Legacy Education Inc. Reports 29.5% Revenue Growth in Q2 Fiscal Year 2024

Legacy Education Inc. reported significant financial performance for the second quarter of fiscal year 2024, ending December 31, 2024. The company generated revenue of $13.6 million for the quarter, a 29.5% increase from $10.6 million in the same period last year. For the first half of the fiscal year, total revenue reached $27.6 million, up 32.3% from $20.9 million in the prior year. The net income for the quarter was $1.4 million, compared to $1.3 million in the previous year, while the net income for the six-month period was $3.5 million, a 47.9% increase from $2.4 million.

The company experienced notable changes in its operational metrics, including an increase in total assets, which rose to $62.1 million from $35.2 million as of June 30, 2024. This growth was driven by a substantial increase in cash and cash equivalents, which reached $16.9 million, up from $10.4 million. Additionally, the company reported a significant rise in accounts receivable, reflecting a growing student base and increased tuition revenue. The total stockholders' equity also increased to $36.4 million, compared to $22.4 million in the previous fiscal period.

Strategically, Legacy Education Inc. has expanded its operations through the formation of a new subsidiary, Legacy Education Antioch, LLC, which was established in October 2024. This subsidiary entered into an Asset Purchase Agreement with Contra Costa Medical Career College, Inc., further diversifying the company's educational offerings. The acquisition, completed on December 18, 2024, is expected to enhance the company's market presence in California's healthcare education sector.

In terms of operational developments, the company reported an increase in student enrollment and engagement metrics, contributing to the rise in tuition revenue. The number of common shares outstanding increased to 12.4 million from 9.3 million, reflecting the issuance of new shares as part of the company's growth strategy. The company also noted an increase in advertising expenses, which amounted to $2.3 million for the six months ended December 31, 2024, compared to $2.1 million in the same period last year, indicating a focus on marketing efforts to attract more students.

Looking ahead, Legacy Education Inc. expressed optimism about its growth trajectory, citing plans to continue expanding its program offerings and geographic reach. The company aims to enhance its educational services and maintain compliance with regulatory requirements, which are critical for sustaining its eligibility for federal student financial assistance. However, the company acknowledged potential risks, including regulatory changes and market competition, which could impact future performance.