Legacy Education's Q3 2025: Unpacking Contradictions in M&A Pipeline and Enrollment Seasonality

M&A pipeline disclosure, seasonality of enrollments are the key contradictions discussed in Legacy Education's latest 2025Q3 earnings call.



Revenue Growth and Student Enrollment:
- Legacy Education reported record revenue of $18.6 million for Q3, up 50.7% year-over-year.
- The growth was driven by a remarkable 70.7% increase in new student starts and a 49.8% growth in ending enrollment, reaching 3,245 students as of March 31, 2025.

Acquisition Impact and Program Expansion:
- The acquisition of Contra Costa Medical Career College added 468 students, contributing to an expanded geographic footprint in high-demand healthcare markets.
- This expansion aligned with the company's focus on allied health education to meet employer needs, reflected in an overall nursing NCLEX pass rate of 83% and placement rates of 75% and 76% through ABHES and ACCET respectively.

Financial Success and Balance Sheet Strength:
- Net income increased to $2.8 million, up 57.1%, with adjusted EBITDA climbing 60% to $3.9 million.
- The company's strong financial performance was supported by a robust balance sheet with $17.3 million in cash and $22 million in working capital, enabling future growth and strategic acquisitions.

Strategic M&A and Market Opportunities:
- The successful integration of Contra Costa Medical College showcases Legacy Education's ability to execute accretive acquisitions.
- The company continues to actively evaluate additional acquisition targets and branch locations to further expand its geographic and programmatic reach, capitalizing on strong market demand for healthcare professionals.