Legacy Education Inc.

Good day and welcome to the Legacy Education Inc's third quarter fiscal 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 Legacy Education.

Thank you and hello everyone. Legacy Education has issued a news release reporting its financial results and corporate developments for the third quarter and nine months ended March 31, 2026. The release is available in the investor relations section of our corporate website at LegacyEd.com. With us today on the call are Leann Roman, Chief Executive Officer, and Brandon Pope, Chief Financial Officer. On today's earnings call, statements made by legacies management regarding the company's business, which are not historical facts, may be forward-looking statements as identified in federal security 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 risk and uncertainties discussed in the risk factor section of the annual report on Form 10-K and the quarterly report on Form 10-Q 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 Leanne Roman, CEO of Legacy Education. Leanne, to you.

Thank you, Nicole, and good afternoon, everyone. Welcome to Legacy Education's third quarter fiscal 2026 earnings call. I'm joined today by our Chief Financial Officer, Brandon Pope. Q3 was another strong, record-breaking quarter for legacy education. I want to frame today's call around three key messages. We continue to grow profitably in a healthcare education market supported by workforce demand. We are demonstrating operating leverage and our core academic delivery model. and we are using our balance sheet and profitability to build capacity for the next phase of growth. Put simply, legacy is not only growing, legacy is scaling. We are building a larger, stronger, more disciplined healthcare education platform designed to support students, employers, communities, and shareholders over the long term. Legacy education operates in one of the strongest and most durable sectors in the U.S. economy. Healthcare workforce shortages remain structural across nursing, imaging, sonography, surgical technology, sterile processing, and other medical support fields. These shortages are being driven by long-term trends, demographic shifts, an aging population, increasing healthcare utilization, expanded access to care, and rising clinical complexity. As I've previously stated, technology and AI can support healthcare professionals, but healthcare still depends on skilled people delivering care, judgment, compassion, and hands-on expertise. The reality reinforces the long-term value of high-quality healthcare education and workforce training. Legacy is positioned directly in that need, training students for essential high-demand careers and building a scalable platform to support that demand. For the quarter ended March 31st, 2026, Revenue increased 15% to 21.4 million, compared to 18.6 million in the prior year quarter. This growth was driven primarily by expanded program offerings, improved retention, and stronger execution across our existing campus platform. With Contra Costa Middle Career College now fully integrated And to the prior year comparison base, Q3 demonstrates Legacy's ability to generate organic growth from a larger, more mature operating platform. Adjusted EBITDA increased to $4.4 million compared to $3.9 million last year. Net income increased to $3 million compared to $2.8 million last year. Diluted earnings per share increased to 22 cents compared to 21 cents in the prior year period. Importantly, Q3 reflects continued sequential progress. Revenue increased from 19.2 million in Q2 to 21.4 million in Q3. For the first nine months of fiscal 2026, revenue increased to $60 million compared to $46.2 million last year, an increase of nearly 30%. So while the year-over-year growth rate in Q3 reflects comparisons against a larger operating base, the underlying trajectory remains strong, a larger platform continuing to grow profitably, improve leverage, and build capacity for the next phase. In Q2, we outlined priorities around program expansion, technology-enabled delivery, retention, Contra Costa's full integration, and disciplined expansion. Q3 reflects continued execution against those priorities. During the quarter, we converted program expansion into measurable enrollment opportunities. We added surgical tech cohorts across CCC, which is in Salinas, and HDMC campuses of Lancaster and Temecula, generating 26 enrollments. And we added sterile processing across HDMC campuses and the ICH Pasadena campus, generating 49 enrollments. Due to delayed state approvals, it shortened our marketing runway giving us only a couple of weeks to enroll students, which didn't allow to fully fill these classes this quarter. We are also preparing CCC Salinas for the additional cardiac sonography and MRI program expansion in Q4. In addition, we expanded facility capacity in Lancaster by adding 6,000 square feet. In Temecula, we secured a total of 53,000 square feet of a facility. This is expected to be assumed in stages. 