Cluey Ltd Posts Stable $7.4M Revenue and 15% EBITDA Improvement in Q1 FY26

Financial Performance Highlights

Cluey Ltd, an education technology provider focused on K-12 learning services, has delivered a steady financial performance in the first quarter of fiscal year 2026. The company reported revenue of $7.4 million, unchanged from the prior corresponding period, signaling a stabilization after previous fluctuations. More notably, Cluey achieved its strongest-ever underlying EBITDA result, narrowing losses by 15% to negative $0.4 million, reflecting improved operational efficiency despite ongoing investments.

Operating cash flow also showed a modest improvement, moving closer to breakeven, though it remained negative at $0.4 million. This suggests that while the company is still burning cash, it is managing its expenditures with greater discipline.

Customer Metrics and Marketing Efficiency

Despite the positive EBITDA trend, Cluey experienced a 9% decline in new student enrolments and a 5% drop in total student sessions compared to the prior year. This contraction in user engagement is accompanied by a 17% increase in variable customer acquisition costs, now at $158 per new student. The rise in acquisition costs could reflect a more competitive market or the company’s strategic decision to invest more heavily in marketing ahead of new product launches.

Strategic Shift Toward AI-Driven Innovation

CEO Matteo Trinca emphasized that Cluey is channeling significant resources into product development, particularly AI-powered features scheduled for rollout in 2026. The company is building a hybrid AI-and-human learning platform designed to personalize instruction at scale, streamline user experience, and improve learning outcomes. This includes AI functionalities such as instant homework help, adaptive practice tests, and detailed feedback on assignments, aiming to reduce reliance on traditional tutoring and enhance student confidence.

Cluey’s vision extends beyond digital tutoring to an integrated learning-support ecosystem that combines online and offline experiences. This omnichannel approach is intended to boost engagement, retention, and lifetime value by offering seamless transitions between self-study, tutoring, assessments, and school partnerships.

Looking Ahead

The company plans a phased launch of new AI-enabled products throughout 2026, starting with a Student Hub and curriculum-aligned video lessons, followed by advanced practice modes and mock exam hubs. These innovations are expected to position Cluey as a leader in the evolving education technology landscape, capturing a larger share of the growing learning support market.

While the current quarter’s results show cautious optimism, the success of Cluey’s AI-driven transformation will depend on market adoption and the company’s ability to convert increased investment into sustainable growth.