How Embark Education’s 29% Revenue Jump Fuels Ambitious Mayfield Takeover
Embark Early Education Limited delivered a robust 2025 financial performance, marked by significant revenue and EBITDA growth, while setting sights on expanding through a strategic takeover bid for Mayfield Childcare Limited.
- 29% revenue growth to $104.9 million in 2025
- Underlying EBITDA increased by 18%, reaching $25 million
- Acquisition of one new centre, expanding portfolio to 39 centres
- Announced intention and initiated takeover bid for Mayfield Childcare Limited
- Raised $12 million via institutional placement to fund takeover bid
Strong Financial Momentum
Embark Early Education Limited has reported a compelling set of full-year results for 2025, underscoring its growing footprint in the Australian early childhood education sector. The company posted a 29% increase in revenue to $104.9 million, driven by both organic growth and strategic acquisitions. This revenue surge was complemented by an 18% rise in underlying EBITDA, which climbed to $25 million, reflecting improved operational efficiencies and effective cost management.
Underlying earnings per share also rose by 14% to 9.04 cents, signalling enhanced profitability for shareholders. The company maintained a disciplined approach to dividends, paying consistent quarterly dividends of $0.015 per share throughout the year, reinforcing its commitment to returning value to investors.
Strategic Expansion and Acquisition Activity
In June 2025, Embark expanded its centre portfolio by acquiring an additional childcare centre, bringing its total to 39 centres nationwide. This acquisition aligns with the company’s growth strategy to increase scale and market presence in a fragmented sector.
More notably, Embark became a substantial shareholder in Mayfield Childcare Limited in May and subsequently announced an intention to launch a takeover bid for Mayfield in November. To support this ambitious move, Embark completed a $12 million institutional placement in December, securing the necessary capital to fund the off-market takeover bid. The company also released a bidder’s statement to the market, signalling its serious intent to consolidate its position in the sector through this acquisition.
Balance Sheet Strength Supports Growth Ambitions
Embark’s balance sheet remains robust, with cash reserves of $20.7 million against borrowings of $6.4 million as of 31 December 2025. This healthy liquidity position provides the company with flexibility to pursue further acquisitions or invest in operational enhancements. The relatively low gearing also suggests prudent financial management amid expansion efforts.
Operational metrics such as the wage-to-revenue ratio and occupancy rates indicate efficient centre management, which underpins the company’s ability to sustain profitability while scaling its operations.
Looking Ahead
Embark’s decisive move to acquire Mayfield could reshape the competitive landscape of early childhood education in Australia. While the takeover bid introduces integration risks and regulatory scrutiny, it also offers potential synergies and market share gains. Investors will be watching closely for updates on the bid’s progress and the company’s ability to deliver on its growth promises in the coming year.
Bottom Line?
Embark’s strong 2025 results and bold Mayfield bid set the stage for a transformative year ahead in early education.
Questions in the middle?
- Will Embark successfully complete the Mayfield takeover bid and at what terms?
- How will Embark integrate Mayfield’s operations and realise anticipated synergies?
- What impact will the acquisition have on Embark’s margins and future dividend policy?
