Qoria (QOR) Q3 2025 earnings summary

Executive summary

• Achieved over 25% year-on-year ARR growth, adding $25 million in the last 12 months and reaching $137 million ARR at quarter-end, with strong contributions from K-12 and consumer segments.

• Over 25 million children and 7 million parents use the platforms, present in 100+ countries and 29,000+ schools.

• Ended the quarter with a record $43 million K-12 sales pipeline (weighted $19 million), positioning for a strong June quarter.

• U.S. and ANZ regions delivered standout growth, with Texas and Ohio as key drivers; U.K. expected to accelerate in FY 2026.

• Business is at an inflection point, moving toward sustained profitability and positive cash flow.

Financial highlights

• Operating cash flow surplus of nearly $20 million YTD, with net debt just over $22 million and cash/equivalents at $29.1 million as of March 31, 2025.

• March quarter added $5 million ARR, maintaining 25% year-on-year growth, with $1 million from FX and churn.

• Hardware costs reduced by 12% year-on-year despite 25% ARR growth.

• Staff costs up 13% headline, but only 3-4% after FX adjustments, in line with CPI.

• EBITDA margin guidance for FY 2025 remains at 10-15%.

Outlook and guidance

• June and September quarters expected to deliver significant ARR and cash flow growth, with main cash collection in September.

• FY 2025 expected to be materially EBITDA positive; cash flow positive for the calendar year.

• ARR growth target for FY 2026 is 15-20% on prior year’s growth, with focus on cross-sell and upsell.

• U.K. and U.S. regions both expected to contribute strongly in FY 2026.

• Qustodio consumer business expects growth acceleration with new product launches and SoftBank partnership in Japan.