Legacy Education Inc.(LGCY) - 2025 Q4 - Annual Results

Executive Summary 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 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 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 This section outlines Legacy Education's key strategic achievements and future growth positioning, including program expansion, accreditation, and governance enhancements Strategic Developments 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] - The company received approval for 3 new degree programs and 2 certificate programs[10] - Legacy Education earned NLN CNEA Initial Accreditation for its RN-BSN Track[10] - Two new Board Members were appointed, and an Advisory Board was established to support growth and expansion[10] Detailed Financial Results 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) 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 | 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] Operating Expenses | 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] - 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] Net Income and EPS | 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 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 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 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] - 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] Reconciliation of EBITDA and Adjusted EBITDA 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. This section provides an overview of Legacy Education Inc., detailing its mission, educational offerings, and strategic growth initiatives About Legacy Education Inc. 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] - 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] - 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] Forward-Looking Statements 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 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] - 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] - 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] Contact Information This section provides essential contact details for investor relations inquiries regarding Legacy Education Inc Contact Legacy Education Inc. Contact details for investor relations are provided for inquiries regarding Legacy Education Inc - Investor Relations contact: ir@legacyed.com[19] - Amato and Partners, LLC serves as the Investors Relations Council, contactable at admin@amatoandpartners.com[19]