Legacy Education (LGCY) 第四季與 2026 財年法說會：營收與利潤率上升

重點摘要

• 2026 財年營收成長 24.8% 至 8,010 萬美元。在 1,590 萬美元的年成長額中，既有品牌貢獻了 990 萬美元，佔比約 62%。
• 第四季營收成長 12% 至 2,010 萬美元，調整後 EBITDA 成長 30.6% 至 310 萬美元。調整後 EBITDA 利潤率擴張 220 個基點至 15.5%。
• 全年新入學人數成長 9% 至 3,483 人。年底在校學生人數達到 3,377 人，成長 8.9%，不過第四季新入學人數仍年減 4%。
• Legacy Education 2026 財年結束時擁有 2,270 萬美元現金、3,340 萬美元營運資金，且債務極低，為課程拓展、新校區建設及潛在收購提供資金支持。
• 預計占地 28,000 平方英尺的休士頓分校預計將於 2026 年 11 月開幕，惟需獲得監管機構與認證機構的批准。管理層預期該校區可在 1 至 2 年內吸引 400 至 600 名學生。
• 管理層預期 2027 財年利潤率將持續改善，預計大部分效益將於下半年顯現。

核心財務數據

2026 財年營運現金流為 400 萬美元。資本支出從 84.4 萬美元增加至 130 萬美元，反映了對設備、技術、實驗室和設施的投資。年底應收帳款淨額為 1,990 萬美元。

業務與營運表現

Legacy Education 既有品牌的營收在 2026 財年成長 16.5%。另外 600 萬美元的年度成長，反映了持有 Contra Costa Medical Career College 完整一年的收益，與 2025 財年僅持有六個月相比的結果。

該公司在年底時擁有 3,377 名學生，其中既有品牌占 2,869 名，成長 8.1%。管理層指出，外科技術 (Surgical Technology)、無菌處理技術員 (Sterile Processing Technician) 和職業護理 (Vocational Nursing) 是進入 2027 財年的重要招生驅動力。

外科技術課程已在 High Desert Medical College 三個校區中的兩個運作。在完成營運準備的前提下，第三個校區預計於 2027 財年第一季末開始提供該課程。Legacy 還在蘭開斯特 (Lancaster) 擴增了 6,000 平方英尺的空間，並正在特曼庫拉 (Temecula) 分階段擴充更多產能。

Contra Costa Medical Career College 獲得了三個新增課程的批准：磁振造影應用科學副學士、心臟超音波應用科學副學士以及獸醫助理證書。推出時間將取決於營運準備情況與相關規定。

Legacy 還在積極評估可擴展其地理版圖、課程組合和學生群體的收購機會。管理層表示，潛在交易必須符合其學術、戰略、監管、文化和財務標準，且能提升每股盈餘。

管理層指引

管理層指出，9 月的新入學趨勢可能與 6 月當季相似，隨後隨著新課程成熟和推出進程推進而改善。

休士頓分校預計將於 2026 年 11 月開幕，惟需獲得所需的監管機構與認證機構批准。管理層計劃在該校區推出多項 Central Coast College 課程（不包含護理和認證護理助理課程），並認為在一至兩年後，招生人數可達 400 至 600 名學生。

財務長 Brandon Pope 表示，管理層預期 2027 財年利潤率將持續提升，且改善效益預計在下半年會更為顯著。

風險與關注事項

第四季教育服務費用占營收的比重從去年同期的 52.6% 上升至 56%。管理層將此增加歸因於教學薪資、人員配置、書籍、教材、校外實習、設施和課程開發成本，這些支出往往先於招生和營收產生。

繼第三季下降 12% 後，單季新入學人數年減 4%。管理層將此疲軟表現歸因於課程準備進度、開課行事曆以及職業護理入學要求的修改，而非潛在學生引流問題。

隨著公司與學生規模擴大，應收帳款成長影響了營運現金流。2026 財年呆帳費用為 400 萬美元，佔營收的 5%。

休士頓分校開幕及其他課程推出的時間點，仍取決於監管批准、認證機構核可、設備、實驗室準備狀況與人員配置。

分析師問答重點

分析師關注焦點集中在新入學人數的復甦、休士頓擴建以及收購活動。管理層預期在經歷一個狀況可能類似的 9 月季度後，隨著外科技術與無菌處理課程的推廣，以及職業護理申請人適應新的入學要求，入學人數將會有所改善。

關於休士頓，管理層將德州視為超越首間分校的更廣闊地理機遇。公司預計在獲得批准後，將同時推出多項課程。

管理層確認收購機會仍處於積極評估中，但未透露交易時間表或目標細節。管理層重申，任何交易都必須符合 Legacy 的營運標準，且能增進每股盈餘。

法說會逐字稿全文

完整財報電話會議逐字稿

管理層陳述

Operator

Good day and welcome to the Legacy Education Inc. Fourth Quarter and Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded and broadcast live. It will also be archived on the Legacy Education website for future reference.

