How Is 3P Learning Driving 30% EBITDA Growth Amid Market Challenges?
3P Learning reported a 30% rise in underlying EBITDA to $15.5 million for FY25, alongside a return to statutory profitability and a key acquisition to strengthen its literacy offerings.
- Underlying EBITDA increased 30% to $15.5 million
- Statutory net profit after tax turns positive at $0.2 million
- Revenue slightly down 1% to $109.1 million
- Acquisition of LiteracyPlanet adds $2.2 million to recurring revenue
- Executive Chairman transitions to non-executive role
Financial Performance Highlights
3P Learning Limited (ASX – 3PL) has delivered a solid financial performance for the fiscal year ended 30 June 2025, with underlying EBITDA climbing 30% to $15.5 million. This improvement comes despite a marginal 1% dip in revenue to $109.1 million, reflecting the company’s ability to manage costs and improve operational efficiency amid challenging economic conditions.
Notably, the company swung back to a statutory net profit after tax of $0.2 million, a significant turnaround from the $57 million loss recorded in FY24. This shift was aided by the absence of last year’s substantial non-cash goodwill impairment and acquisition-related costs, underscoring a cleaner earnings profile for investors to assess ongoing performance.
Strategic Growth and Market Expansion
CEO Jose Palmero highlighted the company’s strategic transition from product development to market execution, particularly in the B2B segment. The launch of the 3 Essentials package across APAC and EMEA and the continuation of direct Reading Eggs distribution to US schools mark key steps in expanding 3P Learning’s footprint in critical global markets.
The acquisition of Intrepica Pty Ltd, known for its LiteracyPlanet platform, for $1.5 million cash, further complements 3P Learning’s literacy suite. Completed in January 2025, this move added $2.2 million to annual recurring revenue and broadens the company’s offering to older students, positioning it well to capture a wider segment of the digital learning market.
Leadership and Strategic Outlook
In a notable board update, Executive Chairman Matthew Sandblom will transition to a non-executive director role effective 1 September 2025. This change reflects a shift in operational leadership to CEO Palmero and his senior team, while Sandblom will maintain a strategic oversight role, focusing on guiding the company’s global market ambitions.
Looking ahead, 3P Learning aims to accelerate adoption of its 3 Essentials package in APAC and EMEA and drive strong billing growth in the Americas, targeting both school districts and homeschool markets. Success in these areas is critical to validating the company’s multi-year investments and achieving sustainable above-trend growth.
Dividend and Cash Position
The company did not declare a dividend for FY25, a decision that may reflect a focus on reinvestment and balance sheet strengthening. Net cash increased substantially by $6.5 million to $11.6 million, including restricted cash, providing a solid liquidity buffer to support ongoing growth initiatives.
Bottom Line?
3P Learning’s FY25 results set a foundation for growth, but execution in key markets will be critical to sustaining momentum.
Questions in the middle?
- How will the LiteracyPlanet acquisition impact 3P Learning’s market share and product integration?
- What are the adoption rates and feedback for the 3 Essentials package in APAC and EMEA?
- How will the leadership transition influence strategic priorities and operational execution?
