Stadio Holdings (SDO) H1 2026 earnings summary

Executive summary

• Achieved over 56,000 students with 10% year-over-year growth by June 2026, surpassing pre-listing targets and reaching over 59,000 by August.

• Revenue increased 13% to R1.08 billion, driven by higher student numbers and strategic investments in people, systems, and infrastructure.

• Opened new campuses in Durbanville and Hatfield, both exceeding initial student targets and supporting growth in contact learning.

• Strategic focus on investment in people, technology, infrastructure, and brand, including a partnership with the Springboks.

• Maintained a strong balance sheet and low gearing, positioning for further expansion.

Financial highlights

• Revenue up 13% year-over-year to R1.08 billion.

• Normalised EBITDA margin at 31.3%, up from 30.6% in the prior period; normalised EBITDA grew 16% to R339 million.

• Profit after tax increased 14% to R209 million; EPS up 15% to 24.0cps; core headline EPS up 18% to 24.5cps.

• Cash generated from operations up 13% to R418 million; free cash flow after recurring capex reached R332 million.

• Return on equity improved from 15.4% to 17.2%.

Outlook and guidance

• Targeting 80,000 students by 2030, requiring 7% annual growth.

• Launching a blended learning model to capture new markets at lower price points.

• Continued investment in technology, AI, and academic quality to support growth.

• Plans to apply for university status as soon as regulations allow.

• No interim dividend declared; annual dividend policy based on excess free cash flow.