• Organic revenue growth of 13% (VET-in-schools delivered 32% revenue growth)
• Underlying EBITDA increased by 73% driven by operating leverage and cost discipline
• Positioned for growth with operating cash inflow of $1.9m, cash of $3.5m and no debt

ReadCloud Limited (ASX: RCL) is pleased to report exceptional first half results for FY25, with total organic revenue growth of 13% to $9.2m outpacing operating cost growth of just 1%. As a result, underlying EBITDA grew 73% to $1.80m and statutory profit increased 214% to $1.32m. The standout performer continues to be VET-in-schools with revenue increasing by 32% on pcp to $3.8m. ReadCloud's technology platform now serves 429 schools, following the onboarding of 62 new school customers for the 2025 school year (51 in 2024). A disciplined approach to cost management has unlocked significant operating leverage firmly positioning the business for growth with operating cashflow of $1.9m generated in 1H FY25, a strong balance sheet with $3.5m of cash and no debt as at 31 March 2025. ReadCloud's VET-in-Schools solution offers the widest range of qualifications (50) among school-based RTOs in Australia, delivering 733 qualifications during 1H FY25 (up 14% vs pcp) with a 94% retention rate and over 90% gross margins. Southern Solutions (vocational training to industry) revenue increased by c2% to $1.1m, while eBooks revenue grew 2% to $4.23m driven by a 10% increase in domestic direct sales and 91% retention rate.

Recent government policy changes in NSW and Victoria will negatively affect Southern Solutions' 2H25 revenue and impact the group's ability to generate the 15% organic revenue growth target for FY25 previously expected. ReadCloud's VET-in-Schools and eBooks businesses (c88% of total revenue in 1H FY25) remain on track to deliver to ReadCloud's stated baseline growth target of 15% in FY25. The large addressable markets in school based education continue to benefit from multiple tailwinds, including the migration to online education and broad-based recognition of skills shortages and the importance of vocational training. Engagement with market participants in the International Schools sector during May has highlighted significant opportunity for eBooks growth alongside the continuing momentum in VET-in-schools.