• Regulatory changes impacting revenue & profitability, down vs pcp
• $1.0M positive operating cash flow (+$2.9M vs pcp)
• $5M+ annualised savings on track, with additional $2M locked in for FY26

NextEd Group Ltd reported its H1 FY25 results, with revenue declining 21% YoY to $47.0M primarily due to regulatory changes impacting international student enrolments. EBITDA was $5.8M, down $2.5M vs pcp, though partially offset by higher gross margins and aggressive cost reductions. The company achieved positive operating cash flow of $1.0M, an improvement of $2.9M vs pcp, through effective working capital management and targeted cost reductions. NextEd's cash position at the end of December 2024 was $13.7M, with no financial debt. In response to the market conditions, the company prioritised high-margin growth, cost efficiencies, and strategic opportunities. This included acquiring the rights to contact and make offers to re-enrol displaced students from a failed competitor, International House, successfully executing on this transaction and exceeding the target of 1,800 re-enrolled students. The company also achieved 74% growth in higher margin vocational courses for international students, including Management, Hospitality and Healthcare courses. NextEd implemented cost reduction actions to deliver $5M in annualised savings in FY25, with an additional $2M locked in, bringing total annualised savings to $7M by FY26 (vs FY24). The company also rationalised property, exiting under-utilised locations, and conducted a rapid audit to assess performance and prioritise immediate actions, including relocating the corporate office. Looking ahead, NextEd remains focused on building stability in a challenging market, with the IH integration progressing well, new courses launched, and a relentless focus on cost and cash management. The company is well-placed for additional consolidation opportunities, with a strategic review underway, the findings of which will be shared in Q4 FY25.

NextEd remains focused on building stability in a challenging market, with the IH integration progressing well, new courses launched, and a relentless focus on cost and cash management. The company is well-placed for additional consolidation opportunities, with a strategic review underway, the findings of which will be shared in Q4 FY25.