EDU Holdings' 850% Rally Still Looks Cheap to an Activist Investor

A structural demographic tailwind for international education has driven record enrolment growth and repeated guidance upgrades, with Raper Capital projecting further gains.

1 Sep 2026 · 4 min read

EDU Holdings has been one of the ASX's most explosive small-cap growth stories, rallying around 850 percent in 2025 alone as its education-as-a-service model, built on structural demographic tailwinds for international student demand, delivered a string of upgraded guidance and record results, with fund managers and activist investor Jeremy Raper continuing to see the stock as cheap even after the extraordinary run.

A structural growth theme built on demographic tailwinds

Tamim Funds Management described EDU Holdings as operating in a sector fast becoming a structural growth theme in Australia, vocational and higher education for international students, providing accredited courses in healthcare and community services through its two core subsidiaries, Australian Learning Group and the Ikon Institute. DMX Asset Management said EDU Holdings, its largest holding, rose another 21 percent, letting the position run to reach 12 percent of the portfolio by month-end and around 14 percent following further gains, with momentum supported by the company itself aggressively buying back stock. Monash Investors said EDU Holdings had emerged as its largest holding across both the DMX and Monash funds, describing a higher education provider relying on international students with a small but growing range of courses.

Our largest holding, EDU Holdings, was a key contributor, rising another 21% and adding 2% to NAV. We've continued to let this position run, reaching 12% of the portfolio by month-end.

— DMX Asset Management, Monthly Report, September 2025

An 850% rally on upgraded guidance

DMX Asset Management said the highlight in December was CY25 profit guidance of around $14 million net profit after tax, higher than previously forecast due to enrolment growth and high retention across Ikon's higher education courses and strong second-half cost control, with the share price finishing the month up 33 percent, having risen around 850 percent during 2025, starting the year with a market cap of just over $10 million before passing a far larger valuation. Tamim Funds Management said EDU Holdings delivered a material update in December 2025, upgrading FY25 guidance after stronger than expected results, with management now expecting revenue to grow around 92 percent, EBITDA to expand around 215 percent, and net profit after tax to increase around 452 percent versus FY24, underpinned by robust student enrolments and cost timing benefits.

EDU's share price finished the month up 33%, having risen ~850% during 2025. Having started the year with a market cap of just over $10m, EDU passed a far larger valuation.

— DMX Asset Management, Monthly Report, December 2025

Record first-half results confirm the trajectory

DMX Asset Management said EDU Holdings expected revenue to increase 48 percent to $53.5 million for the six months to 30 June, with profit before tax of $13.0 million, up 57 percent, and net cash of $24.0 million, up $5.5 million from 31 December 2025 as strong cash receipts more than offset a $3.8 million dividend paid and $11.4 million of share buybacks during the half. Tamim Funds Management said EDU delivered record first-half results at the guidance midpoint, with revenue rising 48 percent to $53.5 million, EBITDA up 51 percent to $16.5 million, and profit before tax increasing 57 percent to $13.0 million, with Higher Education enrolments in Ikon growing 57 percent on the prior corresponding period, more than offsetting softer performance in the group's VET business.

EDU Holdings delivered record first-half results at the guidance midpoint, with revenue rising 48% to $53.5 million, EBITDA up 51% to $16.5 million and profit before tax increasing 57% to $13.0 million. Higher Education enrolments in Ikon grew 57% on the prior corresponding period.

— Tamim Funds Management, Monthly Report, July 2026

An activist investor still sees value, even after the run

Jeremy Raper of Raper Capital said his views on EDU Holdings had evolved over recent weeks, now thinking the stock is cheap once again, describing a fairly boring 30 percent-plus return achievable over the next six to twelve months, with operating performance still exceptional and the business clearly not yet peaking despite regulatory changes, as new course growth rapidly supplements the existing business under a very disciplined management team.

What fund managers say they are watching next is continued enrolment growth across Ikon's higher education courses offsetting softer VET performance, delivery of further course expansion supplementing the existing business, continued disciplined capital allocation via buybacks and dividends, and whether the stock delivers the 30 percent-plus return Raper Capital projects over the next 6 to 12 months.