OpenLearning Limited reported a robust Q4 FY25 with SaaS annual recurring revenue growing 30% year-on-year to $3.035 million, underpinned by $3.6 million in new contracts across key Asia-Pacific markets. The company’s AI-powered learning management system continues to gain traction internationally as it targets cash flow breakeven by early 2027.
- SaaS ARR grew 30% YoY to $3.035 million in Q4 FY25
- Over $3.6 million in new SaaS contracts signed in 2025
- Strong customer base of 252 B2B SaaS clients across 19 countries
- Strategic partnerships expanded in Philippines, Africa, Brazil, and UAE
- Successful $2.6 million equity raise strengthens balance sheet
Sustained SaaS Growth Momentum
OpenLearning Limited (ASX, OLL) has delivered another quarter of impressive growth, reporting a 30% year-on-year increase in its platform Software-as-a-Service (SaaS) annual recurring revenue (ARR) to $3.035 million in Q4 FY25. This marks the 16th consecutive quarter of ARR growth, highlighting the company’s consistent upward trajectory in the competitive EdTech sector.
The growth was driven by new SaaS subscriptions and an increase in average deal size, with average ARR per B2B customer surpassing $12,000 for the first time. OpenLearning now serves 252 active B2B SaaS customers across 19 countries, underscoring its expanding global footprint.
Strategic Contract Wins and Market Expansion
In 2025, OpenLearning signed over $3.6 million in new SaaS contracts, primarily in Australia, Malaysia, and the Philippines; its core markets accounting for approximately 90% of ARR. Notable agreements include a five-year contract with Indonesia’s Universitas Muhammadiyah Purwokerto, a three-year usage-based deal with Field Ready supporting African universities, and a reseller partnership with CE Logic in the Philippines, which also involved a strategic investment.
The company’s expansion strategy is further evidenced by a pilot program with India’s Gujarat University and growing reseller networks in Brazil, the UAE, Saudi Arabia, and Africa. These moves position OpenLearning to tap into large and diverse education markets, leveraging local partnerships to accelerate adoption.
AI-Powered LMS Enhancements Driving Adoption
OpenLearning’s AI-powered learning management system (LMS) remains a key differentiator. The platform’s generative AI tools streamline course design, content creation, and delivery, appealing to universities and corporate training providers alike. Recent product enhancements include AI quiz generation, competency-based grading, and improved course migration tools that facilitate transitions from legacy LMS platforms.
These innovations support a broad range of educational models; from online degrees to vocational training; and enable the company to compete for larger, multi-year institutional contracts globally.
Financial Position and Outlook
OpenLearning strengthened its balance sheet through a $2.6 million equity placement in October 2025, including a $1.25 million investment from the Education Centre of Australia, its largest shareholder. The company also converted all outstanding debt into equity, reducing financial leverage.
Cash receipts from SaaS customers rose 14% in Q4 to $0.785 million and 37% for the full year to $3.136 million, reflecting growing customer adoption and contract renewals. Despite increased operating cash outflows due to accounting changes and one-off costs, the underlying business is approaching cash flow breakeven, targeted for early 2027.
CEO Adam Brimo emphasised the company’s strong momentum and strategic positioning, noting the expanding pipeline and the potential to convert growth opportunities into larger, multi-year contracts.
Bottom Line?
OpenLearning’s accelerating SaaS growth and strategic partnerships set the stage for scaling internationally, but investors will watch closely for progress toward breakeven and contract pipeline conversion.
Questions in the middle?
- How will phasing out lower-priced plans affect customer churn and revenue stability?
- What is the timeline and expected impact of the Gujarat University long-term contract?
- How effectively can OpenLearning convert its strong pipeline into sustained multi-year deals?