EDU (EDU) H1 2025 earnings summary

Executive summary

• Achieved record 1H25 results with revenue up 114% to $36.1m, EBITDA at $10.9m, and NPAT at $6.3m, driven by Ikon's international student growth and margin expansion, with strong enrolment growth in both Ikon and ALG segments.

• Ikon enrolments reached 3,725 in Trimester 2, 2025, up 118% year-over-year, with 1,600 new students, mainly from international markets; four new programs launched and two more accredited for 2026.

• ALG saw increased revenue and enrolments but faces regulatory headwinds, with recent declines in new student enrolments.

• Expanded campuses in Sydney and Melbourne to support growth, with 74 classrooms across four states and online.

• Declared maiden interim fully-franked dividend of $0.01 per share, payable 30 September 2025.

Financial highlights

• Revenue for 1H25 surged 114% to $36.1m, with gross profit up 138% to $21.9m and gross margin expanding to 61%.

• EBITDA rose 384% to $10.9m, with margin up 17 points to 30%.

• Net profit after tax increased to $6.3m from $28k in 1H24.

• Net cash position increased to $21.2m at 30 June 2025, driven by strong operating cash flows and upfront fee collection.

• Earnings per share improved to 4.18 cents, up from 0.51 cents in 1H24.

Outlook and guidance

• 2H25 revenue expected to increase, with EBITDA and NPAT in line with 1H25; Ikon’s strength anticipated to offset ALG softness and higher costs.

• Ikon enrolments projected to continue growing in 2H25, supported by strong intake and low completions.

• ALG enrolments and revenue anticipated to decline in 2H25 due to sector softness.

• FY25 performance anticipated to materially exceed FY24 across all major financial metrics.

• Regulatory uncertainty remains a key factor impacting future growth and enrolment caps.