Idp Education Ltd. · ASX:IEL
Idp Education — FY2026 Earnings Presentation
35 slides from Idp Education's earnings presentation, Aug 20, 2026
Slide 1: FY26 Financial Results
FY26 Financial Results IDP Education 20 August 2026
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer The material in this presentation has been prepared by IDP Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP Education") and is general background information about IDP Education’s activities current as at the date of this presentation. The information
Slide 3: Agenda
Agenda 1 FY26 Results 2 FY26 Operating Review 3 Transformation Update 4 Strategic Focus 5 FY27 Outlook and Priorities Appendices
Slide 4: FY26 highlights
FY26 highlights Resilient FY26 Financial Performance Improved Capital Position Cost management and strong execution underpinning FY26 financial Improved cash conversion and working capital discipline delivering performance balance sheet strength • Revenue of $795m with strong • Yield up 11% in Stude
Slide 5: Strong delivery of phase one transformation priorities
Strong delivery of phase one transformation priorities Simplified and reduced cost Ongoing benefits $32 million net reduction in overhead cost base, exceeding $25m target Reduced headcount ~1,250 roles (20%) Centralised procurement delivered commercial renegotiations, $9m cost reduction IT Reducing
Slide 6: FY26 Results
Faidp 1. FY26 Results
Slide 7: Summary income statement
1 FY26 Results Summary income statement Constant Revenue down 9% Full Year Actuals Growth Currency • Volumes reflect market conditions, strong yield growth supporting 12 Months to 30 June, A$ million FY26 FY25 $m % Growth (%)7 revenue performance Total Revenue 795.4 891.4 -96.0 -11% -9% Direct costs
Slide 8: Revenue outperformance to volumes
1 FY26 Results Revenue outperformance to volumes Full Year Actuals Growth Constant Focus on revenue outperformance Currency • Revenue outperformed volumes, driven by strong yield growth Twelve Months to 30 June FY26 FY25 ‘000s / $ % Growth (%)7 • Placement revenue down 19%, Australia down 5% Revenue
Slide 9: Disciplined cost management
1 FY26 Results Disciplined cost management Overhead Costs (Adjusted) (A$m)15 -19% -14% Adjusted overheads down 14% FY24: 372 • $32m net reduction in cost base (on constant currency) 189 FY25: 352 • Disciplined cost management more than offsetting natural 183 181 FY26: 302 inflation 171 169 39 34 Emp
Slide 10: Faster conversion to cash
1 FY26 Results Faster conversion to cash 350 70 Combined contract assets and receivables down 56% with Student Placement revenues down 16% 300 60 • Contract assets down 72% • Reflects Student Placement volume reduction 250 50 and faster billing, offset by yield increases Days Sales Outstanding • Tra
Slide 11: Disciplined capital management
1 FY26 Results Disciplined capital management Net debt Strong working capital management Net Debt (A$m) FY26 FY25 Change • Cash conversion1 of 139% (FY25: 136%) Cash and cash equivalents 135.1 121.5 13.6 Borrowings -253.8 -288.8 35.0 Strong liquidity and leverage Reported net debt -118.6 -167.3 48.7
Slide 12: FY26 Operating Review
2. FY26 Operating Review
Slide 13: Student Placement
2 FY26 Operating Review Student Placement Engaging with more people in As their most trusted partner To deliver exceptional outcomes more places • New destination markets: Malaysia and • Student NPS4 over 70 • FastLane delivered ~7% higher UAE with Malaysia volumes building in H2 conversion with 13-
Slide 14: Language Testing
2 FY26 Operating Review Language Testing Engaging with more people in As their most trusted partner To deliver exceptional outcomes more places • Launched English Language Testing in • Released IELTS Voices, global survey of • Improved IELTS booking experience China with 13 test centres ~8k IELTS te
Slide 15: Transformation Update
3. Transformation Update
Slide 16: Multi-year transformation to position IDP for profitable growth
3 Transformation Update Multi-year transformation to position IDP for profitable growth Phase 1 significantly progressed Focus for FY27 and FY28 in FY26 and continuing into FY27 Simplify, reduce cost, Reinvest for growth and Expand and diversify revenue strengthen foundations productivity streams •`
Slide 17: $32 million net reduction in overhead cost base in FY26
3 Transformation Update $32 million net reduction in overhead cost base3 in FY26 Adjusted overhead cost base reduced by initiatives to simplify Phase and FY26 strengthen phase one: one FY26 foundations outcomes outcomes $32 million FY26 outperformed $352.2m • Net costs down $32 million, ahead of $25
Slide 18: Strategic Focus
4. Strategic Focus
Slide 19: Universities are finding it more difficult to find the right students
4 Strategic focus Universities are finding it more difficult to find the right students The cost of getting it Universities need stronger wrong has risen evidence of likely success • Policy settings are tighter and penalties • AI-enabled applications are increasing for poor university outcomes are h
