3 new degree programs** and **2 certificate programs**[10](index=10&type=chunk) - Legacy Education earned NLN CNEA Initial Accreditation for its RN-BSN Track[10](index=10&type=chunk) - Two new Board Members were appointed, and an Advisory Board was established to support growth and expansion[10](index=10&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides an in-depth analysis of Legacy Education's income statement and balance sheet for the fourth quarter and full fiscal year 2025 [Income Statement Analysis (Q4 and Full Year)](index=2&type=section&id=Income%20Statement%20Analysis%20%28Q4%20and%20Full%20Year%29) Legacy Education's income statement for Q4 and the full fiscal year 2025 shows significant revenue growth, accompanied by increases in operating expenses, ultimately leading to higher operating and net income [Revenue](index=2&type=section&id=Revenue) | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :----- | :----------- | :----------- | :----------- | :----------- | | Revenue | $17,950,235 | $12,752,420 | $64,168,025 | $46,000,316 | - Fiscal 2025 revenue increased by **$18.2 million (39.5%)** to **$64.2 million**, primarily due to increased student enrollment and program pricing[11](index=11&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) | Expense Category | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | | Educational services | $9,446,177 | $8,548,697 | $34,246,953 | $26,351,326 | | General and administrative | $6,333,951 | $3,253,367 | $19,267,153 | $12,999,164 | | Depreciation and amortization | $124,672 | $75,865 | $441,718 | $265,036 | | Total costs and expenses | $15,959,975 | $11,919,929 | $54,181,699 | $39,783,526 | - Educational services increased by **$7.9 million (30.0%)** to **$34.2 million** in FY 2025, driven by increased instructional and staffing needs, rent, externship fees, and RN program investments, partially offset by a decrease in non-cash compensation[11](index=11&type=chunk) - General and administrative expense rose by **$6.3 million (48.2%)** to **$19.3 million** in FY 2025, primarily due to higher marketing expenses (**$4.7 million in FY25** vs **$4.1 million in FY24**), professional fees, and bad debt expense[11](index=11&type=chunk) [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS) | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--------------------- | :----------- | :----------- | :----------- | :----------- | | Operating Income | $1,990,260 | $832,491 | $9,986,326 | $6,216,790 | | Income Before Income Taxes | $2,248,972 | $1,177,441 | $11,022,829 | $6,985,462 | | Net Income | $1,226,967 | $961,342 | $7,534,232 | $5,114,852 | | Basic Net Income Per Share | $0.10 | $0.10 | $0.65 | $0.55 | | Diluted Net Income Per Share | $0.09 | $0.10 | $0.59 | $0.53 | [Balance Sheet Data](index=3&type=section&id=Balance%20Sheet%20Data) As of June 30, 2025, Legacy Education reported a healthy cash position and increased total assets, reflecting its growth and operational stability | Balance Sheet Item | June 30, 2025 | | :---------------------- | :------------ | | Cash and cash equivalents | $20,316,357 | | Current assets | $37,753,027 | | Total assets | $69,205,138 | | Current liabilities | $13,780,773 | | Total stockholders' equity | $41,043,520 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the rationale behind using non-GAAP financial measures and provides a detailed reconciliation to GAAP net income [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Legacy Education provides non-GAAP financial measures like EBITDA and adjusted EBITDA to offer a clearer view of its core operating performance by excluding non-cash compensation and other non-recurring items, enhancing comparability with peers and future prospects - Non-GAAP measures (EBITDA and adjusted EBITDA) are used to supplement GAAP financial statements, adjusting for non-cash compensation to provide a more comparable measure of continuing business and primary operations[13](index=13&type=chunk) - Stock-based compensation is excluded from non-GAAP measures as it is generally not controllable in the short-term and can vary significantly, thus not reflecting ordinary earnings[14](index=14&type=chunk) [Reconciliation of EBITDA and Adjusted EBITDA](index=4&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) The reconciliation table details the adjustments made from net income to derive EBITDA and Adjusted EBITDA for both the fourth quarter and the full fiscal year 2025, primarily by adding back interest, taxes, depreciation, amortization, and non-cash compensation | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :---------------------- | :----------- | :----------- | :----------- | :----------- | | Net income | $1,226,967 | $961,342 | $7,534,232 | $5,114,852 | | Interest expense (income), net | $(258,712) | $(344,945) | $(1,036,503) | $(768,672) | | Provision for income taxes | $1,022,005 | $216,098 | $3,488,597 | $1,870,610 | | Depreciation and amortization | $124,672 | $75,864 | $441,718 | $265,036 | | **EBITDA** | **$2,114,932** | **$908,359** | **$10,428,044** | **$6,481,826** | | Non-cash compensation | $269,246 | $1,882,064 | $552,799 | $1,882,064 | | **Adjusted EBITDA** | **$2,384,178** | **$2,790,423** | **$10,980,843** | **$8,363,890** | [About Legacy Education Inc.](index=4&type=section&id=About%20Legacy%20Education%20Inc.) This section provides an overview of Legacy Education Inc., detailing its mission, educational offerings, and strategic growth initiatives [About Legacy Education Inc.](index=4&type=section&id=About%20Legacy%20Education%20Inc.) Legacy Education Inc. is an accredited, for-profit post-secondary education company specializing in career-focused healthcare programs. The company is committed to growth through organic enrollment, new program additions, and strategic acquisitions, aiming to provide high-quality, accessible, and affordable education - Legacy Education (NYSE: LGCY) is an award-winning, nationally accredited, for-profit post-secondary education company founded in 2009[16](index=16&type=chunk) - The company primarily provides career-focused education in the healthcare field, offering certificates and degrees for nursing, sonography, medical technicians, dental assisting, and business administrative programs[16](index=16&type=chunk) - Legacy Education's growth strategy focuses on organic enrollment growth, the addition of new programs, and accretive acquisitions, with a commitment to high-quality, accessible, and affordable education[16](index=16&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, indicating that statements about future expectations, plans, and prospects are forward-looking and subject to substantial risks and uncertainties. Actual results may differ materially, and the company does not undertake to update these statements [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, indicating that statements about future expectations, plans, and prospects are forward-looking and subject to substantial risks and uncertainties. Actual results may differ materially, and the company does not undertake to update these statements - Statements regarding future expectations, plans, and prospects, including operations, business strategy, and financial results, are considered 'forward-looking statements'[18](index=18&type=chunk) - These statements are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances, as detailed in the Company's Form 10-K and other SEC filings[18](index=18&type=chunk) - Legacy Education does not guarantee future results and specifically declines any obligation to update or revise any forward-looking statements, except as required by applicable law[18](index=18&type=chunk) [Contact Information](index=5&type=section&id=Contact%20Information) This section provides essential contact details for investor relations inquiries regarding Legacy Education Inc [Contact Legacy Education Inc.](index=5&type=section&id=Contact%20Legacy%20Education%20Inc.) Contact details for investor relations are provided for inquiries regarding Legacy Education Inc - Investor Relations contact: ir@legacyed.com[19](index=19&type=chunk) - Amato and Partners, LLC serves as the Investors Relations Council, contactable at admin@amatoandpartners.com[19](index=19&type=chunk)