To kick off the call, I will turn it over to Nicole Joseph, Senior Vice President of Marketing for Legacy Education Inc.

Nicole Joseph

Thank you, and hello, everyone. Legacy Education has issued a news release reporting its financial results and corporate developments for the fourth quarter and fiscal year ended June 30, 2026. The release is available in the Investor Relations section of our corporate website at legacyed.com. With us today on the call are LeeAnn Rohmann, Chief Executive Officer, and Brandon Pope, Chief Financial Officer.

On today's earnings call, statements made by Legacy's management regarding the company's business, which are not historical facts, may be forward-looking statements as identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate, and continue, as well as similar expressions, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance. The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond the company's control, that may influence the accuracy of the statements and projection upon which the statements are based.

Factors that may affect the company's results include, but are not limited to, the risks and uncertainties discussed in the risk factors section of the annual report on Form 10-K filed with the Securities and Exchange Commission. Forward-looking statements are based on the information available at the time those statements are made, and management's good faith belief as of the time with respect to future events.

All forward-looking statements are qualified in their entirety by this cautionary statement, and Legacy undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise, after the date thereof.

I will now hand the call over to LeeAnn Rohmann, CEO of Legacy Education. LeeAnn, to you.

LeeAnn Rohmann

Thank you, Nicole, and good afternoon, everyone. Fiscal 2026 was a record year for Legacy Education. It was also a year in which our results, operating execution and balance sheet gave us greater capacity to pursue the next stage of growth. The central message for today's call is straightforward. Fiscal 2026 demonstrated the strength and scalability of our operating platform. We produced strong organic revenue growth across our pre-existing brands, successfully integrated Contra Costa Medical Career College and finished the year with clear operating leverage. We entered fiscal 2027. We have a meaningful growth already embedded in the existing platform, additional capacity and programs coming online, a new geographic market under development and acquisition opportunities under active evaluation.

We crossed $80 million in annual revenue, and revenue from our pre-existing brands grew 16.5%. We ended the year with a larger student population, expanded our program portfolio and campus capacity, advanced Houston, strengthened our operating infrastructure, and finished the year with the financial resources to continue investing in growth. We also finished the year with a strong fourth quarter. Revenue increased 12% and adjusted EBITDA increased more than 30%. Adjusted EBITDA margin expanded 220 basis points. That combination of growth and margin expansion is an important proof point of the scalability of the platform. I will organize my remarks around four themes.

The strength of fiscal 2026, the operating leverage we demonstrated in the fourth quarter, the growth opportunities we see entering fiscal 2027, and the financial strength supporting our plans. For fiscal 2026, revenue increased 24.8% to $80.1 million from $64.2 million. Of the $15.9 million increase in annual revenue, $9.9 million came from Legacy pre-existing brands, which grew 16.5% year-over-year. $6 million reflected the comparison between a full year of Contra Costa Medical Career College in fiscal 2026 and 6 months in fiscal 2025.

To put differently, roughly 62% of the year-over-year revenue increase came from the pre-existing platform. That is an important proof point. Fiscal 2026 growth was supported by both successful integration and meaningful organic revenue growth. New student starts increased 9% to 3,483. We ended the year with 3,377 students, an increase of 8.9% from fiscal 2025. Importantly, ending active population across our pre-existing brands increased 8.1% to 2,869 students.

We view that active population growth, together with the revenue performance of the existing platform, as a stronger indicator of the underlying operating momentum entering fiscal 2027. Earnings increased across the operating income, net income, EBITDA, adjusted EBITDA, and diluted earnings per share. The breadth of that performance matters because it shows that growth in the platform translated into growth and earnings while we continued investing for the future. Adjusted EBITDA margin was 17%, even as we invested in new programs, expanded facilities, strengthened staffing and infrastructure, and prepared for future growth.

