3P Learning (3PL) H1 2025 earnings summary

Executive summary

• Revenue declined 2–2.4% year-over-year to $52.5–$52.7 million, mainly due to lower B2B licence fees from the US and EMEA, while B2C revenue remained flat.

• Underlying EBITDA nearly doubled to $6.8 million, reflecting strong cost management and operational efficiencies.

• Statutory net loss after tax improved to $0.7 million from a $12 million loss, driven by cost efficiencies and reduced non-recurring expenses.

• Acquisition of LiteracyPlanet (Intrepica Pty Ltd) completed in January 2025, adding $2.2 million ARR and enhancing literacy offerings.

• 3 Essentials model launched, converting over 200 schools with a 47% average revenue increase per school; greater impact expected in FY26.

Financial highlights

• Revenue for the first half was $52.5–$52.7 million, down 2–2.4% year-over-year.

• Underlying EBITDA rose 98% to $6.8 million, with margin improving from 6% to 13% year-over-year.

• Underlying net profit after tax was $3.6 million; statutory net loss after tax improved to $0.7 million.

• Cash generation improved to $1.4 million, a $3.8 million increase over the prior period.

• Gross margin remained strong at 95%.

Outlook and guidance

• Focus shifting from heavy product investment to improving EBITDA margin and cash generation in FY2025–2026.

• Revenue growth expected to be in the low single digits, with aspirations for higher growth.

• Stronger cash flows anticipated in the second half, with plans to repay all borrowings by March and maintain a healthy cash balance.

• Greater revenue impact from 3 Essentials model expected in FY26.

• Continued B2C growth targeted, especially in the US market.