Cash conversion efficiency remains a concern, highlighted by a $3.0 million negative working capital adjustment in 2026Q3 that significantly impacts free cash flow margins.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'02 |
|---|
| Cash from Operations | 5.88M | 7.77M | 1.65M | 1.77M | 1.09M | 4.84M | -596.95K | 175.94M | 100.21M | -310K | 2.05M | 207.22M | 241.13M | 149.64M | 184.24M | 101.37M | 37.48M | 140.99M | 57.15M | 29.59M | 14.41M | 8.59M | 3.94M |
| Operating CF Margin % | - | 12.11% | 3.58% | 4.99% | 3.55% | 8.37% | -3.63% | 31.71% | 22.97% | -0.1% | 0.6% | 38.93% | 49.67% | 43.19% | 54.69% | 46.85% | 27.3% | 65.45% | 50.92% | 42.83% | 74.33% | 60% | 55.48% |
| Operating CF Growth % | 0% | 371.14% | -6.82% | 62.54% | -77.49% | 910.23% | -100.34% | 75.57% | 32425.48% | -115.15% | -99.01% | -14.07% | 61.14% | -18.78% | 81.75% | 170.45% | -73.41% | 146.71% | 93.13% | 105.36% | 67.81% | 117.87% | - |
| Net Income | 8.49M | 7.53M | 5.11M | 2.67M | 2.34M | 3.25M | -687.64K | 43.83M | -53.9M | -55.82M | -701.54M | -283.64M | -35.27M | 68.64M | 72.06M | 10.81M | -92.83M | 158.21M | -55.66M | 4.36M | 5.86M | 9.22M | 0 |
| Depreciation & Amortization | 577.77K | 441.72K | 265.04K | 224.49K | 239.64K | 209.76K | 232.83K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 65.03M | 28.8M | 19.29M | 2.38M | 883.46K | 0 |
| Stock-Based Compensation | 565.2K | 0 | 1.88M | 0 | 0 | 12.93K | 2.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 502.45K | 502.45K | -730K | -75.79K | 232.97K | -45.06K | 114.14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.1M | 3.08M | 348.79K | -152.89K | -42.61K | 150.6K | -150K | 109.63M | 153.76M | 62.31M | 712.72M | 484.83M | 257.58M | 97.23M | 104.65M | 87.55M | 141.73M | -94.25M | 90.31M | 7.18M | 7.47M | -819.08K | 3.94M |
| Working Capital Changes | -5.35M | -3.79M | -5.23M | -893.11K | -1.68M | 1.26M | -1.05M | 15.86M | -5.66M | -13.84M | -15.58M | 3.95M | 15.69M | -16.25M | 6.42M | -136K | -14.14M | 11.99M | -6.3M | -1.24M | -1.3M | -694.87K | 0 |
| Change in Receivables | -2.88M | -3.15M | 348.79K | -1.99M | -2.56M | -675.04K | -1.03M | 18.19M | -23.57M | -7.2M | 6.46M | -1.28M | 1.36M | -19.96M | -8.47M | -14.54M | -3.46M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 828.63M | -2.63M | 13.49M | -1.21M | -33.16M | 9.64M | 9.51M | 231K | 14.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 165.89K | 1.06M | 1.28M | 163.41K | 204.12K | 1.05M | 624.08K | -1.86M | 4M | -4.49M | 10.79M | -3.23M | 4.19M | -1.46M | 2.65M | -949K | -4.37M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.13M | -6.98M | -423.71K | -195.08K | -294.87K | -199.59K | -271.01K | -188.13M | -279.24M | 119.99M | -377.42M | -632.41M | -209.4M | -696.28M | -206.82M | -285.25M | 23.29M | -258.04M | -196.5M | -62.51M | -68.96M | 1.02M | -1.9M |
| Capital Expenditures | -1.13M | -844.32K | -423.71K | -195.08K | -294.87K | -199.59K | -86.48K | -228.26M | -314.49M | -41.93M | -579.46M | -640.41M | -204.91M | -711.96M | -207.56M | -311.77M | -22.73M | -217.98M | -196.7M | -63.17M | -66.91M | -3.33M | -2.74M |
| CapEx % of Revenue | 1.45% | 1.32% | 0.92% | 0.55% | 0.96% | 0.35% | 0.53% | 41.14% | 72.08% | 13.34% | 171.04% | 120.31% | 42.21% | 205.5% | 61.61% | 144.08% | 16.56% | 101.19% | 175.26% | 91.43% | 345.2% | 23.24% | 38.58% |
| Acquisitions | 0 | -6.13M | 0 | 0 | 0 | 0 | -69.53K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -115K | 40.13M | 35.26M | 161.92M | 202.04M | 8M | -4.49M | 9.78M | 112K | 26.52M | 46.03M | -40.05M | 197K | 662.22K | -2.05M | 4.35M | 846K |
| Cash from Financing | -395.15K | 9.15M | -238.55K | -1.05M | 129.03K | 1.79M | 2.06M | 12.11M | 177.72M | -119.13M | 376.65M | 423.34M | -32.66M | 547M | 22.25M | 183.14M | -59.05M | 109.95M | 147.9M | 32.02M | 55.74M | -8.96M | -1.99M |
| Debt Issued (Net) | -1.02M | -388.1K | -238.55K | -168.39K | -135.97K | -101.41K | 1.91M | -211.01K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 623.98K | 9.54M | 0 | 33.8K | 265K | 1.89M | 145K | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -916.72K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -60K | 0 | 0 | 0 | 0 | 0 | -103K | 0 | -37K | 0 | 0 | 0 | 0 | 0 | 0 | -69.94M | 0 | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 558.2K | 177.72M | -119.13M | 376.65M | 423.34M | -32.66M | 547M | 22.25M | 183.14M | -59.05M | 109.95M | 147.9M | 32.02M | 55.74M | -8.96M | -1.99M |
