OpenLearning Posts Record $3.27m SaaS ARR and Narrows Loss in HY2026

Record SaaS ARR and Margin Expansion

OpenLearning Limited (ASX:OLL) has delivered a standout half-year result for the six months ended 30 June 2026, posting a record platform SaaS annual recurring revenue (ARR) of $3.27 million, a 23.4% increase year-on-year and marking its 18th consecutive quarter of SaaS growth. This surge underpins a 42.8% jump in total revenue to $1.99 million and lifts gross margin to 63%, a remarkable improvement from just 15.3% three years ago.

The SaaS segment’s gross margin alone climbed to 65.6% from 54.4% in the prior corresponding period, reflecting the operating leverage of OpenLearning’s subscription-based business model. Gross profit rose 64% to $1.25 million, supported by a 30.6% increase in Platform SaaS fees to $1.58 million.

Narrowing Losses and Improving Cash Flow

Despite still reporting a loss after tax of $1.63 million, OpenLearning narrowed this by 20.5% compared to HY2025. The EBITDA loss improved by 27.1% to $1.22 million, the smallest deficit in seven half-year periods, signalling progress towards profitability.

Cash receipts from customers climbed 20.8% to $2.91 million, including a record quarterly haul of $1.653 million in Q2 FY26, the highest in company history. Operating cash outflows eased 21% quarter-on-quarter to $0.533 million in Q2, though the half-year total of $1.21 million reflects increased spending on sales and marketing and investments in two new divisions.

When stripping out sales and marketing, costs associated with The UniGuide and Employability Advantage divisions, and public company expenses, the core platform business used a modest $0.19 million in cash over the half, underscoring its approach to break-even.

Growth Fueled by Institutional Deals in Asia-Pacific

Geographically, growth was driven by new multi-year institutional contracts in the Philippines, Malaysia, and Australia. The Philippines saw Philippine Normal University onboard as the first university customer via the CE-Logic reseller agreement, initially covering 5,000 students with potential expansion to 12,000. Other new agreements include Thames International School, Notre Dame Jolo College, Baliuag University, and Manila Central University.

Post half-year, Holy Cross of Davao College signed a four-year SaaS contract valued at approximately A$300,000, the largest secured through CE-Logic to date. In Malaysia, OpenLearning expanded its footprint with Universiti Poly-Tech Malaysia increasing its LMS coverage from 1,500 to 8,000 learners and Sunway University adding new elective courses, illustrating a 5-10x uplift in contract values within existing customers.

The company also ventured into new markets with five-year agreements in India (Guru Jambheshwar University) and Indonesia (Universitas Muhammadiyah Lamongan), building on regional partnerships.

AI Integration and Platform Extensions

Artificial intelligence remains central to OpenLearning’s competitive edge. The AI Course Builder and AI Assistant are key differentiators in procurement battles against incumbents like Canvas and Blackboard, offering AI-generated rubrics and agentic AI support. Internally, AI-powered software development accelerated feature releases without increasing headcount, driving margin expansion.

In May 2026, OpenLearning launched The UniGuide, an international student recruitment marketplace with 15 university partners and nearly 100 recruitment agencies onboarded. Simultaneously, Employability Advantage was relaunched as a fully branded portal featuring AI resume building, skills assessment, career planning tools, and job boards integrated with the LMS. Together, these products extend OpenLearning’s platform across the entire student journey, from recruitment to employability.

Financial Position and Strategic Outlook

The Group ended HY2026 with $0.87 million in cash and cash equivalents and net current liabilities of $1.75 million. The directors maintain a going concern assumption supported by strong SaaS revenue growth, improving gross margins, and a cash flow forecast that anticipates continued progress towards break-even. The company also retains access to a $6 million loan facility from a major shareholder, fully drawn but with accrued interest payable.

OpenLearning’s strategy to shift from short courses and micro-credentials to larger, multi-year institutional LMS contracts is clearly bearing fruit, reflected in a 24.5% rise in average SaaS ARR per B2B customer to $12,369 and a customer base of 263 active B2B SaaS clients across 16 countries. The company’s focus for the remainder of 2026 is to convert its growing pipeline into contracted revenue, maintain cost discipline, and leverage AI innovations to sustain competitive advantage.