Capitalized on structural labor shortages in healthcare, specifically targeting high-demand roles in nursing, imaging, and surgical technology.Implemented a 'tech-and-touch' approach, utilizing AI-enabled tools to reduce administrative burdens while maintaining high-touch faculty engagement for student coaching.Invested in curriculum design infrastructure and online leadership to ensure quality assurance and consistency as the platform scales across multiple campuses.Secured a six-year reaccreditation for t ...

Legacy Education (NYSEAM:LGCY) Q2 2026 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsBrandon Pope - CFOLeeAnn Rohmann - CEONicole Joseph - SVPConference Call ParticipantsJeffrey Cohen - AnalystNone - AnalystOperatorGood day, and welcome to the Legacy Education Inc.'s second quarter fiscal year 2026 earnings conference call. Today's call is being recorded and broadcast live. It will also be archived on the Legacy Education website for future reference. To kick off the call, I will turn it o ...

Financial Data and Key Metrics Changes - Revenue grew 40.7% year-over-year to $19.2 million, marking the fourteenth consecutive quarter of double-digit revenue growth [7][15] - Adjusted EBITDA increased 61.6% to $3 million, reflecting scale and effective cost management [8][15] - Net income rose 46% to $2 million, or $0.15 per diluted share, up from $0.10 in the prior year quarter [8][16] - Year-to-date revenue for six months ended December 31, 2025, grew 39.6% to $38.6 million [18] Business Line Data and Key Metrics Changes - New student starts increased by 49.4% to 593 from 397 last year, driven by strong enrollment and disciplined marketing execution [15][16] - Enrollment at Contra Costa Medical Career College reached all-time highs of over 500 students [10] Market Data and Key Metrics Changes - The healthcare occupation sector is projected to be the fastest-growing major industry from 2024 to 2034, with about 1.9 million openings projected each year on average [5][6] Company Strategy and Development Direction - The company is focused on scaling quality, improving outcomes, and training job-ready graduates for essential roles in healthcare [5][7] - Strategic priorities include sustained enrollment growth, curriculum expansion, and operational innovation [21][23] - The company is pursuing additional regulatory approvals and evaluating accretive acquisitions to enhance growth [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and operational execution, emphasizing the importance of maintaining high standards in curriculum and compliance [11][25] - The company is well-positioned to navigate regulatory changes and is focused on delivering strong outcomes for students [25][26] Other Important Information - The company has a strong balance sheet with $21.1 million in cash and little debt at $600,000 [19] - The effective tax rate increased to 28.9% from 27.3% due to fluctuations in stock option exercises [16] Q&A Session Summary Question: Discussion on new student starts - Management noted that the robust new student starts were driven by additional cohorts in hybrid programs and strong performance in vocational nursing and surgical tech programs [28][29] Question: Outlook on new program launches - Management confirmed optimism about new program launches in Q3 and Q4, including cardiac sonography and MRI programs [31][32] Question: Acquisition pipeline and geographic expansion - Management indicated that they are exploring acquisition opportunities both within and outside California, focusing on multi-campus opportunities [46][47] Question: Hybrid program structure and student commitments - Management clarified that hybrid programs require full-time commitment, with students balancing online theory and in-person lab sessions [50][51] Question: Revenue per student and program performance - Management explained that the increase in revenue per student is attributed to more students entering higher-margin programs and the impact of new enrollments [55]

Financial Data and Key Metrics Changes - Revenue grew 40.7% year-over-year to $19.2 million, marking the fourteenth consecutive quarter of double-digit revenue growth [6][7] - Adjusted EBITDA increased 61.6% to $3 million, reflecting scale and effective cost management [7][14] - Net income rose 46% to $2 million, or $0.15 per diluted share, up from $0.10 in the prior year quarter [7][15] - Year-to-date revenue for six months increased 39.6% to $38.6 million [17] Business Line Data and Key Metrics Changes - New student starts increased by 49.4% to 593 from 397 last year, driven by strong enrollment and disciplined marketing execution [14][15] - The company launched new programs, including MRI and cardiac sonography, contributing to enrollment growth [8][10] Market Data and Key Metrics Changes - The healthcare occupation sector is projected to be the fastest-growing major industry from 2024 to 2034, with about 1.9 million openings projected each year [5][6] - The aging population and expanded access to care are driving demand for skilled human expertise in healthcare [6] Company Strategy and Development Direction - The company is focused on scaling quality, improving outcomes, and training job-ready graduates for essential roles in healthcare [5][6] - Strategic priorities include sustained enrollment growth, curriculum expansion, and operational innovation [20][21] - The company is pursuing additional regulatory approvals and exploring both organic expansion and acquisitions [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate regulatory changes and maintain strong compliance [24] - The company is positioned for continued investment in growth, with a strong balance sheet and positive operating cash flow [25][24] Other Important Information - The company received reaccreditation for its Integrity College of Health campus, reflecting confidence in its academic delivery and student outcomes [10] - The integration of Contra Costa Medical Career College is complete, with enrollment reaching all-time highs [10] Q&A Session Summary Question: Discussion on new student starts - Management noted that the increase in new student starts was driven by additional cohorts in hybrid programs and strong performance in vocational nursing [27][30] Question: Outlook on new programs - Management confirmed that new programs starting in Q3 and Q4 are expected to support 20-30 student cohorts, with recurring starts every 3-6 months [35][36] Question: M&A activity and pipeline - Management indicated that they are exploring acquisition opportunities both within and outside California, with a goal to announce a deal within the fiscal year [36][44] Question: Hybrid program student commitments - Management stated that students in hybrid programs are primarily full-time, benefiting from the flexibility of online learning combined with in-person lab sessions [47][48] Question: Revenue per student increase - Management explained that the increase in revenue per student is attributed to more students entering higher-margin programs and the timing of revenue recognition [52]