NextEd Group (NXD) H1 2025 earnings summary

Executive summary

• Revenue declined 21% year-over-year to $47.0 million, primarily due to regulatory and government restrictions impacting international student enrollments.

• EBITDA fell 30% year-over-year to $5.8 million, with cost efficiencies and aggressive management partially offsetting revenue loss.

• Net loss after tax was $8.3 million, including a $5.0 million impairment charge in Technology & Design.

• Integration of International House exceeded targets, enrolling over 1,900 students and generating $13 million in invoiced revenue.

• Focus shifted to higher-margin vocational courses, especially in management, hospitality, and healthcare.

Financial highlights

• H1 FY25 revenue: $47.0 million (down 21% YoY); EBITDA (before impairment): $5.8 million; Adjusted NPAT: $(2.2) million.

• Gross margin improved to 53% from 51% YoY due to a shift to higher-margin vocational courses.

• Operating cash flow was positive at $1 million, a $2.9 million improvement year-on-year.

• Cash at bank as of 31 December 2024 was $13.7 million, increasing to $14.1 million by January 2025, with $3.5 million restricted for bank guarantees and no financial debt.

• Operating costs reduced from $27.6 million to $24.8 million in H1 FY25, with $7 million in annualized cost savings secured for FY26.

Outlook and guidance

• Market conditions remain challenging due to ongoing regulatory and government policy changes affecting international student enrollments.

• Strategic review underway, with findings to be presented in Q4 FY25.

• Focus remains on cost management, operational efficiency, and positioning for long-term growth and industry consolidation.