Mayfield Childcare Limited reported stable revenue and improved profitability in Q4 FY25, outpacing peers in occupancy growth while rejecting a takeover offer from Embark Early Education.
- Revenue steady at $23.8 million in Q4 FY25
- Underlying Centre EBITDA margin improved from 11% to 12%
- Occupancy growth rate of 2.2% surpasses peer G8 Education
- Board unanimously recommends rejecting Embark’s takeover bid
- Continued marketing investment and pricing strategy planned for FY26
Stable Revenue Amid Sector Pressures
Mayfield Childcare Limited (ASX, MFD) closed out the December 2025 quarter with revenue holding steady at $23.8 million, a slight increase from $23.7 million in the previous quarter. This stability comes despite ongoing cost pressures in the childcare sector, reflecting the company’s disciplined operational approach and a stabilising occupancy rate.
Improved Profitability and Occupancy Gains
The company’s underlying centre EBITDA margin rose from 11% in Q3 to 12% in Q4, with underlying centre EBITDA increasing 7% quarter-on-quarter to $2.9 million. Spot occupancy improved to 64.8% in early December, up from 64.1% in the prior quarter, and notably outpaced listed peer G8 Education’s 1.3% growth rate over the same period. Mayfield’s occupancy growth rate between August and November 2025 was 2.2%, significantly higher than the 0.6% growth recorded in 2024.
Operational Discipline and Strategic Initiatives
Cost control remains a priority, with wage-to-revenue ratios improving slightly to 57.8% in Q4. The company’s Precious Cargo acquisition continues to contribute positively to earnings, achieving an underlying centre EBITDA of $0.1 million. Mayfield is also investing heavily in marketing initiatives, both community and digital, to drive new family enquiries and improve enrolment metrics heading into 2026.
Takeover Bid Rejected
Mayfield’s board has unanimously recommended shareholders reject the off-market takeover bid from Embark Early Education Limited (ASX, EVO), which offered $0.50 per share either in cash or Embark shares. Embark currently holds 19.9% of Mayfield’s shares and lodged its bid in late 2025. The rejection signals Mayfield’s confidence in its strategic direction and operational improvements despite the premium offer.
Outlook and Market Conditions
Looking ahead, Mayfield plans to maintain its marketing spend to accelerate occupancy growth and implement targeted pricing adjustments to protect margins amid rising wage and input costs. The rollout of its Mayfield 360 program aims to unlock scalable earnings growth through diversified revenue streams. Additionally, the company is prioritising elevated child safety standards and customer experience investments to strengthen its competitive positioning.
Bottom Line?
Mayfield’s steady operational progress and firm stance against the takeover bid set the stage for a pivotal year ahead in a competitive childcare market.
Questions in the middle?
- How will Mayfield’s pricing adjustments impact occupancy and margins in FY26?
- What are the potential next moves from Embark following the board’s rejection?
- Can Mayfield sustain its occupancy growth momentum against larger peers?