EDU Holdings delivered a transformational FY25 with nearly doubled revenue and a debt-free balance sheet, driven by strong growth in its higher education arm Ikon. The company started FY26 on a solid footing despite regulatory headwinds.
- Revenue nearly doubled to $82.4m in FY25
- Net profit after tax rose over five-fold to $14.8m
- Higher education enrolments up 109%, driving growth
- Debt fully repaid; $14m returned via buybacks and dividends
- FY26 Q1 revenue $25.3m with strong enrolment momentum
Transformational FY25 Financial Performance
EDU Holdings Limited (ASX:EDU) reported a remarkable financial turnaround in FY25, with revenue soaring 95% to $82.4 million and EBITDA surging 230% to $26.1 million. Net profit after tax exploded to $14.8 million, more than five times the prior year’s $2.6 million, underscoring the scalability of its operating model. The company closed the year debt-free, holding $18.5 million in cash, which funded full debt repayment, share buybacks, and maiden dividends. This performance marks a decisive step-change in EDU’s scale and profitability.
The higher education division, Ikon, was the engine behind this growth, recording a 109% jump in enrolments and launching new postgraduate and undergraduate courses to broaden its market reach. Ikon’s expansion into the postgraduate sector and diversified course offerings contributed significantly to the strong earnings growth and increased margins. Meanwhile, the vocational education arm ALG weathered a softer market with an 11% enrolment increase but faced ongoing sector challenges.
Robust Start to FY26 Amid Regulatory Shifts
EDU maintained momentum into the first quarter of FY26, reporting unaudited revenue of $25.3 million and net profit after tax of $3.9 million, both ahead of the prior year. Total enrolments for the first trimester of 2026 were up 36%, with higher education enrolments up 64%, reflecting successful course launches and the compounding effect of layered student cohorts. Domestic enrolments accelerated by 37%, while offshore recruitment showed early promise, with first-quarter offshore enrolments matching the entire FY25 total, although visa approvals remain pending.
The company is actively navigating regulatory changes introduced in April 2026, which prohibit education providers from paying commissions to agents for onshore student transfers. EDU has proactively amended agent agreements, implemented controls to prevent inadvertent payments, and supported agents in transitioning to fee-for-service models. These measures aim to preserve student access and growth despite the uncertain impact of the new rules.
Capital Management and Board Evolution
Capital discipline remains a priority. Following shareholder approval in February 2026, EDU completed a selective buyback of 18 million shares, reducing issued capital by approximately 12.5% and delivering a pro-forma earnings per share uplift of 12.5%. An on-market buyback program is ongoing, with a further 1.8 million shares purchased to date. These moves complement the company’s dividend program, with fully franked interim and final dividends declared in FY25.
Governance changes are underway as well. Interim Non-executive Chair Peter Mobbs stepped in following the sudden retirement of Gary Burg in February 2026. The Board is actively searching for a permanent Non-executive Director and Chair to guide EDU’s next phase. This follows the departure of Greg Shaw and Mulpha’s exit from the shareholder register, marking a new chapter in EDU’s leadership.
EDU’s strategic pivot towards higher education and its proactive regulatory response position it well for sustained growth, although the full impact of sector reforms remains to be seen. The company’s strong enrolment trajectory and solid balance sheet provide a buffer as it invests ahead of the curve. Observers will note how EDU balances growth initiatives with capital returns and navigates ongoing sector headwinds, especially in vocational education.
Notably, EDU’s enrolment growth aligns with earlier reports of a 36% rise in student numbers for Trimester 1, 2026, driven by Ikon’s expanding footprint and new course offerings 36% increase in enrolments. The selective buyback completed in February 2026 also fits into the company’s capital management strategy to enhance shareholder returns $9.9M selective buyback.
Bottom Line?
EDU’s FY25 surge and proactive regulatory handling set a strong base, but the evolving education sector and board changes leave key questions for FY26.
Questions in the middle?
- How will EDU’s higher education growth offset ongoing vocational sector softness?
- What impact will regulatory changes on agent commissions have on offshore student recruitment?
- Who will be appointed as the new Non-executive Chair to steer EDU’s next growth phase?