3P Learning Secures NZ Ministry Deal, $5.5m Tax Offset, Plans $9.6m Dividend
3P Learning confirms FY26 guidance, wins a New Zealand Ministry of Education contract, secures a $5.5 million tax refund, and signals a return to dividends with a $9.6 million payout planned.
- FY26 revenue guidance of $105-107 million
- Approved supplier for NZ Ministry of Education Maths Resource
- Receives $5.5 million Digital Games Tax Offset refund
- Plans $9.6 million final dividend for FY26
- Annualised cost savings of $4.8 million with $1.2 million redundancy charge
Guidance and Financial Position Update
3P Learning (ASX:3PL) has reaffirmed its FY26 revenue guidance at $105-107 million and underlying EBITDA between $13-15 million, alongside a target net cash position of $16-18 million. These figures incorporate a one-off $1.2 million redundancy cost linked to a company-wide restructuring aimed at streamlining product development, sales, and operations with AI assistance. The cost-cutting measures are expected to deliver $4.8 million in annualised savings from FY27 onward.
New Zealand Ministry of Education Contract
The company’s appointment as an approved supplier under the New Zealand Ministry of Education’s Ministry-funded Maths Resource initiative represents a strategic foothold in the New Zealand education market. From 2027 to 2029, eligible schools will access 3P Learning’s Mathletics digital platform, supplemented by printed workbooks and teacher resources through Pascal Press. This contract is expected to generate incremental revenue in coming years while supporting the Ministry’s goal of enhancing maths education access.
Digital Games Tax Offset Refund Strengthens Cash Flow
3P Learning has secured approval for a $5.5 million refundable tax offset under Australia’s Digital Games Tax Offset (DGTO) scheme, relating to eligible FY25 digital product development expenses. The refund, expected in the first half of FY27, provides a significant non-dilutive cash inflow, bolstering the company’s balance sheet. Management plans to continue lodging similar claims for FY26 and subsequent years while the DGTO remains available.
Dividend Resumption Signals Board Confidence
Marking a notable shift in capital management, 3P Learning intends to recommence dividends, starting with a $9.6 million final dividend for FY26, equivalent to 3.5 cents per share. The dividend will be only partially franked and remains subject to Board discretion and regulatory requirements. This move reflects the Board’s confidence in balancing shareholder returns with ongoing investment in growth.
CEO Commentary on Strategic Progress
CEO Jose Palmero highlighted the announcement as a milestone in both financial strengthening and product quality enhancement. He emphasised the significance of the DGTO refund as recognition of the company's investment in Australian edtech and the New Zealand Ministry contract as a key growth opportunity. Palmero framed these developments as underpinning a disciplined dividend policy that aims to return surplus capital while supporting future expansion.
Bottom Line?
3P Learning’s blend of cost savings, government contracts, and tax incentives sets a foundation for steady growth, but dividend resumption hinges on upcoming FY26 results and market conditions.
Questions in the middle?
- How will the New Zealand Ministry contract impact 3P Learning’s revenue mix over 2027-29?
- What is the potential scale of future Digital Games Tax Offset claims beyond FY25?
- How might the company balance dividend payouts with reinvestment amid evolving edtech competition?
