Legacy Education Inc. (LGCY): A Bullish Play on Healthcare Workforce Shortages

The U.S. healthcare sector faces a crisis: a severe shortage of skilled professionals. The Bureau of Labor Statistics projects that healthcare occupations will add 2.2 million jobs between 2022 and 2032, with roles like nurses, surgical technologists, and EMTs among the fastest-growing. Amid this demand, Legacy Education Inc. (LGCY) is positioned to capitalize as a leading vocational training provider, leveraging strategic acquisitions, robust financials, and undervalued stock metrics. Let’s dissect why LGCY is a compelling buy for investors seeking exposure to this secular tailwind.

The Surge in Revenue: Proof of Scalability

Legacy Education’s Q3 2025 revenue soared 50.7% year-over-year to $18.6 million, fueled by a 70.7% increase in new student starts (to 1,227) and a 49.8% rise in ending enrollment to 3,245 students. These metrics aren’t just impressive—they’re a direct result of execution. The company’s acquisition of Contra Costa Medical Career College (CCMCC) in late 2024 added 500 students and 14 high-demand programs, including Surgical Technology and Vocational Nursing.

This move exemplifies LGCY’s strategic scalability: expanding geographic reach (now six campuses in California) while targeting programs aligned with workforce shortages. The CCMCC deal also brought $16.8 million in cash reserves (up 9.5% year-to-date), providing liquidity to fuel further growth.

Financial Fortitude: EBITDA Soars, Valuation Lags

Legacy Education’s financial health is underpinned by its Adjusted EBITDA, which jumped 60% year-over-year to $3.9 million in Q3 2025, compared to $2.43 million in the same period of 啐2024. This margin expansion reflects operational efficiency and pricing power in a sector where demand outstrips supply.

Meanwhile, LGCY’s valuation is strikingly undervalued. With a PEG ratio of 0.35—far below the sector average of 1.5—the stock trades at a discount despite its growth trajectory. For context, shows LGCY has lagged the broader market, even as its fundamentals accelerate. This disconnect creates a rare buying opportunity.

Tailwinds: Healthcare Demand Meets Execution

Legacy Education’s programs are laser-focused on high-margin, in-demand fields:
- Nursing: A critical shortage of registered nurses (RNs), with demand projected to grow 6% annually.
- Diagnostic Imaging and EMT Training: Professions with median salaries exceeding $50,000 and strong employer demand.
- Surgical Technology: A niche field with a 9% annual growth rate and limited training capacity.

By expanding into these areas—****—LGCY is capitalizing on a structural imbalance. With the U.S. healthcare system relying on 1.8 million new workers over the next decade, the company’s model of affordable, hands-on education is a magnet for both students and employers.

Risks, But Manageable Ones

The for-profit education sector faces regulatory hurdles, including the 90/10 Rule (which limits federal aid dependency) and accreditation requirements. However, Legacy Education has mitigated these risks:
- Accreditation: All programs are accredited by agencies like the Accrediting Bureau of Health Education Schools (ABHES).
- Diversification: Reduced reliance on federal aid (Title IV Programs) to 85% of revenue, safely under the 90% threshold.
- Compliance: Robust internal controls and a focus on student outcomes (e.g., job placement rates) to avoid scrutiny.

Why Buy Now?

Legacy Education is a compound growth story with three catalysts:
1. Acquisition Synergies: The CCMCC deal’s full-year impact will boost 2026 earnings.
2. Program Expansion: New EMT and nursing campuses could unlock incremental revenue.
3. Valuation Re-rating: At a PEG of 0.35, the stock is primed for upward momentum as analysts catch up to its growth.

For investors, the math is clear: LGCY combines scalable execution, sector-defining tailwinds, and a mispriced valuation. With healthcare demand set to grow for decades, this is a stock to own for the long haul.

Action Item: Buy LGCY now, with a target price of $15/share (30% upside from current levels) and a stop-loss below $8. The risks are manageable, and the rewards are asymmetric in a sector where LGCY is the clear leader.

The healthcare workforce shortage isn’t a fad—it’s a decades-long megatrend. Legacy Education’s execution, valuation, and strategic focus make it a top pick to profit from this shift.