Revenue growth has been robust, yet operating margins remain highly variable, fluctuating between 11% and 19% due to sensitivity in administrative and marketing overhead.
| 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 |
|---|
| Sales/Revenue | 77.9M | 64.17M | 46M | 35.46M | 30.7M | 57.81M | 16.43M | 554.86M | 436.3M | 314.36M | 338.78M | 532.3M | 485.49M | 346.46M | 336.88M | 216.39M | 137.28M | 215.42M | 112.24M | 69.09M | 19.38M | 14.31M | 7.1M |
| Revenue Growth % | 56.94% | 39.49% | 29.74% | 15.48% | -46.89% | 251.91% | -97.04% | 27.17% | 38.79% | -7.21% | -36.36% | 9.64% | 40.13% | 2.84% | 55.68% | 57.63% | -36.27% | 91.94% | 62.46% | 256.4% | 35.46% | 101.44% | - |
| Cost of Goods Sold | 41.51M | 34.69M | 26.35M | 20.79M | 18.12M | 27.75M | 11.61M | 360.28M | 310.16M | 329.75M | 371.75M | 372.49M | 313.09M | 215.09M | 96.91M | 81.91M | 56.96M | 64.72M | 35.02M | 19.68M | 8.01M | 5.27M | 3.04M |
| COGS % of Revenue | - | 54.06% | 57.29% | 58.62% | 59% | 48.01% | 70.67% | 64.93% | 71.09% | 104.9% | 109.73% | 69.98% | 64.49% | 62.08% | 28.77% | 37.85% | 41.49% | 30.04% | 31.2% | 28.49% | 41.33% | 36.85% | 42.86% |
| Gross Profit | 36.4M | 29.48M | 19.65M | 35.23M | 12.59M | 30.06M | 5.04M | 194.58M | 126.14M | -15.39M | -32.97M | 159.81M | 172.4M | 131.37M | 239.97M | 134.48M | 80.32M | 150.71M | 77.22M | 49.4M | 11.37M | 9.04M | 4.06M |
| Gross Margin % | 46.72% | 45.94% | 42.71% | 99.37% | 41% | 51.99% | 30.7% | 35.07% | 28.91% | -4.9% | -9.73% | 30.02% | 35.51% | 37.92% | 71.23% | 62.15% | 58.51% | 69.96% | 68.8% | 71.51% | 58.67% | 63.15% | 57.14% |
| Gross Profit Growth % | - | 50.03% | -44.23% | 179.88% | -58.12% | 495.91% | -97.41% | 54.25% | 919.65% | 53.32% | -120.63% | -7.3% | 31.23% | -45.26% | 78.45% | 67.43% | -46.7% | 95.17% | 56.31% | 334.37% | 25.86% | 122.63% | - |
| Operating Expenses | 25.21M | 19.49M | 13.43M | 11.05M | 9.36M | 20.83M | 7.43M | 102.57M | 69.2M | 57.91M | 62.89M | 70.51M | 58.41M | 45.3M | 131.59M | 82.75M | 74.64M | 152.26M | 40.54M | 38.24M | 3.67M | 2.15M | 1.14M |
| OpEx % of Revenue | - | 30.38% | 29.2% | 31.16% | 30.5% | 36.03% | 45.2% | 18.49% | 15.86% | 18.42% | 18.56% | 13.25% | 12.03% | 13.08% | 39.06% | 38.24% | 54.37% | 70.68% | 36.12% | 55.35% | 18.91% | 15.01% | 16.05% |
| Selling, General & Admin | 24.97M | 19.49M | 13.17M | 10.82M | 9.12M | 20.25M | 7.2M | 73.04M | 49.37M | 43.64M | 46.51M | 38.98M | 28.91M | 24.53M | 23.08M | 19.27M | 15.5M | 11.4M | 8.39M | 3.69M | 1.35M | 731.2K | 0 |
| SG&A % of Revenue | - | 30.38% | 28.62% | 30.53% | 29.72% | 35.03% | 43.83% | 13.16% | 11.32% | 13.88% | 13.73% | 7.32% | 5.95% | 7.08% | 6.85% | 8.9% | 11.29% | 5.29% | 7.48% | 5.34% | 6.99% | 5.11% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 234.76K | 0 | 0 | 224.49K | 239.64K | 186.78K | 225.52K | 29.53M | 19.82M | 14.27M | 16.38M | 31.53M | 29.51M | 20.78M | 108.51M | 63.49M | 59.14M | 140.87M | 32.15M | 34.55M | 2.31M | 1.42M | 1.14M |
| Operating Income | 11.19M | 9.99M | 6.22M | 3.62M | 3.22M | 9.23M | -2.38M | 47.83M | 18.06M | -85M | -725.7M | -356.94M | 27.64M | 51.49M | 84.5M | 38.31M | -3.53M | -1.56M | 36.68M | 11.16M | 7.71M | 6.89M | 2.92M |
