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What were the key takeaways from Legacy Education's earnings call?

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- **Revenue Surge**: 38.5% YoY growth to $19.4 million, fueled by record student enrollment and new program launches.
- **Program Expansion**: 4 new high-demand programs (e.g., cardiac sonography) set to add 20-24 students per class starting Q2.
- **Financial Strength**: $20.6 million cash reserves, 26.5% effective tax rate, and stable AR management with 9.5% reserve coverage.
- **Strategic Momentum**: Active M&A pipeline for multi-campus acquisitions, with potential deals announced within 6 months, and hybrid learning models driving scalability.

**【CEO Opening Remarks】**
- **Revenue Growth**: Q1 FY2026 revenue rose 38.5% YoY to $19.4 million, driven by a 31.6% increase in new student starts (1,117) and a 37.7% rise in ending student population (3,495), marking the 13th consecutive quarter of double-digit growth.
- **New Programs**: Launched 4 new high-demand programs (MRI, cardiac sonography, surgical tech, sterile processing) across multiple campuses, with enrollments expected to begin in Q2.
- **Strategic Investments**: Invested in AI-driven hybrid learning models, simulation labs, and faculty recruitment, with 53.2% of revenue allocated to educational services to maintain clinical quality.
- **Financial Health**: Adjusted EBITDA of $3.1 million (15.9% margin) despite front-loaded investments; net income up 4.6% to $2.2 million, with diluted EPS of $0.16 (normalized to $0.22 on prior share count).

**【CFO Financial Commentary】**
- **Revenue Breakdown**: $19.4 million revenue included $10.3 million in educational services (53.2% of revenue) and $6.1 million in G&A expenses (31.5% of revenue), reflecting strategic investments in compliance, marketing, and new program launches.
- **Liquidity**: $20.6 million cash on hand, with operating cash flow of $1.1 million (impacted by delayed Title IV disbursements) and $300,000 in CapEx for program expansion.
- **Tax Efficiency**: Effective tax rate improved to 26.5% (from 28% YoY) due to stock option exercises post-IPO.
- **AR Management**: AR reserve of $1.9 million (9.5% of AR), with collections improving through partnerships and proactive outreach, stabilizing delinquency rates.

**【Q&A Highlights】**
- **Program Capacity**: New programs (e.g., cardiac sonography) will enroll 20-24 students per class, with Q2 and Q3 enrollments expected to drive future revenue growth.
- **M&A Pipeline**: CEO confirmed a strong pipeline for multi-campus acquisitions, targeting accretive deals within California and beyond, with potential announcements within 6 months.
- **Geographic Expansion**: Minimal international placements (e.g., Canada), with focus on U.S. growth through hybrid delivery models (online general education + on-campus clinicals).
- **Compliance Resilience**: Operates in full compliance with Title IV regulations, unaffected by federal workforce reductions, with employer partnerships ensuring job placement rates above industry standards.

Legacy Education Inc. (LGCY) Q1 2026 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

Cost of Revenue

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Operating Expenses

Selling, General and Administrative Expenses

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Net Income

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LGCY

LGCY fundamentals

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