3P Learning (3PL) H2 2025 earnings summary

Executive summary

• Underlying EBITDA rose 30% year-over-year to $15.5M, reflecting improved profitability and cost management, with net cash at $11.6M, up $6.5M from last year and no debt.

• Revenue was $109.1M, down 1% year-over-year, mainly due to lower retention of acquired U.S. school customers and challenging market conditions.

• Major product launches included Three Essentials in APAC/EMEA and Homeschool Max in the U.S., expanding market reach.

• Completed the acquisition of Literacy Planet for less than 1x revenue, expanding product offerings.

• Cost management and transition from product investment to sales execution improved profitability.

Financial highlights

• Underlying EBITDA reached $15.5M, up from $12M last year, with EBITDA margin improving to 14% from 11%.

• Revenue: $109.1M, down 1% year-over-year.

• Net cash at year-end was $11.6M, including $3.1M restricted cash, $6.5M higher than prior year.

• B2B annual recurring revenue was $61.6M, down 1%; B2C billings were flat at $42.9M.

• Gross margin remained strong at 95%.

Outlook and guidance

• Focus remains on expanding Three Essentials in APAC/EMEA and growing U.S. school and homeschool billings.

• Productivity gains expected from AI integration and process simplification.

• Product development costs expected to decrease as focus shifts to sales and marketing execution.

• Plans to review dividend policy in light of improved cash position.

• Continued cost discipline and margin improvement targeted for FY 2026.