Legacy Education Inc.

For Q3 fiscal 2026, revenue increased 15% to $21.4 million from $18.6 million a year ago. EBITDA rose 8% to $4.1 million, adjusted EBITDA increased 12.6% to $4.4 million, net income increased 7.5% to $3 million, and diluted EPS increased 4.8% to $0.22 versus $0.21. Revenue for the first 9 months of fiscal 2026 increased 29.7% to $60 million from $46.2 million, adjusted EBITDA rose to $10.5 million from $8.6 million, and diluted EPS was $0.52 versus $0.51. Management did not provide formal next-quarter or full-year guidance, but it said Q4 will include additional program rollouts, including MRI and cardiac sonography in Salinas, and continued capacity expansion in Lancaster, Temecula, and a new branch under LOI.

LeeAnn Rohmann framed the quarter as proof that Legacy is “not only growing” but “scaling,” emphasizing profitable growth, operating leverage, and capacity-building for the next stage. She said the company is using its balance sheet strength to fund new programs, facility expansion, and selective acquisitions without sacrificing profitability. Her tone was confident and constructive, with repeated emphasis on disciplined execution, compliance, and long-term value creation.

Brandon Pope highlighted strong financial performance and balance-sheet flexibility. He cited 20.6% adjusted EBITDA margin, educational services expense of $11 million or 51.7% of revenue versus 54.4% last year, and general and administrative expenses of $6.2 million or 28.8% of revenue; he also noted $21.7 million of cash, $30.9 million of working capital, only $600,000 of debt, and positive operating cash flow of $2.9 million. He said the company is prioritizing disciplined capital allocation while funding growth initiatives, including program expansion, branch readiness, compliance infrastructure, software systems, and selective acquisitions.

Analysts focused on M&A, organic expansion, and capacity ramp at Lancaster, Temecula, and the new branch under LOI. Management said branch expansion is expected outside California, that the new location is around 25,000 square feet, and that it could support close to 17 programs initially with room to add more space later. On program ramps, management said state approval timing shortened the marketing runway for new surgical tech and sterile processing cohorts, but approvals are now in place and capacity remains available; Q4 should also see MRI and cardiac sonography launched in Salinas.