Qoria’s AI Push and FX Gains Fuel Growth but Seasonal Risks Loom

Robust Growth Across Global Markets

Qoria Limited has delivered a compelling operational and financial update for the December quarter of FY2025, underscoring its position as a leading player in the education technology sector. The company’s Annual Recurring Revenue (ARR) surged 26% year-on-year to $132 million AUD, reflecting strong demand across its K12 and consumer platforms. This growth was supported by a broad international footprint, with over 100 countries now using Qoria’s platforms and more than 25 million children benefiting from its digital safety solutions.

Particularly notable was the expansion in key markets: the US K12 segment grew 31% to US$33.5 million, the UK K12 segment increased 10% to £22.6 million, and the ANZ region saw a 31% rise to AUD$6.5 million. The Qustodio consumer brand also contributed significantly, adding close to $2 million in ARR and maintaining a growth rate above 20% year-on-year.

Operational Efficiency and Cash Flow Improvements

Qoria’s operating leverage is translating into tangible financial benefits. Operating cash flow rose 56% to $4.2 million for the quarter, while free cash flow improved to a loss of $1.1 million, narrowing from a $2.6 million loss in the prior comparable period. The company’s net debt position stands at $10.8 million, supported by a healthy cash balance of $39.7 million, bolstered by a recent capital raise.

Staff costs increased modestly by 5% due to annual pay rises and strategic hires, while direct costs declined 19% year-on-year, reflecting operational efficiencies. The company also benefited from favorable foreign exchange movements, particularly a weaker Australian dollar against the US dollar and British pound, which added approximately $7 million to ARR.

AI Innovations Driving Product Differentiation

Qoria’s strategic investment in artificial intelligence is a standout theme in this quarter’s update. The company has integrated AI capabilities across multiple facets of its platform, including real-time image and video content categorization, cloud scanning for safeguarding student data, and AI-enhanced moderation workflows that have reduced human moderation costs by 30%, saving an estimated $1 million annually.

In addition, Qustodio’s AI-driven behavioural alerts provide parents with unprecedented insights into their children’s online activities, addressing growing concerns around social media and gaming behaviours. The launch of AI-powered customer support is expected to generate over $1 million in annualised savings, underscoring the efficiency gains from automation.

Strong Pipeline and Market Outlook

Looking ahead, Qoria enters the March quarter with a record weighted sales pipeline of $11 million and a total pipeline of $32 million, driven by new AI-based products and expanded channel partnerships. The company anticipates a seasonally strong UK sales quarter and the launch of Edtech Insights at major education technology conferences in the UK and US.

Qustodio’s partnership with SoftBank and ongoing US school promotions are expected to accelerate consumer growth despite the March quarter typically being slower for this segment. The group remains EBITDA positive and targets 10-15% reported EBITDA margins for FY2025, signaling confidence in sustained profitability.

Conclusion

Qoria’s December quarter results highlight a company successfully scaling its global footprint while leveraging AI to enhance product offerings and operational efficiency. The combination of strong ARR growth, improving cash flow metrics, and a robust sales pipeline positions Qoria well for continued momentum in the competitive edtech landscape.