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EDU Holdings Ltd

EDU Holdings Ltd

ASX:EDU

Consumer Discretionary

Fund Manager Summary

The fund managers believe that EDU Holdings Ltd presents a promising opportunity for investors, particularly given the recent turnaround in financial performance. In their opinion, the reported FY24 NPAT of $2.6m signifies a substantial recovery from the $3.0m loss in FY23. With Ikon’s student enrollment nearly doubling to 3,232 at the start of FY25, they anticipate a significant increase in profits for 1H25, leveraging the operating efficiencies of the business. This growth, combined with students engaged in 3-4 year degree courses, allows for reliable cash flow modeling, reinforcing a strong DCF valuation thesis. Overall, the outlook for EDU is optimistic, making it an attractive consideration for investment.

Source: Trading View

Commentary From The Managers

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Tamim Funds Management

19 Nov 2025

$0.64

Summary

  • Tamim Funds Management highlights the strong operational execution of Edu Holdings (ASX: EDU) alongside positive structural changes in the education sector.
  • Edu Holdings has demonstrated impressive performance in its key divisions, Ikon and ALG.
  • At Ikon, total student enrolments reached 4,537 in Trimester 3, marking an 82% increase year-on-year.
  • New student enrolments at Ikon rose by 15% year-on-year and 51% compared to the previous term.
  • ALG also showed solid performance, with new student enrolments increasing by 26% from the previous term.
  • Edu Holdings displays a diversified education model, where strong performance in one area offsets seasonal declines in another.
  • The recent Education Legislation Amendment Bill removes student enrolment caps, creating a stable policy environment for growth.
  • This legislative change provides Edu Holdings with a multi-year runway for planning and expansion without volume restrictions.
  • Expectations for CY25 EPS are projected between 8 to 9 cents, with CY26 EPS anticipated at 10 to 11 cents.
  • The stock is supported by an active buyback and dividend strategy, enhancing shareholder returns.
  • Edu Holdings trades at valuation multiples below other listed education companies, making it a standout opportunity.
  • Demand for education remains resilient, particularly for purpose-driven programs, further supported by policy clarity.
  • Tamim Funds Management believes Edu Holdings is well-positioned as an interesting small cap growth story in the coming years.

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Commentary From The Managers

Tamim Funds Management

19 Nov 2025

$0.64

  • Tamim Funds Management highlights the strong operational execution of Edu Holdings (ASX: EDU) alongside positive structural changes in the education sector.
  • Edu Holdings has demonstrated impressive performance in its key divisions, Ikon and ALG.
  • At Ikon, total student enrolments reached 4,537 in Trimester 3, marking an 82% increase year-on-year.
  • New student enrolments at Ikon rose by 15% year-on-year and 51% compared to the previous term.
  • ALG also showed solid performance, with new student enrolments increasing by 26% from the previous term.
  • Edu Holdings displays a diversified education model, where strong performance in one area offsets seasonal declines in another.
  • The recent Education Legislation Amendment Bill removes student enrolment caps, creating a stable policy environment for growth.
  • This legislative change provides Edu Holdings with a multi-year runway for planning and expansion without volume restrictions.
  • Expectations for CY25 EPS are projected between 8 to 9 cents, with CY26 EPS anticipated at 10 to 11 cents.
  • The stock is supported by an active buyback and dividend strategy, enhancing shareholder returns.
  • Edu Holdings trades at valuation multiples below other listed education companies, making it a standout opportunity.
  • Demand for education remains resilient, particularly for purpose-driven programs, further supported by policy clarity.
  • Tamim Funds Management believes Edu Holdings is well-positioned as an interesting small cap growth story in the coming years.

