• Solid growth in 2025 with 39 centres and 28% revenue increase
• Challenges in ECE sector due to oversupply and static demand
• Embark responds with flexible cost structure and strong community engagement
• Acquired 49.8% stake in Mayfield Childcare, seeking further integration

The Chair of Embark Early Education Ltd (ASX:EVO) addressed the company's 2025 performance and the current state of the early childhood education (ECE) sector. 2025 saw solid growth, with 14 centres acquired in 2024 and an additional centre in 2025, bringing the total to 39 centres. Revenue increased 28% to $104.7m and Centre EBITDA rose 16% to $25.1m. Embark maintained a strong focus on health and safety and continues to seek further acquisitions. However, the ECE sector is facing challenges, including subdued demand due to lower birth rates, cost of living pressures, and an oversupply of centres. Embark has responded by ensuring effective community engagement and maintaining a flexible cost structure. In 2025, Embark acquired a 19.9% stake in Mayfield Childcare Ltd and subsequently made a takeover bid for the remaining shares, which was partially accepted, resulting in Embark holding a 49.8% stake. Embark believes there are strategic and economic benefits to combining the two companies' operations. The Chair also discussed Embark's strong financial position, with pre-AASB16 operating cash flow of $15.2m and cash reserves of $20.7m at the end of 2025.

Embark reported revenue of $104.7m and Centre EBITDA of $25.1m for the 12 months to 31 December 2025.

Embark is focused on identifying and acquiring existing high-quality childcare centres, while maintaining a flexible cost structure to respond to the current challenges in the ECE sector. The company believes the oversupply of centres is beginning to ease, which should result in a better balance between demand and supply over the next 18 to 24 months.