IDP Education reported FY26 revenue of $795.4 million, an 11% decline from $891.4 million in FY25, as total student placement volumes dropped 27% to 54,200. The company maintained a gross profit margin of 60%, though adjusted EBIT fell 3% to $122.9 million. Shares fell 25% to $1.63 on the announcement, near a 52-week low of $1.55.
Student placement revenue declined 16% to $362.9 million, while English language testing revenue edged down 1% to $388.9 million on a constant currency basis. Adjusted overhead costs decreased 14% to $302.2 million, contributing to a 139% cash conversion rate. Operating cash flow rose 2% to $135.5 million, and net leverage improved to 1.0x from 1.4x. The company declared an unfranked final dividend of 6.0 cents per share and announced a $50 million share buyback program for FY27.
Placements in Australia fell 9% to 31,700, while international destinations dropped 42% to 22,500, driven by declines in Canada (80%), the U.S. (67%), and the U.K. (20%). Yields per placement increased 11% to $5,586, with international yields up 19% to $5,979. English language testing volumes declined 8% to 1.195 million tests, with India-specific volumes down 22%.
Workforce reductions totaled approximately 1,250 roles, and the company achieved $32 million in net overhead cost savings, exceeding its $25 million target. IT licensing savings contributed $9 million, while occupancy cuts reduced IELTS venues to fewer than 600 from about 1,500. The company reported total assets of $1.023 billion, including $135.1 million in cash, and total equity of $398.8 million.
IDP maintained over 1,000 university partnerships, adding 32 new partners and securing 66 contract expansions. Visa approval rates for IDP students remained above industry averages, including 86.3% in Australia versus an 81.2% industry rate. The company expects FY27 adjusted EBIT between $95 million and $115 million, with further market volume declines of 20–30% projected. Cost reductions of $15 million are anticipated, alongside $40 million in one-off transformation costs.
