• Challenging market conditions led to 29% decline in student placement volumes and 18% decline in IELTS test volumes
• Adjusted EBIT down 48% and Adjusted NPAT down 56% on prior year
• Commenced multi-year transformation program to simplify business and shift to more agile, AI-enabled operating model

IDP Education Limited has reported its financial results for the 2025 financial year (FY25), which was a challenging period marked by significant policy changes across its key destination markets of Australia, Canada, the United Kingdom and the United States. These policy shifts led to a contraction in the international student market, with IDP's Student Placement volumes down 29% and IELTS test volumes down 18% compared to the prior year. This decline in volumes resulted in a 14% decrease in revenue, despite a 15% increase in average yield for Student Placement. IDP applied a disciplined approach to cost management, reducing direct costs by 6% and overheads by 5%. However, the company's financial performance fell well short of expectations, with Adjusted Earnings Before Interest and Tax (EBIT) of $119.0 million, down 48% on the previous year, and Adjusted Net Profit After Tax (NPAT) of $64.7 million, down 56% on a constant currency basis. In response to the challenging market conditions, IDP has commenced a multi-year transformation program to reshape the business for long-term success. This program aims to simplify the company's operations, improve financial performance, and shift to a more agile, technology-enabled operating model. The first phase of the transformation is expected to deliver $25 million of net cost reduction in FY26. IDP remains focused on leveraging technology, particularly artificial intelligence, to drive productivity and enhance the customer experience for students, test takers, and institutional partners. Despite the near-term challenges, the company remains confident in the long-term drivers of the international education industry and is committed to supporting students, test takers, and partners through the current volatility.

IDP remains confident in the long-term drivers of the international education industry and is committed to supporting students, test takers, and partners through the current volatility. The company has commenced a multi-year transformation program to reshape the business for long-term success, which includes simplifying operations, improving financial performance, and shifting to a more agile, technology-enabled operating model. The first phase of the transformation is expected to deliver $25 million of net cost reduction in FY26.