Board Renewal and Market Expansion Pose New Challenges for IODM
IODM Limited has reported a standout Q2 FY26 with record cash receipts driven by strong UK education sector growth and strategic board renewal.
- Record quarterly cash receipts of A$991k, up 38% year-on-year
- UK Education segment revenue increased 43%, securing a major tender
- Net operational cash outflow reduced by 23% to A$735k
- CEO relocated to UK to spearhead Northern Hemisphere expansion
- Board refreshed with new chair and non-executive director appointments
Robust Financial Performance
IODM Limited (ASX – IOD) has delivered a strong second quarter for the 2026 financial year, posting record cash receipts of A$991,000; a 38% increase compared to the same period last year. This growth was primarily driven by the UK Education segment, which saw revenue climb 43% to A$732,000. The company also achieved a 25% increase in cash receipts from other regions, including Australia.
Alongside revenue growth, IODM successfully reduced its net operational cash outflow by 23% to A$735,000, reflecting improved operational efficiency even as it ramped up sales and marketing efforts in North America.
Expanding Footprint in Education Technology
The UK remains the powerhouse for IODM, with the company securing a significant tender alongside its partner Convera to provide its IODM Connect platform to one of the largest UK education institutions. This win underscores IODM’s growing reputation as a leading accounts receivable solution provider in the education sector.
The company also launched its much-anticipated Student Portal during the quarter, which has already gone live at two universities with strong student adoption. With 20 universities onboarded or in advanced stages of onboarding, IODM is solidifying its presence in the UK market.
In North America, IODM is advancing discussions with multiple US universities and partners to implement a “one to many” go-to-market strategy, aiming to accelerate platform adoption across multiple institutions simultaneously. The company is optimistic about imminent updates on this front.
Growth Initiatives Across Regions
In Australia, a restructured sales team is actively engaging tier-one enterprise clients, with expectations to close several onboarding agreements in the coming quarter. Meanwhile, targeted engagements in Japan with universities, in collaboration with Convera, are progressing, with market updates anticipated soon.
Corporate Renewal and Leadership
IODM underwent a significant board renewal during the quarter, with the resignation of long-standing chair Dr Paul Kasian and non-executive director Diana Heggie. Karen Penney has been appointed as the new Chair, and Paul Masi, a seasoned finance executive with extensive leadership experience, joined as a non-executive director.
CEO Mark Reilly relocated to the UK to directly oversee and drive growth in the Northern Hemisphere, signalling the company’s commitment to expanding its international footprint.
Financial Support and Outlook
Supporting its cash flow, IODM received a $682,000 Research & Development tax offset during the quarter, in line with expectations. The company’s strong cash position and operational improvements position it well to capitalise on growth opportunities across multiple regions and sectors.
Reilly expressed confidence in the company’s trajectory, highlighting the increasing market acceptance of IODM Connect as a best-practice credit management solution that delivers tangible commercial benefits to education institutions and payment providers alike.
Bottom Line?
IODM’s momentum in education technology and strategic leadership changes set the stage for accelerated growth across global markets.
Questions in the middle?
- How soon will the North American 'one to many' go-to-market strategy be implemented and impact revenues?
- What are the expected timelines and scale for onboarding new universities in Australia and Japan?
- How will the recent board renewal influence IODM’s strategic direction and investor confidence?
