Legacy Education (LGCY) Q4 and FY2026 Earnings Call: Revenue and Margins Rise
Source Tradingkey
Key Takeaways
- Fiscal 2026 revenue rose 24.8% to $80.1 million. Pre-existing brands generated $9.9 million, or roughly 62%, of the $15.9 million year-over-year increase.
- Fourth-quarter revenue increased 12% to $20.1 million, while adjusted EBITDA grew 30.6% to $3.1 million. Adjusted EBITDA margin expanded 220 basis points to 15.5%.
- New student starts increased 9% to 3,483 for the full year. The year-end student population reached 3,377, up 8.9%, although fourth-quarter starts remained down 4% year over year.
- Legacy Education ended fiscal 2026 with $22.7 million in cash, $33.4 million in working capital and minimal debt, supporting program expansion, new campuses and potential acquisitions.
- The planned 28,000-square-foot Houston branch is projected to open in November 2026, subject to regulatory and accreditation approvals. Management expects the location could reach 400 to 600 students within one to two years.
- Management expects margins to continue improving in fiscal 2027, with most of the anticipated benefit likely in the second half.
Core Financial Data
| Metric | Q4 FY2026 | Year-over-year change | FY2026 | Year-over-year change |
|---|---|---|---|---|
| Revenue | $20.1 million | +12.0% | $80.1 million | +24.8% |
| Operating income | $2.6 million | +31.3% | $11.8 million | +18.3% |
| Operating margin | 13.0% | +190 bps | 14.8% | — |
| Net income | $1.9 million | +53.3% | $9.1 million | +21.3% |
| Diluted EPS | $0.13 | +44.4% | $0.66 | +11.9% |
| Adjusted EBITDA | $3.1 million | +30.6% | $13.6 million | +24.1% |
| Adjusted EBITDA margin | 15.5% | +220 bps | 17.0% | — |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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