Legacy Education Q3 2025 slides: 51% revenue growth fueled by healthcare education demand

Legacy Education Inc (NASDAQ:LGCY), a for-profit post-secondary education company focused on allied health programs, recently presented its Q3 2025 results showing substantial growth across key metrics. The company has capitalized on increasing healthcare workforce demand, expanding its program offerings while maintaining strong student outcomes.

Market Context & Company Overview

Legacy Education operates in the allied health education sector, where labor market dynamics strongly favor graduates. The U.S. healthcare industry currently has 1.7 million job openings with projected growth of 16% from 2020-2030, creating 2.6 million new positions.

As shown in the following chart of healthcare job openings versus hires, the gap has widened significantly since the pandemic, creating favorable conditions for healthcare education providers:

The company has positioned itself as an alternative to traditional community colleges, which it notes suffer from "poor completion rates, uncertain career pathways, and poor placement rates." Legacy Education currently operates four institutions across six campuses, offering 55 programs with 3,245 enrolled students as of March 31, 2025.

The company’s overview highlights its strong student outcomes and operational metrics:

Quarterly Performance Highlights

Legacy Education’s Q3 FY25 results demonstrated robust growth across all key performance indicators. Revenue reached $18.6 million, representing a 51% year-over-year increase, while Adjusted EBITDA grew 60% to $3.9 million. Student starts increased 71% year-over-year, driving ending enrollment to 3,245 students, a 50% increase from the prior year.

The company has maintained efficient student acquisition costs at approximately $1,000 per student, while generating average revenue per student of $22,000, representing a 22x return on acquisition investment.

The earnings report, which sent shares up 14.14% in aftermarket trading, also revealed net income of $2.8 million ($0.21 per diluted share), representing a 57.1% increase year-over-year.

Geographic Expansion & Enrollment Growth

Legacy Education has demonstrated consistent enrollment growth across its campuses, with a four-year CAGR of 25%. The company’s geographic footprint spans multiple locations in California, with each campus showing strong enrollment trends:

The acquisition of Contra Costa Medical (TASE:BLWV) Career College in December 2024 further strengthened the company’s California presence, adding 468 students to its enrollment base. This acquisition represents the third successful campus integration following Central Coast College (2019) and Integrity College of Health (2020).

As the company noted in its presentation, approximately 36% of current enrollment is attributable to these successful M&A activities:

Program Offerings & Student Outcomes

Legacy Education’s program portfolio is heavily concentrated in healthcare (43 programs representing ~90% of enrollment), with additional offerings in veterinary (4 programs) and dental (8 programs) markets. The company’s top five programs by enrollment—Ultrasound Technician AAS, Medical Assisting, Cardiac Sonography AAS, Magnetic Resonance Imaging AAS, and Vocational Nursing—collectively represent approximately 65% of total enrollment.

These programs generate quarterly revenue per student ranging from $6,300 to $7,300, with program durations between 34 and 130 weeks:

The company has maintained strong student outcomes, with an average placement rate of 75% across its campuses and an 83% NCLEX pass rate for nursing programs:

During the earnings call, CEO Leanne Roman highlighted the company’s consistent revenue growth, stating, "We’ve achieved double-digit revenue growth for 11 consecutive quarters." She emphasized the company’s focus on allied health education, noting, "Our focus on allied health education continues to resonate in a market hungry and desperate for skilled professionals."

Financial Performance Analysis

Legacy Education’s financial results demonstrate strong momentum, with LTM revenue reaching $59.0 million (38% YoY growth) and LTM adjusted EBITDA of $11.4 million (170% YoY growth). The company has maintained healthy profitability margins, with adjusted EBITDA margin expanding to 19%.

The following chart illustrates the company’s revenue and adjusted EBITDA growth trajectory:

The company ended Q3 2025 with a solid financial position, including $17.3 million in cash and $22.0 million in working capital. Total (EPA:TTEF) debt stood at just $1.0 million, with stockholders’ equity of $39.3 million.

According to the earnings report and current fundamentals data, Legacy Education’s stock closed at $10.82 on July 1, 2025, with a 52-week range of $3.60 to $12.14. The stock has delivered an impressive 84.58% return over the past year, reflecting investor confidence in the company’s growth strategy.

Future Outlook

Legacy Education outlined three primary growth paths in its presentation: organic growth within existing footprint, new program development, and new campus acquisitions. The company has already demonstrated success with this strategy, delivering 38% revenue growth with student population up 50%.

Management continues to focus on expanding program offerings, with recent launches including Certified Nurse Assistants, Magnetic Resonance Imaging, Registered Nurse (RN), Surgical Technology, and Dental Assisting programs. The company also plans to expand its veterinary technology programs at multiple campuses.

Analysts maintain a strong buy consensus with a price target range of $10.50-$10.80, suggesting potential upside from current levels. With a P/E ratio of 14.9 and a PEG ratio of 0.35, the stock appears to be trading at attractive valuations relative to its growth potential.

While the company faces risks including competitive pressures in the healthcare education market, potential economic downturns affecting enrollment, and regulatory changes, its strong financial position and growing demand for healthcare professionals provide a favorable backdrop for continued expansion.

Full presentation:

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