KneoMedia Cuts FY25 Loss 38%, Secures $700k Order for KneoScience

Financial Performance and Strategic Shift

KneoMedia Limited (ASX, KNM) reported a significant 38% improvement in its net loss for the financial year ended 30 June 2025, reducing the loss to $1.35 million from $2.18 million the previous year. This progress was largely driven by disciplined cost management and a strategic pivot away from its legacy KneoWorld games-based learning platform towards the more scalable KneoScience Content Services Platform (CSP).

Revenue from ordinary activities declined by 13% to $1.56 million, reflecting the transition period as the company shifted focus. However, management views this dip as temporary, anticipating that KneoScience’s scalable model will enable more efficient growth without the costly curriculum updates that burdened the previous platform.

KneoScience, A Scalable EdTech Solution

Developed in close collaboration with the New York City Department of Education (NYCDOE), KneoScience digitizes mandated science curricula and supports teaching and student assessment across grades 3 to 12. The platform’s recent expansion to include high school biology and earth sciences investigations marks a major milestone, potentially increasing student reach by 300,000 across 530 high schools.

Educators have reported that KneoScience significantly reduces teacher workload by up to 50%, enhances student engagement, and supports neurodiverse learners through multi-lingual and audio-visual content. These features align closely with NYCDOE’s instructional priorities, positioning the platform as a critical tool in advancing science education in New York City.

Contract Wins and Market Outlook

The majority of KneoMedia’s sales during FY25 came from the NYC ‘Connect All Kids’ program and contracts in Florida. Revenue recognition follows a straight-line basis over contract terms, with deferred revenue of $62,100 at year-end. Notably, the company secured a confirmed FY26 order valued at approximately AUD 700,000 post-year-end, underscoring growing market acceptance.

While international markets remain on hold, KneoMedia continues to nurture opportunities in the US and maintains a joint venture in the Philippines for future expansion. The company’s focus remains on leveraging KneoScience’s adaptability to penetrate other US states and potentially global education markets.

Balance Sheet and Funding

KneoMedia’s net asset deficiency improved to $2.09 million from $2.87 million, supported by increased intangible assets investment and reduced liabilities. The company has renegotiated loan facilities, including a $1 million bridging loan extended to February 2026 and related party loans, to manage cash flow and support ongoing development.

Operating cash outflows narrowed to $195,898, aided by reduced expenses and capital raising activities that generated $1.45 million in financing cash inflows. The company remains suspended from ASX trading since March 2024 but is actively engaged with the exchange to lift the suspension through funding and operational improvements.

Looking Ahead

With KneoScience’s proven educational impact and scalability, KneoMedia is positioned to capitalize on expanding contracts and further product development aligned with customer needs rather than costly curriculum revisions. The company’s ability to secure contractual arrangements for high school content deployment will be a key growth driver in the coming year.