IODM Surges 45% on UK Education Boom and University Deals
IODM Limited posted a robust 45% revenue increase in FY25, fueled by a sharp rise in UK education sector income and a surge in university partnerships. The company’s innovative payment platform, IODM Connect, is gaining traction across Australia, the UK, and North America.
- Total revenue climbs to AUD 2.76 million, up 45% year-on-year
- UK education revenue grows 29% to AUD 2.65 million
- University onboarding triples to 14 institutions
- Operating cash receipts jump 80% to AUD 1.94 million
- IODM Connect platform endorsed by London School of Economics
Strong Revenue Growth Driven by UK Education Recovery
IODM Limited’s FY25 results reveal a significant acceleration in revenue, reaching AUD 2.76 million, a 45% increase from the previous year. This growth is largely attributed to the UK education sector, where revenue climbed 29% to AUD 2.65 million. The post-pandemic recovery in international student numbers has revitalized demand for payment solutions tailored to universities, positioning IODM as a key player in this niche.
The company’s strategic focus on expanding its footprint in the UK education market has paid off, with 14 universities now onboarded, nearly triple the five institutions from FY24. This expansion reflects IODM’s ability to tailor its payment platform to the complex needs of educational institutions and their international student cohorts.
IODM Connect Gains Traction and Industry Endorsement
Central to IODM’s success is its proprietary platform, IODM Connect, which streamlines tuition and accommodation fee payments for international students. The London School of Economics (LSE), a top-tier UK university, was the first to adopt the platform and has since actively promoted it within the sector. The positive results seen at LSE have encouraged other universities to implement the platform, driving further revenue growth.
Management highlights that the platform’s adoption has enabled payment companies to increase their wallet share with universities, translating into higher revenue per institution. This dynamic has helped IODM reach key revenue milestones, including surpassing monthly minimum payment thresholds of GBP 75,000 and GBP 100,000 during FY25, with ambitions to hit GBP 125,000 in the first half of FY26.
Robust Cash Flow and Expanding Market Opportunities
Operating cash receipts surged 80% to AUD 1.94 million, reflecting strong cash conversion and operational efficiency. The company’s cash conversion ratio stood at a healthy 111%, underscoring its ability to translate revenue into cash flow effectively.
Beyond the UK, IODM is investing in staff and expanding its presence in Australia and North America, supported by a growing sales pipeline that includes Tier 1 commercial clients. The competitive payments platform industry, coupled with universities’ increasing need to manage diverse payment options, creates fertile ground for IODM’s continued growth.
Looking Ahead, Scaling Revenue Share and Subscription Models
IODM’s revenue model combines revenue share agreements, particularly in the UK, with subscription fees in Australia. This hybrid approach allows the company to diversify income streams while capitalizing on the growing demand for customised payment solutions. The company’s confidence in achieving higher minimum payment thresholds and onboarding more universities signals a positive outlook for FY26.
While forward-looking statements come with inherent risks, IODM’s FY25 performance demonstrates a compelling trajectory driven by innovation, strategic market focus, and strong operational execution.
Bottom Line?
IODM’s FY25 momentum sets the stage for further expansion, but investors will watch closely as the company aims to scale its UK revenue thresholds and deepen university partnerships.
Questions in the middle?
- Can IODM sustain its rapid university onboarding pace beyond FY25?
- How will currency fluctuations impact UK revenue recognition and growth forecasts?
- What competitive pressures might emerge as other payment platforms seek to replicate IODM’s success?
