OpenLearning Hits Record $3.27m SaaS ARR with Philippine and Malaysian Expansion

Record SaaS Revenue and Cash Receipts Mark Milestone Quarter

OpenLearning Limited (ASX:OLL) has delivered its 18th consecutive quarter of SaaS revenue growth, with annual recurring revenue (ARR) climbing 23% year-on-year to a record $3.27 million in Q2 FY26. This growth was complemented by a 31% quarter-on-quarter surge in cash receipts from customers, reaching $1.653 million, the highest in the company’s history.

The company’s strategy of securing larger, multi-year learning management system (LMS) contracts is paying off, with average ARR per B2B customer rising 22% to $12,369. OpenLearning ended the quarter with 263 active B2B SaaS customers, predominantly across Australia, Malaysia, and the Philippines, which together represent about 88% of SaaS ARR. Notably, 52% of ARR now comes from international customers, highlighting the company’s growing global footprint.

Philippine Expansion Accelerates via Reseller and Direct Sales

The Philippines has emerged as a key growth market, with OpenLearning’s reseller partner CE-Logic converting pipeline opportunities into contracts. Philippine Normal University (PNU), the country’s National Center for Teacher Education, signed a one-year SaaS agreement covering 5,000 students, with potential to expand to its full enrolment of 12,000. Shortly after quarter end, Holy Cross of Davao College inked a four-year SaaS deal valued at approximately A$300,000, the largest secured through the CE-Logic partnership to date.

Alongside reseller wins, OpenLearning’s direct sales team signed agreements with Thames International School, Notre Dame Jolo College, Baliuag University, and Manila Central University. These deals, while individually modest, collectively underscore the company’s expanding presence and momentum in the Philippine education sector.

Malaysia Sees Significant Contract Expansions

In Malaysia, OpenLearning continues its land-and-expand approach, with Universiti Poly-Tech Malaysia increasing its LMS coverage from 1,500 to 8,000 learners, now encompassing all on-campus students. Sunway University also expanded its agreement to include newly developed elective courses. These expansions highlight the potential for 5-10x contract value growth within existing Malaysian customers as institutions consolidate their LMS spend.

AI-Powered Platforms Enhance Product Differentiation

Artificial intelligence remains central to OpenLearning’s competitive edge. Internally, AI tools have accelerated software development velocity without increasing headcount, enabling faster feature releases and responsiveness to customer needs. Externally, the platform’s AI Course Builder and AI Assistant are key differentiators in procurement processes, simplifying course design and delivery.

Recent launches include The Uni Guide, an international student recruitment marketplace with 15 university partners and nearly 100 recruitment agents onboarded, and Employability Advantage, a branded employability portal integrated with the LMS offering AI resume building, skills assessment, and career planning tools. Together, these platforms support institutions across the entire student journey, creating a network effect difficult for competitors to replicate.

Cash Flow Improves Amid Continued Investment

Net operating cash outflows improved 21% quarter-on-quarter to $0.533 million, reflecting disciplined cost management alongside record cash receipts. First-half FY26 cash receipts of $2.91 million were up 21% on the prior corresponding period. The company maintains a cash runway of approximately 1.6 quarters at current burn rates but expects continued improvements as revenue scales and cost efficiencies take hold.

OpenLearning remains on track to achieve cash flow breakeven in 2027, underpinning its growth ambitions across Asia-Pacific markets including early traction in Indonesia and ongoing efforts in India.