3P Learning (3PL) H1 2025 earnings summary

Executive summary

• Revenue declined 2% to $52.7 million, mainly due to lower B2B licence fees and US distributor transition, while B2C revenue remained stable.

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

• Net loss after tax narrowed significantly to $0.7 million from $12 million, driven by improved cost management and reduced non-recurring expenses.

• Acquisition of LiteracyPlanet (Intrepica Pty Ltd) completed in January 2025, expected to be profitable and cash flow positive in the first year, adding $2.2 million ARR.

• Early adoption of the Three Essentials model in APAC and EMEA, with over 200 schools signed up and a 47% increase in school revenue from upgrades.

Financial highlights

• Revenue for the first half was $52.7 million, down 2% 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 from a $12 million loss.

• 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.

• Strong 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 Three Essentials model expected in FY26.

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