Janison Education Group Ltd (ASX:JAN) has posted a 2% lift in first-half revenue to $23.1 million for the period ended December 31, 2025, with continued momentum in its Product segment offsetting a softer Platform result after the cessation of certain paper-based delivery activities. The group also reported a 1ppt improvement in gross margin to 58% and a stronger cash outcome, with operating cash flow rising to $3.8m and period-end cash of $13.3 million, while profitability reflected the timing of increased investment in platform capability and AI-enabled products, including the commercial rollout of its Jai item development platform.
1H FY26 highlights
- Group revenue of $23.1m, up 2% on the prior corresponding period (pcp), driven by continued momentum in Product, partly offset by changes in Platform delivery mix
- Gross margin of 58%, up 1ppt on pcp, supported by stable cost of sales and a favourable product mix
- Operating EBITDA of $1.3m, reflecting the timing of strategic investments to support future growth
- Operating cash flow of $3.8m, up $2.7m on pcp
- Cash of $13.3m at period end
- Secured several contracts, including a 5-year national contract with the New Zealand Ministry of Educationvalued at approximately $21m, as well as new wins with the Western Australian School Curriculum and Standards Authority and the Victorian Building and Plumbing Commission
- Customer pipeline of $26m at 31 December 2025, down from $40m in October 2025 following conversion of the NZ Ministry of Education contract ($21m TCV) to revenue; quality pipeline maintained, including $1.4m linked to the Jai AI-powered item development platform
- Continued progress in the commercial rollout of Jai, with initial revenue contribution and early customer adoption supporting platform scalability
“The first half of FY26 was a solid and predictable period for the business, with performance broadly in line with our expectations. Revenue was up on the prior corresponding period, and while Operating EBITDA was lower year-on-year, this reflects the deliberate investment decisions we made in FY25 to focus on profitable growth by strengthening our platform, capability and delivery readiness including continued development of Jai," Janison CEO Sujata Stead said.
"We are encouraged by the quality of our pipeline and our ability to convert significant opportunities like the NZ Ministry of Education contract. This improved visibility is enabling us to accelerate platform investment, informed by strategic customer roadmap validation. Our focus is on further enhancing scalability, AI capabilities, and architectural flexibility to support sustainable growth as we move through the second half and beyond.”
Financial performance
Operating expenses increased 9% to $12.1 million, reflecting strategic investments initiated in 2H FY25 and carried into the current period to build platform capability, AI-enabled products and support future growth. Operating EBITDA declined to $1.3 million, with EBITDA margin easing to 6%, reflecting the timing of investment relative to revenue recognition.
Reported EBIT improved to a loss of $3 million, compared with $3.7 million in the pcp, supported by lower depreciation and amortisation and the absence of prior period restructuring and strategic review costs. Reported NPAT improved to a loss of $2.8 million, from $3 million in 1H FY25.
Cash and balance sheet
Operating cash flow increased to $3.8 million, supported by disciplined working capital management. Janison ended the period with $13.3 million cash, providing balance sheet flexibility to continue executing its strategy, with the company noting some timing-related working capital reversals associated with customer advance payments as delivery progresses.