0001493152-26-006392
SEC filingLegacy Education Inc. reported solid Q2 2026 financial results for the period ending December 31, 2025. The company generated $19.2 million in net tuition and related income, leading to operating income of $2.6 million and net income of $2.0 million. Operating cash flow was positive at $2.1 million, while investing activities used $0.8 million primarily for asset purchases. The balance sheet shows strong liquidity with $21.1 million in cash and cash equivalents, total assets of $73.1 million, and stockholders' equity of $46.1 million. The company maintains a healthy financial position with total liabilities of $27.0 million, representing a debt-to-equity ratio of approximately 0.59. Key performance drivers included effective cost management with total costs and expenses of $16.6 million and significant interest income of $330K. The company completed an IPO during the period, raising $9.3 million net of offering costs, which strengthened the capital structure.
Legacy Education Inc. delivered positive financial results for Q2 2026 ending December 31, 2025. The company reported net tuition and related income of $19.2 million, which represents the primary revenue stream. Operating income reached $2.6 million after accounting for total costs and expenses of $16.6 million, which included educational services ($10.3M), general and administrative expenses ($6.1M), general and administrative – related party ($57K), and depreciation and amortization ($174K). Net income totaled $2.0 million after income tax expenses of $832K and other income of $318K. The other income was primarily driven by interest income of $330K, partially offset by interest expenses of $8K and a loss on disposal of fixed assets of -$4K. The company maintained solid profitability metrics with no prior period comparisons provided in the filing.
The filing discloses only one revenue category: tuition and related income, net of $19.2 million. No segment breakdown, geographic mix, or additional revenue drivers are provided in the document. The company's business appears focused on educational services, with educational services expenses representing the largest cost component at $10.3 million. No information is provided about revenue growth rates, customer concentration, or pricing strategies. The absence of segment data suggests Legacy Education operates as a single reporting unit for financial reporting purposes.
The company demonstrated effective cost management with operating income of $2.6 million on $19.2 million of net tuition income, representing an operating margin of approximately 13.5%. The cost structure shows educational services as the largest expense at $10.3 million (53.6% of revenue), followed by general and administrative expenses at $6.1 million (31.8% of revenue). Related party transactions were minimal at $57K. Depreciation and amortization expenses were relatively low at $174K. Profitability was enhanced by significant interest income of $330K, which contributed to total other income of $318K. The net income margin was approximately 10.4% after accounting for income tax expenses of $832K.
Operating activities generated $2.1 million in cash, primarily from net income of $2.0M adjusted for non-cash items including depreciation & amortization ($297K), non-cash compensation ($565K), and provision for allowance for doubtful accounts ($1.1M). Working capital changes included increases in accounts receivable ($4.0M) and prepaid expenses ($749K), offset by changes in liabilities. Investing activities used $790K for purchases of property and equipment. Financing activities resulted in a net cash outflow of $581K despite $9.3M IPO proceeds, due to principal payments on debt ($745K) and finance leases ($72K). The balance sheet shows strong liquidity with $21.1M cash, total current assets of $41.8M, and current liabilities of $14.0M, resulting in a current ratio of approximately 3.0. Total assets of $73.1M include significant operating lease right-of-use assets ($14.5M), goodwill ($6.8M), and intangible assets ($3.8M). Stockholders' equity stands at $46.1M with retained earnings of $18.0M.
The filing does not contain management guidance, forward-looking statements, or specific strategic priorities for future periods. No risk factors or outlook commentary is provided in the document content. The company's recent IPO completion suggests a focus on capital structure strengthening, but no explicit future plans are disclosed. Investors should monitor subsequent filings for management commentary on growth strategies, market conditions, and operational priorities. The absence of forward-looking information in this 10-Q filing limits the ability to assess the company's future trajectory based solely on this document.