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]
Legacy Education Inc.(LGCY) - 2026 Q1 - Quarterly Report