ReadCloud Limited Reports Strong First‑Half 2026 Performance, Outpaces FY 26 Guidance
ReadCloud Limited (ASX: RCL) released its financial statements for the half‑year ended 31 March 2026 on 28 May 2026, confirming that the company’s school‑facing businesses are on track to exceed the FY 26 earnings guidance. The results demonstrate sustained momentum in the core VET‑in‑schools segment, robust cash generation, and a clean balance sheet.
Key Financial Highlights
| Metric | 1H FY 26 | YoY % | 1H FY 25 |
|---|---|---|---|
| Cash receipts from school customers | $7.0 m | +22% pcp | $5.5 m |
| Operating cash flow (school businesses) | $2.5 m | +18% pcp | $2.1 m |
| Cash position at 31 Mar 26 | $3.7 m | +95% pcp | $1.9 m |
| Underlying EBITDA (continuing) | $2.09 m | +5% pcp | $1.98 m |
| Revenue (ordinary activities) | $8.52 m | +6% pcp | $8.05 m |
The company reported a $1.56 m underlying EBITDA from continuing operations, up 5 % from the previous half‑year, and a $8.52 m revenue figure that marks a 6 % year‑over‑year increase. Profit after tax for continuing operations stood at $1.56 m, virtually flat against the $1.56 m reported in the same period last year.
School‑Business Strength
The VET‑in‑schools portfolio remains the engine of growth:
- $4.1 m in core VET‑in‑schools partnering revenue, a 15 % rise YoY.
- 385 schools contracted for FY 26, with 55 new schools added during the year and a retention rate exceeding 90 %.
- 775 courses running across the contracted schools, a record for the company.
- Cash receipts of $1.7 m in Q2 alone, a 92 % jump on the prior‑period comparable.
These figures underpin the management assertion that the school businesses will outperform the FY 26 earnings guidance of $1 m+ underlying EBITDA.
Discontinuing Operations
The Southern Solutions arm is being wind‑down as a discontinued operation. Losses in this segment increased by 575 %, reaching $1.61 m in 1H FY 26, but the company has confirmed that the exit is on track, on time, and on budget, with a clean FY 27 balance.
Cash Position and Capital Structure
With $3.7 m in cash at the end of the half‑year, ReadCloud has:
- Eliminated all debt.
- Refrained from any capital raise.
- Maintained a healthy liquidity buffer to fund ongoing operations and a growing sales pipeline for FY 27.
Outlook
Management signals that the accelerated sales pipeline for FY 27 will drive further growth. The company’s focus on education technology, virtual classrooms, and e‑book solutions positions it well to capitalize on the expanding digital learning market in Australia.
Prepared from the latest public disclosures and financial statements released by ReadCloud Limited on 28 May 2026.
