EDU flags another record first half with revenue up 48% to $53.5m
EDU Holdings Limited expects to report another record first-half result for the six months ended 30 June 2026 (1H26), driven by continued momentum in its Higher Education business.
At the guidance midpoint, the Australian tertiary education group anticipates revenue of $53.5m (+48%), EBITDA of $16.5m (+51%) and profit before tax (PBT) of $13.0m (+57%).
These figures are unaudited guidance ranges, with full half-year results due on or around 27 August 2026.
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1H26 guidance at a glance
The trading update sets out the expected performance ranges against the previous corresponding period (PCP), with midpoint comparisons used for the headline growth figures.
| Metric | 1H26 Guidance | 1H25 Actual | Change (Midpoint) |
|---|---|---|---|
| Revenue | $52.5–54.5m | $36.1m | +48% |
| EBITDA | $16.0–17.0m | $10.9m | +51% |
| Profit Before Tax | $12.5–13.5m | $8.3m | +57% |
At the guidance midpoint, EBITDA margin is expected to rise by approximately 1 percentage point to 31%. The Company noted this improvement comes despite increased costs associated with launching new courses and a further step-up in organisational capacity to support current and future growth.
Higher Education drives the momentum
Ikon, the Group’s Higher Education business, remained the primary driver of the result. The trading update pointed to broad-based enrolment growth across both domestic and international students.
Key drivers of the performance included:
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Higher Education enrolments up 57% on PCP, with strong growth in both domestic and international enrolments.
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Ikon enrolments in Trimester 2, 2026, its most recent study period, up 57% on PCP.
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Growth driven by an expanded course portfolio, particularly new postgraduate programs.
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A “layering benefit” of students progressing through their studies, with larger graduating cohorts expected from 2027.
Growth in Ikon more than offset softer enrolments in ALG, the Group’s Vocational Education and Training (VET) business, reflecting the broader contraction in the VET market. The Company said this continued its strategic shift toward Higher Education.
The scale of the 1H26 improvement is best understood against EDU’s record FY25 results, which saw revenue reach $82.4m on 95% growth and NPAT surge to $14.8m as the higher education pivot began compounding through the income statement.
CEO commentary
CEO Adam Davis linked the balanced growth across the Group’s key metrics directly to its evolving business mix.
Adam Davis, Chief Executive Officer
“EDU delivered another record first half, with revenue, EBITDA and profit before tax all growing by around 50% on the prior corresponding period. This is a direct result of the Group’s shift toward a larger, more scalable Higher Education business.”
Davis added that the Company had continued to invest in new courses, people, systems and campuses while also delivering an improved EBITDA margin, which he described as “demonstrating the operating leverage in the platform.”
Balance sheet strength and shareholder returns
The trading update highlighted a strengthening cash position alongside ongoing capital returns to shareholders.
Key balance sheet points included:
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Net cash of $24.0m at 30 June 2026, an increase of $5.5m from 31 December 2025.
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$15.2m returned to shareholders during the period, comprising a $3.8m dividend and $11.4m of share buybacks.
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Strong first-half operating cash inflows, typical of the H1 seasonality, more than offset these outflows.
For investors, the figures point to growth being funded internally while the Company continues to return capital, consistent with its stated approach to disciplined capital management.
The regulatory shift: National Code reforms explained
Recent National Code reforms have reshaped the way onshore student transfers work, affecting how providers attract students already in the country.
In response, EDU has adapted its recruitment model, introducing a recently implemented onshore recruitment model. Davis noted that early uptake had been “encouraging,” while cautioning that it remained “early days” following the implementation of the reforms.
What comes next for EDU
EDU intends to report its half-year results on or around 27 August 2026, when the preliminary guidance figures will be finalised.
The Company said it enters the second half with continued enrolment momentum and a strong balance sheet, holding $24.0m in cash after returning $15.2m to shareholders. Management indicated it remains well placed to continue investing across its domestic, offshore and onshore recruitment channels while expanding its course portfolio.
The trading update also reiterated that larger graduating cohorts are expected from 2027, reflecting the layering benefit of students progressing through their studies.
The layering benefit Davis referenced has been building across consecutive study periods, with the T1 2026 enrolment update recording 6,627 students at 36% growth and 90% of new enrolments coming from higher education programmes, establishing the compounding base that now flows through to 1H26 revenue.
EDU currently supports more than 7,000 domestic and international students across its national campus network and online delivery platforms. Its offering spans entry-level certificates through to professionally accredited postgraduate degrees in Education and Human Services disciplines aligned with Australia’s workforce needs and skilled migration priorities.
Davis framed the strategy around long-term positioning, stating the Company is “well placed to continue investing in our domestic, offshore and onshore recruitment channels and expanding our course portfolio to drive sustainable long-term growth.”
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