The Company's History: A Tradition of Excellence

Legacy Education Inc. (LGCY) is an award-winning, nationally accredited, for-profit post-secondary education company that has been empowering students to achieve their professional goals since its inception in 2009. With a steadfast focus on delivering high-quality, career-oriented programs, Legacy Education has carved out a distinctive niche in the competitive education landscape.

Legacy Education's journey began in 2009 when it was founded as Legacy Education, LLC in the state of California. The Company's mission was to provide career-focused, post-secondary education services to students at all stages of adult life, from recent high school graduates to working professionals. Over the years, Legacy Education has strategically expanded its footprint, acquiring several accredited academic institutions, including High Desert Medical College (HDMC) in 2010, Central Coast College (CCC) in 2019, and most recently, Contra Costa Medical Career College (CCMCC) in 2024.

The acquisition of CCMCC, which was completed in December 2024, marked a significant milestone for Legacy Education. The addition of CCMCC's 14 programs, including Surgical Technology, Sterile Processing, Pharmacy Technician, and Dental Assistant, has further strengthened the Company's comprehensive educational offerings, positioning it as a leading provider of allied health and technical training programs in the region.

Legacy Education's initial focus was on offering programs in healthcare, veterinary, medical information technology, business management, and green technology. The acquisition of HDMC in 2010 significantly expanded the company's reach, as HDMC had been established in 2002 and had been offering classes since 2003. HDMC started with campuses in Lancaster, California, and later added branches in Bakersfield and Temecula, California, due to enrollment growth and high demand.

The company's growth continued with the acquisition of Central Coast College (CCC) in 2019. CCC, established in 1983, had moved to its current location in Salinas, California, in 1991 to accommodate growing enrollment and new training programs. In the same year, Legacy Education entered into a Membership Interest Purchase Agreement to acquire Integrity College of Health, which was established in 2007 and is located in Pasadena, California.

Throughout its history, Legacy Education has faced and overcome various challenges. The company successfully navigated regulatory scrutiny and changes to Title IV funding rules that impacted the for-profit education sector, maintaining compliance and continuing to operate its accredited academic institutions. During the COVID-19 pandemic, Legacy Education demonstrated its adaptability by quickly transitioning students to online learning to ensure continuity of education.

Despite these challenges, the company has consistently grown its student enrollment, expanded its program offerings, and established a strong reputation as a provider of quality, career-focused education. Legacy Education's focus on high-demand healthcare and technical programs has been instrumental in meeting the needs of both students and employers, contributing significantly to its success over the past decade and a half.

Financial Resilience and Growth

Legacy Education's financial performance has been consistently robust, with the Company reporting strong growth in both revenue and profitability. For the fiscal year ended June 30, 2024, the Company reported revenue of $46.0 million, a 29.7% increase compared to the prior year. This growth was driven by a 21.8% increase in new student starts, as well as the successful integration of the CCMCC acquisition.

The Company's net income for the fiscal year 2024 was $5.1 million, translating to earnings per share of $0.55. Legacy Education's healthy financial position is further evidenced by its strong liquidity, with $16.9 million in cash and cash equivalents as of December 31, 2024. The Company's balance sheet remains well-capitalized, with a debt-to-equity ratio of just 0.22, providing ample financial flexibility to fund future growth initiatives.

For the most recent quarter (Q2 2025), Legacy Education reported revenue of $13.6 million, representing a 29.2% year-over-year growth. Net income for the quarter stood at $1.4 million, an 8.5% increase compared to Q2 2024. The Company's performance was primarily driven by a 44.8% growth in ending student enrollment to 2,768 students, as well as the acquisition of Contra Costa Medical Career College, which contributed revenue and earnings for the last two weeks of the quarter.

For the six months ended December 31, 2024, Legacy Education reported revenue of $27.6 million, a 32.1% year-over-year growth. Net income for this period was $3.5 million, representing a 47.9% increase compared to the same period in the previous year. The Company also reported strong EBITDA and Adjusted EBITDA growth, with EBITDA reaching $4.5 million (43.8% year-over-year growth) and Adjusted EBITDA at $4.7 million (49.5% year-over-year growth).

Liquidity

Legacy Education's strong liquidity position is a testament to its financial prudence and operational efficiency. With $16.9 million in cash and cash equivalents as of December 31, 2024, the Company maintains a robust financial cushion to support its ongoing operations and strategic initiatives. This healthy liquidity level provides Legacy Education with the flexibility to navigate potential economic uncertainties and capitalize on growth opportunities as they arise.

