Forensic Analysis · Professional & Commercial Services · as of Sep 25, 2026
Legacy Education Inc. (LGCY)
A forensic read on Legacy Education Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
6.9
Distress distance
Clean
Earnings quality
5
Forensic signals
17.3%
ROE
24.8%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Legacy Education Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 6.9, placing it in the Safe zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.62×
FY2024–FY2026
Cash conversion.Over FY2024–FY2026, cumulative operating cash flow was 0.62× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
+30.7%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +30.7% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +32% against revenue +25%. A cash-flow measure on the same base agrees: reported earnings ran ahead of operating cash by 20% of net operating assets, against an accruals ratio of 30.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average.
+19.9%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +44% over the last 2 years to FY2026 (+19.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~19.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~30%.
91d DSO
FY2025→FY2026
Receivables vs revenue.Days sales outstanding moved from 86 to 91 days FY2025→FY2026 (receivables +32% vs revenue +25%). Receivables are creeping up relative to sales. Only 62¢ of operating cash arrived for every dollar of profit reported over FY2024–FY2026 ($13.4M against $21.8M), and the receivables balance is one of the places the rest is sitting. Across FY2024–FY2026 the day count ran 103 → 86 → 91 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in. Both figures are measured on period-end balances rather than the beginning-plus-ending average, because averaging needs the balance a year before every reading — FY2025's opening balance is on file, but across the 3 fiscal years read here (FY2024–FY2026) the average yields only 2 day counts (1 step), too few to tell a climb from one year's move.
Key fundamentals
Latest Revenue$80.1M
Revenue Growth YoY+24.8%
Revenue CAGR (2yr)+31.9%
Net Margin11.4%
Free Cash Flow$2.7M
Return on Equity17.3%
Debt / Equity0.00x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Legacy Education Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
Legacy Education Inc. (LGCY) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
1.5% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 1.5% of revenue and 44% of free cash flow in FY2026 — about $0.08 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 20.4% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.