FX Volatility Challenges Qoria Despite Record ARR and Cash Flow Gains

Record ARR Growth Amid Seasonal Challenges

Qoria Limited has delivered a standout performance in the December quarter of FY2026, posting record annual recurring revenue (ARR) growth despite the typically subdued seasonality of the period. The company’s ARR surpassed the significant milestone of US$100 million, reflecting a 19% year-on-year increase on a consistent currency basis. This achievement underscores Qoria’s expanding footprint in the K12 education technology and online safety sectors.

Net ARR added in Q2 reached $5.1 million, representing a 42% increase compared to the same quarter last year. This growth was driven by strong performances across both the K12 segment and the consumer-focused Qustodio platform, which itself is growing ARR at an annualised rate of 34%. The weighted K12 sales pipeline also grew robustly by 29% to $13.6 million, setting a solid foundation for the remainder of the financial year.

Financial Strength and Operational Efficiency

Qoria’s financial health is further evidenced by its cash receipts of $79.1 million for the first half of FY2026, up 20% year-on-year, and free cash flow of $8.9 million, a 46% increase over the prior corresponding period. Despite headwinds from foreign exchange movements, which negatively impacted reported ARR and margins, the company maintained disciplined cost control. Underlying operating expenses rose modestly, reflecting planned investments in engineering capacity and marketing, particularly for Qustodio.

Net debt stood at $32.6 million as of 31 December 2025, with available funding of $21.2 million. Management expects net debt to remain stable through FY2026 before reducing materially in FY2027 and beyond, signalling confidence in the company’s cash flow trajectory and capital structure.

Leveraging AI for Growth and Efficiency

Qoria is actively integrating artificial intelligence across its product development and operational processes. The engineering team reports significant productivity gains from AI tools, translating into the equivalent of approximately 15 full-time roles saved annually. AI-enhanced features such as real-time image and video filtering, automated web categorisation, and cloud account scanning have already contributed millions of dollars in incremental ARR.

Operationally, AI-driven automation is improving customer support efficiency and reducing human moderator workloads, enhancing scalability in student wellbeing services. This strategic adoption of AI positions Qoria well to sustain competitive advantage in the highly regulated and trust-dependent SaaS market segments it serves.

Outlook and Market Position

Qoria reaffirmed its FY2026 guidance, targeting 20% revenue growth and a 20% adjusted EBITDA margin. The company’s expanding presence, now protecting 20% of US students and 40% of UK students, alongside a growing global footprint across more than 100 countries, highlights its leadership in online safety and education technology.

While foreign exchange volatility remains a risk factor, Qoria’s strong ARR growth, improving free cash flow, and strategic investments in AI and market expansion suggest a resilient growth trajectory. The company’s ability to convert pipeline opportunities and manage costs will be key to sustaining momentum through the remainder of FY2026.