• 50 new schools signed for 2026 across VET-in-Schools and eBooks divisions

• Closing cash of $1.5m, with December/January typically the low point
• Receipts from school customers up 12%, offset by 66% decline in Industry Training

Readcloud Limited (ASX: RCL) has experienced a strong school selling season, with more than 50 new schools signed for the 2026 school year across the VET-in-Schools and eBooks divisions. This momentum is expected to continue as Australian schools return from the summer holidays. School customer retention also remains robust, with retention rates expected to exceed 90%. In addition to new school wins and strong retention, average qualifications taken per retained school--another key driver of revenue--continues to trend upwards. Readcloud is forecasting FY26 VET-in-Schools revenue growth to exceed 15% with gross margins continuing above 90%. The eBooks revenue base is expected to grow through the addition of new schools in 2026 and be supplemented by incremental growth from existing customers. Recent wins for the eBooks division include the signing of Readcloud's first direct South Australian government school customer. International school opportunities are also developing, with the sales pipeline building following increased investment in marketing and a renewed sales approach. Southern Solutions, Readcloud's industry training business, continues to be impacted by the unpredictable nature of State government funding, with its NSW and Victorian contracts under threat. As a result, management has proactively adjusted the cost base of the Industry Training business. Readcloud ended the quarter with $1.5m in cash and no debt, placing the company in a strong cash position leading into the March and June quarters when the majority of revenue is received from customers.

Readcloud is forecasting FY26 VET-in-Schools revenue growth to exceed 15% with gross margins continuing above 90%. The eBooks revenue base is expected to grow through the addition of new schools in 2026 and be supplemented by incremental growth from existing customers.

Readcloud expects the strong school selling season to continue over the coming month as Australian schools return from the summer holidays. School customer retention is also anticipated to remain above 90%. International school opportunities are developing, with the sales pipeline building following increased investment in marketing and a renewed sales approach.