NextEd Group (NXD) investor relations material

Executive summary

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

• Revenue for H1 FY26 was $45.7 million, down 2% year-over-year, as the revenue mix shifted toward higher-margin vocational and higher education pathways, improving student lifetime value.

• Operating costs decreased by 9% year-over-year to $17.4 million, driven by structural cost discipline and AI-driven automation.

• Operating cash flow increased to $3.0 million, with cash at bank of $16.0 million and no external borrowings.

• Strategic collaboration with OpenAI embedded AI across curriculum and operations, delivering measurable cost savings and innovation.

Financial highlights

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

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

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

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

• Operating cash flow surged to $3.0 million, up over 200% year-over-year.

Outlook and guidance

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

• Plans to grow VET student enrolments, diversify revenues, and improve campus utilization.

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

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

• Growth opportunities identified in B2B AI training and domestic vocational segments.