That is the operating balance we intend to maintain as Legacy scales. These results reflected broad execution across a larger [ platform ]. We integrated a full year of Contra Costa Medical Career College, supported a larger student population, expanded program offerings, and continued building the academic and operating capabilities required of a growing public company. They also reinforce the relevance of our focus.

Legacy prepares students for careers in nursing and allied health fields where employers continue to need skilled, job-ready professionals. Our programs are practical, career focused, and aligned with essential healthcare roles. That alignment remains a durable source of student interest and employer demand. The fourth quarter provided the clearest evidence of operating leverage while we continued funding growth.

Revenue increased 12% to $20.1 million. Pre-existing brands grew 11.3%, and the operating margin expanded 190 basis points. The quarter demonstrated that the core platform continued to grow while producing greater operating leverage. Adjusted EBITDA increased 30.6% to $3.1 million. And adjusted EBITDA margin reached 15.5%. Those results show the earning power of a larger platform as revenue scales across our existing infrastructure. The key point is that the fourth quarter combined double-digit revenue growth with faster growth in earnings and meaningful margin expansion while we continue to invest in future capacity.

The quality of the quarter is important. We did not achieve growth by pulling back from the future. Educational services expense included the faculty instructional resources, the books, the supplies, externships, facilities, and program support required for a larger platform and for capacity that can generate future revenue. Disciplined spending, marketing efficiency, and active management of the receivables also supported the quarter's operating leverage.

The objective is not simply to become larger. It is to become larger while strengthening the economics of the platform. That is the operating model we are pursuing. Support students in academic quality, invest deliberately in future capacity, and create greater operating leverage as the platform scales.

We entered fiscal 2027 with multiple tangible growth engines already underway. We think about those opportunities in 3 pillars: expanding the existing platform, adding new capacity and geography, and pursuing strategic expansion supported by our stronger operating infrastructure. Pillar 1, expanding the existing platform. We continue to see meaningful runway in programs and campuses we already operate and understand well.

Surgical technology is currently operating at 2 of our 3 High Desert Medical College campuses, with the third campus expected to begin the programs by the end of the first quarter of fiscal 2027, subject to final operational readiness. This represents additional growth within an existing program and an existing campus footprint. Sterile Processing Technician Program also continues to ramp.

This has been an important contributor to our program mix, and continued cohort development and broader use of existing capacity provide additional enrollment and revenue opportunity as the program matures across the platform.

In Vocational Nursing, we advanced the entrance requirements across our campuses with a greater focus on student readiness and fit at the application stage. These changes are designed to strengthen student readiness and support retention, progression, and graduation. We view that as an important opportunity to improve the quality and durability of enrollment within an established program.

Pillar 2, add capacity, programs, and geography. We are expanding where Legacy can serve students and where existing demand can support additional scale. After the end of the fiscal year, we executed a lease for 28,000 square feet in Houston, Texas, for a planned Central Coast College branch.

CCC currently projects to open the Houston branch in November 2026, subject to receipt of the required regulatory and accreditation approvals. This move is intended to establish Legacy's first campus outside of California and it represents an important step in accelerating our geographic expansion.

We also expanded capacity at High Desert Medical College. Lancaster added 6,000 square feet and we're phasing additional capacity in Temecula so that growth can be aligned with program and enrollment demand. At Contra Costa Medical Career College, we received approvals for three additional programs: Associate of Applied Science in Magnetic Resonance Imaging, and Associate of Applied Science in Cardiac Sonography, and Veterinary Assistant Certificate.

These approvals expand the future program pipeline with launch timing based on operational readiness and applicable requirements. Pillar 3, strategic expansion and operating infrastructure. We are actively evaluating acquisition opportunities that can expand Legacy's geographic reach, program portfolio, student base, and long-term earnings capacity.

We apply clear academic, strategic, regulatory, cultural, and financial criteria to each opportunity. At the same time, we're continuing to build Legacy's business intelligence to give leadership more consistent visibility into enrollment, retention, academic execution, registrar activity, career services, and other key operating measures.

As the organization grows, better visibility and accountability to support more consistent execution across the platform. Our growth platform is also supported by strong institutional accreditation. Integrity College of Health received a 6-year grant from ABHES, and Contra Costa Medical Career College received a 5-year grant from ACCET, the maximum terms granted by the respective accreditors.

All four Legacy institutions maintain current institutional accreditation. Taken together, these 3 pillars give us multiple avenues for growth: more opportunity inside the existing platform, new capacity and geography, and strategic expansion through acquisitions and stronger operating infrastructure.

