Fourth quarter and fiscal year ended June 30, 2026
Filed Sep 29, 2026Legacy Education Delivers Record Fiscal 2026 Results with 25% Revenue Growth and Continued Enrollment Gains
Fiscal 2026 revenue grew 24.8% to $80.1 million, net income grew 21.3% to $9.1 million, adjusted EBITDA increased to $13.6 million, and new student starts and year-end student population increased. Fourth-quarter revenue, net income, diluted EPS, EBITDA, and adjusted EBITDA also increased year over year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth quarter tuition and related income, netGAAP | $20,101,822 | – | 12.0% |
| Fiscal 2026 tuition and related income, netGAAP | $80,056,194 | – | 24.8% |
| Fourth quarter educational servicesGAAP | 11,263,632 | – | – |
| Fiscal 2026 educational servicesGAAP | 42,921,548 | – | 25.3% |
| Fiscal 2026 educational services as a percentage of revenueGAAP | 53.6% | – | – |
| Fourth quarter general and administrative expenseGAAP | 5,910,204 | – | – |
| Fiscal 2026 general and administrative expenseGAAP | 24,210,228 | – | 26.7% |
| Fiscal 2026 general and administrative expense as a percentage of revenueGAAP | 30.2% | – | – |
| Fiscal 2026 marketing expenseGAAP | $5.9M | – | – |
| Fiscal 2026 bad debt expenseGAAP | approximately $4.0 million, or 5% of revenue | – | – |
| Fourth quarter general and administrative expense - related partyGAAP | 124,200 | – | – |
| Fiscal 2026 general and administrative expense - related partyGAAP | 469,900 | – | – |
| Fourth quarter depreciation and amortizationGAAP | 190,990 | – | – |
| Fiscal 2026 depreciation and amortizationGAAP | 644,085 | – | – |
| Fourth quarter total costs and expensesGAAP | 17,489,026 | – | – |
| Fiscal 2026 total costs and expensesGAAP | 68,245,761 | – | – |
| Fourth quarter operating incomeGAAP | 2,612,796 | – | – |
| Fiscal 2026 operating incomeGAAP | 11,810,433 | – | – |
| Fourth quarter loss on disposal of fixed assetsGAAP | (2,917) | – | – |
| Fiscal 2026 loss on disposal of fixed assetsGAAP | (14,812) | – | – |
| Fourth quarter loss on debt settlementGAAP | (333,250) | – | – |
| Fiscal 2026 loss on debt settlementGAAP | (333,250) | – | – |
| Fourth quarter interest expenseGAAP | (7,940) | – | – |
| Fiscal 2026 interest expenseGAAP | (68,150) | – | – |
| Fourth quarter interest incomeGAAP | 317,854 | – | – |
| Fiscal 2026 interest incomeGAAP | 1,287,800 | – | – |
| Fourth quarter total other income (expense)GAAP | (26,253) | – | – |
| Fiscal 2026 total other income (expense)GAAP | 871,588 | – | – |
| Fourth quarter income before income taxesGAAP | $2,586,543 | – | – |
| Fiscal 2026 income before income taxesGAAP | $12,682,021 | – | – |
| Fourth quarter income tax expenseGAAP | (706,017) | – | – |
| Fiscal 2026 income tax expenseGAAP | (3,542,538) | – | – |
| Fourth quarter net incomeGAAP | $1,880,526 | – | 53.3% |
| Fiscal 2026 net incomeGAAP | $9,139,483 | – | 21.3% |
| Fourth quarter basic net income per shareGAAP | $0.15 | – | – |
| Fiscal 2026 basic net income per shareGAAP | $0.73 | – | – |
| Fourth quarter diluted net income per shareGAAP | $0.13 | – | 44.4% |
| Fiscal 2026 diluted net income per shareGAAP | $0.66 | – | 11.9% |
| Fourth quarter basic weighted average shares outstandingGAAP | 12,711,023 | – | – |
| Fiscal 2026 basic weighted average shares outstandingGAAP | 12,599,955 | – | – |
| Fourth quarter diluted weighted average shares outstandingGAAP | 14,093,403 | – | – |
| Fiscal 2026 diluted weighted average shares outstandingGAAP | 13,935,937 | – | – |
| Fourth quarter EBITDAnon-GAAP | 2,803,786 | – | – |
| Fiscal 2026 EBITDAnon-GAAP | 12,454,518 | – | – |
| Fourth quarter non-cash compensationnon-GAAP | 309,772 | – | – |
| Fiscal 2026 non-cash compensationnon-GAAP | 1,170,977 | – | – |
| Fourth quarter adjusted EBITDAnon-GAAP | $3,113,558 | – | – |
| Fiscal 2026 adjusted EBITDAnon-GAAP | $13,625,495 | – | – |
| Fiscal 2026 new student startsother | 3,483 | – | 9.0% |
| Year-end student populationother | 3,377 | – | 8.9% higher than 2025 |
What drove it
- Fiscal 2026 revenue growth was driven by new student starts of 3,483 and a 9% increase in student enrollment to 3,377.