Summary

Tamim Funds Management

31 Oct 2025

$0.59

  • Tamim Funds Management continues to hold a positive view on EDU Holdings (ASX: EDU) following recent updates.
  • EDU reported a significant increase in student enrolments for Ikon Institute in Trimester 3, 2025:
    • Total enrolments reached 4,537, marking an 82% increase compared to the previous corresponding period (PCP).
    • New student enrolments rose to 1,072, up 15% on PCP and 51% on T2’25.
  • For Term 4, 2025, the Australian Learning Group (ALG) reported:
    • New student enrolments of 164, up 26% from T3’25.
    • Total enrolments for T4’25 were 1,425, down 4% from T3’25.
  • The introduction of the Education Legislation Amendment Bill 2025 is seen as a positive development, removing enrolment caps while maintaining quality measures.
  • Expected earnings per share (EPS) for CY25 are projected to be between 8-9 cents, and for CY26, between 10-11 cents.
  • With an active buyback and dividend strategy, the stock is currently trading at a low multiple of 5x or 3x EV/Ebitda.
  • Tamim Funds Management believes the stock could be valued at 100% more than its current price.

Summary

Monash Investors

30 Sept 2025

$0.60

  • EDU Holdings has emerged as a key holding for Monash Investors, now representing the largest position in both the DMX & Monash Funds.
  • As a higher education provider, EDU relies on international students and offers a growing range of courses.
  • The shares were previously considered incredibly cheap, prompting an earlier buyback proposal at 16.5cps that was ultimately aborted.
  • Monash Investors added to their position and engaged with other key shareholders to oppose the buyback.
  • Following the aborted plan, EDU has reported stellar results, resulting in a nearly 400% increase in share price.
  • Liquidity initially posed a challenge, but as share prices rose, trading volumes increased, allowing Monash to build exposure in the 40-50cps range.
  • EDU's share price reached 61cps by month-end and 78cps in October, significantly contributing to NAV.
  • Currently trading at less than 10 times current year earnings and around eight times expected earnings for the upcoming year.
  • EDU maintains a strong net-cash balance sheet and insiders are actively increasing their holdings.
  • The company repurchased 4% of its shares outstanding in September, indicating confidence in its future.
  • Enrolment growth continues to surprise to the upside, although regulatory risks and competition are acknowledged.
  • Overall, Monash Investors is optimistic about EDU's execution and management capabilities moving forward.

Summary

DMX Asset Management

30 Sept 2025

$0.60

  • DMX Asset Management continues to hold its largest position in EDU Holdings, which rose another 21% and contributed 2% to NAV.
  • The position has grown to 12% of the portfolio by month-end, and approximately 14% as of early October.
  • EDU's share momentum is supported by the company aggressively buying back over 4% of shares outstanding in September.
  • October saw continued momentum with the announcement of strong enrollment numbers, surprising the market.
  • Despite a return of 300%+ over recent months, EDU shares are still attractive at a less than 10 times multiple of current earnings.
  • The company has a strong cash-rich balance sheet and prudent management.
  • Management is effectively broadening its product offerings and reviewing acquisition opportunities.
  • They are also rationally buying back shares at value-accretive prices.

Summary

Tamim Funds Management

30 Sept 2025

$0.60

  • Demographic Tailwinds: EDU Holdings operates in a growing sector focused on vocational and higher education for international students.
  • Core Subsidiaries: The company’s two main subsidiaries, Australian Learning Group (ALG) and Ikon Institute, offer accredited courses in healthcare, community services, and mental health.
  • High Employability: The qualifications provided are in sectors experiencing chronic labour shortages, ensuring strong job prospects for graduates.
  • Strong Financial Performance: First-half FY25 results showed a revenue increase of 114% to $36 million and a NPAT of $6.3 million.
  • Growing Enrolments: Total student enrolments reached 5,300, with 4,800 being international students.
  • Quality Student Base: EDU’s students often progress into employment and permanent residency, aligning with Australia’s labour needs.
  • Strategic Course Expansion: The company is expanding its offerings to include tech and digital skills, and is considering strategic acquisitions in higher education.
  • Dividend Payment: EDU has paid its first dividend, indicating a focus on profitability and capital discipline.
  • Valuation: The company trades at a modest valuation with a single-digit multiple of FY26 NPAT based on internal projections.
  • Operating Leverage: Each additional $1 in revenue is expected to add at least 30 cents to the bottom line due to operating leverage.
  • Capital Management: Director purchases and an ongoing buyback signal confidence in the company’s future.
  • Attractive to Larger Firms: EDU is positioned to attract interest from larger education conglomerates or private equity firms due to its scalable and profitable model.
  • Regulatory Accreditation: The company benefits from a moat built on regulatory accreditation and positive student outcomes.