Importantly, these are parallel growth paths rather than a strategy dependent on any single initiative. Now, our ability to make these investments is supported by a strong financial position. At June 30, 2026, cash and cash equivalents were $22.7 million compared to $20.3 million one year earlier. Excuse me. Working capital was $33.4 million. The stockholders' equity was $52.8 million, and debt remained minimal.

We have no revolving line of credit or other debt facilities. This balance sheet gives us flexibility to invest in programs, facilities, technology, faculty, student support, regulatory readiness, and selective expansion without depending on significant financial leverage. Our capital allocation framework remains disciplined and growth oriented.

Our financial strength supports both the organic opportunities already underway and the acquisition opportunities we are actively evaluating. We intend to deploy capital where we see clear relationship among student opportunity, employer demand, academic quality, scalable capacity, and long-term financial returns. In short, fiscal 2026 strengthened both our operating platform and our capacity to invest.

We enter fiscal 2027 with growth opportunities inside the existing business, additional programs and capacity coming online, geographic expansion underway, a active acquisition strategy, and the financial resources to execute with discipline.

With that, I'll turn the call over to Brandon Pope for a detailed review of our fourth quarter and full year financial results. Brandon?

Brandon Pope

Thank you, LeeAnn, and good afternoon, everyone. Legacy delivered a strong finish to a record fiscal year. LeeAnn outlined the strategic growth opportunities ahead, and I will focus in on the financial evidence supporting that strategy: fourth quarter operating leverage, full year earnings growth, cash flow, and our year-end financial position.

Beginning with our fourth quarter fiscal 2026 results, revenue for the 3 months ended June 30 increased 12% to $20.1 million from $17.9 million in the prior year quarter. Operating income increased 31.3% to $2.6 million from $2 million. Operating margin improved 190 basis points to 13% from 11.1%. Net income increased 53.3% to $1.9 million from $1.2 million.

Diluted earnings per share increased 44.4% to $0.13 from $0.09. EBITDA increased 32.6% to $2.8 million from $2.1 million. Adjusted EBITDA increased 30.6% to $3.1 million from $2.4 million. And adjusted EBITDA margin improved 220 basis points to 15.5% from 13.3%. The effective tax rate for the quarter was 27.3% compared to 45.6% prior year.

The reduction is primarily due to tax benefits related to stock option exercises and beneficial tax treatment of stock option grants. Fourth quarter expenses, educational services expense was $11.3 million or 56% of revenue compared with $9.4 million or 52.6% of revenue in the prior quarter.

The increase primarily reflected instructional payroll and staffing, books and supplies, and externship costs, and facility and repair costs.

Educational payroll increased $1.1 million, books, supplies, and externship-related costs increased $358,000, and facility and repair costs increased $204,000. These expenses supported a larger student population and the academic capacity required for expanding and developing programs. Their timing can precede enrollment and revenue because personnel, labs, equipment, curriculum, and operating readiness must be in place before a regulated program or branch can launch. General and administrative expense was $5.9 million or 29.4% of revenue. This level of G&A spending supporting the infrastructure of a larger public company while contributing to the quarter's operating leverage. Marketing and advertising expense was $1.2 million, and bad debt expense was $1 million, or 5% of revenue.

These levels reflect continued discipline in student acquisition and receivables management. Overall, total costs and expenses increased 9.6%, while revenue increased 12%. This operating leverage supported the quarter's higher operating margin and adjusted EBITDA margin. Now turning to the fiscal year ended June 30, 2026, revenue increased 24.8% to $80.1 million from $64.2 million. Of the $15.9 million year-over-year revenue increase, $9.9 million came from our pre-existing brands representing growth of 16.5%. $6 million reflected the comparison between full year of Contra Costa Medical Career College in fiscal 2026 and 6 months of fiscal 2025.

As a result, roughly 62% of the incremental revenue came from pre-existing Legacy platforms. Operating income increased 18.3% to $11.8 million from $10 million. Our operating margin was 14.8%. Fiscal 2026 included investments in staffing, facilities, programs, technology, professional services, and public company infrastructure designed to support a larger operating platform and future growth.

Net income increased 21.3% to $9.1 million from $7.5 million. Diluted earnings per share increased 11.9% to $0.66 from $0.59. EBITDA increased 19.4% to $12.5 million from $10.4 million. Adjusted EBITDA increased 24.1% to $13.6 million from $11 million. Adjusted EBITDA margin was 17% for fiscal 2026.