5,000 square feet now. 31,000 square feet will come in June, and 17,000 square feet will come in January 2028. These investments are designed to support current and future programs and enrollment growth. Together, these actions showed disciplined execution and strengthened the operational infrastructure required to support a larger healthcare education platform. One of the most important indicators in Q3 was the improvement in educational services expenses as a percentage of revenue. Educational services expense improved from 51.7% of revenue compared to 54.4% in the prior year quarter, representing a 270 basis points of improvement. This is a meaningful evidence that the model is scaling. It shows that as we grow, we can generate leverage in our core academic delivery functions while continuing to invest in faculty support, curriculum consistency, labs, student services, and academic quality. At the same time, healthcare education requires capacity building before revenue is fully realized. Faculty, curriculum, labs, the equipment, compliance approvals, technology systems, facilities and clinical partnerships, must be in place before programs and branches can scale effectively. This is why this quarter's growth-related spend was tied to branch readiness, selective acquisition evaluation, program infrastructure, training materials, software systems, marketing support for future student starts, compliance readiness, and facility-based expansion. These are not simply overhead costs. They are investments designed to support future enrollment growth, program expansion, branch development, and long-term shareholder value creation. Because we are funding this capacity from current profitability and balance sheet strength, the growth strategy remains disciplined. Branch expansion represents one of the important organic growth opportunities in front of Legacy. During Q3, we identified our next branch location, we signed a letter of intent for our facility, and are finalizing the applications with the applicable state and federal regulatory agencies. While this process remains subject to required approvals, this is an important milestone in Legacy's next phase of growth. our approach remains disciplined. We're focused on markets with clear workforce demand, strong student opportunity, appropriate program alignment, regulatory feasibility, and potential for meaningful long-term financial contribution. Q3's progress demonstrates that legacy is moving from planning to execution on organic expansion from a position of strength with profitability, liquidity, low leverage, and an operating platform capable of supporting disciplined growth. Our check and touch approach remains practical and focused. The use of technology where it improves visibility, consistency, and early intervention while keeping faculty engagement and hands-on instruction at the center of healthcare education. During Q3, we continued advancing targeted academic tools, curriculum consistency, faculty development, and student support practices that helped strengthen retention and outcomes. The goal is not technology for its own sake. The goal is more consistent and scalable academic models. Retention remains one of the clearest indicators of student engagement academic quality, faculty support, and operating discipline. Legacy already operates with a strong retention profile. And during the quarter, we saw even further improvement in overall attrition trends. Retention is an important proof point that Legacy is building a platform capable of supporting students through completion, employment, and long-term institutional value creation. As we continue to operate with a compliance-first mindset, our accreditations and Title IV participation remain fully intact. In Q3, our Integrity College of Health in Pasadena received a six-year reaccreditation grant, the maximum period awarded by our accreditor, ABHES, and we recently announced a five-year reaccreditation grant renewal for Contra Costa Medical Career College through our accreditor assets. These outcomes reflect the strength of our academic delivery, student outcomes, institutional compliance, and continuous improvement culture. The regulatory environment in career education continues to evolve. And we remain actively engaged in monitoring Department of Education development and broader sector policy activities. These higher standards favor institutions that are well capitalized, outcomes focused, compliance oriented, and capable of executing consistently across multiple campuses and programs. Importantly, our strategy aligns with where the industry is moving. We also continue evaluating selective acquisition opportunities that align with our healthcare-focused platform. Our objective is to not simply buy revenue. It is to acquire institutions or programs where legacy can improve execution, strengthen outcomes, and expand capabilities and create a long-term value over time. As of March 31st, 2026, Cash and equivalents were $21.7 million. Stockholders' equity increased to $49.5 million. And debt levels continue to remain minimal. We believe profitability, low leverage, available capital, and disciplined execution are competitive advantages. We are using our financial strength to create capacity for future growth. With that, I'll turn the call over to Brandon Pope for a more detailed review of our financial performance. Brandon?