Why Are EDU Holdings’ New Student Enrolments Plummeting Despite Total Growth?
EDU Holdings reports a modest 2% increase in total student enrolments for its Australian Learning Group in Term 3, 2025, while new student enrolments have sharply declined amid ongoing regulatory challenges.
- Total student enrolments up 2% year-on-year in Term 3, 2025
- New student enrolments down 52% compared to previous corresponding period
- Regulatory tightening and visa restrictions impacting international student numbers
- Company expects near-term enrolment declines despite current profitability
- Focus on retention and student pathways to sustain long-term stability
Steady Growth Amidst Challenging Conditions
EDU Holdings Limited has released its enrolment figures for Term 3, 2025, revealing a nuanced picture for its vocational education arm, the Australian Learning Group (ALG). Total student enrolments edged up by 2% compared to the same period last year, reaching 1,478 students. This modest growth suggests some resilience in EDU’s core VET business despite a backdrop of significant headwinds.
However, the headline figure masks a more concerning trend in new student enrolments (NSE), which plunged by 52% year-on-year to just 130 new students. This sharp decline signals softer market conditions and heightened regulatory pressures that are reshaping the international education landscape in Australia.
Regulatory Pressures and Market Dynamics
The company highlights ongoing regulatory tightening as a key factor influencing enrolment trends. Although the anticipated Education Services for Overseas Students Amendment Bill 2024, which would have imposed hard enrolment caps, was not enacted at the start of the year, other measures have continued to restrict international student inflows. These include stricter visa eligibility criteria, increased application fees, and lower approval rates, all contributing to a 20% drop in total international student commencements in the VET sector over the past year.
More strikingly, new international students arriving in Australia have declined by 67%, underscoring the challenges EDU faces in attracting fresh enrolments. This regulatory environment has created a cautious market, with EDU’s Board flagging expectations of further declines in total enrolments in the near term.
Strategic Focus on Retention and Pathways
Despite these headwinds, ALG remains profitable and continues to contribute to EDU’s broader group operations. The company is placing emphasis on student retention and developing pathways that support progression into higher education through its Ikon Institute. This strategy aims to maintain enrolment stability over the longer term by leveraging internal student mobility and diversity.
EDU’s management remains committed to delivering quality education outcomes while adapting to the evolving regulatory and market landscape. The upcoming enrolment reports for ALG’s Term 4 and Ikon’s Trimester 3 later this year will be closely watched for signs of recovery or further pressure.
Bottom Line?
EDU’s enrolment figures reflect resilience but also warn of ongoing challenges ahead in a tightening regulatory environment.
Questions in the middle?
- How will EDU’s strategies to boost retention and internal pathways impact future enrolments?
- What financial implications will the decline in new student enrolments have on EDU’s profitability?
- Could further government policy changes exacerbate or alleviate current enrolment pressures?
