ReadCloud (ASX:RCL) Names Interim CEO as Schools Business Posts Record Receipts

Aditi Sarkar

27 October 2026 10:24 PM AEDT

ReadCloud (ASX:RCL) Names Interim CEO as Schools Business Posts Record Receipts

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Highlights

FY25 revenue and other income rose 5% to $12.92 million, and the statutory loss narrowed to $415,898.
Record schools-business receipts of $5.2 million in the March 2026 quarter were up 28% on the prior period.
CFO Luke Murphy became interim CEO from 1 June 2026 after Andrew Skelton's tenure ended on 31 May.
Company-reported targets include more than 60 new schools a year, 90% customer retention and 10% to 20% annual revenue growth.

ReadCloud Limited (ASX:RCL) is changing leadership while its core schools business reports record cash receipts. The Melbourne-based education technology company named its chief financial officer interim chief executive from 1 June 2026, after reporting a narrower loss for the year to 30 September 2025.

Company Snapshot

ReadCloud describes itself as an Australian EdTech company supplying digital learning content, interactive technology and student and educator support to schools and vocational training providers. It serves more than 400 schools in Australia and internationally, and is headquartered in Brighton, Victoria.

Its ReadCloudVET division offers 50 qualifications to 15,000 learners through three registered training organisations, and its eBooks platform provides an eReader with publisher content. The company has exited its industry training business, Southern Solutions.

FY25 and Recent Quarterly Results

For the year to 30 September 2025, revenue and other income was $12.92 million, up 5%, with sales and fee revenue of $12.63 million, split between VET revenue of $7.61 million and eBooks revenue of $5.02 million. The statutory net loss was $415,898, against $1,018,890, and underlying EBITDA was $757,395. Operating cash flow was $522,709 and cash closed at $1.92 million.

In the December 2025 quarter, receipts were $2.2 million, down 9%, operating cash flow was an outflow of $441,000 and cash was $1.47 million, with an estimated 3.3 quarters of funding. In the March 2026 quarter, group operating cash flow was $2.3 million.

Leadership and Governance

On 13 May 2026, ReadCloud said chief executive Andrew Skelton, who joined in May 2023, would end his tenure on 31 May 2026, with chief financial officer Luke Murphy taking the interim role from 1 June and a search under way for a permanent chief executive. Murphy has indicated he intends to apply.

At the 19 February 2026 annual meeting, five resolutions passed, but the 10% placement facility received 58.75% support against the 75% required and failed.

Outlook and Risks to Watch

The company reported more than 50 new schools signed for 2026 and expects retention above 90% and VET revenue growth above 15% in FY26. Its school-business targets include revenue growth of 10% to 20% a year, operating cost growth below 7% and underlying EBITDA of at least $1 million in FY26. The chairman describes the group as operationally self-funding.

Risks include the uncertain future of its New South Wales Smart and Skilled contract, a Victorian training allocation cut to zero for 2026, regulatory registration of its training organisations, seasonal cash lows in December and January, customer concentration with the NSW education department at about 11% of sales, and the leadership transition.

Stock Price Information

ReadCloud shares were unchanged at A$0.045 on 27 October 2026, giving the company a market capitalisation of about A$6.91 million. The stock is down 47.06% over the past year.

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