Legacy Education (LGCY)
Market Price (12/4/2025): $9.875 | Market Cap: $122.4 MilSector: Consumer Discretionary | Industry: Education Services
Legacy Education (LGCY)
Market Price (12/4/2025): $9.875Market Cap: $122.4 MilSector: Consumer DiscretionaryIndustry: Education Services
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.4% | |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 39% | |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 12%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% | |
| Megatrend and thematic driversMegatrends include Future of Learning & Workforce Development. Themes include Specialized Professional Training, and Entrepreneurial Skill Development. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.4% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 39% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 12%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 11% |
| Megatrend and thematic driversMegatrends include Future of Learning & Workforce Development. Themes include Specialized Professional Training, and Entrepreneurial Skill Development. |
Valuation, Metrics & Events
LGCY Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are five key points that may explain the approximate -18.5% movement in Legacy Education (LGCY) stock from August 31, 2025, to December 4, 2025:
1. Cautious Market Reaction to Strong Q4 2025 Earnings
Despite reporting strong financial results for the fourth quarter of fiscal year 2025, including a 40.8% year-over-year revenue increase, Legacy Education's stock experienced a decline of 2.76% in regular trading and an additional 1.26% in aftermarket trading around September 26, 2025. This "cautious market reaction" to otherwise positive news may have contributed to a negative sentiment.
2. Increased Operating Expenses and Investment in Growth
In the third fiscal quarter of 2025, the company's educational services expenses rose by 54.6% to $10.1 million, primarily due to higher instructional and staffing costs, and general and administrative expenses increased by 39.5% to $4.6 million, driven by higher marketing and professional fees. While these increases were attributed to supporting enrollment growth and program expansion, they represent a significant rise in operational costs that could concern investors regarding future margin pressures.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| LGCY Return | - | - | - | - | - | 15% | 15% |
| Peers Return | 19% | -2% | -14% | -4% | 0% | -10% | -13% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| LGCY Win Rate | - | - | - | - | 100% | 50% | |
| Peers Win Rate | 22% | 8% | 15% | 20% | 17% | 22% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| LGCY Max Drawdown | - | - | - | - | - | -26% | |
| Peers Max Drawdown | -15% | -5% | -21% | -15% | -15% | -12% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: LOPE, FCHL, GV, MH, PXED.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/3/2025 (YTD)
How Low Can It Go
LGCY has limited trading history. Below is the Consumer Discretionary sector ETF (XLY) in its place.
| Event | XLY | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -40.3% | -25.4% |
| % Gain to Breakeven | 67.4% | 34.1% |
| Time to Breakeven | 680 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -33.9% | -33.9% |
| % Gain to Breakeven | 51.3% | 51.3% |
| Time to Breakeven | 82 days | 148 days |
| 2018 Correction | ||
| % Loss | -21.9% | -19.8% |
| % Gain to Breakeven | 28.1% | 24.7% |
| Time to Breakeven | 105 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -60.1% | -56.8% |
| % Gain to Breakeven | 150.8% | 131.3% |
| Time to Breakeven | 779 days | 1480 days |
Compare to
In The Past
SPDR Select Sector Fund's stock fell -40.3% during the 2022 Inflation Shock from a high on 11/19/2021. A -40.3% loss requires a 67.4% gain to breakeven.
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Asset Allocation
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Latest Trefis Analyses
| Title | Topic | |
|---|---|---|
| DASHBOARDS | ||
| Can Legacy Education Stock Hold Up When Markets Turn? | Return |
| Title | |
|---|---|
| ARTICLES |
Trade Ideas
Select past ideas related to LGCY. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | BBWI | Bath & Body Works | Dip Buy | DB | Insider Buys | Low D/EDip Buy with Strong Insider BuyingBuying dips for companies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 6.8% | 6.8% | 0.0% |
| 11262025 | HRB | H&R Block | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 0.5% | 0.5% | 0.0% |
| 11262025 | LRN | Stride | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -2.6% | -2.6% | -2.6% |
| 11212025 | ABNB | Airbnb | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.7% | 3.7% | 0.0% |
| 11212025 | MTN | Vail Resorts | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 1.3% | 1.3% | -1.6% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | BBWI | Bath & Body Works | Dip Buy | DB | Insider Buys | Low D/EDip Buy with Strong Insider BuyingBuying dips for companies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 6.8% | 6.8% | 0.0% |
| 11262025 | HRB | H&R Block | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 0.5% | 0.5% | 0.0% |
| 11262025 | LRN | Stride | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -2.6% | -2.6% | -2.6% |
| 11212025 | ABNB | Airbnb | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.7% | 3.7% | 0.0% |
| 11212025 | MTN | Vail Resorts | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 1.3% | 1.3% | -1.6% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Legacy Education
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 13.55 |
| Mkt Cap | 2.2 |
| Rev LTM | 1,091 |
| Op Inc LTM | 224 |
| FCF LTM | 124 |
| FCF 3Y Avg | 223 |
| CFO LTM | 143 |
| CFO 3Y Avg | 262 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 13.3% |
| Rev Chg 3Y Avg | 6.5% |
| Rev Chg Q | 27.8% |
| QoQ Delta Rev Chg LTM | 6.4% |
| Op Mgn LTM | 15.6% |
| Op Mgn 3Y Avg | 13.5% |
| QoQ Delta Op Mgn LTM | 0.6% |
| CFO/Rev LTM | 18.8% |
| CFO/Rev 3Y Avg | 25.8% |
| FCF/Rev LTM | 16.5% |
| FCF/Rev 3Y Avg | 21.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 2.2 |
| P/S | 3.9 |
| P/EBIT | 15.8 |
| P/E | 23.6 |
| P/CFO | 19.8 |
| Total Yield | 4.5% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 5.1% |
| D/E | 0.1 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -5.0% |
| 3M Rtn | -11.3% |
| 6M Rtn | -21.1% |
| 12M Rtn | -0.7% |
| 3Y Rtn | -22.6% |
| 1M Excs Rtn | -5.0% |
| 3M Excs Rtn | -26.7% |
| 6M Excs Rtn | -35.8% |
| 12M Excs Rtn | -14.8% |
| 3Y Excs Rtn | -95.8% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 9252025 | 10-K 6/30/2025 |
| 3312025 | 5152025 | 10-Q 3/31/2025 |
| 12312024 | 2132025 | 10-Q 12/31/2024 |
| 9302024 | 11142024 | 10-Q 9/30/2024 |
| 6302024 | 10012024 | 10-K 6/30/2024 |
| 12312023 | 5102024 | DRS/A 12/31/2023 |
| 6302023 | 9272024 | 424B4 6/30/2023 |
| 6302021 | 2112022 | DRS/A 6/30/2021 |
| 6302020 | 8172021 | DRS/A 6/30/2020 |
External Quote Links
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| CNBC | Etrade |
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| YCharts | Perplexity Finance |
| FinViz |