- Fiscal 2026 revenue included a full year of CCMCC acquisition revenue, compared with only half in the prior year following the December 2024 acquisition.
- Educational services expense increased with instructional and staffing needs supporting enrollment growth, rent, books, supplies, externship fees, and approximately $0.6 million of additional non-cash compensation charge.
- The Company expanded capacity at High Desert Medical College’s Lancaster and Temecula campuses.
- The Company signed a lease for its first planned campus in Houston, Texas.
- Contra Costa Medical Career College received approval for two degree programs and one certificate program, with launches planned for the second quarter of fiscal 2027.
Concerns
- Fiscal 2026 general and administrative expense increased 26.7% to 24,210,228 and increased as a percentage of revenue to 30.2% from 29.8%.
- Bad debt expense was approximately $4.0 million, or 5% of revenue, in fiscal 2026.
- Fiscal 2026 included a loss on debt settlement of (333,250).
- Fiscal 2026 total other income (expense) declined to 871,588 from 1,036,503.
What to watch
- New student starts and student population trends.
- Enrollment conversion from expanded Lancaster and Temecula capacity.
- Progress toward opening the planned Houston, Texas campus.
- Launches of the two newly approved degree programs and one certificate program planned for the second quarter of fiscal 2027.
- Marketing expense, bad debt expense, and general and administrative expense as a percentage of revenue.
Balance sheet and cash flow
- Cash and cash equivalents: $22,731,159 as of June 30, 2026.
- Current assets: 45,807,980 as of June 30, 2026.
- Total assets: 78,549,749 as of June 30, 2026.
- Current liabilities: 12,364,750 as of June 30, 2026.
- Total stockholders’ equity: 52,765,456 as of June 30, 2026.
Analysis
Legacy Education reported fiscal 2026 tuition and related income, net of $80,056,194, up 24.8% from $64,168,025. Net income increased 21.3% to $9,139,483 and diluted net income per share increased 11.9% to $0.66. Growth reflected new student starts of 3,483, a 9% increase in student enrollment to 3,377, and a full year of revenue from the CCMCC acquisition compared with half a year in fiscal 2025.
Fourth-quarter momentum remained positive. Tuition and related income, net increased 12.0% to $20,101,822, net income increased 53.3% to $1,880,526, and diluted net income per share increased 44.4% to $0.13. Fourth-quarter EBITDA was 2,803,786 versus 2,114,932, while adjusted EBITDA was $3,113,558 versus $2,384,178.
Cost growth tracked revenue growth but showed pressure in administrative spending. Fiscal 2026 educational services increased 25.3% to 42,921,548 and represented 53.6% of revenue, compared with 53.4% in fiscal 2025. General and administrative expense increased 26.7% to 24,210,228 and reached 30.2% of revenue, compared with 29.8%. Management cited higher marketing expense, professional fees, and bad debt expense associated with enrollment, accounts receivable growth, and expected credit loss reassessments.
Adjusted EBITDA increased to $13,625,495 from $10,980,844, with non-cash compensation of 1,170,977 included in the reconciliation. The balance sheet showed $22,731,159 of cash and cash equivalents, $78,549,749 of total assets, and $52,765,456 of total stockholders’ equity as of June 30, 2026. The release did not provide cash flow or debt balances.
Strategically, the Company expanded Lancaster and Temecula capacity, signed a lease for a first planned Houston campus, and added academic-program approvals at CCMCC. No fiscal 2027 financial guidance was issued. Operating attention centers on sustaining enrollment growth while managing educational-services, marketing, and bad-debt costs as the Company adds capacity, programs, and geographic reach.
Management, verbatim
Our fiscal 2026 results reflect the continued strength of Legacy Education and the meaningful progress we are making across the organization.
LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc.
Revenue, new student starts and our year-end student population all increased, reflecting continued demand for our career-focused education programs.
LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc.
We enter fiscal 2027 with strong momentum and a clear focus on serving more students, broadening access to high-quality career education and creating sustainable, long-term value for our shareholders.
LeeAnn Rohmann, Chief Executive Officer of Legacy Education Inc.
Not in the filing
stated, not guessed- Forward financial guidance for fiscal 2027.
- Previous-period outlook for comparison with reported results.
- Segment revenue reporting.
- Gross margin or gross profit.
- Operating cash flow.
- Free cash flow.
- Debt balance.
- Share repurchases, dividends, or other capital-return figures.
- Prior-quarter comparisons for reported fourth-quarter and fiscal-year metrics.
- Income tax rate.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.