Legacy Education Inc.
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
Red, because two documented substance findings come together. First, in the fiscal 2025 annual report management itself declares internal control over financial reporting not effective as of June 30, 2025, names neither the weakness nor a remediation plan, rates disclosure controls as effective in the same section, and is exempt as an emerging growth company from an independent audit of that control — a documented break in the control framework that underpins the reliability of every other figure. Second, the survival of the business rests on a single counterparty: without eligibility for U.S. federal student aid the revenue disappears, the largest school fills the 90 percent threshold to 86.82 percent, eligibility for the two largest schools expires on September 30, 2026, and two schools operate under temporary agreements renewed month by month. Explicitly not the reason for red are the share price, the valuation or the slowing growth — those are price and pace arguments, not substance arguments. Yellow would be supported by an otherwise healthy position: no going-concern qualification, positive equity of $49.52 million, $21.68 million of cash, almost no debt, a composite score of 3.0 and three profitable years in a row. Where the evidence sits between two levels, the more cautious one applies. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Legacy Education is a real, profitable education company with rising enrollment, a clean balance sheet and structurally demanded programs. Its filings with the U.S. securities regulator, the SEC, show three findings that weigh more than the growth rate: internal control over financial reporting that management itself calls not effective without naming a cause, existential dependence on a federal eligibility whose threshold the largest school fills to 86.82 of 90 percent, and profit of which only about 40 percent recently arrived as actual cash. Of a 29.7 percent revenue gain, 2.0 percent reached the shareholder. Not investment advice.
Business model and demand
Four career colleges in California with 3,550 students as of March 31, 2026 (up from 2,187 as of June 30, 2024), focused on nursing and allied health, with a 74.5 percent placement rate as of June 30, 2025. Demand for health care staff is structural and largely insensitive to the economic cycle.
Numbers and balance sheet
Consistently profitable: net income of $2.67 million (fiscal 2023), $5.11 million (2024) and $7.53 million (2025), plus $7.26 million in the nine months to March 31, 2026. As of March 31, 2026, $21.68 million of cash stood against roughly $0.6 million of interest-bearing debt, with equity of $49.52 million.
Internal control
The Form 10-K for fiscal 2025 (September 25, 2025, Item 9A) states that internal control over financial reporting was not effective as of June 30, 2025. The underlying weakness is not named, no remediation plan is given, and as an emerging growth company Legacy Education is exempt from an auditor attestation on that control.
Regulatory dependence
The bulk of revenue depends on eligibility for U.S. federal student aid. The largest school stood at 86.82 percent in fiscal 2025 against the 90 percent exclusion threshold (10-Q for March 31, 2026, Note 16); the participation agreements of the two largest schools expire on September 30, 2026 and two further schools operate under temporary agreements renewed month by month.
Earnings quality
Over the nine months to March 31, 2026, $7.26 million of net income produced only $2.88 million of cash from operations (prior-year period $4.76 million on a smaller profit). Receivables rose to $19.19 million current plus $2.11 million long-term, and the allowance for doubtful accounts from $1.64 million to $2.65 million.
Growth pace and valuation
Revenue growth fell from 40.7 percent in the quarter to December 31, 2025 to 15.0 percent in the quarter to March 31, 2026, and new student starts from 1,227 to 1,078. At $10.89 per share (August 27, 2026) that is roughly $138 million of market value, a P/E of about 18 and a P/S of about 1.8 — moderate against the past, demanding against earnings per share that grew 2.0 percent.
Worth Noting
Legacy Education reached the research list as a small, profitable market newcomer with barely two years of price history and only two analyst voices — a setup that rarely gets read closely in public. No price event and no news item prompted it.
Clarification on the listing: the shares began trading on the NYSE American on September 27, 2024 at $4.00 (prospectus 424B4 dated September 25, 2024), not in February 2025. Charts covering more than two years do not show a genuine history for this stock.
Two directions of confusion: Legacy Education Alliance, Inc. (SEC CIK 1561880) is a different company and has nothing to do with the California schools. Before this IPO the symbol LGCY belonged to Legacy Reserves LP (SEC CIK 1358831), an oil and gas partnership whose registration ended with a Form 15-12B on October 1, 2018; very long price and ratio series for “LGCY” can therefore mix two different companies.
Data basis: balance sheet and earnings figures come from the Form 10-K for fiscal 2025 (filed September 25, 2025) and the Form 10-Q for March 31, 2026 (filed May 14, 2026). Price, market capitalization and analyst estimate are as of August 28, 2026, with a closing price of August 27, 2026. The annual report for the fiscal year ended June 30, 2026 was not yet available at the time of writing.
On accreditation: the fiscal 2025 annual report flagged accreditations expiring for Contra Costa (April 2026) and Integrity (February 2026). The quarterly report for March 31, 2026 lists both as renewed — Contra Costa through April 2031 and Integrity through February 2032. Those deadlines are therefore settled.
