Nido Education (NDO) investor relations material

Executive summary

• Group revenue increased to AUD 85.8 million (or $85.8 million), up 4% year-over-year, driven by network expansion and demand for early learning services.

• Adjusted EBITDA (AEBITDA) was AUD 4.3 million, down from AUD 6.6 million, and adjusted NPAT was AUD 2.1 million, down from AUD 4.6 million year-over-year.

• Statutory net loss after tax was $0.2 million, compared to a net profit of $2.5 million in the prior year.

• Opened four new services and acquired four more, with two additional services opened post-period, expanding the network to 81 services.

• Maintained a strong focus on disciplined capital allocation, operational improvements, and strategic investments in quality, people, and growth.

Financial highlights

• Group revenue rose 4% year-over-year to AUD 85.8 million; adjusted EBITDA reached AUD 4.3 million; adjusted NPAT was AUD 2.1 million.

• Service-level adjusted EBITDA was AUD 10.7 million, with a service margin of 13% and wage-to-revenue ratio held at 57%.

• Operating cash flow conversion rate was 110%; free cash flow conversion rate was 77%, with CapEx at AUD 1.5 million.

• Loan facility extended to February 2028, total facility increased to AUD 65 million, with AUD 47 million drawn and AUD 18 million headroom.

• No interim dividend declared for the half-year; $5.0 million in dividends paid during the period.

Outlook and guidance

• Targeted 20% year-on-year adjusted EBITDA growth, but unlikely to achieve due to acquisition timing and market conditions.

• Strong inquiry levels and enrollment offers tracking 17% ahead of prior year support medium-term growth outlook.

• Ongoing focus on converting inquiries to occupancy, improving productivity, and protecting quality.

• Sector outlook remains positive, supported by projected birth rate recovery and government policy initiatives.

• Management expects positive operating cash flows for at least the next 12 months.