Summary

Monash Investors

31 Aug 2025

$0.53

  • Monash Investors has initiated a new position in EDU Holdings.
  • EDU is an education services provider, offering vocational and higher education programmes.
  • Despite recent strong share price movement, the company remains significantly undervalued.
  • EDU has been a key holding in Monash Investors’ DMX Funds for some time.
  • The fund manager is pleased to add EDU to the Monash portfolio.

Summary

DMX Asset Management

31 Aug 2025

$0.53

  • EDU Holdings saw an 18% increase in August following a positive half-year result.
  • The company announced its maiden dividend, contributing to a favorable outlook.
  • Management is working to diversify revenue streams and de-risk the business.
  • EDU constitutes 10% of DMX Asset Management's portfolio as of month-end.
  • Despite rising valuations, DMX Asset Management remains comfortable with their position.
  • EDU reported a 114% revenue increase, with EBITDA rising to $10.9m.
  • NPAT for the half was $6.3m, up from $28k.
  • Full year NPAT is projected to exceed $12m, supported by a strong net cash position.
  • Concerns about growth post-strong student intake levels are mitigated by organic growth initiatives.
  • Domestic student numbers are up 15% year on year, with new courses attracting significant enrolments.
  • EDU has expanded its offshore recruitment footprint into new markets.
  • EDU is favorably positioned compared to NextEd (ASX:NXD), showing stronger EBIT expectations.

Summary

Tamim Funds Management

31 Aug 2025

$0.53

  • Edu Holdings (ASX: EDU) operates in healthcare, education, and community services through Australian Learning Group (ALG) and Ikon Institute.
  • Focuses on serving international students with pathways to employment and potential permanent residency.
  • In the first half of the year, EDU saw 114% revenue growth to $36 million and a net profit of $6.3 million.
  • The higher education segment (Ikon) is the main growth driver, with 5,300 total students, 4,800 of whom are international.
  • Despite regulatory uncertainties regarding international student caps, the outlook remains optimistic.
  • Growth strategies include expanding course offerings, developing new technology programs, and potential acquisitions.
  • EDU introduced its first dividend of 1 cent per share and sees potential for both organic and inorganic growth.
  • Directors are actively buying shares on the market, and a buyback has been initiated.
  • It is estimated that for every $1 of revenue growth in FY26, at least 30% will contribute to net profit after tax (NPAT).

Summary

DMX Asset Management

31 July 2025

$0.42

  • DMX Asset Management has closely monitored EDU Australia (ASX:EDU) following a remarkable share price re-rating of +350% since the beginning of the year.
  • Recent pre-released results indicate strong enrolment growth in Ikon, EDU’s higher education business, leading to a revenue increase of over 100% to approximately $36 million.
  • EDU’s first half NPAT is projected to rise from 0 to over $6 million.
  • The net cash position has surged from $6 million to over $21 million in the past year, showcasing robust cash generation.
  • EDU has generated more cash in the last 12 months than its entire market cap as of 30 June 2024.
  • Expectations for another strong intake in Ikon’s Trimester 3, 2025, commencing in September, following impressive results from T2 with +500 students added.
  • This growth is anticipated to contribute incrementally to EDU’s revenue run rate, supporting continued revenue growth into the second half of the calendar year.
  • EDU Holdings has seen a 27% rise in shares this month, positively influenced by encouraging profit results.
  • DMX Asset Management’s position in EDU has grown from 7% to over 9% of the portfolio, and currently stands at 10%.
  • Shares are viewed as attractively priced, and DMX Asset Management maintains a significant position in EDU.
  • Investors should consider that this outsized position may lead to meaningful performance impacts in either direction.

