• Revenue of $462.2 million, down 6% with focus on profitable growth
• Adjusted EBIT of $87.5 million, down 14% amid challenging market conditions
• Transformation program on track to deliver $25 million net cost savings in FY26

IDP Education Limited (IDP) (ASX: IEL) today announced results for the 2026 financial half year (H1 FY26) and updated the market on its progress on the transformation program. The company is delivering on its commitments made at the FY25 results, with clear operational, productivity and financial improvements, as the business continues to navigate dynamic market conditions. Revenue was $462.2 million, down 6% on a constant currency basis, as the focus on profitable growth drove strong yield performance, partly mitigating lower volumes. Student Placement yield increased 15% and Language Testing yield increased 8%, while volumes declined 25% and 7% respectively. Cost control delivered direct costs down 6% and adjusted overhead costs down 2%, with the company on track for a $25 million net reduction in the cost base in FY26. Adjusted EBIT was $87.5 million, down 14%. The company has simplified its balance sheet, maintained strong working capital discipline, and achieved 59% cash conversion. IDP continues to reinforce its position as a quality partner for universities and students, with student NPS above 70 and 90%+ of students highly trusting the company. The transformation program is progressing well, with phase one focused on strengthening and simplifying the business and delivering significant cost reductions. The company is upgrading its FY26 Adjusted EBIT guidance to $120 million - $130 million, reflecting the FY26 intake and destination mix, and a one-off benefit from working capital improvements in the first half.

IDP is upgrading FY26 Adjusted EBIT guidance to $120 million - $130 million, reflecting continued challenging industry conditions with FY26 market volumes expected to be down 20% - 30% versus FY25, offset by a focus on profitable growth and yield improvements.

IDP's focus in FY26 is on managing financial performance and delivering its transformation and broader strategic priorities. The company is on track to deliver $25 million net reduction in the cost base in FY26, weighted to the second half, as it continues to strengthen the foundations for investment in technology and AI to drive long-term profitable growth.