Key Highlights

  • Revenue increased 50% to $54.3 million, with EBITDA up 54% to $16.8 million and Margin improving 1 percentage point to 31%.
  • Net profit after tax rose 49% to $9.3 million, while Basic Earnings Per Share increased 73% to 7.21 cents.
  • Higher education enrolments through Ikon grew 57% to 5,847, now representing 83% of Group enrolments, up from 70% in 1H25.
  • Cash reached $24.0 million with no Debt at 30 June 2026, after $15.2 million was returned to shareholders through Buybacks and dividends.

EDU Holdings Limited (ASX:EDU), an Australian tertiary education group, reported results for the six months ended 30 June 2026 (1H26), with Group Revenue increasing 50% to $54.3 million, driven primarily by enrolment growth in higher education. International student revenue was $49.0 million, up 51%, while domestic student revenue was $5.3 million, up 41%. Gross margin improved 2 percentage points to 63%, reflecting the shift in enrolment mix toward higher education and, within that, postgraduate courses that carry higher tuition fees than vocational qualifications.

EBITDA increased 54% to $16.8 million, with margin improving 1 percentage point to 31%. Profit before tax increased 61% to $13.3 million, with margin improving to 24.5% from 22.9%. Net profit after tax increased 49% to $9.3 million, with the NPAT margin unchanged at 17% despite an increase in the effective tax rate to 30% from 24%. Basic earnings per share increased 73% to 7.21 cents, outpacing the growth in net profit, reflecting a reduction in shares on issue following the company's buyback program.

Higher Education Drives Enrolment Growth

Group enrolments at the end of the half-year reached 7,036, up 32%, with higher education now representing 83% of enrolments, up from 70% in 1H25. At Ikon, the Group's higher education provider, enrolments reached 5,847, up 57%, with new student enrolments of 1,929, up 21%. In T2'26, international new student enrolments grew 12%, notwithstanding a National Code change to onshore transfer rules effective 1 April 2026.

Diversification initiatives progressed during the half, with domestic new student enrolments growing 98% to represent 22% of the T2'26 intake, up from 14% in 1H25, driven by postgraduate programs launched during 2025 and early 2026. Postgraduate new student enrolments grew 174% and were 45% of the T2'26 intake, up from 20% in 1H25. Ikon commenced delivery of the Bachelor of Social Work and Master of Social Work (Qualifying) in T1'26, both accredited by TEQSA for the maximum seven-year period without conditions.

Vocational Education Enrolments Decline

In contrast to the growth at Ikon, enrolments at ALG, the Group's vocational education and Training provider, fell 26% to 1,189 at period end, with new student enrolments down 46%. The company attributed this decline to the continued contraction of the VET market for international students. ALG continues to provide progression pathways into higher education for students who do not meet Ikon's direct entry requirements.

Department of Education data for the year to May 2026 recorded 752,784 international student enrolments in Australia, an 8% decline on the same period in 2025, with commencements also down 8%. Within that total, the higher education sector recorded enrolment growth of 2%, while all other sectors declined, a trend the company said supports its strategic focus on higher education.

Cash Position and Regulatory Environment

Cash generation remained a feature of the half, with net cash from Operating Activities of $25.1 million, up from $19.7 million in 1H25. Cash and cash equivalents were $24.0 million at 30 June 2026, up from $18.5 million at 31 December 2025, with the Group carrying no borrowings. During the half, the company bought back and cancelled 20.2 million ordinary shares at a cost of $11.4 million and paid dividends of $3.8 million. The Board declared an interim fully franked Dividend of 3.0 cents per share, up from 1.0 cent in 1H25.

On 3 July 2026, the Government confirmed the National Planning Level for new international student commencements at 295,000 for 2027, up from 270,000 in 2025. Ikon's Provider Limit for 2027 increased from 205 to 900, and ALG's from 471 to 488, though the company noted that most of its students apply for visas onshore and are therefore less directly affected by offshore processing priorities. The Board said it expects the Group to record higher revenue, EBITDA and net profit after tax in FY26 compared with the prior corresponding period, with further guidance to be provided later in the year.

Conclusion

EDU Holdings' 1H26 results reflect substantial growth across revenue, earnings and enrolments, driven by the continued shift of the Group's Business toward higher education through its Ikon platform, even as enrolments at its vocational training arm, ALG, declined in line with broader contraction in that segment of the international education market. With cash reserves increased, no debt on the Balance Sheet and a raised National Planning Level supporting further international enrolment growth in 2027, the company enters the second half with continued momentum, though regulatory settings in the international education sector remain a source of uncertainty.