Highlights

  • 3P Learning (ASX:3PL) shares declined ahead of FY26 results scheduled for 25 August 2026.
  • The company is focused on improving B2B customer retention and stabilising Revenue performance.
  • FY26 guidance remains centred on revenue of $105–$107 million and underlying EBITDA of $13–$15 million.
  • Cost savings, government contracts and cash generation remain key areas of focus.

Shares in 3P Learning (ASX:3PL) declined 4.92% to close at $0.290 at the time of writing on 14 August 2026, as investors continued to assess the company’s turnaround progress ahead of its FY26 results.

The upcoming full-year update on 25 August 2026 will provide further insight into whether management’s cost initiatives, customer retention efforts and new contract wins are offsetting ongoing challenges in the business-to-business (B2B) education market.

What the Company Does

3P Learning is an education technology company that develops subscription-based digital learning platforms, including Mathletics and Reading Eggs.

The Business operates across two key channels:

  • Business-to-business (B2B), which provides digital learning subscriptions to schools across Australia, the United States, the United Kingdom, Canada and other markets.
  • Business-to-consumer (B2C), which provides subscriptions directly to families, including the US homeschool market.

The company’s revenue model is largely recurring, but customer retention remains a key Factor because schools and families need to renew subscriptions to maintain revenue growth.

Recent Business Developments

3P Learning reported H1'FY26 results on 24 February 2026, with revenue declining 2% to $51.9 million and underlying EBITDA falling 16% to $5.7 million.

B2B revenue declined 3% to $29.8 million, while B2C revenue increased 1% to $22.0 million.

Total customer licences declined to 4.9 million, while B2B exit Average Revenue Per User (ARPU) decreased to $12.7 from $13.3.

Management identified B2B churn as the key issue, with customer losses exceeding new sales.

Despite operational pressure, the company improved its balance sheet, reporting net cash of $7.5 million compared with $1.9 million previously.

In June 2026, 3P Learning reaffirmed FY26 guidance of $105–$107 million revenue and $13–$15 million underlying EBITDA.

The company also highlighted a potential $5.5 million Digital Games Tax Offset refund expected in H1'FY27, a New Zealand Ministry of Education Supply agreement for 2027–2029, and AI-assisted restructuring initiatives expected to deliver $4.8 million in annualised savings.

Why Investors Are Watching FY26 Results

The FY26 results will provide an update on whether customer churn trends have improved and whether cost savings are supporting profitability.

The company has focused on reducing operational costs while maintaining Investment in product development and sales activity.

The planned cost restructuring program is expected to contribute to efficiency improvements, while new education contracts could provide additional revenue visibility.

Investors will also assess whether the B2B segment is showing signs of stabilisation after revenue pressure during the first half.

Financial Position and Key Metrics

For H1'FY26, 3P Learning reported:

  • Revenue of $51.9 million, down 2% year-on-year.
  • Underlying EBITDA of $5.7 million, down 16%.
  • B2B revenue of $29.8 million, down 3%.
  • B2C revenue of $22.0 million, up 1%.
  • Net cash of $7.5 million.

The company has guided towards FY26 revenue of $105–$107 million and underlying EBITDA of $13–$15 million.

Management has also indicated an intention to pay a final Dividend of $9.6 million, equivalent to 3.5 cents per share, partially franked, subject to the FY26 results and statutory requirements.

Growth Opportunities

3P Learning is targeting growth through several initiatives.

The New Zealand Ministry of Education agreement provides a multi-year supply opportunity for Mathletics and print resources across Years 0–8 from 2027 to 2029.

The company is also expanding its presence in the United States education market, with management highlighting progress in new business activity and vendor approvals.

AI-assisted restructuring is another focus area, with the company targeting annualised savings to improve operating efficiency.

The challenge remains converting these initiatives into sustainable revenue growth while reducing customer churn.

Key Risks

3P Learning (ASX:3PL)’s business faces risks including continued B2B churn, competitive pressure, slower customer growth and execution challenges.

The education technology market remains competitive, with changing customer preferences and increasing adoption of artificial intelligence-based learning tools.

A continued decline in school subscriptions could pressure revenue and profitability.

The proposed dividend remains subject to financial performance and statutory requirements rather than being guaranteed.

The company’s smaller size also means revenue fluctuations and market sentiment changes can have a greater impact on share performance.

What Investors Should Watch Next

The key upcoming milestone is the FY26 results release on 25 August 2026.

Investors will focus on:

  • B2B churn trends and customer retention.
  • Progress against revenue and EBITDA guidance.
  • Confirmation of the planned dividend.
  • Timing of the Digital Games Tax Offset refund.
  • Delivery of AI-related cost savings.
  • Progress from the New Zealand Ministry of Education agreement.

Conclusion

3P Learning (ASX:3PL) is approaching an important point in its turnaround strategy, with FY26 results expected to provide further clarity on customer retention, profitability and growth initiatives.

The company continues to manage pressure from B2B churn, but improving cash reserves, cost reduction measures, new contracts and potential Shareholder returns provide areas of focus.

The upcoming results will determine whether management’s operational changes are beginning to stabilise the business and support a return to growth.