Core Insights - Legacy Education Inc. reported strong financial and operational results for the fourth quarter and fiscal year ended June 30, 2025, highlighting record enrollment and expanded program offerings [4][7]. Financial Highlights - Total revenue for the fourth quarter increased by $5.2 million, or 40.8%, reaching $17.9 million compared to $12.8 million in the same quarter of the previous year [15]. - For the fiscal year 2025, revenue grew by 39.5% to $64.2 million, up from $46.0 million in fiscal 2024, primarily driven by increased student enrollment and higher pricing for certain programs [7][8]. - New student starts rose by 15.7% in the fourth quarter and 26.9% for the fiscal year [7]. - EBITDA for the fourth quarter increased by 133% to $2.1 million, compared to $0.9 million in the prior year [15]. - The company reported a net income of $1.2 million for the fourth quarter and $7.5 million for the fiscal year, with diluted earnings per share of $0.59 [7][8]. Operational Developments - The student population at the end of the fiscal year was 3,101, representing a 41.8% increase compared to 2024 [7]. - Legacy Education received approval for three new degree programs and two certificate programs, and earned NLN CNEA Initial Accreditation for its RN-BSN Track [7]. - The company appointed two new board members and established an advisory board to support growth and expansion [7]. Expense Overview - General and administrative expenses rose by 48.2% to $19.3 million in fiscal 2025, primarily due to increased marketing expenses, professional fees, and bad debt expense [7][8]. - Educational services expenses increased by 29.5% to $34.2 million, reflecting the need for additional instructional and staffing resources to support enrollment growth [7].