| Net Change in Cash | 4.35M | 9.94M | 986.54K | 523.04K | 922.76K | 6.43M | 1.19M | -77K | -1.31M | 549K | 1.28M | -1.86M | -925K | 358K | -327K | -739K | 1.72M | -7.1M | 8.54M | -893.07K | 1.19M | 651.64K | -1.99M |
| Free Cash Flow | 4.75M | 6.92M | 1.23M | 1.57M | 793.73K | 4.64M | -683.43K | -52.32M | -214.28M | -42.24M | -577.42M | -433.2M | 36.22M | -562.32M | -23.33M | -210.4M | 14.75M | -77M | -139.56M | -33.58M | -52.51M | 5.26M | 1.2M |
| FCF Margin % | 6.1% | 10.79% | 2.66% | 4.44% | 2.59% | 8.02% | -4.16% | -9.43% | -49.11% | -13.44% | -170.44% | -81.38% | 7.46% | -162.3% | -6.92% | -97.23% | 10.74% | -35.74% | -124.34% | -48.6% | -270.87% | 36.76% | 16.89% |
| FCF Growth % | 22.8% | 465.18% | -22.18% | 98.35% | -82.88% | 778.5% | 98.69% | 75.58% | -407.27% | 92.68% | -33.29% | -1295.92% | 106.44% | -2310.49% | 88.91% | -1526.63% | 119.15% | 44.83% | -315.62% | 36.05% | -1098.04% | 338.41% | - |
| FCF per Share | 0.34 | 0.55 | 0.10 | 0.06 | 0.03 | 0.17 | -0.05 | -0.76 | -2.96 | -0.60 | -8.38 | -7.21 | 0.63 | -11.48 | -0.53 | -5.23 | 0.46 | -2.51 | -5.34 | -2.10 | -5.56 | 0.55 | 0.13 |
| FCF Conversion (FCF/Net Income) | 0.56x | 1.03x | 0.32x | 0.66x | 0.47x | 0.50x | 0.87x | 4.01x | -1.86x | 0.01x | -0.00x | -0.73x | -6.84x | 2.18x | 2.56x | 9.38x | -0.40x | 0.89x | -1.03x | 6.79x | 2.46x | 0.93x | - |
| Interest Paid | -24.54K | 136.27K | 118.16K | 96.26K | 104.99K | 110.96K | 75.06K | 93.47K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -2.63M | 3.83M | 1.3M | 1.03M | 1.94M | 165.59K | 330.64K | 117.99K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
California Regulatory Concentration Risk
Based on reported financial data, LGCY exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently falling below 0.50, suggesting that reported profits are not being efficiently translated into the liquid cash necessary to sustain long-term operational growth.
The recurring gap between net income and operating cash flow suggests that a significant portion of the company's earnings may be tied up in non-cash accruals or delayed tuition collections. Investors should monitor whether this trend reflects aggressive revenue recognition or structural difficulties in converting student enrollment into realized cash inflows.
As reported in quarterly filings, LGCY's free cash flow margins have demonstrated extreme volatility, swinging from a high of 21.5% in 2023Q2 to negative territory in late 2023, indicating that the company's ability to generate surplus cash remains highly sensitive to operational and working capital fluctuations.
The inconsistency in FCF generation appears to undermine the company's growth narrative, as the business struggles to maintain positive cash flow during periods of rapid expansion. This instability suggests that the current scaling phase is capital-intensive and may require more disciplined cost management to achieve sustainable cash generation.
According to recent cash flow statements, LGCY has faced significant negative working capital adjustments, with outflows reaching $3.0 million in 2026Q3, which highlights a recurring struggle to manage the timing of student tuition payments against the immediate cash requirements of running specialized medical training programs.
The frequent negative working capital changes suggest that the company is likely extending credit or facing delays in collecting tuition, which effectively subsidizes student enrollment at the expense of current liquidity. This dynamic warrants further investigation into the company's credit policies and the potential for future bad debt write-offs.
Based on the provided cash flow statements, the inclusion of stock-based compensation, which reached $565.2K in 2026Q2, masks the underlying cash burn of the business, suggesting that the company's reported net income may overstate the actual cash-generating capacity of its core vocational education operations.
By relying on non-cash adjustments to bolster the bottom line, the company may be masking the true cost of talent acquisition in a competitive labor market. Analysts should adjust for these items to determine if the business can remain self-funding without diluting shareholders or relying on external financing.
Quick answers to the most common questions about buying LGCY stock.
Legacy Education Inc. (LGCY) generated $7.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Legacy Education Inc. (LGCY) generated $6.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Legacy Education Inc. (LGCY) spent $0.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.