Cluey Ltd reports a 13% improvement in operating cash outflow and a 0.7% rise in gross profit margin, while preparing to launch its AI-driven Cluey+ platform in February 2026. The company also completed a $4.5 million capital raise and signed an agreement to acquire the Art of Smart group.
- 13% improvement in operating cash outflow versus prior year quarter
- Gross profit margin increased to 59.0%
- Completed $4.5 million fully underwritten entitlement offer
- Signed binding agreement to acquire Education Futures Group (Art of Smart)
- Significant progress on AI-driven Cluey+ product development
Quarterly Performance Amid Seasonal Softness
Cluey Ltd (ASX, CLU) has released its December 2025 quarterly report, revealing a steady financial footing despite the typical seasonal slowdown at the end of the academic year. The company reported a 13% improvement in operating cash outflow compared to the prior corresponding period, reducing its cash burn to $2.2 million. This was achieved alongside a modest increase in gross profit margin to 59.0%, up 0.7% from the previous year.
Underlying EBITDA remained negative at $1.003 million, reflecting the seasonal dip in enrolments across its tutoring, holiday camps, and after-school programs in Australia and the UK. However, Cluey strategically increased marketing spend by 13% to drive future growth, while simultaneously cutting operating costs by 7%.
Strategic Capital Raise and Acquisition
During the quarter, Cluey successfully completed a fully underwritten entitlement offer, raising $4.5 million gross ($4.347 million net). This capital injection strengthens the company’s balance sheet, with cash reserves standing at nearly $6 million, providing approximately 2.7 quarters of funding at current burn rates.
In a significant strategic move, Cluey signed a binding Share Purchase Agreement to acquire 100% of Education Futures Group Pty Ltd, the holding company of the Art of Smart group. This acquisition, subject to customary conditions, is expected to expand Cluey’s footprint in the education technology sector and complement its existing offerings.
Innovation Focus, AI-Driven Cluey+ Launch
Central to Cluey’s growth strategy is the development of its AI-powered Cluey+ platform, scheduled for launch in February 2026. The new product suite promises personalised, curriculum-aligned video lessons and an AI-enabled practice environment designed to enhance homework and revision experiences for students across Australia and New Zealand.
The company is also accelerating AI-driven exam preparation tools for senior students, featuring real-time feedback and practice tests. This investment in technology underscores Cluey’s commitment to leveraging AI to transform online education and maintain competitive advantage.
Outlook and Market Position
Early indicators ahead of the 2026 academic year are positive, with increased marketing efforts translating into higher customer enquiries and enrolment growth. Cluey’s management remains focused on executing its product rollout and integrating the Art of Smart acquisition to drive scale and innovation.
The company plans to provide a more detailed update on student enrolments and the Cluey+ launch in its upcoming half-year financial results announcement in late February.
Bottom Line?
Cluey’s blend of strategic acquisition, capital strengthening, and AI innovation sets the stage for a pivotal year ahead in Edtech.
Questions in the middle?
- How will the Art of Smart acquisition integrate operationally and financially with Cluey?
- What early market reception can be expected for the AI-driven Cluey+ platform post-launch?
- Will Cluey’s increased marketing spend translate into sustained enrolment growth beyond seasonal trends?