Core Points - Legacy Education Inc. will host a conference call to discuss its fourth quarter and fiscal year-end financial results on September 25, 2025, at 4:30 p.m. Eastern time [1] - A news release outlining the financial results will be issued by 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 [4] - The company offers a variety of programs including certificates and degrees in nursing, sonography, medical technicians, and dental assisting, among others [4] - Legacy Education aims to provide high-quality, accessible, and affordable education while pursuing organic enrollment growth and strategic acquisitions [4]

Core Insights - Legacy Education Inc. has appointed Dr. Zwade J. Marshall and Janis L. Paulson to its Board of Directors, enhancing its leadership team with expertise in clinical medicine, financial innovation, and higher education [1][2]. Group 1: Board Appointments - Dr. Zwade J. Marshall is the Co-Founder and CEO of Doc2Doc Lending, with a background in anesthesiology and pain management, holding degrees in Economics, MBA, and MD from Emory University [3]. - Janis L. Paulson brings over 30 years of experience in healthcare career education, previously serving as CEO of Unitek Learning and holding senior roles in finance and operations [4]. - The CEO of Legacy Education, LeeAnn Rohmann, expressed confidence that the new board members will be instrumental in scaling programs and expanding access to healthcare training [5]. Group 2: Company Overview - Legacy Education Inc. is a nationally accredited, for-profit post-secondary education company founded in 2009, focusing on career-oriented education primarily in healthcare [5]. - The company offers a variety of programs, including certificates and degrees in nursing, sonography, medical technicians, and dental assisting, aiming to provide high-quality, accessible, and affordable education [5]. - Legacy Education is committed to growth through organic enrollment, new program additions, and strategic acquisitions [5].

Core Insights - Legacy Education Inc. has received approval for four new healthcare programs aimed at addressing the increasing demand for skilled healthcare professionals [1][4]. Group 1: New Programs Offered - High Desert Medical College (HDMC) will offer a Surgical Technology Associate of Applied Science and a Sterile Processing Technician Certificate Program, enhancing its allied health program portfolio [2]. - Central Coast College (CCC) will introduce a Cardiac Sonography Associate of Applied Science Degree Program and a Magnetic Resonance Imaging (MRI) Associate of Applied Science Degree Program, providing advanced training for imaging specialists [3]. Group 2: Company Commitment and Mission - The CEO of Legacy Education emphasized the company's commitment to expanding access to high-demand healthcare careers and empowering students with pathways to stable careers [4]. - The introduction of these new programs is part of the company's mission to meet the needs of healthcare employers and close the skills gap in the industry [4]. Group 3: Company Overview - Legacy Education is a nationally accredited, for-profit post-secondary education company founded in 2009, focusing on career-oriented education primarily in healthcare [5]. - The company aims to provide high-quality, accessible, and affordable education, with plans for organic growth, new program additions, and strategic acquisitions [5].

Company Overview - Legacy Education Inc. is a leading provider of career-focused education and training, primarily in the healthcare field, offering certificates and degrees in various disciplines such as nursing, sonography, and dental assisting [4] - The company was founded in 2009 and is nationally accredited, focusing on providing high-quality, accessible, and affordable education [4] - Legacy Education aims to grow its education footprint through organic enrollment growth, new program additions, and accretive acquisitions [4] Conference Participation - Legacy Education will participate in the H.C. Wainwright 27th Annual Global Investment Conference from September 8 to September 10, 2025, at the Lotte New York Palace Hotel [1] - CEO LeeAnn Rohmann will present on September 10, 2025, from 12:30 PM to 1:00 PM EST, and both the CEO and CFO Brandon Pope will be available for one-on-one meetings during the event [2] Additional Information - For more details about the conference or to request a meeting with Legacy Education's management, interested parties can contact H.C. Wainwright or visit their website [3]

