EDU Holdings' 850% Rally Meets New Student Visa Rules

Fund managers say strong enrolment growth drove one of 2025's biggest small-cap rallies, though regulatory changes now add uncertainty

31 May 2026 · 4 min read

Education provider EDU Holdings rose roughly 850% in 2025 as enrolment growth at its Ikon Institute higher education business accelerated, before regulatory changes to international student visa settings introduced fresh uncertainty in early 2026.

A dramatic re-rating from a near-forgotten small cap

Centennial Asset Management's January 2026 retrospective described EDU as a company that had been absolutely on its knees 18 months earlier, a business providing courses for overseas students that struggled when COVID halted international student flows, before rebounding on the back of tertiary education and early childcare courses that took off. DMX Asset Management's July 2025 update noted the stock had already re-rated 350 per cent since the start of the year, with a strong first-half pre-release showing revenue up more than 100 per cent to around $36 million and net profit after tax swinging from breakeven to more than $6 million.

Enrolment growth accelerates through the second half

Tamim Funds Management's October 2025 update reported strong Trimester 3 enrolment growth at Ikon Institute, with total student enrolments up 82 per cent on the prior corresponding period to 4,537, and new student enrolments up 51 per cent on the prior term. Monash Investors' September update described EDU becoming its largest holding across both the DMX and Monash funds, having built a substantial shareholding as the company transitioned from a company its shareholders were mindful not to over-concentrate in, to fund's largest holding by month end.

A major guidance upgrade confirms the scale of the turnaround

Tamim Funds Management's December 2025 update reported a material upgrade to FY25 guidance, with management now expecting revenue growth of around 92 per cent, EBITDA expansion of around 215 per cent, and net profit after tax growth of around 452 per cent versus FY24, alongside a selective buyback of 18 million shares at $0.55 per share. DMX Asset Management's own December update noted EDU's share price had risen around 850 per cent during 2025, taking the company from a market cap of just over $10 million at the start of the year to passing $100 million in December.

The highlight in December was the CY25 profit guidance from EDU Australia (ASX:EDU) of ~$14m NPAT - higher than previously forecast due to enrolment growth and high retention across Ikon's higher education courses, and strong second half cost control. EDU's share price finished the month up 33%, having risen ~850% during 2025.

— DMX Asset Management, Monthly Report, December 2025

Regulatory changes to student visa rules add new risk

DMX Asset Management's January 2026 update flagged an emerging risk: changes banning payment of commissions to agents involved in onshore transferring of students were enacted during the month, affecting a cohort representing a material proportion of Ikon's new enrolments. While EDU management believed the changes would not materially affect underlying student demand, DMX noted the new regulatory settings added uncertainty to medium-term earnings and it had been gradually reducing its position as a result.

A cash-generative business continues buying back shares

DMX Asset Management's March 2026 update reported EDU, having only just completed a selective buyback of 12.5 per cent of shares outstanding in February, took advantage of price weakness during March to repurchase a further 1.5 per cent of shares on-market, describing management's rational capital allocation approach as recognising the market was undervaluing the business. By May 2026, DMX reported a further 22 per cent monthly gain on positive AGM commentary, a strong first-quarter trading update, and resumption of the on-market buyback programme at higher prices.

The portfolio again benefited from a strong gain in EDU Holdings which rose 22% on the back of positive AGM commentary, including a strong Q1 trading update, together with the resumption of its on-market buyback programme at these higher prices. EDU's management have displayed strong commercial nous in buying in shares aggressively when they're relatively lowly valued.

— DMX Asset Management, Monthly Report, May 2026