• FY2025 revenue up 8.9% to $31.4m, NPAT up 54% to $2.3m
• Franchise business revenue up 11%, corporate revenue up 4%
• Lesson numbers remain relatively flat, average lesson fees increased

Kip McGrath Education Centres Ltd reported its FY2025 financial results, with revenue up 8.9% to $31.4m and NPAT up 54% to $2.3m. The franchise business saw an 11% revenue increase, while corporate revenue grew 4%. The company maintained 416 franchise centres and 37 corporate centres, with a focus on ensuring sustainable business partners. Lesson numbers remained relatively flat over the past 4 years, with a slight year-over-year decline in FY2025. However, the company has seen an increase in average weekly lesson numbers per centre, driven by the adoption of 48-week and 52-week tutoring packages. Average lesson fees also increased, with modest price increases in key markets. The shift towards more Gold Partner contracts, which carry a higher franchise fee, has contributed to an overall increase in franchise fee percentages. Looking ahead to FY2026, the company expects lesson numbers to be flat year-over-year, with revenue expected to achieve mid-single digit growth through price uplifts. Costs are expected to grow at a slower rate than revenue, with savings on depreciation and amortization, leading to an early double-digit increase in NPAT. The company anticipates a small reduction in franchisee numbers due to not converting Silver to Gold, partly offset by new centre openings. Capital expenditure is expected to be around A$1.7m, focused on technology, centre acquisitions, and other investments.

For FY2026, the company expects: lesson numbers to be flat year-over-year, revenue to achieve mid-single digit growth through price uplifts, costs to grow at less than revenue with savings on depreciation and amortization of around A$0.5m, and NPAT to see an early double-digit increase.

In FY2026, the company expects lesson numbers to be flat year-over-year, with revenue growth through price uplifts and cost savings leading to an early double-digit increase in NPAT. The company anticipates a small reduction in franchisee numbers, partly offset by new centre openings, and capital expenditure of around A$1.7m focused on technology, centre acquisitions, and other investments.