• 109% increase in Underlying EBITDA to $0.8m
• 26% growth in VET-in-Schools revenue to $5.7m
• Australian direct eBooks sales up 17% to $4.6m

ReadCloud is an integrated provider of technology, learning content and training services to schools and industry. Financial highlights for FY25 include a 109% increase in Underlying EBITDA to $0.8m, 26% growth in total VET-in-Schools revenue to $5.7m, and a 17% increase in Australian domestic direct eBooks sales to $4.6m. The company achieved $12.9m in consolidated revenue, up 5% on the prior year. Operational highlights include 62 new school customers onboarded, strong customer retention, and VET-in-Schools preserving over 90% gross margins. The Directors are pleased with the significant growth in profitability, driven by strong organic growth in the VET-in-Schools and domestic eBook Solutions businesses. In light of headwinds in the industry training segment, the Board is conducting a strategic review to ensure ReadCloud is focused on higher-margin, higher-cashflow activities. The company is well-positioned for sustainable profitability, with its school-facing operations demonstrating strong unit economics, high customer retention, and controlled cost structures.

ReadCloud's school-based businesses continue to deliver benefits from recurring revenue models with 90-95% retention rates, high gross margins in ReadCloudVET exceeding 90%, and scalable technology platforms with controlled cost structures. Absent the underperforming industry training business, FY25 underlying EBITDA would have been $1.04m and operating cash flow would have been $0.92m.

ReadCloud is well-advanced in building a robust, scalable business serving schools with digital learning materials and education technology. Sales to date for the 2026 school year indicate that both school customer retention and average customer revenue are on target to strengthen further. ReadCloudVET continues its strong momentum, with 46 new schools already confirmed for 2026. The eBooks business is on track to achieve 90-95% retention while increasing average customer value through geographic expansion. By concentrating resources on the core school-based digital learning operations, ReadCloud will deliver stronger, more predictable returns for shareholders.