NextEd Reports $95.9M Revenue, Narrows Net Loss by Over 50%

Context and Challenges

NextEd Group Limited, a prominent Australian education provider, has released its audited financial results for the year ended 30 June 2025. The company faced a challenging operating environment marked by regulatory uncertainty, particularly tighter international student visa approvals, which contributed to a 13.9% decline in revenue to $95.9 million.

Despite these headwinds, NextEd managed to significantly narrow its net loss after tax by 53.3%, reporting a loss of $14.6 million compared to $31.2 million in the prior year. This improvement was underpinned by disciplined cost management and operational efficiencies.

Strategic Reset and Operational Highlights

The year was notable for a strategic reset led by newly appointed CEO Mark Kehoe, who took the helm in November 2024. Under his leadership, the Group implemented structural changes and secured over $7 million in recurring annual cost savings, with $5 million realised in FY25 and the remainder expected in FY26. These savings were achieved through property rationalisation, workforce reductions, and tighter financial controls.

One of the key operational achievements was the acquisition and successful re-enrolment of more than 1,900 students from International House, generating over $16 million in forward revenue and improving campus utilisation. This move helped offset declines in English language enrolments by boosting vocational course participation, particularly in healthcare and hospitality sectors, where international student revenues grew by 79%.

Segment Performance and Financial Position

The International segment, which remains the largest revenue contributor, saw a 16% revenue decline to $71 million, reflecting visa restrictions and enrolment caps. However, the segment’s underlying EBITDA margin improved to 22.6%, demonstrating effective cost containment. The Technology & Design segment experienced an 18% revenue drop amid evolving market demand and policy impacts, recording a slight EBITDA loss and asset impairments totaling $5 million.

Domestic Vocational revenues remained stable at $9.2 million, supported by strong demand in community services and healthcare courses. The Go Study recruitment agency segment grew revenues by 3.4% to $6.1 million, maintaining steady profitability despite market challenges.

NextEd’s cash position strengthened to $18.9 million by year-end, supported by positive operating cash flows of $11.3 million. Contract liabilities, representing deferred tuition revenue, increased 14.5% to $37.2 million, indicating a solid pipeline of future enrolments.

Leadership and Governance

The year also saw significant leadership changes, including the appointment of Sandra Hook as Chair of the Board and Andrew Nye as CFO/COO. The Board emphasized governance alignment with the company’s strategic direction, focusing on compliance, risk management, and operational execution.

NextEd’s remuneration framework was updated to support the leadership transition, with CEO Mark Kehoe receiving a sign-on bonus of 1 million shares and a full short-term incentive payout tied to cost control and operational delivery. No long-term incentive shares were issued due to unmet earnings per share targets.

Outlook and Market Positioning

Looking ahead, NextEd is positioning itself to benefit from an emerging government policy framework that rewards quality and alignment with national priorities in skills and employability. The company aims to leverage its strengthened financial platform, diversified course offerings, and operational efficiencies to drive sustainable growth in FY26 and beyond.

While regulatory uncertainties remain, NextEd’s strategic focus on compliance, financial discipline, and market responsiveness places it well to navigate the evolving education sector landscape.