Slide 20: Student behaviour is changing, and they need trusted advice more than ever
4 Strategic focus Student behaviour is changing, and they need trusted advice more than ever Navigating more complexity Increased applications and Looking for personalised • X delayed decision making advice • Navigating complex visa requirements • Visa uncertainty leads to some students • Objective
Slide 21: IDP's advantages become harder to replicate
4 Strategic focus As trust, quality signals and dynamic matching become more valuable, IDP's advantages become harder to replicate Unmatched trusted reach Proprietary data advantage AI-enabled execution and • Trusted market-leading brands • Proprietary data on policy, application efficiency • Unmatc
Slide 22: Investing to deepen IDP's competitive moat
4 Strategic focus Investing to deepen IDP’s competitive moat Stronger Matching Outcomes Proprietary Data and Outcome Business Responsiveness Intelligence • Using data to inform propensity tools early • Improving richness of data capture • Improving in-market performance in the funnel on-platform thr
Slide 23: FY27 Outlook and Priorities
5. FY27 Outlook and Priorities
Slide 24: FY27 Outlook and Priorities
5 FY27 Outlook and Priorities FY27 Outlook and Priorities FY27 Outlook FY27 Priorities IDP expects Adjusted EBIT of $95 million - $115 million. • Manage financial performance for the volume environment while maintaining commitment to quality and trust Underlying assumptions: • Deliver $15m net reduc
Slide 25: IDP is well positioned to drive profitable growth
5 FY27 Outlook and Priorities IDP is well positioned to drive profitable growth Positioned to grow quality Deepening quality Proprietary data Diversifying revenue Capacity for investment market share in large and trust advantage and and reducing cost to and track record of market matching intelligen
Slide 26: Appendices
Appendices
Slide 27: EBIT and NPAT adjustments
Appendices EBIT and NPAT adjustments FY26 FY25 Growth Adjustments Adjustments (Adjusted) Reported Company Credit Adjusted Reported Company Credit Adjusted Twelve Months to 30 June, M&A FX gains / Intangible Customer M&A FX gains / Intangible Customer Restructure Loss Restructure Loss $m % A$ million
Slide 28: Cash flow
Appendices Cash flow Full Year Actuals Growth • GOCF17 of $176.0m reflects conversion from reported EBITDA of FY25 139% (FY25: 136%) Twelve Months to 30 June, A$ million FY26 $m % Restated • Capital expenditure of $32.4m comprised strategic initiatives EBITDA 126.9 160.9 -34.0 -21% including: Non-ca
Slide 29: Segmental earnings
Appendices Segmental earnings Revenue and EBIT by Geographic Segment18 Asia Full Year Actuals Growth Twelve Months to 30 June, A$ million FY26 FY25 $m % • Revenue in the Asia segment declined 16%, driven by declines in India Language Testing volumes, India Student Placement volumes to Canada, US and
Slide 30: Balance sheet
Appendices Balance sheet 30/06/2025 A$ million 30-Jun-26 Change • $13.6m increase in cash and cash equivalents to $135.1m as at 30 June 2026, including Restated Current assets $75.1m held by the Group’s foreign subsidiaries Cash and cash equivalents 135.1 121.5 13.6 • $41.0m decrease in trade and ot
Slide 31: Policy environment
Appendices Policy environment FY26 key policy developments • Australia • UK Canada • USA • The Education Legislation • Graduate Route maintained with IRCC 2026 Canada student • Refusal of F1 student visas Amendment (Integrity and Other reduction in post-study stay, permit cap of 309k reaches 10-year
Slide 32: Quality evidenced by superior visa approval rates
Appendices Quality evidenced by superior visa approval rates Average Student Visa Approval Rates (FY26)6 Australia Canada 86.3% 81.2% 80.8% 66.0% 63.7% 59.7% 44.3% 29.8% All Countries India All Countries India Industry IDP Industry IDP Average Average Average Average Refer to footnote 6 in Appendix
Slide 33: Student Placement volume geographic distribution and market share
Appendices Student Placement volume geographic distribution and market share IDP’s Student Placement volumes IDP’s Student Placement volumes IDP’s student placement volumes vs. market share by destination share by source (all source countries)20 1% 98,926 98,926 450,000 1% 11% 84,599 84,599 400,000
Slide 34: Footnotes
Appendices Footnotes Term / statement Definition 1 Cash conversion Cash conversion calculated as Gross Operating Cash Flow (GOCF) (Operating Cash Flow less Net Interest less Income Tax paid), divided by reported EBITDA 2 Net Leverage Ratio The Reported Net Leverage Ratio divides reported net debt by
Slide 35: Footnotes
Appendices Footnotes Term / statement Definition 12 Volumes Volumes for each category are calculated as follows: • Placements volume is the number of Application Processing Fees (APFs), being the fee IDP Education receives from its client institutions for placing students into a course. The volume d