ReadCloud shares surge on record first-half results

EdTech provider ReadCloud (ASX:RCL) has delivered a strong set of first-half results for the period ended March 31, driven by record cash receipts and significant momentum across its core divisions.

The company’s core school-facing operations are currently on track to exceed their FY26 underlying EBITDA target of over $1 million.

The performance is underpinned by a record $7 million in first-half cash receipts from school customers—a 22% increase on the prior corresponding period—and a solid group operating cash flow of $2.1 million.

ReadCloud closed the half-year with $3.7 million in cash, zero debt, and no capital-raising requirements.

A major highlight of the report is the stellar growth of ReadCloudVET, which secured second-quarter cash receipts of $1.7 million, representing a massive 92 per cent surge on the prior corresponding period.

The division has contracted 385 schools for 2026, adding 55 new institutions while maintaining a retention rate comfortably above its 90% target.

ReadCloudVET is currently delivering a record 775 courses, driving gross margins above 90%.

Meanwhile, the eBooks segment is navigating a strategic transition year, with average revenue per school tracking to surpass $84,000.

Supported by an expanding sales pipeline that includes its first direct sale into South Australia, ReadCloud is well-positioned for international growth.

The planned wind-down of Southern Solutions remains strictly on time and on budget, clearing the path for a highly streamlined operation by FY27.

At the time of reporting, ReadCloud’s share price was $0.070.