Legacy Education Inc. reported first‑quarter 2026 revenue of $19.4 million, up 38.5 percent from $14.0 million in the same period last year and 4.5 percent higher than the $18.6 million earned in Q3 2025. Diluted earnings per share were $0.16, slightly below the consensus estimate of $0.15 but still a beat of $0.01, or 6.7 percent, over the $0.15 forecast. Net income rose 4.6 percent to $2.2 million, while adjusted EBITDA climbed 9.6 percent to $3.0 million, giving an adjusted EBITDA margin of 15.9 percent.
The revenue surge was driven by a 31.6 percent increase in new student starts and a 37.7 percent rise in total enrollment, which reached an all‑time high of 3,495 students. The company’s recent acquisition of the Contra Costa Medical Career College and the launch of new healthcare and technical programs have broadened its program mix, allowing it to capture higher‑margin courses and attract a broader student base.
Profitability improvements stem from disciplined cost management amid significant capital outlays for program expansion. While the company invested heavily in new campuses and technology platforms, it maintained a stable cost structure, resulting in a modest margin expansion. The adjusted EBITDA margin of 15.9 percent reflects the company’s ability to leverage scale and keep operating expenses in line with revenue growth.
CEO LeeAnn Rohmann highlighted the quarter as evidence of “the strength of our execution and the effectiveness of our growth strategies.” She noted that the company’s focus on career‑focused healthcare education continues to pay off, and that the investments in new programs and expansion costs are expected to yield sequential margin improvement as enrollment stabilizes.
Management did not issue new forward guidance for the remainder of the fiscal year, leaving investors to interpret the current results as a baseline for future performance. The absence of updated guidance suggests the company is maintaining a cautious outlook while it evaluates the impact of its recent expansion initiatives.
Investor reaction was mixed. The revenue beat and enrollment growth were viewed positively, but the slight EPS miss tempered enthusiasm. Analysts noted that while the company’s top‑line growth is robust, the near‑term EPS performance indicates that the company is still absorbing the costs of its expansion strategy.
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