Qoria (QOR) H1 2025 earnings summary

Executive summary

• Achieved strong growth in recurring revenue (ARR) to $132 million, up 26% year-over-year, with statutory revenue up 14% to $55.4 million for the half.

• Underlying EBITDA turned positive at $6.1 million, a significant turnaround from negative $1.9 million in the prior year.

• Free cash flow was positive for the first time at $4.4 million, and operating cash flows rose to $18.1 million.

• Over 25 million children and 7 million parents use the platform, with presence in 100+ countries and 29,000+ schools.

• Acquired Octopus BI to enhance data analytics and AI capabilities, funded by a $30 million equity placement and increased debt facility.

Financial highlights

• Gross margin increased to 75%, up from 71%, with margin percentage rising 21% year-over-year to $41.7 million.

• Net loss after tax improved 65% to $11.5 million, and earnings after tax improved from -$28.2 million to -$9.6 million.

• Net debt reduced to $10.8 million after a capital raise; cash balance at $39.7 million.

• Share-based payments down 27% to $4.9 million; employee costs decreased despite business growth.

• Free cash flow was positive, even after acquisition-related payments and costs from a divestment that did not proceed.

Outlook and guidance

• Targeting positive free cash flow for CY2025 and EBITDA margins of 10-15% for FY2025, rising to 20%+ in FY2026.

• Strong K12 sales pipeline of $32 million (weighted $11 million); seasonally strong half expected in UK & US.

• Gross margin is expected to trend upwards toward 80% over the next 18 months.

• Strategic focus on platform unification, product expansion, and market expansion beyond English-speaking regions.

• Management expects continued strong cash flows and is confident in meeting future commitments.