| Operating Margin % | 14.36% | 15.56% | 13.51% | 10.21% | 10.5% | 15.96% | -14.5% | 8.62% | 4.14% | -27.04% | -214.21% | -67.06% | 5.69% | 14.86% | 25.08% | 17.71% | -2.57% | -0.72% | 32.68% | 16.15% | 39.76% | 48.14% | 41.09% |
| Operating Income Growth % | - | 60.63% | 71.66% | 12.32% | -65.05% | 487.39% | -104.98% | 164.88% | 121.25% | 88.29% | -103.31% | -1391.19% | -46.31% | -39.06% | 120.53% | 1185.41% | -126.86% | -104.24% | 228.66% | 44.8% | 11.89% | 135.98% | - |
| EBITDA | 11.77M | 10.43M | 6.48M | 3.85M | 3.46M | 9.44M | -2.15M | 207.83M | 145M | 65.42M | -548.44M | -183.25M | 186.06M | 153.63M | 172.67M | 101.21M | 55.23M | 63.48M | 65.48M | 30.45M | 10.09M | 7.77M | 3.57M |
| EBITDA Margin % | 15.1% | 16.25% | 14.09% | 10.85% | 11.28% | 16.32% | -13.08% | 37.46% | 33.23% | 20.81% | -161.89% | -34.43% | 38.32% | 44.34% | 51.26% | 46.77% | 40.23% | 29.47% | 58.35% | 44.08% | 52.06% | 54.31% | 50.23% |
| EBITDA Growth % | 50.9% | 60.88% | 68.53% | 11.03% | -63.29% | 539.12% | -101.03% | 43.34% | 121.65% | 111.93% | -199.28% | -198.49% | 21.1% | -11.03% | 70.61% | 83.24% | -12.99% | -3.07% | 115.06% | 201.72% | 29.86% | 117.82% | - |
| D&A (Non-Cash Add-back) | 577.77K | 441.72K | 265.04K | 224.49K | 239.64K | 209.76K | 232.83K | 160M | 126.94M | 150.41M | 177.26M | 173.69M | 158.41M | 102.14M | 88.18M | 62.89M | 58.76M | 65.03M | 28.8M | 19.29M | 2.38M | 883.46K | 649K |
| EBIT | 12.12M | 11.14M | 7.1M | 3.96M | 3.43M | 12.25M | -935.63K | -1.53M | 36.71M | 24.47M | -626.15M | -217.29M | 15.47M | 89.99M | 91.66M | 37.11M | -79.06M | 175.7M | -48.21M | 1.36M | 8.82M | 8.67M | 2.93M |
| Net Interest Income | 1.17M | 1.04M | 768.67K | 242.84K | 99.27K | -45.77K | -75.66K | -152.47K | -89.14M | -78.99M | -76.56M | -66.34M | -49.31M | -20.24M | -18.55M | -25.76M | -13.21M | -21.06M | -6.8M | -6.52M | -1.4M | 205.55K | -36K |
| Interest Income | 1.26M | 1.15M | 886.83K | 339.1K | 204.26K | 124.99K | 44K | 36K | 64K | 67K | 329K | 873K | 776K | 16K | 15K | 10K | 9K | 93K | 321K | 129.71K | 185.31K | 419.26K | 14K |
| Interest Expense | 88.93K | 112.73K | 118.16K | 96.26K | 104.99K | 170.76K | 119.67K | 117.01M | 89.21M | 79.06M | 76.89M | 67.22M | 50.09M | 20.26M | 18.57M | 25.77M | 13.22M | 21.15M | 7.12M | 6.64M | 1.58M | 213.71K | 50K |
| Other Income/Expense | 1.16M | 1.04M | 768.67K | 242.84K | 99.27K | 2.86M | 1.33M | -241.04K | -70.56M | 30.41M | 22.66M | 72.43M | -62.27M | 18.24M | -11.4M | -26.97M | -88.75M | 156.11M | -92M | -16.44M | -470.5K | 1.57M | -40K |
| Pretax Income | 12.34M | 11.02M | 6.99M | 3.86M | 3.32M | 12.08M | -1.06M | 46.8M | -52.5M | -54.59M | -703.04M | -284.5M | -34.62M | 69.73M | 73.09M | 11.35M | -92.28M | 154.55M | -55.33M | -5.28M | 7.24M | 8.46M | 2.88M |
| Pretax Margin % | 15.85% | 17.18% | 15.19% | 10.9% | 10.82% | 20.9% | -6.42% | 8.43% | -12.03% | -17.37% | -207.52% | -53.45% | -7.13% | 20.13% | 21.7% | 5.24% | -67.22% | 71.74% | -49.29% | -7.65% | 37.33% | 59.09% | 40.53% |
