ReadCloud CEO Andrew Skelton Steps Down After Transformative Growth Phase

Leadership Shift at a Growth Inflection

ReadCloud Limited (ASX:RCL) is entering a new leadership chapter as Andrew Skelton steps down as CEO effective 31 May 2026, capping a transformative three-year tenure that reshaped the company’s financial and operational landscape. His departure comes on the back of significant revenue growth and a positive EBITDA, positioning ReadCloud for sustainable expansion.

Skelton’s tenure was marked by a disciplined focus on customer-centric strategies that propelled the company’s school divisions to notable gains. Australian direct eBook sales rose 17%, VET-in-Schools revenue surged 29%, and the company added 55 new schools, maintaining a robust customer retention rate of 91–92%. This momentum carried into the first half of FY26, with record quarterly cash receipts of $5.2 million, a 28% increase year-on-year, and operating cash flow of $2.3 million for the March quarter, underscoring the business’s operational self-sufficiency. These figures build on the company’s prior financial achievements, including a doubling of EBITDA in FY25 and strong revenue growth across core segments, as detailed in the company’s record $5.2m quarterly cash receipts.

Interim CEO Appointment and Succession Plans

Stepping into the CEO role on an interim basis from 1 June 2026 is CFO Luke Murphy, a long-serving executive who has been instrumental in embedding financial discipline since joining in 2017. His deep operational knowledge and stakeholder relationships are expected to provide stability during the transition. Murphy has expressed interest in the permanent CEO position, with the Board initiating a formal search to secure a leader capable of capitalising on ReadCloud’s growth trajectory and solid foundations.

The Board’s decision to elevate Murphy internally reflects a preference for continuity amid ongoing expansion, particularly as the company continues to add new schools and expand its VET-in-Schools segment. Earlier in the year, ReadCloud secured over 50 new school contracts, driving anticipated VET revenue growth exceeding 15%, despite challenges in the industry training sector, a dynamic that Murphy will navigate while the CEO search proceeds. This growth was highlighted in the company’s 50+ new schools signed announcement.

Governance and Incentive Arrangements

In terms of executive remuneration, Skelton will not receive any FY26 short-term or long-term incentives, consistent with his departure. However, he is recognised as a 'Good Leaver' under ReadCloud’s Employee Incentive Plan, with the vesting of his zero exercise price options deferred and contingent on a total shareholder return performance test concluding in September 2027. Skelton will also provide consulting services for three months post-transition to ensure an orderly handover of strategic initiatives and relationships.

Luke Murphy’s interim CEO role comes with an incremental monthly fee reflecting his increased responsibilities. The Board’s approach signals an emphasis on maintaining financial rigour and strategic clarity as ReadCloud navigates this leadership change.