Qoria (QOR) Q2 2025 earnings summary

Executive summary

• Achieved a record quarter with AUD 12 million in recurring revenue added, ending the year at AUD 132 million ARR, supported by favorable FX movements.

• Supported 25 million children, 7 million parents, and over 29,000 schools across 100+ countries, with significant US and UK student coverage.

• Strategic AI investments are driving innovation, efficiency, and new revenue streams in online safety.

• Net cash from operating activities for the quarter was $3.4 million, with year-to-date operating cash flow at $18.1 million.

Financial highlights

• ARR grew 26% year-over-year, reaching AUD 132 million, with FX tailwinds contributing AUD 7 million.

• Operating cash flow was positive at AUD 4.2 million for the quarter; free cash flow was slightly negative at AUD 1.1 million for the quarter but nearly AUD 7 million positive for the half.

• Cash and equivalents at quarter end were $39.7 million; net debt stood at $10.8 million.

• Receipts from customers totaled $28.2 million for the quarter, up 10% year-over-year.

• Staff costs increased 3.8% (excluding FX), mainly due to annual pay rises and minimal growth hires.

Outlook and guidance

• Confident in adding at least AUD 11 million of ARR in the education segment in the second half, with a strong pipeline of AUD 32 million.

• Expecting reported EBITDA margin of 10%-15% for the year, excluding share-based compensation and after capitalization of salaries.

• Free cash flow expected to be around break-even for the year.

• March quarter expected to be seasonally strong for UK K12 sales and marks key conference launches in the US.

• Anticipate continued cost discipline, with cost structure expected to remain flat or decline in the next financial year.