Nido Education (NDO) H2 2025 earnings summary

Executive summary

• Revenue grew 4% year-over-year to AUD 173 million, meeting prior guidance despite challenging trading conditions.

• Adjusted EBITDA was AUD 17 million and adjusted NPAT was AUD 11 million, in line with Q3 guidance.

• Paid a fully franked final dividend of AUD 0.022 per share, bringing the full-year dividend to AUD 0.037 per share (5.5% yield).

• Opened seven new services and acquired three from the incubator in FY 2025; pipeline includes 100+ services at various stages.

• Investments focused on safeguarding, quality, compliance, educator development, and service design while maintaining cost control.

Financial highlights

• Revenue increased 4% to AUD 173 million year-over-year.

• Adjusted EBITDA reached AUD 17 million; adjusted NPAT was AUD 11 million.

• Cash conversion remained strong at 94%; net leverage ratio at 1.1x.

• Service EBITDA margin at 18%, with average adjusted EBITDA per service of AUD 534,000.

• Wage to revenue ratio improved to 55% from 57% year-over-year.

Outlook and guidance

• Targeting underlying EBITDA growth of approximately 20% in FY 2026.

• Expecting to open 10 more services in the incubator and settle four acquisitions for AUD 9 million in H1 FY 2026.

• Early FY 2026 indicators: inquiries and enrollment offers up year-over-year, conversion rates improving.

• Strategy includes disciplined execution, quality focus, and responsible growth.

• Government policy changes expected to improve access, affordability, and safety in the sector.