Legacy Education Inc. Q2 FY2026 earnings call

• New program execution: Launched MRI program at Central Coast College campus with 33 new starts, cardiac sonography program to start in second half, received accreditation approval for fourth sterile processing program and begun enrolling, surgical technology cohorts to begin in second half. • Education delivery: Began introducing hybrid delivery model at Contra Costa Medical Career College for surgical technology and diagnostic medical sonography programs. • Campus performance: Integration of Contra Costa Medical Career College complete with enrollment over 500 students, Integrity College of Health in Pasadena granted six-year reaccreditation. • Outcomes: Retention rates strong, imaging programs holding credentialing review sessions. • Faculty and innovation: Strategic investments in online education leadership and curriculum design, faculty invested in professor development and course improvement work, integrating AI to support instruction.

Revenue grew 40.7% year over year to $19,200,000 in Q2, with adjusted EBITDA increasing 6.6% to $3,000,000, net income rose 46% to $2,000,000. For six months ended 12/31/2025, revenue grew 39.6% to $38,600,000, adjusted EBITDA increased 30.3% to $6.1 million, net income rose 21.2% to $4,200,000. Ending population grew 6.8% to 3,234 in Q2. Educational services in Q2 were $10,300,000 (53.6% of revenue), general and administrative expenses were $6,100,000 (31.8% of revenue). For six months, educational services were $20,600,000 (53.4% of revenue), general and administrative expenses were $12,200,000 (31.7% of revenue).

• Sustained enrollment growth: Continue scaling demand generation, optimize digital performance and marketing, expand referral channels, focus on quality starts. • Curriculum expansion: Deploy and ensure operational readiness of new allied health programs, pursue additional regulatory approvals. • Operational innovation: Continue tech-and-touch approach, advance hybrid delivery and simulation-based models. • Expansion: Measured yet ambitious growth, evaluate accretive acquisitions and organic expansion opportunities, goal to announce next deal within fiscal year, brought back Joe Bartolome as Senior Vice President of Operations.

Q: On a very strong quarter, can you talk about what programs, what areas were performing really well or maybe outperformed?

A: From a timing perspective, got benefit of adding additional cohorts at Contra Costa Medical Career College with hybrid approval, ultrasound/diagnostic medical sonography program and surgical tech program were top five, vocational nursing also contributed.

Q: Those new programs starting in the second half, are they able to handle a 20-student cohort, a 30-student cohort?

A: Started 33 in Central Coast with MRI, cardiac sonography etc. will have 20 to 30 seats initially, reoccurring starts every three to six months.

Q: What is kind of your outlook on acquisition front? Would you think you could do one still this year?

A: Goal is to announce next deal within this fiscal year, acquisition pipeline robust with several opportunities.

Q: Is any of that outside of the state of California? Or is your intention to stay in the state of California?

A: Looking at both inside California and outside of California, majority of opportunities are multi campuses in adjacent states outside of California.

Q: Can you talk about the hybrid programs? Are you finding that students enrolled in the hybrid programs are holding also part-time jobs or full-time jobs?

A: Hybrid is full time as far as commitment, getting positive response as students embrace online learning, theory online and lab on campus a couple days a week.

Q: Does it feel like the back half of the year would compare with last year as far as a cadence?

A: Aligned with models, new program rollout in Q3 and Q4 may present opportunity.

Q: Your revenue was higher per student. Are more students entering more expensive programs? Or is the hybrid model giving you some leverage as far as the OpEx?

A: Higher per student primarily because of student population and revenue this year compared to last year, certain programs with higher margin are seeing more starts.