Forensic Analysis · Educational Services · as of Nov 9, 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
4
Forensic signals
19.5%
ROE
24.8%
Revenue growth
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 (auditor quality, say on pay, board independence, going concern). 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. 4 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.Cash conversion: operating cash flow divided by net income, the share of profit that arrived as cash.
+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.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
+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 — 9.7M shares in FY2024, 13.9M in FY2026: 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%.
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 19.9% a year across FY2024–FY2026, 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.
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 Equity19.5%
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?