• 26% increase in cash receipts and 17% increase in revenue
• 59 new schools signed for 2025 across VET-in-Schools and eBooks divisions
• VET-in-Schools revenue growth forecast to exceed 25% in FY25

ReadCloud Limited (ASX: RCL) has reported a strong start to FY25 (September year-end) with a record December quarter. The company saw a 26% increase in cash receipts and a 17% increase in revenue, while operating expenses were held to a 1% increase, positioning the business for accelerated operating leverage in 2025 and beyond. ReadCloud had a strong selling season, signing 59 new schools for 2025 across its VET-in-Schools and eBooks divisions. This was complemented by further improvement of retention rates for existing school customers in eBooks to 93% and significant growth initiatives in the VET-in-Schools division. ReadCloud is now forecasting FY25 VET-in-schools revenue growth to exceed 25% and gross margins to remain above 90%, driven by growth in revenue of 10%-15% from the existing customer base and revenue from newly onboarded schools. The company's industry training business, Southern Solutions, continues to trade strongly, consolidating its materially improved performance in FY24. ReadCloud ended the quarter with $1.07 million in cash reserves and no debt, placing the company in a strong cash position leading into the seasonally stronger March and June quarters.

ReadCloud is forecasting FY25 VET-in-schools revenue growth to exceed 25% and gross margins to remain above 90%.

ReadCloud's VET-in-schools pre-sales for 2026 suggest growth of new customers will continue to accelerate. The eBooks revenue base is also expected to grow as a result of incremental growth from existing customers and the addition of new schools in 2025.