So, into expenses, educational services expense for the year was $42.9 million or 53.6% of revenue compared to $34.2 million or 53.4% of revenue. The increase was generally in line with revenue growth and reflected instructional staffing, books and supplies, externship fees, facilities, and investments supporting new programs and additional capacity. The increase also included $600,000 of additional share-based compensation and non-cash expense.

General and administrative expense was $24.2 million, or 30.2% of revenue, compared with $19.1 million, or 29.8% of revenue. The increase included infrastructure required for a larger organization, a full year of Contra Costa Medical Career College, professional and consulting services, technology, and public company cost, and growth preparation. Marketing expense represented 7.4% of revenue and bad debt expense was $4 million or 5% of revenue. We continue to manage student acquisition, collections, and credit exposure while supporting a larger business.

Full year results demonstrated that revenue and adjusted EBITDA scaled together while we continue investing in future enrollment and capacity. Combined with 16.5% revenue growth across our pre-existing brands and the fourth quarter margin expansion, fiscal 2026 provides a strong financial proof point for the scalability of the platform. Now turning to the cash flow and balance sheet, cash flow provided by operating activities was $4 million for fiscal 2026.

Operating cash flow reflected working capital timing, including growth in accounts receivable as the company and student population expanded. Net accounts receivable was $19.9 million at year end. We continue to monitor collection, payment plans, aging, and bad debt closely. Capital expenditures were $1.3 million compared to $844,000 in fiscal 2025.

The increase reflected equipment, technology, labs, and facility investment associated with our growing program portfolio and campus capacity. The year ended with -- we ended the year with $22.7 million in cash and cash equivalents, providing flexibility to support planned growth and ongoing operations. Current assets were $45.8 million. Current liabilities were $12.4 million. And working capital was $33.4 million.

Total assets were $78.5 million, stockholders' equity was $52.8 million, and total liabilities were $25.8 million. Debt remained minimal at year end and we had no revolving credit line or other debt facility. The financial position allows us to fund planning growth while maintaining flexibility. We will continue to manage the pace of investment against approval timing, enrollment opportunity, operating readiness, and expected long-term returns.

To summarize, Q4 produced double-digit revenue growth, faster growth in earnings and adjusted EBITDA and meaningful margin expansion. For the full year, we delivered record revenue, strong organic growth across the pre-existing platform, higher earnings and adjusted EBITDA, a larger student population and a balance sheet position to support continued investment. The financial foundation is in place to support the growth opportunities LeeAnn described.

I'll now turn the call back to LeeAnn. LeeAnn?

LeeAnn Rohmann

Thank you, Brandon. Fiscal 2026 was a year of strong execution and measurable progress. More importantly, it strengthened the platform we're carrying into fiscal 2027. We enter fiscal 2027 with growth already embedded in our existing platform, additional programs and capacity coming online, new geographic market under development, acquisition opportunities under active evaluation, and the financial strength to pursue these opportunities with discipline.

Our priorities are clear: execute well for students, support our faculty and employees, maintain academic and regulatory discipline, and convert the opportunities already in front of us into sustainable growth. Our strategy is not dependent on a single program, campus, market or transaction. We have multiple growth paths across the existing platform: new capacity, geography, program expansion, and strategic acquisitions.

Fiscal 2026 demonstrated the strength of the model. Fiscal 2027 is about deploying that strength, expanding what is already working, opening new avenues for growth, and doing so from a position of financial and operational strength. I want to thank our students, our graduates, our faculty, our employees, and clinical partners and shareholders. Operator, we are ready to take questions.

Operator

[Operator Instructions] Your first question comes from Michael Grondahl with Northland Securities.

分析師問答

Mike Grondahl

LeeAnn, could you talk a little bit about what you're seeing the trends around starts? 3Q you were down 12% year-over-year. This quarter was better, but you were still down 4% year-over-year. Kind of talk about when you see that returning to year-over-year growth and what will drive it?

LeeAnn Rohmann

Absolutely. Thank you for bringing that question, Mike, and good to hear from you. What I would tell you, and I tried to really demonstrate this in terms of our leads are not an issue. It really is coming down to from our programs of the Surg Tech, the Sterile Processing ramping up, and the changes that we've made in our VN program, we've been able to see the realization of where there was that dip of the 12% in the prior quarter to we are seeing it coming back as these programs are maturing.

