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Highlights

  • RCL's underlying EBITDA surged 73%, while statutory profit soared 214% year-on-year in H1FY25.

  • VET-in-Schools program grew 32%, driving total revenue to $9.2 million.

  • Share price jumped 27% following recent financial results and positive cashflow update.

Shares in ReadCloud Limited (ASX:RCL) soared 27% to 14 cents on Thursday morning after the edtech company posted a set of robust first-half results for FY25, marked by double-digit revenue growth and significant gains in profitability.

The standout figure was the 73% increase in underlying EBITDA to $1.80 million. Statutory net profit also saw a dramatic 214% rise, reaching $1.32 million. 

VET-in-Schools Driving Growth

A major highlight was the company’s Vocational Education and Training (VET)-in-Schools division, which posted 32% year-on-year revenue growth to $3.8 million. Overall, organic revenue increased 13% to $9.2 million, while operating costs grew by just 1%.

Expanding School Footprint and Financial Strength

ReadCloud’s digital learning platform is now active in 429 schools, boosted by the onboarding of 62 new school customers for the 2025 academic year, up from 51 in 2024. 

The financial health of the company has also improved, with $1.9 million in operating cash inflow and a debt-free balance sheet holding $3.5 million in cash as at 31 March 2025.

Outlook and Market Dynamics

Despite the stellar first-half performance, ReadCloud flagged that recent government policy changes in NSW and Victoria will negatively affect second-half revenue from its Southern Solutions division, impacting the group’s ability to hit its full-year 15% organic revenue growth target.

However, the company reassured investors that its VET-in-Schools and eBooks businesses, which made up 88% of total first-half revenue, remain on track to deliver toward the baseline growth target.

Looking ahead, ReadCloud sees major opportunities in the International Schools sector, driven by demand for digital education and a growing recognition of skills shortages and vocational training needs. Management also highlighted “significant upside” in the eBooks segment, backed by recent engagement with overseas institutions.