EDU (EDU) H1 2025 earnings summary

Executive summary

• Revenue for 1H25 surged 114% year-over-year to $36.1m, with net profit after tax (NPAT) rising to $6.3m from $28k in the prior corresponding period, reflecting significant operating leverage and scale efficiency.

• Ikon Institute drove group performance, with higher education enrolments up 118% to 3,725 in Trimester 2, 2025, and four new programs launched, with two more accredited for 2026.

• ALG (vocational education) saw revenue up 36% to $8.7m and enrolments up 30%, but faces regulatory headwinds and recent declines in new student enrolments.

• Expanded campuses in Sydney and Melbourne to support growth, with a shared services model scaling efficiently.

• Interim fully-franked dividend of $0.01 per share declared, payable 30 September 2025.

Financial highlights

• Gross profit increased 138% to $21.9m, with gross margin expanding to 61% from 55% in 1H24.

• EBITDA rose 384% to $10.9m, with EBITDA margin up to 30% from 13% in 1H24.

• Net cash position increased by $16.2m to $21.2m, 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.

• Cash at 30 June 2025: $22.5m, up from $6.5m at 31 Dec 2024.

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.

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

• Board expects strong intake in Ikon's Trimester 3, 2025, to offset any further decline in ALG enrolments and increased costs.

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