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.

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

• All business segments are growing above industry rates, with the U.S. segment showing 31% year-over-year growth in USD.

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

Financial highlights

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

• Net cash position at AUD 39.7 million, with net debt at AUD 10.8 million.

• Receipts up 10% year-over-year; direct costs down 19% year-over-year, improving gross margins.

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

• Group reported EBITDA positive and expects 10-15% EBITDA margins for FY2025.

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.

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

• Qustodio's partnership with SoftBank and new product enhancements are set to drive future growth.

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

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