Market Overview - Wall Street reached record-high levels despite a turbulent first half of 2025, with the second quarter being the best for U.S. stocks in the past year due to expectations of key trade deals and reduced recession fears [1] - The Federal Reserve indicated two more cuts in the benchmark lending rate for the second half of the year, contributing to a continued bull run in July, with the S&P 500 and Nasdaq Composite hitting all-time highs [2] Stock Performance - A selection of stocks has shown significant price strength, particularly those on a recent bull run, indicating potential for continued momentum [3] - Notable stocks include RF Industries Ltd. (RFIL), Legacy Education Inc. (LGCY), Primoris Services Corp. (PRIM), Allot Ltd. (ALLT), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last 12 weeks to indicate sustained momentum [5] - Stocks should have a Zacks Rank of 1 (Strong Buy) and an average broker rating of 1, indicating strong future performance expectations [6] - Stocks must be trading at a minimum price of $5 and be within 85% of their 52-week high to ensure they are strong performers [7] Individual Stock Highlights - **RF Industries Ltd. (RFIL)**: Stock surged 74% in four weeks, with expected earnings growth over 100% for the current fiscal year [8][10] - **Legacy Education Inc. (LGCY)**: Stock price increased by 29.6% in four weeks, with an expected earnings growth rate of 0.8% [12] - **Primoris Services Corp. (PRIM)**: Stock climbed 23.4% in four weeks, with an expected earnings growth rate of 15.8% [14] - **Allot Ltd. (ALLT)**: Stock surged 19.8% in four weeks, with expected earnings growth over 100% [17] - **Euroseas Ltd. (ESEA)**: Stock advanced 12.6% in four weeks, with an expected earnings growth rate of 1.2% [19]

Market Overview - The broader market has improved significantly as fears over geopolitical tensions and slowing economic growth ease, shifting sentiment back to "risk-on" [1] - Selective small-cap stocks are seen as offering exceptional upside opportunities, particularly those with strong growth forecasts and favorable valuations [1] The ONE Group Hospitality (STKS) - The ONE Group Hospitality operates upscale restaurant brands and is benefiting from a renewed appetite for in-person dining, indicating a shift away from "peak takeout" [4] - The company has transitioned from negative to positive earnings, with current year earnings projections rising from a loss of -$0.31 to a gain of $0.51, and next year's forecast increasing from -$0.08 to $0.69 [5] - STKS has a Zacks Rank 1 (Strong Buy) and trades at a forward earnings multiple of 9.3x, with expected EPS growth of 20% annually over the next three to five years [5] - The stock chart shows a promising technical setup, having built a solid base and formed a bullish continuation pattern, with key support at $4.70 and resistance at $5.13 [6] Legacy Education Inc. (LGCY) - Legacy Education Inc. operates in healthcare education and workforce development, focusing on training for high-demand medical roles, making it somewhat recession-resistant [8] - The company has strong momentum, holding a Zacks Rank 2 (Buy) and trading at a forward earnings multiple of 17.1x, with sales expected to rise by 37.9% this year and another 16.9% in 2026 [9] - Following a recent breakout to new record highs, LGCY is forming a technical bull flag, with a potential confirmation above the $11 level [10] Investment Outlook - Both The ONE Group Hospitality and Legacy Education Inc. are highlighted as compelling investment opportunities, supported by strong earnings growth forecasts, reasonable valuations, and improving technical setups [13] - These small-cap stocks are positioned to be early leaders in a broader small-cap resurgence, making them worthy of close attention for investors seeking growth stories with breakout potential [14]

Company Overview - Legacy Education is a nationally accredited, for-profit post-secondary education company founded in 2009[6] - The company focuses on programs in growing industries like allied healthcare, veterinary, and business[7] - As of September 30, 2024, Legacy Education has a student enrollment of 2,539 across 5 campuses[6, 19] - The company's LTM revenue is $49.6 million, with a YoY growth of 33%[7] - LTM Adjusted EBITDA is $9.7 million[7] Student Outcomes & Market Position - The student graduation rate is 79%[7] - The student placement rate is 78%[7] - The NCLEX pass rate is 79%[7] - The company estimates a large post-secondary education opportunity within core program verticals and adjacent programs[9] Financial Performance & Growth - The company's 4-year enrollment CAGR is 25%[19] - Legacy Education's LTM gross student acquisition cost is $2,000, generating over 10x LTM annual revenue per student of $22,000[7, 63] - The company ended Q1 2025 with $21.5 million in cash and $23.5 million in working capital[63, 70]