Summary

DMX Asset Management

30 June 2025

$0.33

  • EDU Australia (ASX:EDU) reported an 118% increase in total student enrolments for Ikon Trimester 2, adding approximately 500 students.
  • This increase in enrolments indicates sustained demand for Ikon’s programs.
  • The additional enrolments are expected to contribute to EDU's strong Q1 run-rate, which reported a $2.9m NPAT.
  • EDU is projected to generate free cash of ~$12m during 2025, exceeding its market cap from the previous year.
  • EDU Holdings has seen a 22% rise in shares following the cancellation of its delisting plans.
  • DMX Asset Management continues to hold its position as shares remain attractive due to strong ongoing enrolments and insider buying.

Summary

Tamim Funds Management

30 June 2025

$0.33

  • EDU Holdings (ASX: EDU) operates in the tertiary education sector with two main segments: vocational and higher education.
  • The vocational business targets international students, while the Ikon Institute serves both domestic and international students.
  • EDU has campuses in Sydney, Melbourne, Brisbane, and Adelaide, hosting over 5,000 students, primarily recruited through education agents.
  • The company's strategy focuses on developing courses in high-demand fields such as early childhood education, community services, and healthcare.
  • EDU emphasizes employability and migration pathways in its course offerings.
  • Significant growth has been seen in the higher education segment, with courses priced around $17,000 per year.
  • EDU is expanding its offshore recruitment channels and exploring strategic acquisitions for revenue diversification.
  • With a market cap of $50m, the company is expected to have $15m of net cash and generate $12m NPAT, trading at 3x profit.
  • Dividends are anticipated to be paid soon, and recent purchases by Directors indicate confidence in the company.
  • Tamim Funds Management continues to hold because they believe the stock has the potential to double this year.

Summary

DMX Asset Management

26 June 2025

$0.32

  • DMX Asset Management has held EDU Holdings Ltd for seven to eight years, navigating various market fluctuations.
  • EDU is a private higher-education provider in Australia, with strong barriers to entry due to the limited number of similar institutions.
  • Courses offered include bachelor’s and master’s degrees, which require a lengthy and costly accreditation process.
  • ICON, a key division, provides 3- to 4-year bachelor degrees, charging approximately $16,000–17,000 annually, resulting in a high-margin income stream.
  • The Bachelor of Early Childhood Education is the largest program in Australia, with nearly 4,000 students enrolled at a cost of $50,000 per degree.
  • EDU is generating about $200 million in contracted income with gross margins exceeding 60%.
  • Recent financials show operating leverage with Q1 2025 EBIT at $5.5 million and NPAT at approximately $3 million, surpassing last year’s NPAT of $2.6 million.
  • Despite strong results, a proposal to delist from the ASX was withdrawn after shareholder opposition, and EDU remains listed.
  • Most students are international, recruited onshore, and the $50,000 degree offers a substantial discount compared to sandstone universities.
  • EDU is proactively addressing potential enrollment drops by launching new master’s degrees and expanding its offshore agent network.
  • Plans to increase the share of offshore students from 10% to 40% in the next 2–3 years are underway.
  • Management anticipates strong medium-term growth with a healthy balance sheet and projected free cash flow of $10–12 million annually.
  • Looking forward to the half-year results in August, EDU expects increased enrollment numbers and strong second-trimester growth.

