• Perspective on current trading conditions in the child care sector
• Nido's current performance and operational initiatives
• Update on capital management plans

Nido Education Limited (ASX: NDO) has released a market update, covering three key areas: 1) a perspective on the current trading conditions in the child care sector, 2) an update on Nido's current performance, and 3) plans for capital management. The announcement outlines that the Australian early childhood education and care market has seen softening demand conditions over 2024-2025, driven by factors such as declining birth rates, cost-of-living pressures, and changes in work patterns. However, the government has introduced supportive policy measures, including the 3-Day Guarantee, which aims to increase utilisation among families. Nido has made significant investments to strengthen its operational capabilities, prioritizing safeguarding, quality of the educational offering, employee engagement, and disciplined operational performance. While Nido commenced 2026 with lower starting occupancy, the company has recorded year-on-year growth in enquiries and enrolment offers. Looking ahead, Nido expects the operating environment to remain challenging but is focused on executing targeted initiatives to drive enrolments and deliver more days of learning. Regarding capital management, Nido expects to provide a further update on a potential dividend and the continuation of its share buyback program as part of its annual report announcement.

Nido expects the operating environment to remain challenging in 2026 as the company continues to prioritize child safety, quality, and compliance. The company expects earnings to be ahead of the corresponding period last year for January 2026, but a single month is not necessarily indicative of full-year performance.

Nido expects the operating environment to remain challenging in 2026 as the company continues to prioritize child safety, quality, and compliance. However, policy settings remain supportive of utilization and workforce participation, and Nido will continue to execute targeted initiatives to drive enrolments and deliver more days of learning across its service network.