• 109% increase in underlying EBITDA to $757k
• 29% growth in VET-in-Schools partnering fees to $5.3m
• 26% growth driving total VET-in-Schools revenue to $5.7m

ReadCloud Limited (ASX: RCL) has announced its FY25 preliminary results and quarterly update for the September 2025 quarter. The key highlights include a 109% increase in underlying EBITDA to $757k, 29% growth in VET-in-Schools partnering fees to $5.3m, and 26% growth driving total VET-in-Schools revenue to $5.7m. Australian domestic direct eBooks sales also grew 17% to $4.6m, contributing to a 5% increase in consolidated revenue to $12.9m. The company maintained disciplined cost management, with employment expenses flat in FY25 and only a 4% increase in total operating expenses. This, combined with organic growth in key revenue lines, resulted in positive cash flow of $489k, a $767k improvement on the prior corresponding period. The company's cash balance at the end of the quarter was $1.9m, up 34% on the prior corresponding period. The biggest detractors from the result were a 28% decline in Southern Solutions (Industry Training) revenue to $1.9m and a 77% decline in international eBooks sales to $55k. The company is addressing these issues, with Southern Solutions being tightly managed and the eBooks team being restructured. Management is maintaining a focus on growth and unlocking operating leverage with disciplined execution, and is anticipating another strong year of revenue growth in FY26 in VET-in-Schools and Australian domestic direct eBooks sales.

Another strong year of revenue growth is anticipated in FY26 in VET-in-Schools and in Australian domestic direct eBooks sales, which should further strengthen the group's gross profit (which increased from $6.6m in FY24 to $7.3m in FY25).

Management is maintaining focus on growth and unlocking operating leverage with disciplined execution. Customer retention and customer value metrics are being closely monitored so that gains from sustained organic growth are captured.