How Is IODM Driving 37% Revenue Growth Through Global Education Deals?
IODM Limited reported a robust 37% increase in cash receipts for Q4 FY25, driven by strong UK education sector growth and new international revenue share agreements.
- Q4 FY25 cash receipts rose 37% to A$703k
- Full FY25 cash receipts increased 29% to A$2.657m
- UK education segment revenue up 69%, with 15 universities onboarded
- New revenue share agreements signed with Convera (Japan) and TransferMate (Americas)
- Australian sales pipeline targets tier one clients with onboarding expected in Q1 FY26
Strong UK Education Growth Drives Quarterly Performance
IODM Limited (ASX – IOD) has delivered a solid finish to FY25, reporting a 37% increase in cash receipts for the fourth quarter to A$703,000, contributing to a 29% rise in full-year cash receipts to A$2.657 million. The standout performer was the UK education segment, which saw revenue cash receipts jump 69% year-on-year to A$509,000. This growth was underpinned by the onboarding of two additional universities during the quarter, bringing the total number of UK institutions using IODM Connect to 15.
The UK team also hosted its second IODM UK Education Forum in Birmingham, attracting 20 university finance officers and generating a significant pipeline of new interest. This event is set to become a regular fixture, reinforcing IODM’s position as a trusted partner in the higher education payments space.
Expanding Footprint Across Americas and Asia
Beyond the UK, IODM has made strategic strides in North America and Asia. The company formalized a revenue share agreement with Convera for the Japanese education market and secured a similar deal with TransferMate for the USA and Canada. These partnerships are expected to accelerate market penetration in these regions, with university onboarding anticipated to commence in Q1 FY26.
IODM’s engagement with education institutions in the US and Canada has been bolstered by the ability to showcase tangible benefits demonstrated by UK implementations. The company’s approach of leveraging proven results to build trust appears to be resonating well with prospective clients.
Australian Market and Financial Position
In Australia, the restructured sales team is actively cultivating a pipeline focused on tier one enterprise clients, with onboarding agreements expected early in the new fiscal year. While operational cash outflows slightly improved by 2% to A$792,000 in Q4, liquidity remains tight with available funding covering less than one quarter of operating needs. To address this, IODM secured short-term funding of A$500,000 in July 2025, and management remains confident that increasing cash receipts and new academic year cycles will improve cash flow.
CEO Mark Reilly emphasized the company’s positive momentum, highlighting the growing acceptance of IODM Connect and the expanding revenue reach within onboarded universities. The focus remains on efficient onboarding and scaling the opportunity pipeline globally.
Outlook and Market Implications
IODM’s FY25 results reflect a company gaining traction in a niche yet growing segment of the education payments market. The combination of strong UK growth, new international partnerships, and a focused sales strategy in Australia positions IODM well for further expansion. However, the company’s tight liquidity and reliance on continued onboarding success underscore the importance of execution in the coming quarters.
Bottom Line?
IODM’s global education expansion is gathering pace, but upcoming quarters will test its ability to convert pipeline into sustainable cash flow.
Questions in the middle?
- How quickly will new revenue share agreements in Japan and the Americas translate into meaningful cash receipts?
- Can IODM sustain its UK growth momentum while successfully scaling in other regions?
- What are the company’s plans to strengthen liquidity beyond short-term funding?