Janison Reports 2% Revenue Growth and 25% EBITDA Increase in 1H FY26

Janison's Financial Performance in 1H FY26

Janison Education Group Limited has delivered a steady financial performance for the half-year ended 31 December 2025, reporting a 2% increase in revenue to $23.1 million. This growth was accompanied by an improved gross margin of 58%, up from 57% in the prior corresponding period, reflecting stable cost management.

Despite the revenue growth, operating EBITDA declined to $1.3 million, impacted by strategic investments initiated in the previous half-year. However, reported EBITDA rose 25% to $1.0 million, benefiting from lower non-operating expenses compared to the prior period, which included restructuring and strategic review costs. The company narrowed its net loss after tax to $2.758 million, an improvement from the $3.031 million loss recorded in the first half of FY25.

Segment Performance and Strategic Adjustments

The Platform segment experienced a 2% revenue decline to $12.3 million, primarily due to the cessation of paper-based testing and the end of certain service activities linked to the NSW Department of Education’s Opportunity Class and Selective High School exams. This shift reflects Janison's strategic exit from non-core service activities, aiming to sharpen operational focus and improve margin quality.

Offsetting these declines, Janison’s digital offerings showed promising growth. Janison Insights™, the company’s digital assessment platform, grew revenue by 13% on a like-for-like basis, and the newly introduced AI-powered authoring tool, Jai, contributed initial revenue. The Product segment performed strongly, with a 6% revenue increase to $10.8 million, driven by sales of ICAS past papers, AAS, and QATs, alongside an improved gross margin of 67%.

Cash Flow and Balance Sheet Strength

Janison’s operating cash flow surged to $3.8 million, up $2.7 million from the previous corresponding period, reflecting disciplined working capital management. The company ended the half with a robust cash balance of $13.3 million and an undrawn $2 million overdraft facility, providing strong financial flexibility to support ongoing investments and growth initiatives.

Looking Ahead: AI and Market Expansion

Management is actively managing the impact of contract changes in the second half of FY26, particularly the reduced services revenue from the NSW Department of Education contract. Growth opportunities in other regions, including a contract with the New Zealand Ministry of Education, are expected to help offset these impacts over time.

Janison continues to invest in enhancing its platform capabilities, with a focus on AI-enabled products designed to support long-term growth in the education technology sector. The company’s strategic pivot towards digital and AI-driven solutions positions it well to capitalize on evolving market demands across the Asia Pacific and UK regions.