ReadCloud earnings go sky high, with 73% rise in 1H FY25

ReadCloud (ASX:RCL) has reported standout results for the first half of the 2025 fiscal year, with its underlying earnings (EBITDA: earnings before interest, taxes, depreciation, and amortisation) increasing by 73%, to $1.80 million.

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The windfall, ReadCloud said today, mostly came from strong organic revenue growth.

That growth was up 13% to $9.2M, while operating costs were up only 1%.

The company – which specialises in providing eLearning software to educational institutions – said VET-in-schools (the provision of vocational programs to secondary students in schools) had accounted for 32% of revenue growth, compared to the prior comparable period, with this revenue category now set at $3.8M.

Growth was also observed in the number of institutions now using ReadCloud’s technology platform: 62 new school customers joined for the 2025 school year, for a total of 429.

“Our first half results demonstrate ReadCloud’s transformation and operating leverage,” CEO Andrew Skelton said. “The 73% increase in underlying EBITDA validates the execution of strategy by ReadCloud’s motivated team.

“In particular, VET-in-Schools delivering revenue growth of over 30%, retention of 94% and gross margins above 90% indicates strong product-market fit and our ability to successfully capture the significant opportunity.”

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ReadCloud reported an operating cash flow of $1.9m generated in 1H FY25, a strong balance sheet with $3.5m of cash and no debt as of March 31.

RCL shares have been at 14 cents after a 27.7% rise since the market opened.

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