• 13% growth in sales and fee revenue in 1H25
• VET-in-Schools business grew 29% in 1H25
• Positive operating cash flow of $2.0m in the March quarter

Readcloud Ltd reported a strong performance in the March 2025 quarter, with 13% growth in sales and fee revenue in the first half of FY25 (1H25). This was driven by exceptional performance in the company's most material business, VET-in-Schools, which grew 1H25 revenue by 29% over the prior comparable period. The seasonally strong March quarter generated $4.6m in customer receipts and positive operating cash flow of $2.0m, contributing to the cash balance growing from $1.1m to $3.5m over the quarter. This would have been even stronger, but some receipts were delayed into April, resulting in a further $2.3m received in the current month to date. The company remains debt-free. Operating leverage also strengthened, with 1H25 operating cost growth of only 1% on the prior comparable period. The performance positions the company well to deliver on its previously stated FY25 ambitions of baseline organic growth of 15%, while managing cost growth to unlock operating leverage.

The company is targeting baseline organic revenue growth of 15% in FY25, with cost growth meaningfully lower than revenue growth.

The company is well positioned to invest in growth optionality, with $3.5m in cash and no debt as at 31 March 2025, particularly given forecast operating cash flow positivity in FY25. Management remains focused on disciplined execution that unlocks operating leverage.