Qoria Reports 25% Revenue Growth, $24.5M Loss, and 68% EBITDA Rise in H1 FY2026
Qoria Limited reported a 25% revenue increase to nearly $69 million for H1 FY2026 but also a widening net loss of $24.5 million. The company announced a transformative merger with US-based Aura to create a global digital safety leader.
- 25% revenue growth to $69 million in H1 FY2026
- Net loss before tax widened to $24.46 million
- 68% increase in underlying EBITDA and record free cash flow
- Binding merger agreement with US digital safety firm Aura
- Qustodio consumer business grows ARR by 34%, protecting 20% of US K-12 students
Strong Revenue Growth Amid Rising Losses
Qoria Limited, the Australian cyber safety and education technology group, has reported a 25% increase in revenue for the half-year ended 31 December 2025, reaching $69 million. This growth was driven by strong performances across its education and consumer segments, notably the Qustodio parental control product which grew annual recurring revenue (ARR) by 34%. However, despite this top-line momentum, the company’s net loss before tax widened significantly to $24.46 million, compared to $13.39 million in the prior corresponding period.
The widening loss reflects ongoing investments in product development, marketing, and operational expansion, as well as acquisition-related expenses. Underlying EBITDA, a key measure of operational performance excluding non-cash and non-operating items, grew by 68% to $10.3 million, indicating improving core profitability trends despite the headline loss.
Operational Highlights and Market Position
Qoria’s K-12 education products now protect over 32,000 schools and 20% of the US K-12 student population, underscoring its significant footprint in a critical market. The weighted sales pipeline for K-12 grew 29% year-on-year to $13.6 million, positioning the company for continued growth. The Qustodio consumer business also delivered record net subscriber growth, supported by efficient marketing spend.
The company continues to invest in platform enhancements, including embedding artificial intelligence capabilities into its products, aiming to improve customer retention and unlock new growth avenues. Its global reach spans over 100 countries, with products offered in nine languages and expanding presence in the Middle East and Asia.
Transformative Merger with Aura Consolidated Group
On 2 February 2026, Qoria announced a binding merger implementation deed with US-based Aura Consolidated Group Inc., a leader in online safety. The proposed scheme of arrangement will see Qoria acquired by Aura at an implied price of $0.72 per share, subject to shareholder, regulatory, and court approvals. Post-merger, Qoria’s Managing Director Tim Levy is set to lead the combined group, which aims to establish a global category leader in digital safety across home, work, and school environments.
The merger is expected to create significant cross-selling opportunities, expand product offerings, and accelerate global market penetration. It reflects Qoria’s strategic ambition to scale rapidly and leverage complementary technologies and channels to deliver a comprehensive digital safety ecosystem.
Financial Position and Outlook
Qoria maintains a debt facility of $47.85 million with Ashgrove Capital Management Ltd, fully drawn as of 31 December 2025. The company reported record free cash flow of $8.6 million for the half, supporting its ongoing investment and operational needs. Despite a working capital deficit, the directors affirm the company’s ability to continue as a going concern based on forecasted cash flows and financial management.
No dividends were declared for the period, reflecting the company’s focus on reinvestment and growth. The board continues to pursue a strategy of expanding recurring revenue streams, improving operational efficiency, and exploring strategic acquisitions to enhance its product suite and market reach.
Strategic Initiatives and Future Growth
Qoria is advancing a unification program to streamline platforms and enhance customer value. New product launches such as EdTech Insights and AI Cloud Scan complement its Monitor product, while partnerships in the UK, Japan, and US are targeted for long-term expansion. The company’s three-year goal is to become the largest and most impactful provider of safety and wellbeing solutions globally.
As the merger with Aura progresses, investors and market watchers will be keen to see how integration unfolds and how the combined entity capitalises on its enhanced scale and capabilities in the fast-evolving digital safety landscape.
Bottom Line?
Qoria’s robust growth and strategic merger set the stage for a new chapter in global digital safety, but investors should watch closely for integration risks and the path to sustained profitability.
Questions in the middle?
- How will the merger with Aura impact Qoria’s operational and financial performance post-completion?
- What are the key risks around achieving profitability given the widening net losses despite revenue growth?
- How will Qoria manage debt covenants and working capital pressures amid ongoing investments and expansion?
