NextEd Group (NXD) investor relations material

Executive summary

• Underlying EBITDA rose 16.7% to AUD 6.7 million, with NPAT loss reduced by 92% year-over-year to AUD 0.7 million, reflecting significant earnings improvement and operating leverage.

• Revenue for H1 FY26 was AUD 45.7 million, down 2% year-over-year, with improved profitability and a shift toward higher-margin vocational and higher education pathways.

• Operating costs decreased by 9% year-over-year, driven by structural cost discipline and AI-driven automation, supporting a leaner, scalable platform.

• Operating cash flow increased to AUD 3.0 million, with cash at period end of AUD 16 million and no external bank debt.

• AI initiatives were embedded across curriculum and operations, delivering measurable cost savings and operational efficiencies, including a strategic collaboration with OpenAI.

Financial highlights

• Revenue was AUD 45.7 million, down 2% year-over-year; international segment revenue increased 1% to AUD 33.8 million.

• Underlying EBITDA reached AUD 6.7 million, up 16.7% year-over-year; EBITDA margin improved to 14.7% from 12.4% pcp.

• Gross profit was AUD 24.1 million, with gross margin at 52.9% (H1 FY25: 53.4%).

• Statutory NPAT loss reduced to AUD 0.7 million, a 92% improvement year-over-year.

• Operating cash flow surged to AUD 3.0 million, up from AUD 1.0 million year-over-year.

Outlook and guidance

• Focus on expanding international market share, deepening vocational and higher education penetration, and leveraging AI for operational efficiency and product differentiation.

• Expectation of a slight uptick in second half operating cash flow due to seasonal intake timing.

• Continued emphasis on increasing student lifetime value and retention, targeting skill-shortage sectors.

• Operating costs for FY 2026 projected to be AUD 1–1.5 million lower than FY 2025.

• Near-term priorities include expanding future skills course offerings and broadening delivery formats.