Key Highlights

  • Revenue increased 3% to $48.1 million on a reported basis, or 12% on an underlying basis excluding non-recurring FY25 NSW Department of Education revenue.
  • Annual recurring Revenue rose 5% to $31.7 million at 30 June 2026, representing 66% of total revenue.
  • Operating EBITDA declined to $2.9 million from $3.1 million in FY25, while reported NPAT improved to a loss of $5.8 million from a loss of $11.3 million in FY25.
  • Post year end, Janison was appointed principal technology subcontractor to deliver Scotland's national assessments, a contract with a total contract value of approximately A$14.2 million over an initial four-year term.

Janison Education Group Limited (ASX:JAN) reported its financial results for the full year ended 30 June 2026, with revenue increasing 3% to $48.1 million on a reported basis. On an underlying basis, revenue grew 12%, a figure that excludes $3.9 million of non-recurring FY25 NSW Department of Education revenue not repeated in FY26, comprising approximately $3.0 million of venue hire, exited by agreement, and $0.9 million of paper-based testing that concluded as the program completed its transition to digital. Annual Recurring Revenue reached $31.7 million at 30 June 2026, up from $30.2 million, representing 66% of total revenue. Shares in Janison traded at $0.12 on the ASX at the time of the announcement, unchanged on the day.

Profitability and Margins

Gross profit increased 3% to $26.8 million, with gross Margin remaining flat at 56%, as improved product mix was offset by first-year onboarding costs associated with the New Zealand Ministry of Education program. Operating expenses increased 5% to $24.0 million, reflecting Investment in AI capabilities and platform architecture. Operating EBITDA was $2.9 million, down $0.2 million on the prior corresponding period, with margin declining 60 basis points to 6.0%. Reported EBITDA fell to $1.7 million from $1.9 million, while reported EBIT improved to a loss of $6.1 million from a loss of $7.0 million. Reported net profit after tax improved to a loss of $5.8 million, compared with a loss of $11.3 million in FY25.

Cash Position and Investment

Operating cash flow increased 23% to $3.7 million, which the company attributed to disciplined working capital management. This supported a $2.7 million Capital Expenditure program that was fully funded through operating cash flow, with the period-end cash balance increasing to $11.2 million from $10.6 million in FY25. The company noted that this figure includes advance client receipts, of which approximately $2 million unwinds as delivery occurs in the first half of FY27. Janison remains Debt free.

Segment Performance

Platform revenue increased 3% to $31.7 million on a reported basis, and 18% on an underlying basis against a normalised FY25 base of $26.9 million. Growth was driven by Janison Insights, up 7% to $29.3 million on the back of the New Zealand Ministry of Education contract and expansion into Victoria and Western Australia, partly offset by lower NSW Department of Education revenue following the exit of venue hire services and the conclusion of paper-based testing. Platform Gross Profit was flat at $15.9 million, while Platform EBITDA declined 37% to $1.1 million from $1.7 million, reflecting a higher share of first-year implementation services as new clients onboarded and continued investment in the division's ability to scale.

Product revenue increased 2% to $16.4 million, driven by Academic Assessment Services and Quality Assessment Tasks, along with continued strength in International Competitions and Assessments for Schools past papers sales, partly offset by the absence of ICAS All-Stars, which did not run in FY26. Product gross margin improved 3 percentage points to 67%, with Product EBITDA increasing 24% to $1.8 million from $1.4 million.

Contract Wins and Post Year-End Developments

During the period, Janison secured three significant contracts totalling approximately $23 million in new total contract value. These included a five-year national contract with the New Zealand Ministry of Education valued at approximately $21 million to deliver a bilingual digital assessment program, a three-year contract with the Victorian Building and Plumbing Commission valued at approximately $0.7 million, and a five-year contract with the Western Australian School Curriculum and Standards Authority valued at approximately $1.4 million, representing the company's first Western Australian program.

Post year end, and announced on 21 August 2026, Janison was appointed principal technology subcontractor to the National Foundation for Educational Research to deliver Scotland's national assessments, with a total contract value of approximately A$14.2 million over an initial four-year term. The company's customer pipeline stood at $24 million as of August 2026, following the conversion of a $14 million international opportunity after year end.

Operational Challenges

The company acknowledged that FY26 was not without its challenges, noting that two disruptions affected scheduled assessments for NAPLAN 2026 and CA ANZ. Janison said it responded to these disruptions, supported those affected, and has since strengthened program governance and partner protocols.

Outlook for FY27

Janison said FY27 revenue growth is expected to be underpinned by the full-year revenue contribution from new contract wins and ongoing contracted programs, with these multi-year contracts continuing to build revenue momentum into FY28. The company said that while it expects efficiencies from larger programs such as the New Zealand Ministry of Education contract reaching a steady state, delivery of the Scotland national assessment contract will require material upfront investment, including platform configuration, integration, resource mobilisation and in-country setup. This is expected to weigh on operating EBITDA and cash reserves in FY27, reflecting the working capital required to commence a contract of this scale, though the contract is expected to become margin accretive and improve Operating Cash Flow as it moves into steady-state delivery, with Group Operating Leverage building from FY28.

Conclusion

Janison Education Group delivered modest revenue growth in FY26, supported by stronger underlying performance once one-off prior year revenue is excluded, while narrowing its statutory net loss significantly compared with FY25. Operating EBITDA declined slightly as the company absorbed onboarding costs associated with its New Zealand Ministry of Education contract and continued to invest in platform capability. The company's post year-end appointment as principal technology subcontractor for Scotland's national assessments represents a significant new contract win, though management has flagged that the associated upfront investment is expected to weigh on operating EBITDA and cash reserves during FY27, before the contract becomes margin accretive in subsequent years.