Cluey Ltd Cuts Loss by 59%, Boosts New Students 11%, Hits Positive Cash Flow

Financial Performance and Operational Highlights

Cluey Ltd, the ASX-listed education technology company, has reported a marked improvement in its financial results for the year ended 30 June 2025. The company narrowed its net loss after tax to $5.54 million, a substantial improvement from the $13.44 million loss recorded in the prior year. This progress was achieved despite a 14.5% decline in revenue to $25.6 million, reflecting a deliberate strategic decision to reduce customer acquisition spending in the first half of the year.

Underlying EBITDA, a key measure of core operating performance, showed a 35% improvement with a loss of $4 million compared to $6.17 million in FY24. This was driven by cost-saving initiatives, automation, and organisational redesign, which more than offset the revenue decline. Notably, Cluey achieved positive operating cash flow in the final quarter of FY25, excluding proceeds from capital raises, marking a significant milestone in its journey towards sustainable profitability.

Growth in Student Numbers and Segment Performance

While revenue contracted, Cluey saw an 11% increase in new student enrolments to 34,737, signaling a return to growth after previous declines. This growth was supported by increased marketing and product development investment in the second half of the year. The company operates across four segments – Online tutoring, Schools and Partnerships, Events and Experiences, and the UK market.

The Online segment experienced a 21% revenue decline due to reduced customer acquisition spend but managed to limit gross profit decline to 2% through operational efficiencies. Schools and Events segments saw modest revenue decreases of 5% and 4% respectively, impacted by changes to the NSW Creative Kids voucher scheme. Conversely, the UK segment grew strongly, with revenue up 35% driven by a 78% expansion in venues.

Strategic Initiatives and Future Outlook

Cluey continues to invest in expanding its educational offerings, leveraging technology and generative AI to enhance personalised learning experiences and operational efficiencies. The company plans to scale co- and extracurricular programs and maintain financial discipline to drive profitability. With a cash balance of $4.67 million and no external borrowings, Cluey is positioned to fund its working capital needs and growth initiatives through FY26.

Directors highlight key risks including intensifying competition, volatility in digital marketing costs, cybersecurity threats, and regulatory changes in the education sector. The company is actively managing these risks while pursuing opportunities to broaden its product portfolio and geographic footprint.

Governance and Remuneration

The board, led by Chairman Robert Gavshon and Deputy Chairman Mark Rohald, continues to oversee a disciplined approach to cost management and executive remuneration aligned with shareholder interests. No dividends were declared for FY25, consistent with the company’s focus on reinvestment and growth.