ReadCloud (ASX:RCL) FY26 Result: Underlying EBITDA of $1.3 Million as Schools Business Grows and Industry Training Winds Down

Sonal Goyal

27 October 2026 01:02 PM AEDT

ReadCloud (ASX:RCL) FY26 Result: Underlying EBITDA of $1.3 Million as Schools Business Grows and Industry Training Winds Down

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Key Highlights

Underlying EBITDA from continuing operations was $1.3 million, above guidance of $1 million or more.
Sales and fee revenue from continuing operations was $11.2 million, compared with $10.7 million in FY25.
Cash receipts from school customers were $11.6 million, up 6%, while group cash receipts fell 4% to $12.4 million.
Cash was $1.9 million with no debt.

ReadCloud Limited (ASX:RCL) released unaudited FY26 preliminary results and its Appendix 4C quarterly cash flow report for the quarter ended 30 September 2026 on 27 October 2026. The company delivers vocational education and training programs to Australian secondary schools and supplies digital textbooks.

FY26 Headline Results

Underlying EBITDA from continuing operations was $1.3 million against guidance of more than $1 million. Sales and fee revenue from continuing operations was $11.2 million, about 4% above FY25, and partnering fees from VET in Schools rose 14% to $5.3 million. Continuing operations generated a $0.4 million cash inflow from operating activities.

Group cash receipts from customers were $12.4 million, down 4% from $12.9 million, because discontinued operations fell from $2.0 million to $0.9 million after the exit from industry training. Group operating cash flow was an outflow of $0.04 million, against an outflow of $0.05 million in FY25, with exit-related costs weighing on the result.

Divisional Performance

ReadCloudVET cash receipts rose 11% to $6.2 million. School retention was above the 90% target, 55 new schools were added for 2026, and a record 775 courses and more than 17,000 students took part. For 2027, 37 new schools are confirmed, compared with 35 at the same point in the previous selling season, with 13 prospective schools in advanced discussions and 47 in early engagement.

The eBooks division had cash receipts of $5.3 million, broadly in line with FY25, while sales and fee revenue fell 3% to $4.9 million and school retention was 89%. Revenue from new and retained schools did not fully offset revenue lost from departing schools. International revenue rose 40% from a low base to $73,000. The wind-down of Southern Solutions Industry Training was completed during the quarter.

Why This Could Matter

The report separates the growing schools business from the discontinued training operation, which affects how group cash flow compares with the prior year. The 2027 school commitments are an early indicator for the next year, although the confirmed numbers are not final until the selling season ends.

Wrapping Up

ReadCloud met its FY26 earnings guidance and reported growth in schools receipts, with lower group receipts and a small operating outflow because of the training exit. The company ends the period with $1.9 million in cash and no debt.

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