Half-year results show strong revenue and earnings momentum at Embark

Embark Early Education Limited (ASX: EVO) has reported a 62% increase in profit after tax for the half-year ended 30 June 2025, underpinned by recent acquisitions and careful management of operating costs.

The group recorded a net profit after tax of $4.0 million, compared to $2.5 million in the prior corresponding period, with revenue rising 43.5% to $49.4 million. Growth was attributed to the addition of 10 centres over the past year and stable operational performance across its network.

Embark completed the acquisition of Parkhurst Early Learning Centre in Queensland during the half-year, adding 99 licensed places per day to its portfolio. In total, the group now operates more than 10 additional centres compared to June 2024.

Goodwill associated with the Parkhurst acquisition was valued at $2.06 million, reflecting the centre’s earnings potential and the benefits of consolidating operations under Embark’s group model.

Alongside expansion, the company reported strong financial discipline, highlighting:

• Tight control of support office costs.
• Prudent management of centre-based staffing in line with regulatory guidelines.
• A reduction in acquisition-related costs compared to the prior year ($126k vs $748k).

Chair Hamish Stevens said the results demonstrated Embark’s ability to balance growth with sustainable operations, noting that no material post-balance sheet events had impacted the outlook.

Embark paid two fully franked dividends during the half-year each at 1.5 cents per share, totalling $5.5 million. Earnings per share rose to 2.2 cents, despite higher profits, reflecting an expanded share base.

At 30 June 2025, Embark reported:

• Total assets of $228.2 million, including $103.1 million in goodwill.
• Net assets of $94.1 million.
• Lease liabilities of $116.5 million.
• Cash and cash equivalents of $11.9 million, down slightly from $13.3 million at 31 December 2024.

Operating cash flow remained strong at $9.8 million, though net cash decreased due to dividend payments and lease repayments.

Embark continues to view acquisition-led growth as a key driver of scale and efficiency in a competitive sector environment. With the Australian Government’s child care subsidy underpinning demand and regulatory requirements shaping workforce and compliance costs, consolidation remains a central feature of the ECEC market.

Read the full results on Embark’s company announcements page here.