| Income Tax | 3.86M | 3.49M | 1.87M | 1.2M | 986.35K | 2.47M | -367.65K | 2.97M | 1.4M | 1.23M | -1.5M | -859K | 649K | 1.1M | 1.03M | 537K | 554K | 48K | 337K | -9.8M | 1.11M | 1.78M | 2.88M |
| Effective Tax Rate % | 31.26% | 31.65% | 26.78% | 30.99% | 29.68% | 20.45% | 34.84% | 6.34% | -2.66% | -2.25% | 0.21% | 0.3% | -1.87% | 1.57% | 1.41% | 4.73% | -0.6% | 0.03% | -0.61% | 185.46% | 15.39% | 21.06% | 100% |
| Net Income | 8.49M | 7.53M | 5.11M | 2.67M | 2.34M | 9.61M | -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 |
| Net Margin % | 10.89% | 11.74% | 11.12% | 7.52% | 7.61% | 16.63% | -4.19% | 7.9% | -12.35% | -17.76% | -207.08% | -53.29% | -7.27% | 19.81% | 21.39% | 5% | -67.62% | 73.44% | -49.59% | 6.31% | 30.23% | 64.41% | - |
| Net Income Growth % | -52.99% | 47.3% | 91.8% | 14.1% | -75.68% | 1497.78% | -101.57% | 181.33% | 3.45% | 92.04% | -147.33% | -704.16% | -151.39% | -4.75% | 566.68% | 111.64% | -158.68% | 384.23% | -1377.56% | -25.64% | -36.43% | - | - |
| Net Income (Continuing) | 8.49M | 7.53M | 5.11M | 2.67M | 2.34M | 9.61M | -687.64K | -1.22M | -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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.60 | 0.59 | 0.44 | 0.22 | 0.20 | 0.36 | -0.05 | 0.64 | -0.74 | -0.79 | -10.18 | -4.72 | -0.62 | 1.40 | 1.63 | 0.27 | -2.89 | 5.17 | -2.13 | 0.27 | 0.62 | 0.97 | 0.00 |
| EPS Growth % | -61.78% | 34.09% | 100% | 10% | -44.44% | 889.47% | -107.13% | 186.49% | 6.33% | 92.24% | -115.68% | -661.29% | -144.29% | -14.11% | 503.7% | 109.34% | -155.9% | 342.72% | -888.89% | -56.45% | -36.08% | - | - |
| EPS (Basic) | - | 0.65 | 0.44 | 0.22 | 0.20 | 0.38 | -0.05 | 0.64 | -0.74 | -0.79 | -10.18 | -4.72 | -0.62 | 1.40 | 1.63 | 0.27 | -2.89 | 5.17 | -2.13 | 0.27 | 0.62 | 0.97 | 0.00 |
| Diluted Shares Outstanding | 14.06M | 12.69M | 11.87M | 27.78M | 27.78M | 26.81M | 15.07M | 68.89M | 72.41M | 70.61M | 68.93M | 60.05M | 57.22M | 48.99M | 44.11M | 40.24M | 32.16M | 30.62M | 26.16M | 15.95M | 9.45M | 9.49M | 9.49M |
| Basic Shares Outstanding | 12.62M | 11.58M | 11.87M | 26.42M | 11.87M | 25.45M | 15.07M | 68.89M | 72.41M | 70.61M | 68.93M | 60.05M | 57.22M | 48.99M | 44.09M | 40.23M | 32.16M | 30.6M | 26.16M | 15.95M | 9.45M | 9.49M | 9.49M |
| Dividend Payout Ratio | - | - | - | 34.38% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
California Regulatory Concentration Risk
As reported in recent financial statements, LGCY achieved significant top-line expansion, with revenue climbing from $12.8 million in 2023Q4 to $21.4 million by 2026Q3, reflecting a robust growth trajectory driven by high-demand allied health certifications within the constrained California vocational education market.
The consistent quarter-over-quarter revenue growth suggests that the company is successfully capturing demand for specialized medical training. Investors should monitor whether this momentum is sustainable or if it represents a temporary surge in enrollment that may normalize as the local market reaches saturation.
Based on the provided income statement data, LGCY maintains a gross margin profile that has stabilized near 46% to 47%, indicating that the cost of specialized instructional faculty and lab equipment remains a primary, non-negotiable anchor on the company's overall profitability potential.
