Embark Early Education (EVO) investor relations material

Executive summary

• Statutory loss after tax of $12.743 million for the half-year ended 30 June 2026, compared to a profit of $4.036 million in the prior period, driven by non-cash impairment charges on right-of-use assets, goodwill, and investment in Mayfield Childcare Limited.

• Excluding non-cash impairments and non-recurring items, Centre EBITDA was $8.658 million, down from $10.807 million year-over-year, reflecting softer demand and increased childcare supply, partially offset by cost management.

• Acquisition of additional interest in Mayfield Childcare Limited, increasing ownership to 49.8% and accounting for it as an associate.

Financial highlights

• Revenue from ordinary activities decreased 4.4% to $47.25 million compared to $49.41 million in the prior period.

• Statutory loss after tax of $12.743 million, compared to a profit of $4.036 million year-over-year.

• Basic and diluted EPS of (6.26) cents, down from 2.20 cents in the prior period.

• Net tangible assets per security decreased to (0.06) from (0.05).

• Cash and cash equivalents at period end were $6.29 million, down from $20.66 million at 31 December 2025.

Outlook and guidance

• Management remains focused on strengthening centre performance, maintaining labour efficiency, and improving long-term earnings.

• Proceeds from a $4.0 million share placement post-period will be used to fund future asset acquisitions.