Quick Verdict
Legacy Education Inc. Q4 & Fiscal Year 2026 Earnings results reflect strong growth, with Legacy Education reporting Q4 FY2026 EPS of $0.13 (up 44.4% YoY) and revenue of $20.1 million (up 12% YoY). Full-year revenue reached a record $80.1 million (+24.8%) with net income of $9.1 million. Shares fell approximately 12–13% in after-hours trading following the announcement.
About Legacy Education Inc.
Legacy Education Inc. (NYSE American: LGCY) is a nationally accredited, for-profit post-secondary education company founded in 2009 and headquartered in Lancaster, California. The company operates four healthcare-focused career education schools, offering certificates and degrees in nursing, diagnostic medical sonography, surgical technology, dental assisting, medical assisting, business administration, and related allied health programs.prnewswire+1
Legacy Education targets working adults seeking career transitions into healthcare roles, with campuses in Lancaster, Temecula, and Concord (California), and has announced plans to expand into Houston, Texas, in fiscal 2027. As of June 30, 2026, the company reported a student population of 3,377, up 8.9% year-over-year, with a market capitalization of approximately $120 million and a trailing P/E ratio around 15.8x. The company employs a lean operational model with total operating expenses of $68.1 million for fiscal 2026.
Top Financial Highlights
Fourth Quarter FY2026 (ended June 30, 2026):
- Revenue: $20.1 million, up 12.0% from $17.9 million in Q4 FY2025
- Net Income: $1.88 million, up 53.3% from $1.23 million
- Diluted EPS: $0.13, up 44.4% from $0.09
- Operating Income: $2.61 million, up 31.3% from $1.99 million
- Operating Margin: 13.0%, expanded from 11.1%
- EBITDA: $2.80 million
- Adjusted EBITDA: $3.11 million
- Educational Services Expense: $11.26 million (56.0% of revenue)
- General & Administrative Expense: $6.03 million (30.0% of revenue)
- Income Tax Expense: $706,017
- Cash and Cash Equivalents: $22.73 million (as of June 30, 2026)
- Current Assets: $45.81 million
- Total Assets: $78.55 million
- Total Stockholders’ Equity: $52.77 million
- New Student Starts (Q4): Contributed to a full-year increase of 9.0%
- Student Population (Year-End): 3,377, up 8.9% from prior year
Fiscal Year 2026 Highlights:
- Revenue: $80.1 million, up 24.8% from $64.2 million
- Net Income: $9.14 million, up 21.3% from $7.53 million
- Diluted EPS: $0.66, up 11.9% from $0.59
- Operating Income: $11.8 million, up 18.3%; operating margin 14.8%
- EBITDA: $12.5 million
- Adjusted EBITDA: $13.6 million (17.0% margin)
- Operating Cash Flow: Approximately $4.0 million
- New Student Starts: 3,483, up 9.0%
- Bad Debt Expense: $4.0 million (5.0% of revenue)
- Marketing Expense: $5.9 million (up from $4.7 million)
Beat or Miss?
| Metric | Reported | Estimated / Prior Year | Difference / Analysis |
| Q4 EPS (Diluted) | $0.13 | ~$0.15 (analyst consensus) | Miss by ~13% |
| Q4 Revenue | $20.1 million | ~$20.5 million (implied expectations) | Slight miss |
| FY2026 EPS | $0.66 | $0.59 (FY2025 actual) | Beat by 11.9% YoY |
| FY2026 Revenue | $80.1 million | $64.2 million (FY2025 actual) | Beat by 24.8% YoY |
| Q4 Operating Margin | 13.00% | 11.1% (Q4 FY2025) | Expanded 190 bps |
| FY2026 Operating Margin | 14.80% | 15.6% (FY2025) | Slight contraction |
Note: Analyst consensus estimates for Q4 FY2026 were approximately $0.15 EPS, based on third-party earnings tracking platforms.
What Leadership Is Saying
“Our fiscal 2026 results reflect the continued strength of Legacy Education and the meaningful progress we are making across the organization. Revenue, new student starts and our year-end student population all increased, reflecting continued demand for our career-focused education programs. At the same time, we expanded our academic offerings, increased capacity at key campuses and advanced our geographic expansion strategy. 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
Historical Performance: Q4 FY2026 vs. Q4 FY2025
| Category | Q4 FY2026 | Q4 FY2025 | Change (%) |
| Revenue | $20.10 million | $17.95 million | 12.00% |
| Net Income | $1.88 million | $1.23 million | 53.30% |
| Operating Income | $2.61 million | $1.99 million | 31.30% |
| Diluted EPS | $0.13 | $0.09 | 44.40% |
| Operating Margin | 13.00% | 11.10% | +190 bps |
| Educational Services Expense | $11.26 million | $9.45 million | 19.20% |
| G&A Expense | $6.03 million | $6.39 million | -5.60% |
Historical Performance: FY2026 vs. FY2025
| Category | FY2026 | FY2025 | Change (%) |
| Revenue | $80.1 million | $64.2 million | 24.80% |
| Net Income | $9.14 million | $7.53 million | 21.30% |
| Operating Income | $11.8 million | $10.0 million | 18.30% |
| Diluted EPS | $0.66 | $0.59 | 11.90% |
| Operating Margin | 14.80% | 15.60% | -80 bps |
| Adjusted EBITDA | $13.6 million | $11.0 million | 24.10% |
| Student Population (Year-End) | 3,377 | 3,101 (est.) | 8.90% |
Competitor Context: For-Profit Education Sector
Legacy Education operates in the niche for-profit healthcare career education segment. Direct public comparables are limited, but broader education services peers include:
| Company | Ticker | Recent Quarter | Revenue (Quarter) | YoY Change | Net Income (Quarter) | EPS |
| Grand Canyon Education | LOPE | Q2 FY2026 (ended Mar 31, 2026) | $264.0 million | 6.70% | $75.3 million (annualized context) | $1.81 (adjusted) |
| Strategic Education Inc. | STRA | Q2 FY2026 (typical reporting) | ~$250 million range | Low single-digit growth | Varies by quarter | ~$1.00–$1.50 range |
| Legacy Education | LGCY | Q4 FY2026 (ended Jun 30, 2026) | $20.1 million | 12.00% | $1.88 million | $0.13 |
How the Market Reacted?
Shares of Legacy Education closed at $10.64 on September 24, 2026, up approximately 3.2% during regular trading hours. However, following the earnings announcement, the stock declined sharply in after-hours trading, falling to approximately $9.31–$9.36, representing a drop of 12–13% from the prior close.
The negative market reaction appears driven by the Q4 EPS miss versus analyst expectations ($0.13 reported vs. ~$0.15 expected), despite strong full-year revenue growth and record operational metrics. Investors may also have noted the slight contraction in full-year operating margin (14.8% vs. 15.6% in FY2025) and elevated G&A expense growth (+26.7% YoY), which outpaced revenue growth.