Summary

DMX Asset Management

31 May 2025

$0.27

  • DMX Asset Management continues to hold a positive outlook on EDU Holdings Ltd (ASX:EDU), citing strong fundamentals.
  • In a previous update, DMX Asset Management highlighted EDU as a key stock for 2025, projecting significant NPAT growth based on 2024 enrolment numbers.
  • EDU reported impressive first quarter results of $5.4m EBITDA and $2.9m NPAT, exceeding last year’s total NPAT in just one quarter.
  • Projected NPAT for EDU is expected to exceed $10m for FY25, with a market cap under $20m at the time of results release.
  • Despite strong performance, EDU announced plans to delist from the ASX, offering a 16.5c buy-back option to shareholders.
  • After discussions with the EDU board and other shareholders, DMX Asset Management expressed concerns about the timing and valuation of the buy-back.
  • The delisting proposal was ultimately withdrawn, leading to a re-rating of EDU’s share price in line with its improved fundamentals.
  • Political stability post-election is seen as beneficial for the international student sector, positively impacting EDU.
  • If EDU utilizes its projected cash flow effectively, it could enhance its revenue and earnings stability, currently at $80m and $20m EBITDA / $10m NPAT.
  • EDU has experienced a significant price rise of over 150% this year, but still appears undervalued with a market cap around $40m.
  • Following the aborted delisting attempt and strong quarterly results, DMX Asset Management increased its position in EDU, now making it the largest holding across their funds.
  • For a detailed analysis, DMX Asset Management encourages reading the full commentary in the DMX Capital Partners report.

Summary

DMX Asset Management

31 Mar 2025

$0.15

  • DMX Asset Management observes that EDU reported a FY24 NPAT of $2.6m, a significant recovery from a $3.0m loss in FY23.
  • After a breakeven result in 1H24, the full NPAT was achieved in 2H24.
  • As of 30 June 2024, EDU’s principal business, Ikon, had 1,709 students, which has surged to nearly 3,232 students at the start of FY25.
  • The increase in enrolments and operational leverage suggests potential for a substantial rise in NPAT for 1H25 compared to the previous $2.6m in 2H24.
  • With Ikon students enrolled in 3-4 year degree programs, DMX Asset Management can confidently model EDU's expected cash flows, supporting a robust DCF valuation thesis.

Summary

DMX Asset Management

28 Feb 2025

$0.18

  • EDU Holdings Ltd. reported a FY24 NPAT of $2.6m, improving from a $3.0m loss in FY23.
  • After breakeven results in 1H24, the entire NPAT was achieved in 2H24.
  • As of June 30, 2024, Ikon, EDU's key business, had 1,709 students.
  • Ikon starts FY25 with nearly 3,232 students, almost double the previous year.
  • With the enrolment increase and operating leverage, we anticipate a significant rise in 1H25 NPAT.
  • Ikon offers 3-4 year degree courses, enabling confident cash flow modeling.
  • This supports a strong DCF valuation thesis for EDU Holdings Ltd.

Summary

DMX Asset Management

31 Dec 2024

$0.10

  • DMX Asset Management discusses the investment thesis for EDU Holdings Ltd (ASX:EDU) in light of recent performance.
  • Despite a -3m loss in CY23, EDU returned to profit in 1H24 with a $1.6m turnaround in NPAT, driven by student growth and strong operating leverage.
  • Enrolment growth accelerated in 2H24, with the most recent trimester intake showing +363%, suggesting stronger incremental profit improvement ahead.
  • In 2025, EDU will benefit from the full year revenue and margin contribution from the 2024 cohort, positively impacting results through 2026 and 2027.
  • Based on 2024 enrolment numbers, DMX Asset Management has modelled a significant NPAT for 2025 to 2027.
  • As of June 2024, EDU has a net cash balance of $6m and a current market cap of $14m.
  • Recent activities include director buying and a share buy-back, indicating confidence in future performance.
  • Considering profit expectations for FY25, DMX Asset Management sees potential for a significant re-rate in 2025.

Summary

DMX Asset Management

30 Nov 2024

Unknown

  • DMX Asset Management is optimistic about EDU Australia (ASX:EDU) due to the success of its higher education offerings, particularly the Bachelor of Early Childcare Education.
  • Significant growth in enrolments has been noted, with the Ikon business experiencing over 100% increase in year-to-date enrolments and a remarkable +363% increase in the most recent trimester intake.
  • These longer duration courses provide strong visibility over future earnings, ensuring high margin revenue across 3-4 years.
  • Concerns arose from a proposed government capping regime for new overseas student commencements, which could have limited EDU’s IKON international student intake significantly.
  • DMX Asset Management criticized this public policy, advocating for legislation that targets poor-quality operators instead of penalizing leading institutions like EDU.
  • In November, it became apparent that the legislation lacked sufficient support to pass, raising hopes for more reasonable future regulations.
  • In 2025, EDU is set to benefit from a strong 2024 cohort, contributing to revenue and margin growth without restrictive caps.
  • Despite proposed caps, EDU was considered undervalued due to expected net cash generation from its large 2024 intake.
  • EDU is also positioned to grow its domestic student numbers, with no capping constraints, and plans to launch new Master's Degrees aimed at domestic students in 2025.

