📊 LGCY Key Takeaways
Is Legacy Education Inc. (LGCY) a Good Investment?
Legacy Education demonstrates strong fundamental momentum with 39.5% revenue growth, solid profitability (12.1% net margin), and an exceptionally healthy balance sheet with virtually no debt and 3.36x liquidity. However, significant cash flow headwinds—with operating cash flow of only $2.9M against net income of $7.3M—raise concerns about earnings quality and working capital management that warrant monitoring before higher conviction.
Fundamentals show resilient, profitable growth with double‑digit operating and net margins, supported by a cash‑rich, minimally levered balance sheet. While results are improving, cash conversion trails earnings and FCF margin is modest, warranting monitoring of working‑capital dynamics. If growth and margins hold while cash conversion improves, the business profile strengthens meaningfully.
Legacy Education Inc. Key Strengths (LGCY)
- Exceptional revenue growth at 39.5% YoY expansion in competitive education sector
- Fortress balance sheet with 0.01x debt-to-equity, $21.7M cash reserves, and zero financial risk
- Strong profitability with 15.3% operating margin and 12.1% net margin demonstrating operational efficiency
- Excellent liquidity position (3.36x current ratio) providing flexibility for growth investment or downturns
- Positive free cash flow generation despite scale constraints
- Strong revenue growth with double-digit margins
- Robust liquidity and near-zero leverage with sizable cash
- Solid ROE with modest capex needs
LGCY Stock Risks: Legacy Education Inc. Investment Risks
- Severe cash flow quality gap: operating cash flow ($2.9M) represents only 40% of net income ($7.3M), suggesting working capital buildup or potential accounting concerns
- Exceptionally low free cash flow margin at 3.1% limits reinvestment capacity and raises sustainability questions on growth
- Limited insider activity (1 Form 4 filing in 90 days) and minimal management confidence signals
- Small company scale ($75.5M assets) with limited operating history visibility and execution risk
- Missing data on gross margins and debt service capacity masks cost structure transparency
- OCF and FCF lag net income, indicating weaker cash conversion
- Enrollment/regulatory cyclicality could pressure growth and margins
- Data gaps (e.g., gross margin, interest coverage) raise earnings-quality questions
Key Metrics to Watch
- Operating cash flow conversion ratio—monitor if OCF normalizes toward net income levels indicating working capital stabilization
- Revenue growth deceleration—confirm 39.5% growth is sustainable and not driven by unsustainable unit economics
- Free cash flow expansion—critical to track if company can improve FCF margin above 3.1% threshold
- Days sales outstanding (DSO) and working capital efficiency—identify if cash gap is receivables driven
- Operating cash flow to net income ratio
- Deferred revenue and receivables trends
Legacy Education Inc. (LGCY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.36x current ratio provides a solid financial cushion.
LGCY Profit Margin, ROE & Profitability Analysis
LGCY vs Services Sector: How Legacy Education Inc. Compares
How Legacy Education Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Legacy Education Inc. Stock Overvalued? LGCY Valuation Analysis 2026
Based on fundamental analysis, Legacy Education Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Legacy Education Inc. Balance Sheet: LGCY Debt, Cash & Liquidity
LGCY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Legacy Education Inc.'s revenue has grown significantly by 39% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.53 reflects profitable operations.
LGCY Revenue Growth, EPS Growth & YoY Performance
LGCY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $18.6M | $1.4M | $0.21 |
| Q2 2026 | $13.6M | $1.4M | $0.10 |
| Q1 2026 | $14.0M | $2.1M | $0.16 |
| Q3 2025 | $12.3M | $1.1M | $0.19 |
| Q2 2025 | $10.6M | $1.1M | $0.10 |
| Q1 2025 | $10.4M | $1.1M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Legacy Education Inc. Dividends, Buybacks & Capital Allocation
LGCY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Legacy Education Inc. (CIK: 0001836754)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LGCY
What is the AI rating for LGCY?
Legacy Education Inc. (LGCY) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LGCY's key strengths?
Claude: Exceptional revenue growth at 39.5% YoY expansion in competitive education sector. Fortress balance sheet with 0.01x debt-to-equity, $21.7M cash reserves, and zero financial risk. ChatGPT: Strong revenue growth with double-digit margins. Robust liquidity and near-zero leverage with sizable cash.
What are the risks of investing in LGCY?
Claude: Severe cash flow quality gap: operating cash flow ($2.9M) represents only 40% of net income ($7.3M), suggesting working capital buildup or potential accounting concerns. Exceptionally low free cash flow margin at 3.1% limits reinvestment capacity and raises sustainability questions on growth. ChatGPT: OCF and FCF lag net income, indicating weaker cash conversion. Enrollment/regulatory cyclicality could pressure growth and margins.
What is LGCY's revenue and growth?
Legacy Education Inc. reported revenue of $60.0M.
Does LGCY pay dividends?
Legacy Education Inc. pays dividends, with $0.9M distributed to shareholders in the trailing twelve months.
Where can I find LGCY SEC filings?
Official SEC filings for Legacy Education Inc. (CIK: 0001836754) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LGCY's EPS?
Legacy Education Inc. has a diluted EPS of $0.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LGCY's fundamental grade?
Based on our AI fundamental analysis in May 2026, Legacy Education Inc. has a A grade with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is LGCY stock overvalued or undervalued?
Valuation metrics for LGCY: ROE of 14.7% (sector avg: 16%), net margin of 12.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is LGCY's AI grade for 2026?
Our dual AI analysis gives Legacy Education Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LGCY's free cash flow?
Legacy Education Inc.'s operating cash flow is $2.9M, with capital expenditures of $1.0M. FCF margin is 3.1%.
How does LGCY compare to other Services stocks?
Vs Services sector averages: Net margin 12.1% (avg: 10%), ROE 14.7% (avg: 16%), current ratio 3.36 (avg: 1.5).