Highlights

  • Academies Australasia Group (ASX:AKG) was trading at AUD 0.083 on October 7, 2026, up 18.57% during today's trading session.
  • FY26 Revenue from ordinary activities declined 6.9% to AUD 44.27 million, while adjusted EBITDA was AUD 6.61 million.
  • Higher education revenue increased to AUD 20.97 million, supported by expansion in Perth, while several other divisions recorded lower revenue.
  • The group is expanding parts of its ASEAN education offering while continuing to manage costs and regulatory changes affecting international student demand.

Academies Australasia Group Limited provides Training and education services across Australia and Singapore through a portfolio of colleges and education brands. On October 7, 2026, AKG shares were changing hands at AUD 0.083, marking an 18.57% rise during today’s trading session. The market move comes after a year in which the group navigated weaker international student demand, regulatory changes and uneven performance across its education divisions. Its FY26 annual report, released in September 2026, showed lower group revenue but growth in higher education and improved operating cash flow, alongside further cost-management measures and planned expansion of selected overseas programs.

Company Business

Academies Australasia’s principal activity is the provision of education and training services. The group operates across higher education, vocational education and training, English-language education, senior secondary education and overseas education activities. Its colleges offer more than 180 qualifications across campuses in Sydney, Melbourne, Brisbane, Perth, Adelaide, Dubbo, Armidale and Singapore.

The group’s Australian operations serve both domestic and international students. Course offerings span areas including business, information technology, hospitality, project management, early childhood education, community services and other vocational disciplines. In Singapore, the Business also provides diploma, advanced diploma and university-linked programs. This multi-campus structure gives AKG exposure to different education segments, although international enrolments remain sensitive to visa settings, migration policy and student affordability.

Recent Development

In September 2026, Academies Australasia released its FY26 Annual Report and outlined the effect of changing international education conditions on the business. Management said higher visa application costs and elevated visa rejection rates had reduced Demand from international students in Australia. The group also highlighted policy uncertainty as a Factor affecting longer-term planning.

Against that backdrop, the company continued to reshape its operating footprint. Following Lease expiries, one Melbourne operation was relocated from Collins Street to Bourke Street, while another business exited Gold Coast premises. The group also outlined plans to diversify revenue through a larger ASEAN presence. Its Singapore operation received approval to deliver new postgraduate diplomas in artificial intelligence, logistics and Supply chain management, and tourism and hospitality management. The company also reported discussions regarding additional degree programs with a university partner.

Financial Performance and Sector Context

For FY26, revenue from ordinary activities fell 6.9% to AUD 44.27 million from AUD 47.54 million a year earlier. Adjusted EBITDA declined 11.8% to AUD 6.61 million, while adjusted profit before tax was AUD 0.74 million. The statutory loss before tax was AUD 1.88 million and the after-tax loss was AUD 1.42 million.

Performance varied materially across divisions. Higher education revenue rose about 31% to AUD 20.97 million, mainly reflecting expansion in Perth. Singapore revenue declined 31% to AUD 5.25 million, while English-language revenue fell 41% to AUD 6.20 million. Vocational education and training revenue decreased 14% to AUD 10.51 million, including declines in both international and domestic VET activities.

The group reduced student Acquisition and teaching costs to AUD 20.56 million, personnel and other administration expenses to AUD 13.86 million, and occupancy costs to AUD 10.15 million. Net Operating Cash Flow increased to AUD 4.84 million from AUD 3.82 million. At June 30, 2026, cash and cash equivalents were AUD 1.88 million, while current borrowings were AUD 6.20 million. International education conditions remain closely tied to visa rules, student commencement settings and policy changes that can influence enrolment volumes.

Risks to Consider

AKG remains exposed to changes in student visa policy, visa application costs and rejection rates, particularly because international education is central to parts of its Australian business. Demand can also fluctuate across source markets, as reflected in the decline in Singapore revenue during FY26 following visa restrictions affecting a primary market.

Balance sheet Liquidity is another factor to monitor. At June 2026, current liabilities exceeded current assets, while cash holdings were below the level of current borrowings. The group also carried lease liabilities associated with its campus network. Revenue concentration across regulated education segments means changes in enrolments, operating costs or compliance requirements can affect financial outcomes.

What to Watch Next

Investors may monitor enrolment trends across higher education, English-language and VET programs, particularly as 2027 student commencement settings take effect. The annual report noted that the National Planning Level for new overseas student commencements would remain at 295,000 for 2027, while the allocation for the group’s higher education business increased from 200 to 375. Progress on the new Singapore postgraduate programs and any additional university partnerships will also be relevant.

Other areas to watch include further cost reductions, campus utilisation, operating cash flow and the pace at which higher education growth can offset weaker performance in other divisions. Future interim and annual reporting will provide additional evidence on whether the current mix of cost control and program expansion is translating into improved group-level earnings.

Key Insights

Academies Australasia enters FY27 with a mixed operating profile. Higher education expanded during FY26, but lower international English, VET and Singapore revenue reduced overall group turnover. Cost reductions and higher operating cash flow partly offset those pressures, while the company continues to adjust its campus footprint and expand selected overseas programs. With AKG shares trading higher on October 7, 2026, the main factors to monitor remain enrolments, regulatory settings, liquidity, cost discipline and progress in the group’s education Diversification initiatives.