• Strong earnings momentum driven by revenue growth in Australian school businesses
• Continued organic growth for Australian schools businesses
• Disciplined execution that fuels organic growth and unlocks operating leverage

ReadCloud Ltd has reported its FY25 audited annual results, highlighting strong earnings momentum and a positive outlook for FY26. The company's key financial highlights include a 26% increase in VET-in-Schools sales and fee revenue, a 17% growth in Australian direct eBook sales, and a 109% increase in underlying EBITDA. This performance was driven by continued organic growth, with 62 new school customers onboarded in FY25 and strong customer retention rates of 92% for VET-in-Schools and 91% for direct eBook solutions. The VET-in-Schools business maintained gross margins above 90%, while the company increased investment in advertising, marketing, and travel to support future sales growth. The industry training business, however, experienced a 28% decline in revenue due to unpredictable state funding. The company is initiating a review of this business. ReadCloud's balance sheet remains strong, with a 34% increase in cash to $1.9 million and no debt. For FY26, the company's priorities are to extend the strong earnings momentum, win over 50 new school customers, maintain school customer retention above 90%, preserve VET-in-Schools gross margins above 90%, and increase average customer value by more than 7%. The company believes its focus on disciplined execution and core competencies in school-based digital learning will deliver stronger, more predictable returns for shareholders.

For FY26, ReadCloud is focused on extending strong earnings momentum, winning over 50 new school customers, maintaining school customer retention above 90%, preserving VET-in-Schools gross margins above 90%, and increasing average customer value by more than 7%.

ReadCloud is confident in its ability to deliver stronger, more predictable returns for shareholders by concentrating resources on its core competencies in school-based digital learning and unlocking operating leverage through sustained revenue growth and disciplined cost control.