ReadCloud’s June Quarter Cash Receipts Hit $4.6M, Up 35% Year-on-Year
ReadCloud Limited reported a robust 35% increase in cash receipts for the June quarter, driven by strong growth in its VET-in-Schools segment and disciplined cost management. The company forecasts positive underlying EBITDA and operating cash flow for FY25, positioning itself for accelerated growth in 2026.
- 35% increase in June quarter cash receipts to $4.6 million
- 27% growth in VET-in-Schools revenue for nine months to June 2025
- Operating payments excluding publisher and trainer costs down 4% year-on-year
- $3.0 million cash on hand with zero debt
- FY25 revenue forecast between $12.7 million and $13.0 million with positive EBITDA expected
Strong Quarterly Performance
ReadCloud Limited (ASX – RCL), a leading provider of eLearning software solutions, has delivered a standout performance in the June 2025 quarter with cash receipts rising 35% year-on-year to $4.6 million. This surge reflects the company’s expanding footprint in the Vocational Education and Training (VET) sector, particularly its VET-in-Schools program, which continues to grow at over 25% with gross margins exceeding 90%.
The company’s disciplined approach to cost management is evident, with payments for operating activities, excluding publisher and trainer costs, falling by 4% compared to the prior corresponding period. This operational leverage has helped ReadCloud maintain a strong cash position of $3.0 million and zero debt as of 30 June 2025.
Revenue Growth and Market Expansion
For the nine months ending June 2025, ReadCloud’s VET-in-Schools sales and fee revenue increased by 27% to $5.4 million, while domestic direct eBook revenue grew 13% to $4.1 million, contributing to total eBook Solutions revenue of $4.5 million. The company’s eReader platform, known for its interactive and collaborative features, continues to gain traction in educational institutions.
ReadCloud’s recent participation in its first international schools conference in May has generated promising leads, suggesting potential acceleration in international sales in 2026. This marks a strategic step towards diversifying revenue streams beyond the domestic market.
Challenges and Strategic Adjustments
Despite these positives, ReadCloud faces headwinds in its Industry Training segment, where Southern Solutions Training Services reported a 24% decline in sales and fee revenue for the nine months to June 2025. In response, the company has restructured its Industry Training workforce to adapt to changing state government policies impacting this sector.
Nonetheless, ReadCloud remains on track to achieve positive underlying EBITDA and operating cash flow for FY25, with full-year revenue forecast between $12.7 million and $13.0 million. Management emphasizes disciplined execution and unlocking further operating leverage as key priorities moving forward.
Outlook and Investor Implications
With a solid financial foundation, an encouraging sales pipeline, and a clear focus on cost control, ReadCloud is well-positioned to capitalise on growth opportunities in FY26. The company’s expansion into international markets and continued innovation in eLearning technology could be pivotal in driving future revenue growth.
Investors will be watching closely for the upcoming FY25 full-year results to validate these forecasts and assess the impact of the recent workforce restructuring on Southern Solutions’ performance.
Bottom Line?
ReadCloud’s strong quarter and strategic pivots set the stage for growth; but international expansion and training segment recovery remain key to watch.
Questions in the middle?
- How will ReadCloud’s international sales pipeline translate into actual revenue in FY26?
- What impact will the restructuring of Southern Solutions’ workforce have on future Industry Training revenues?
- Can ReadCloud sustain operating leverage gains while scaling its eLearning platform?
