Highlights

  • ReadCloud reported unaudited FY26 underlying EBITDA of A$1.3 million, above its target of more than A$1 million.
  • Sales and fee Revenue from continuing operations rose about 4% to A$11.2 million for the year to 30 September.
  • ReadCloudVET partnering fees grew 14% to A$5.3 million as student numbers passed a record 17,000.
  • Thirty-seven new ReadCloudVET schools are confirmed for 2027, with a further 13 in advanced discussions.

Having finished winding down its industry Training arm, ReadCloud Ltd (ASX:RCL) has closed FY26 as a schools-only education business. In its September 2026 quarterly update, released on 27 October, the company reported unaudited underlying EBITDA of A$1.3 million for the year to 30 September 2026, ahead of its target of more than A$1 million.

The update also pointed to a stronger start to the 2027 selling season for its vocational education programme.

Two School Businesses Drive the Result

ReadCloud operates ReadCloudVET, which provides nationally recognised VET-in-Schools programmes with learning resources, assessment tools and delivery support, and an eBooks platform that gives schools access to publisher content and simplifies textbook procurement. The company partners with more than 400 schools in Australia and internationally.

Continuing sales and fee revenue rose about 4% to A$11.2 million in FY26. ReadCloudVET partnering fees grew 14% to A$5.3 million, and its cash receipts rose 11% to A$6.2 million. The division welcomed 55 new schools in 2026, ran a record 775 courses and passed 17,000 students, while school retention stayed above its 90% target. eBooks revenue eased 3% to A$4.9 million, with school retention of 89%.

Southern Solutions Exit Completed

The wind-down of Southern Solutions Industry Training was completed in the September quarter. Its FY26 cash receipts fell 57% to A$0.9 million, including a final A$0.4 million payment for NSW training delivery, and the division used about A$0.4 million in operating cash, including roughly A$0.15 million in redundancy payments. The board does not expect any negative Earnings contribution from industry training after FY26.

Group cash receipts from customers declined 4% to A$12.4 million, mainly reflecting the exit, while receipts from school customers reached a record of about A$11.6 million. Continuing school operations generated an operating cash inflow of A$0.4 million, leaving the group Operating Cash Flow close to break-even at an outflow of A$0.04 million.

Debt-Free Balance Sheet

Cash at 30 September 2026 was A$1.87 million, down from A$2.56 million at the end of June, after a quarterly operating cash outflow of A$684,000. ReadCloud has no Debt and no financing facilities, and management does not expect to need to raise capital. Director remuneration of A$76,000 was paid during the quarter.

Outlook for the 2027 School Year

ReadCloudVET has 37 new schools confirmed to start in 2027, compared with 35 confirmed by early December in the previous selling season. A further 13 schools are in advanced discussions and 47 in early-stage engagement. Renewals are about 50% complete, and retention is expected to stay above 90%.

In eBooks, ReadCloud has secured three new domestic schools, contracted its largest reseller-channel school by enrolments and added a new international school. It is negotiating with five more Queensland schools and two in Western Australia, which would be its first direct customers in that state. Management expects strong revenue growth and better Operating Leverage in FY27, without issuing numeric guidance.

Shares were unchanged at A$0.046 on 2 November 2026, with a Market Capitalisation of about A$7.07 million, down 54% over 12 months.