And it was really our hopes and intentions that we were going to have Surg Tech rolled out at all three High Desert locations, but for us to have the lab readiness, the equipment, and the things that we're ready for, we're just now rolling out Surg Tech in the first quarter for 2027, and Sterile Processing ramping up, our nursing classes are getting engaged into the timing of this new -- of the new entrance requirements that we required that we're confident that as we continue to build the pipeline for these programs maturing that we're going to see that balance out.

Mike Grondahl

Got it. So September could look a little bit like June, and then an improvement from there. Is that about the right way to think of it?

LeeAnn Rohmann

That -- you're spot on in how you're thinking of it because it really is coming down to two: the timing of when these starts are occurring based off the calendars, and then the program readiness. Absolutely.

Mike Grondahl

Got it. And then secondly, I think what you're doing in Houston with that branch campus. How should we think about the potential for that opening and then ramping?

LeeAnn Rohmann

Sure. Great question there. Because it's a branch, we will go into Houston upon the approvals that we are optimistic that we'll see by November is that we will already have all of the programs that we are currently approved for in Central Coast outside of nursing and the Certified Nurse Assistant program, we will be -- like we will be launching multiple programs at the same time in Houston.

We're there already building our presence, and we're in a good market, strong area that needs our programs that we're optimistic to see how we can roll out multiple programs at one time when we open our doors in Houston.

Mike Grondahl

Okay. And then just lastly, you said acquisitions, kind of, actively under review. Does that mean you're getting closer? I guess just expand on that a little bit?

LeeAnn Rohmann

I mean, I've expanded as much as I can in the talking points, but I would just tell you that as you look at Legacy's really model and our experience and what we're doing, you know that we are active in acquisitions and we're engaged in it, and we are actively under review and look forward to the opportunity to announce something once we know that it meets our criteria, it's accretive, and that it would be a good fit for us.

Operator

Your next question comes from Jeffrey Cohen with Ladenburg Thalmann.

Jeffrey Cohen

LeeAnn and Brandon, congrats on the strong Q4 and full year. So I wanted to jump back on Mike's area of questioning and talk about [ Central ] Coast in Houston. Could you give us a sense of student population over the coming 1 or 2 years where you could get to with the footprint there, both in-house or virtual?

LeeAnn Rohmann

Jeff, first of all, great to hear from you. Thank you for the compliments. And yes, like what I would tell you is that given the fact that the market that we're going into and the number of programs that we already see that we have approved, that we are going to multiply be rolled out that we're comfortable in saying that after a 1 to 2 year period, you're going to see between 400 and 600 students in the Houston location.

Jeffrey Cohen

Got it. And then as you thought about Houston specifically and that location, is it Houston that's the target of interest and there will be other targets, or is it Texas overall speaking that could be statewide a target of interest and one such target?

LeeAnn Rohmann

Well, what we are learning about Texas as a whole is that we do see that Texas as a state could be an opportunity for a target that we could expand beyond what we've started in Houston. Not taking anything off the bench, but the state absolutely has opportunity for us.

Jeffrey Cohen

Okay, and then one more for me. Brandon, any commentary on OpEx, generally speaking? Overall, you remain quite disciplined throughout full year '26 and what we'd anticipate in '27 as we -- as your overall business continues to grow?

Brandon Pope

Yes. Yes. We expect, if you're referring to margin, we expect margin to continue to increase and grow accretively. You would probably mostly see that in the second half of the year, but we -- that is our expectation.

Operator

This now concludes our question and answer session. I would like to turn the floor back over to LeeAnn Rohmann for closing comments.

LeeAnn Rohmann

Thank you, Operator, and thank you, everyone, for joining us today. As we close, I want to leave you with one message. Legacy enters fiscal 2027 from a position of strength, with multiple avenues for growth. We have a strong existing platform, expanding programs, additional capacity coming online, Houston under development, acquisition opportunities under active evaluation, and the financial flexibility to execute.

Our focus is on converting those opportunities into durable results while maintaining the academic quality, student outcomes, and disciplined execution that define how we intend to grow Legacy. Again, thank you, thank you, thank you to the students, to the graduates, the faculty, employees, shareholders, for your continued support, and we look forward to updating you on our progress next quarter.

Back to you, operator.

Operator

Ladies and gentlemen, this concludes today's call. Thank you for joining us, and have a great day.