How Cluey Ltd Turned Around Its Finances with AI and Student Growth
Cluey Ltd has marked a pivotal year with a $4.4 million EBITDA improvement and its first positive operating cash flow quarter, alongside renewed student growth. The company is now pivoting towards AI-driven product expansion to sustain momentum.
- 50% improvement in EBITDA, reducing losses by $4.4 million
- First quarter of positive operating cash flow achieved
- 11% growth in new student enrolments
- 21% reduction in operating and marketing costs
- 33% improvement in variable customer acquisition cost
A Year of Financial Turnaround
Cluey Ltd, the ASX-listed education technology company, has reported a significant financial turnaround for the fiscal year ended June 30, 2025. The company improved its EBITDA loss by $4.4 million, a 50% enhancement compared to the previous year, marking a critical step towards profitability. This improvement was accompanied by the milestone of achieving its first positive operating cash flow quarter, signaling healthier cash management and operational efficiency.
Strategic Shift to Profitability and Efficiency
Under the leadership of Joint CEO Matteo Trinca, Cluey deliberately shifted focus from aggressive top-line growth to sustainable profitability. This strategy involved streamlining operations, cutting operating and marketing expenses by 21%, and improving customer acquisition efficiency by 33%. Despite a strategic reduction in customer acquisition spending in the first half of FY25, the company resumed growth in new student numbers by 11% over the year, reflecting a balanced approach to growth and cost control.
Navigating Market Challenges and Revenue Dynamics
The company faced revenue pressures due to a strategic pivot away from higher-revenue tutoring sessions towards after-school programs and ongoing household budget constraints affecting discretionary spending. Nonetheless, Cluey’s underlying EBITDA loss narrowed by 35%, supported by cost-saving initiatives, automation, and organisational redesign. This steady improvement over four years; from a $17.6 million loss in FY22 to $4.0 million in FY25; demonstrates the company’s disciplined execution and operational resilience.
Looking Ahead – AI and Product Innovation
Building on this momentum, Cluey is set to accelerate investments in AI-driven learning products and technology in FY26. The company plans to expand its product suite with AI-first features designed to personalise education, enhance student engagement, and differentiate its offerings in Australia and New Zealand. Initiatives include AI-powered practice environments, structured video lessons aligned to curricula, and AI-enabled exam preparation tools. This product-led growth strategy aims to deepen customer value and support scalable expansion.
Omnichannel Expansion and Brand Unification
Cluey is also advancing its omnichannel strategy, delivering learning programs online, in schools, and through holiday camps, including its subsidiary Code Camp in the UK. The company is exploring physical expansion with new learning centres and moving towards a unified brand strategy to strengthen market presence. These moves reflect Cluey’s ambition to become a leading personalised education provider in its core markets.
Bottom Line?
Cluey’s FY25 results set a promising foundation, but the success of its AI-driven growth and profitability ambitions will be closely watched.
Questions in the middle?
- How will Cluey’s AI initiatives translate into revenue growth and profitability in FY26?
- Can the company sustain its improved customer acquisition efficiency amid competitive pressures?
- What impact will physical expansion and brand unification have on operational costs and market reach?
