Legacy Education Inc. (LGCY) reported record fiscal 2026 results on Wednesday, with annual revenue surging 24.8% to $80.1 million, yet its shares fell 8.36% in after-hours trading to $9.75 from a regular-session close of $10.64.
For the full year ended June 30, 2026, the medical-education company posted diluted EPS of $0.66, up 11.9% from $0.59, while operating income rose 18.3% to $11.8 million. Net income climbed 21.3% to $9.1 million, and adjusted EBITDA grew 24.1% to $13.6 million, with an adjusted EBITDA margin of 17.0%, up from 16.9% a year earlier.
Fourth-quarter results also showed strong momentum. Revenue reached $20.1 million, a 12% increase from $17.9 million, while quarterly diluted EPS jumped 44.4% to $0.13 from $0.09. Operating income rose to $2.6 million from $2.0 million, and net income increased to $1.9 million from $1.2 million. The quarterly adjusted EBITDA margin expanded to 15.5% from 13.3%.
Organic revenue from preexisting brands grew 16.5%, accounting for 62% of the year-over-year revenue increase, or $9.9 million of the $15.9 million total gain. Gross profit margin over the trailing twelve months stood at 47%, with total revenue growth over the same period reaching 32%.
CEO LeeAnn Rohmann said the company crossed $80 million in annual revenue and finished the year with clear operating leverage. "We produced strong organic revenue growth across our preexisting brands, successfully integrated Contra Costa Medical Career College, and finished the year with clear operating leverage," she said.
The balance sheet remains solid. Legacy Education held $22.7 million in cash as of June 30, compared with $20.3 million a year earlier, along with working capital of $33.4 million and stockholders' equity of $52.8 million. The current ratio stood at 3.36, and the company carries minimal debt with no revolving line of credit or other debt facilities.
On the expansion front, Central Coast College plans to open a Houston branch in November 2026, pending regulatory and accreditation approvals. A 28,000-square-foot space has been leased there, designed to serve between 400 and 600 students within one to two years. High Desert Medical College in Lancaster added 6,000 square feet, and its third campus is expected to launch a surgical technology program by the end of the first quarter of fiscal 2027. Contra Costa Medical Career College received approval for three new programs, including associate degrees in magnetic resonance imaging and cardiac sonography, plus a veterinary assistant certificate. Both Integrity College of Health and Contra Costa Medical Career College were granted maximum five- and six-year accreditation terms by ACCET.
New student starts grew 9% to 3,483, and total ending student population increased 8.9% to 3,377. Active enrollment at preexisting brands rose 8.1% to 2,869 students.
Analysts maintain price targets ranging from $14.50 to $15.40, well above the after-hours price. The stock trades in a 52-week range of $7.94 to $14.70.
