Legacy Education Inc. (LGCY) stock analysis

Price (20 Oct 26): $10.32
Price target (12m): $12.40
DCF check: $12.46
Scenario value*: $11.74
Bear/Base/Bull: 7.52/12.43/14.57
Market cap: $132.2M
Enterprise value: $109.6M
Free float: 84.0% of S/O
Avg daily vol, 3m: 39k / $0.4M
Institutional own.: 49.5%
Largest holder: Royce & Associates LP, 7.0%
Insider and board: 16.0%

*Probability-weighted, 25/50/25, over 12 months. Price target is the base case, rounded to the nearest ten cents.

The thesis

Most of Legacy's FY2026 growth came from schools it already owned, not from the acquisition. Revenue rose 24.8% to $80.1M in FY2026. Pre-existing brands added $9.9M, growth of 16.5%, and a full year of Contra Costa Medical Career College added $6.0M.
The stock trades below three of its four peers on earnings that have risen every year since FY2023. Adjusted EBITDA rose from $3.8M in FY2023 to $13.6M in FY2026. Legacy trades at 8.8x trailing EBITDA, against a 10.3x median for four listed school operators.
The balance sheet is mostly cash, with almost no debt and no credit line. Legacy held $22.7M of cash at 30 June 2026 against $130k of debt at face value, so cash is 17.2% of the market value. Houston and any acquisition will be paid from that cash.
The risk sits in new student starts and in collections, and both show in the next two quarters. Starts fell 12.1% in Q3 FY2026 and 3.6% in Q4 on the year-ago quarters. Operating cash flow was $4.0M, only 29.6% of adjusted EBITDA, because receivables rose $9.0M.

The full report

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Published by LALC Capital, a separate company. Opinion, not personal advice. Disclosures

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A rating such as BUY, a price target, or a pick such as Microcap of the Day is LALC Capital's published opinion on the date shown. It is general research for information only, not personal investment advice, and it does not take account of any reader's circumstances. Figures are drawn from public filings and may contain errors. Please consult an accredited financial adviser before making any investment decision. See the disclosures.