NextEd Group (NXD) H2 2025 earnings summary

Executive summary

• FY25 marked stabilization and early execution, with a leadership reset, new CEO, CFO, and board renewal, and a strategic focus on profitability, portfolio, and growth.

• Cash position improved to AUD 18.9 million with zero debt, reflecting a strong financial base and no leverage risk.

• Revenue declined 13.9% year-over-year to AUD 95.9 million, mainly due to regulatory impacts on international English language and technology/design segments.

• Operating costs were reduced by AUD 5.6 million (13.2%), supporting stable underlying EBITDA of AUD 14.3 million despite lower revenues.

• Operational progress included market share gains in key segments and successful integration of International House, adding forward revenue.

Financial highlights

• Cash improved to AUD 18.9 million, up from AUD 13.7 million in December 2024, including AUD 4.6 million in restricted cash.

• Operating costs reduced by AUD 5.6 million (13.2%) through permanent measures.

• Revenue was AUD 95.9 million, down 13.9% year-over-year due to regulatory headwinds.

• Underlying EBITDA was AUD 14.3 million, showing resilience despite revenue drop; statutory net loss after tax was AUD 14.6 million, impacted by non-cash impairments and restructuring.

• Operating cash flows were AUD 11.3 million, up strongly year-over-year.

Outlook and guidance

• Positioned to benefit from sector recovery, with supportive government policy, increased national planning levels for international students, and 25,000 more places in 2026.

• Policy support and bipartisan backing provide sector stability; growth is expected in healthcare, hospitality, IT, and higher education pathways.

• The company is extending the Greenwich brand into higher education, launching in September with first intakes in February 2026.

• Expansion into early childhood VET courses is planned for 2026 and 2027.

• Strategy anchored on profitability, portfolio enhancement, and disciplined growth, with streamlined structure and focused investment.