The gross margin consistency suggests that management has effectively managed the high fixed-cost nature of clinical education. However, any future regulatory changes to student-to-teacher ratios in California could force an increase in instructional headcount, potentially compressing these margins and limiting the company's ability to scale profitably.
According to the quarterly income statement, operating margins have fluctuated significantly between 11% and 19%, suggesting that while the company is scaling, its ability to translate gross profit into operating income remains sensitive to periodic spikes in administrative and marketing-related overhead expenses.
The lack of a clear, linear improvement in operating leverage implies that the company is still in a phase of heavy investment to support its growth. Analysts should scrutinize whether the recent volatility in operating margins is a result of strategic expansion costs or inefficiencies in managing campus-level overhead.
As indicated by the historical data, net income has shown substantial variance, including a notable anomaly in 2024Q1, which warrants caution when assessing the underlying quality of earnings and the sustainability of the company's current net profit margins of approximately 14%.
The presence of non-operating items and periodic stock-based compensation charges suggests that reported net income may not always reflect core operational performance. Investors should focus on normalized earnings to determine if the company can maintain its current profitability levels without relying on one-time accounting adjustments.
While the company reports strong growth, the extreme geographic concentration in California exposes the firm to significant regulatory risk, as any adverse changes to state-level oversight or Title IV eligibility could disproportionately impact the company's ability to maintain its current revenue and margin profile.
Short-term growth figures may mask the underlying fragility of a business model entirely dependent on a single state's regulatory environment. The market may be underestimating the potential for legislative shifts to disrupt the clinical placement pipeline, which serves as the primary bottleneck for the company's enrollment capacity.
Quick answers to the most common questions about buying LGCY stock.
For fiscal year 2025, Legacy Education Inc. (LGCY) reported total revenue of $64.2M. This represents a 803.3% increase compared to $7.1M in 2002.
Legacy Education Inc. (LGCY) is profitable, generating $7.5M in net income for the fiscal year ending 2025 with a net profit margin of 11.7%.
Legacy Education Inc. (LGCY) reported an operating income of $10.0M, resulting in an operating profit margin of 15.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Legacy Education Inc. (LGCY) generated $29.5M in gross profit for the year, representing a gross profit margin of 45.9%. This demonstrates the company's core pricing power and production efficiency.