Stock Watch
This analysis is as of August 29, 2026. Stock Watch will tell you what's changed at LGCY since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 8.20 $ to 14.30 $ · Last price: 10.40 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Education & Training Services
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Legacy Education Inc. LGCY | 0.1 | – | 9.6 | 47.2 | – | 39.5 | -16.7 |
| New Oriental Education & Technology EDU | 9.4 | 19.3 | 7.7 | 54.6 | 5.6 | 15.9 | 8.1 |
| TAL Education Group TAL | 6.6 | 7.3 | 10.2 | 56.0 | 18.1 | 34.2 | 7.6 |
| Laureate Education Inc LAUR | 5.2 | 19.1 | 9.5 | 36.8 | -10.1 | 8.6 | 20.7 |
| Graham Holdings Co GHC | 4.9 | 17.4 | 5.4 | 30.0 | 9.1 | 2.5 | -0.2 |
| Covista Inc. CVSA | 4.3 | 18.6 | 10.2 | 57.3 | 18.9 | 12.9 | -7.1 |
| Grand Canyon Education Inc LOPE | 4.0 | 19.2 | 10.7 | 53.3 | 30.9 | 7.1 | -27.0 |
| Stride Inc LRN | 3.4 | 12.6 | 5.3 | 37.8 | 20.8 | 17.9 | -41.6 |
| McGraw Hill, Inc. MH | 2.5 | 68.9 | 7.1 | 81.7 | 7.1 | 0.1 | -7.2 |
| Median of companies shown | 4.3 | 18.8 | 9.5 | 53.3 | 13.6 | 12.9 | -7.1 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 339 | -726 | -702 | -10.18 | 2 | -440 | 1,626 |
| 2017 | 314 | -85 | -56 | -0.79 | 0 | -482 | 1,300 |
| 2018 | 436 | 18 | -54 | -0.74 | 100 | -532 | 1,493 |
| 2019 | 555 | -2 | -1 | -0.02 | 176 | -217 | 1,475 |
| 2020 | 16 | -2 | -1 | -0.05 | -1 | 6 | 11 |
| 2021 | 58 | 9 | 10 | 0.36 | 5 | 11 | 18 |
| 2022 | 31 | 3 | 2 | 0.08 | 1 | 14 | 21 |
| 2023 | 35 | 4 | 3 | 0.10 | 2 | 15 | 27 |
| 2024 | 46 | 6 | 5 | 0.43 | 2 | 22 | 35 |
| 2025 | 64 | 10 | 8 | 0.59 | 8 | 41 | 69 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.11 | 8.40 | 14 | 29.20 | 10.30 | 1 | 1 |
| 2025: Q1 | 0.22 | 57.00 | 19 | 50.70 | 15.20 | 1 | 1 |
| 2025: Q2 | 0.10 | 27.70 | 18 | 40.80 | 6.80 | 3 | 3 |
| 2025: Q3 | 0.17 | 4.60 | 19 | 38.50 | 11.30 | 1 | 1 |
| 2025: Q4 | 0.16 | 46.00 | 19 | 40.70 | 10.60 | 1 | 1 |
| 2026: Q1 | 0.24 | 7.50 | 21 | 15.00 | 14.20 | 1 | 1 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 5 of our scanner strategies — each hit links to the scanner.
Growth
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 06/30/2027 | 0.80 | 0.72 – 0.89 | 93 | – | 3 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 12.2% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $4.7M |
|---|---|
| Market cap | $132.0M |
| Free cash flow in year ten | $15.0M |
| Terminal value as a share of market value | 59.9% |
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
In den sechs ausgewerteten SEC-Berichten (zwei Geschäftsberichte 10-K, vier Quartalsberichte 10-Q) kommt kein Bezug zu künstlicher Intelligenz vor — weder als Produkt oder Umsatzquelle noch als operativer Einsatz noch als Risikofaktor für das eigene Geschäft.
View the full file — quotes, sources, reviewed filings
Filings Reviewed: 10-K 2025-09-25 · 10-K 2024-10-01 · 10-Q 2026-05-14 · 10-Q 2026-02-12 · 10-Q 2025-11-13 · 10-Q 2025-05-15
Rated on August 29, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 27.8%
- More than 10% revenue growth is expected for the coming year 14.2%
- Share count grows by less than 3% a year -23.0%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 50.3%
- Gross margin at 40% or higher and without meaningful erosion 46.6%
- Goodwill from acquisitions does not grow faster than revenue 9.9%
- Net debt below twice EBITDA 3 m net cash
- Operating cash flow covers the profits of the last three years -4 m
- Return on capital at 15% or higher, or up versus two years ago 18.0%
- Insiders hold at least 10% or are net buyers 25.2%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
6/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% -16.9%
- Exp. sales growth 3Y > 5% 45.6%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 34.1%
- Net debt < 4x EBIT -0.3x
- EBIT positive, 10Y straight 6
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% 24.8%
- ROCE > 15% 18.0%
- Expected return > 10% 41.2%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Aug 10, 2026 | Rohmann LeeAnn | Chief Executive Officer | Sell | 5,000 | 10.56 | 52,780 |
| Jul 8, 2026 | Rohmann LeeAnn | Chief Executive Officer | Sell | 5,000 | 11.50 | 57,503 |
The company
About the Company
Legacy Education Inc. bietet Bildungsdienstleistungen für Studierende, Schulabgänger und berufstätige Eltern in den USA an.
- Employees
- 280
- Headquarters
- Lancaster, CA
- Address
- 701 W Avenue K, 93534 Lancaster, United States
- Phone
- 661 940 9300
- Website
- legacyed.com
- IPO Date
- 09/26/2024
- ISIN
- US52474R2076
Management
| Name | Title | Birth Year |
|---|---|---|
| LeeAnn Rohmann | Founder, Chairman & CEO | 1969 |
| Brandon J. Pope | Chief Financial Officer | 1964 |
| Ragheb Milad | Chief Academic Officer | 1981 |
| Joe Bartolome | Senior Vice President of Operations | – |
| Nicole Casali Joseph | Senior Vice President | 1968 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/05/2026 Legacy Education Inc. (LGCY): Other Events; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.