Highlights

  • G8 Education reported half-year Revenue of AUD 413.6 million, declining 11.1% from AUD 465.4 million in the comparable prior period.
  • The childcare operator recorded a statutory net loss of AUD 38.8 million, compared with prior-period profit of AUD 22.5 million.
  • Group occupancy declined to 57%, reflecting a 7.5 percentage point reduction alongside operational suspensions affecting 40 childcare centres overall overall.
  • Employee retention improved to 80%, reaching its highest level in six years as G8 Education pursued operational stabilisation across centres.

G8 Education Limited (ASX:GEM), one of Australia's largest providers of early childhood education and care, reported a statutory net loss after tax of $38.8 million for the half-year ended 30 June 2026, as subdued occupancy levels and centre suspensions weighed heavily on financial performance.

Revenue and Earnings Performance

Total group revenue for the half-year ended 30 June 2026 was $413.6 million, an 11.1% decline from $465.4 million in the prior corresponding period. The revenue shortfall was primarily driven by lower occupancy across the network, constrained by macroeconomic conditions, affordability pressures, and supply-demand imbalances in the childcare sector. Operating EBIT declined significantly to a loss of $29.8 million, compared with a profit of $58.6 million in the prior corresponding period, a swing of $88.4 million. Basic Earnings Per Share fell to -5.1 cents from +2.9 cents.

Occupancy and Network Reset

Group occupancy for the half-year was 57.0%, down 7.5 percentage points from 64.5% in the prior comparable period. The company suspended operations at 40 centres during the period as part of a network reset strategy aimed at reducing costs and improving the quality of remaining operations. G8 operates 350 centres across Australia. The board determined not to pay an Interim Dividend for the half-year ended 30 June 2026, following the conclusion of a share buyback programme.

Operational Improvements and Outlook

Despite the financial losses, G8 Education highlighted several operational improvements. Team retention reached 80%, described as the highest level in six years, supported by enhanced employee screening and recruitment processes. Chief Executive Officer and Managing Director Pejman Okhovat said the company was focused on stabilisation, stronger execution, and financial sustainability. Management indicated that the revenue shortfall was due to lower occupancy in the first half of CY26, which continues to be constrained by external macro-economic factors, with the company targeting improved performance in the second half.

Stock Price Information

G8 Education Limited (ASX:GEM) shares were priced at $0.092 as of 6 November 2026, reflecting a 7.14% gain on the day. No interim dividend was declared for the half-year ended 30 June 2026. The share buyback programme has concluded.