IODM Posts 33% Revenue Rise, Cuts Losses by 35% in UK Education Push

• 33% revenue growth to AUD 2.479 million, led by 49% UK education revenue increase
• Net loss narrowed by 35% to AUD 791,017
• Expanded UK university onboarding to 20 institutions with successful major tender
• Debt conversion of AUD 2.35 million into equity strengthens balance sheet
• Material uncertainty on going concern flagged by auditor despite funding efforts

Financial Performance and Revenue Growth

IODM Limited has delivered a notable uplift in revenue for the half-year ended 31 December 2025, reporting AUD 2.479 million, a 33% increase compared to the prior corresponding period. This growth was primarily driven by the UK education sector, where revenue surged by nearly 50% to AUD 1.397 million. The company’s cloud-based accounts receivable platform, IODM Connect, continues to gain traction, particularly among UK universities.

Despite the revenue gains, IODM remains in a loss position, with a net loss after tax of AUD 791,017. However, this represents a 35% improvement from the previous year’s loss, reflecting operational efficiencies and increased scale. The company’s loss per share narrowed to 0.13 cents from 0.20 cents.

Strategic Expansion and Product Launches

IODM’s strategic focus on the UK education market has yielded tangible results, with the onboarding or advanced onboarding of 20 universities. The company successfully secured a tender to provide its platform as part of Convera UK Limited’s offering to one of the largest UK education institutions, a significant milestone that commenced onboarding in early 2026.

Additionally, the launch of a new Student Portal during the period has enhanced user engagement, with two universities already live and a strong uptake among students. This portal consolidates student information and streamlines communication, reinforcing IODM’s value proposition.

Funding and Capital Structure Developments

To bolster its financial position, IODM converted AUD 2.352 million of debt into equity during the half-year, improving its net asset position to a modest surplus of AUD 69,945. The company also secured a short-term unsecured loan facility of AUD 400,000 from an entity associated with Non-Executive Director Paul Masi, underscoring ongoing efforts to manage liquidity.

Board changes during the period included the appointment of Karen Penney as Chair and Paul Masi as a Non-Executive Director, signaling a refreshed governance framework aligned with the company’s growth ambitions.

Going Concern and Outlook

Despite operational progress, the auditor’s report highlights a material uncertainty related to IODM’s ability to continue as a going concern, given ongoing losses and cash outflows. The directors remain confident, citing expected revenue growth from new university onboardings, ongoing negotiations in North America, and a history of successful capital raises.

Negotiations to renew the revenue share agreement with Convera UK Limited are underway, with an extension agreed until March 2026. The company is also advancing discussions for a “one to many” go-to-market strategy in the US, potentially accelerating adoption of its platform across multiple institutions simultaneously.

IODM’s trajectory reflects a company navigating the challenges of scaling a SaaS business in competitive education markets, balancing growth initiatives with prudent capital management.

Bottom Line?

IODM’s growth momentum in the UK education sector is promising, but its ability to secure sustainable funding and finalise key partnerships will be critical to overcoming going concern risks.

Questions in the middle?

• Will IODM successfully finalize and extend its revenue share agreement with Convera beyond March 2026?
• How quickly can the company scale its US market presence with the proposed “one to many” strategy?
• What are the implications of the recent board changes on IODM’s strategic direction and capital raising plans?