Summary

DMX Asset Management

31 Aug 2024

Unknown

  • DMX Asset Management highlights disappointment in the Federal Government’s proposed cap on new overseas student commencements.
  • Exposure to this market through positions in EDU Australia (ASX:EDU) (~1.5% position) and AKG (~0.5% position).
  • The proposed policy threatens Australia’s $48bn education export industry, the fourth largest after iron ore, gas, and coal.
  • International students contributed nearly $15bn to the Victorian economy in 2023, supporting approximately 63,000 jobs.
  • The Victorian Treasurer emphasizes that the changes risk almost $5bn in revenue and 12,000 jobs.
  • EDU has shown 64% revenue growth to $17m for the six months ending June 30, indicating recovery.
  • EDU supports essential roles in early childhood education and healthcare, aligning with government goals for permanent residency pathways.
  • The proposed cap allows for only 200 new overseas students in 2025, drastically reducing EDU’s potential enrolments.
  • DMX Asset Management advocates for well-considered public policy that does not harm high-quality educational operators.
  • Signs of pushback against the proposed legislation are encouraging, suggesting potential for more favorable policy changes.

Summary

DMX Asset Management

31 Mar 2024

Unknown

  • DMX Asset Management has observed improved business momentum for EDU Australia (ASX:EDU).
  • Strong revenue growth and operating leverage have emerged during 2023.
  • In March, new student enrolment numbers for the Ikon business increased by 125% compared to the previous year.
  • Ikon sources 95% of its students domestically, mitigating visa-related issues.
  • Such numbers indicate potential for continued strong revenue growth and improved profitability and cashflows for EDU in 2024.

Summary

Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed. 

Ella Walker, Equity Research Analyst

ANALYST INSIGHT

Equity Research Analyst

"A surge in student enrollment hints at a promising trajectory; EDU Holdings Ltd appears poised for a significant profit leap in 1H25, potentially redefining its cash flow narrative in the coming years."

Last Updated: 19 Nov 2025

Query The Data

Frequently Asked Questions

Who is investing in EDU Holdings Ltd (ASX:EDU)?

Fund managers including DMX Asset Management, Monash Investors and Tamim Funds Management have invested in EDU Holdings Ltd (ASX:EDU).

Why do fund managers invest in EDU Holdings Ltd?

Fund managers are investing in EDU Holdings Ltd due to its significant turnaround in financial performance, reporting a FY24 NPAT of $2.6 million compared to a $3.0 million loss in FY23. The company has seen substantial growth in student enrollment at its key business, Ikon, which has nearly doubled from 1,709 to 3,232 students. This growth, combined with anticipated operating leverage, is expected to drive a notable increase in profits in the upcoming periods. The predictable cash flows from students enrolled in long-term degree programs support a strong discounted cash flow (DCF) valuation, making EDU an attractive investment.

What happened to EDU Holdings Ltd (ASX:EDU)?

Fund managers have invested in EDU Holdings Ltd due to its impressive financial performance and growth potential in the education sector. The company reported a 114% revenue increase to $36 million and a net profit of $6.3 million in the first half of 2025, driven by strong enrolment growth, particularly among international students. With a robust cash position of over $21 million and a maiden dividend declared, EDU is seen as undervalued, trading at a low earnings multiple. Furthermore, the recent removal of student enrolment caps by the government enhances growth prospects, allowing EDU to expand its offerings and solidify its position in a sector facing chronic labor shortages. Fund managers view EDU as a compelling investment opportunity with significant upside potential.

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