G8 Education reports $38.8M loss in FY26

• G8 Education reported an 11.1% revenue drop to $413.6 million and a net loss after tax of $38.8 million.
• Average centre occupancy fell 7.5% to 57% as the company withheld half-year dividend payments.
• Management suspended operations across 40 centres and cut support headcount by 21% to lower operational costs.

G8 Education (ASX:GEM) recorded a statutory net loss after tax of $38.8 million for the half year ended June 30.

The financial downturn contrasts with the prior period's net profit of $22.5 million, following an 11.1% revenue fall to $413.6 million.

"During the first half of CY26, we focused on strengthening the fundamentals within our control, which include safety, quality, family experience and team engagement, while navigating a challenging and evolving operating environment," said G8 Education CEO and Managing Director Pejman Okhovat.

Earnings were lowered by $47.1 million in net impairment cost tied to centre suspensions, while operating EBIT dropped 63.7% to $14.7 million. 14.7 million.

Following the announcement, the G8 Education share price was down at $0.13.

The business is continuing to negotiate supplier contracts and restructuring initiatives to align capacity with market demand.

The group maintains debt facility extensions through 2029 while operating 350 early learning locations.