The Company's debt-to-equity ratio of 0.22 further underscores its solid financial footing. Additionally, Legacy Education boasts a current ratio and quick ratio of 2.46, indicating its strong ability to meet short-term obligations. Notably, the Company does not have a revolving line of credit or other debt facility, which speaks to its financial stability and efficient capital management.

Operational Excellence and Expanding Footprint

Legacy Education's operational excellence is a key driver of its success. The Company's focus on delivering high-quality, career-oriented programs has enabled it to maintain strong relationships with employers in the healthcare and technical sectors, who actively seek out its graduates to fill critical workforce gaps. This demand is reflected in the Company's impressive enrollment growth, which has compound annually at a rate of 25% over the past four years.

To support this growth, Legacy Education has undertaken strategic investments in its facilities, faculty, and curriculum. The integration of advanced simulation technology and the implementation of hybrid learning models have further enhanced the student experience and engagement. Additionally, the recent acquisition of CCMCC has expanded the Company's geographic footprint, providing access to new markets and opportunities for future expansion.

Legacy Education operates four accredited academic institutions:

1. High Desert Medical College (HDMC): Established in 2002, HDMC offers 33 programs across fields such as ultrasound technology, medical billing and coding, nursing, pharmacy technology, and veterinary assisting. As of December 31, 2024, HDMC had 1,770 students enrolled.

2. Central Coast College (CCC): Established in 1983, CCC offers programs in business, computers, medical administration, nursing assistance, ultrasound technology, and veterinary technology. As of December 31, 2024, CCC had 448 students enrolled.

3. Contra Costa Medical Career College (CCMCC): Acquired in December 2024, CCMCC offers programs in vocational nursing, surgical technology, sterile processing, medical assisting, and diagnostic medical sonography. At the time of acquisition, CCMCC had 389 students enrolled.

4. Integrity College of Health: Acquired in December 2019, Integrity provides programs in vocational nursing, registered nursing, medical assisting, medical billing and coding, and diagnostic medical sonography. As of December 31, 2024, Integrity had 157 students enrolled.

Navigating the Regulatory Landscape

The for-profit education sector has faced heightened regulatory scrutiny in recent years, presenting both challenges and opportunities for industry participants. Legacy Education has demonstrated its ability to navigate this complex landscape, maintaining its accreditations and regulatory approvals, including its eligibility to participate in Title IV federal financial aid programs.

The Company's focus on high-demand allied health and technical programs has been a key differentiator, as these fields continue to experience acute workforce shortages. This positioning has helped Legacy Education navigate the regulatory environment, as its programs are closely aligned with the needs of employers and the overall economy.

Looking Ahead: A Promising Future

As Legacy Education continues to execute on its strategic growth initiatives, the Company's outlook remains promising. The strong demand for its educational offerings, coupled with its proven ability to integrate acquisitions and drive operational efficiencies, positions Legacy Education for sustained growth in the years ahead.

While the Company has not provided specific numerical guidance for the future, it has outlined several strategic priorities:

1. Focusing on enrollment growth by expanding marketing reach and partnerships to drive new student starts.
2. Continuing to launch additional healthcare and technical programs aligned with industry demand.
3. Optimizing costs while investing in growth initiatives.
4. Exploring selective acquisitions to enhance their educational portfolio.
5. Maintaining confidence in their positioning despite ongoing scrutiny of the for-profit education sector, due to their focus on high-need healthcare careers where employers express urgent demand for their graduates.

Furthermore, the Company's commitment to innovation, both in its program offerings and delivery methods, demonstrates its agility in adapting to the evolving needs of students and the broader employment landscape. With a solid financial foundation, a talented team, and a clear vision for the future, Legacy Education is well-poised to capitalize on the significant opportunities in the career-focused education market.

Conclusion

Legacy Education Inc. (LGCY) has established itself as a leading provider of career-focused, post-secondary education in the United States. The Company's unwavering commitment to excellence, its strategic acquisitions, and its ability to navigate the regulatory landscape have positioned it for continued success. Operating exclusively in the United States with campuses in California, Legacy Education has demonstrated consistent growth and financial resilience.

The Company's focus on high-demand allied health programs, where industry demand for skilled graduates remains strong, positions it well to capitalize on the need for trained professionals in the healthcare sector. With no major scandals, short seller reports, or CEO departures, Legacy Education maintains a strong reputation in the industry.

As Legacy Education continues to expand its footprint and enhance its educational offerings, it remains a compelling investment opportunity for those seeking exposure to the dynamic and high-growth for-profit education sector. The Company's track record of enrollment growth, strategic acquisitions, and financial performance underscores its potential for long-term success in meeting the critical workforce needs of the healthcare and technical sectors.