3P Learning reported a 26% increase in underlying EBITDA to AUD 19.5 million for the second half of fiscal 2026, as total revenue rose 3.5% year-over-year to AUD 112.9 million.
B2C revenue remained broadly flat at AUD 43.6 million, while B2B revenue declined 8% to AUD 60.5 million. Total expenses fell to AUD 82.8 million, driven by a AUD 4.8 million reduction in product costs. The company recorded AUD 3.9 million in Digital Games Tax Offset income for the period, bringing the two-year total to AUD 8.6 million, alongside a AUD 5.5 million income tax refund for FY 2025.
Net cash increased to AUD 15.7 million at year-end, up from AUD 11.6 million a year earlier, with no external borrowings. Operating cash flow before tax totalled AUD 11 million. Management highlighted AUD 4.7 million in annualized cost savings from restructuring and headcount reductions, expected to benefit FY 2027.
The company reinstated dividends for the first time in 11 years, declaring AUD 0.0352 per share, partially franked. Shares rose 9.38% to AUD 0.35 following the results.
In the U.S., 3P Learning secured a USD 247,000 proof-of-concept order in the homeschool market, with Reading Eggs retention rates improving from 76% to 86%. The company was selected as one of four approved suppliers for New Zealand’s Ministry of Education maths resource program, effective from calendar 2027, with final orders due in September 2026. Homeschool Max and ESA sales reached AUD 1.2 million.
B2C contribution margin declined to 39% due to higher acquisition costs, while B2B contribution margin remained flat at 53%. APAC school churn stood in the mid-teens, above the target rate of 10% or less.
Chairman Matthew Sandblom said the company was in its strongest position since the 2021 merger with Blake eLearning, citing a reduced cost base, rising EBITDA, no debt and dividend reinstatement. CEO Jose Palmero described FY 2026 as a transition year from investment to commercial execution, while CFO Adam McArthur noted disciplined cost management had protected profitability amid top-line challenges.
