Overview

• US education solutions provider's fiscal H1 revenue rose 17% yr/yr on international program growth

• Net loss widened due to higher service costs, lower dorm occupancy, and absence of prior-year asset sale gain

• Company plans to launch AI-powered learning tool and expand Davis University branch campuses

Outlook

• Company plans to launch AI-powered learning tool for Fall 2026 semester

• EpicQuest Education intends to open first US branch campus for Spring 2027 semester

• Company is pursuing new partnerships in US and international markets to broaden academic pathways

Result Drivers

• INTERNATIONAL PROGRAMS - Revenue growth was mainly driven by expansion of international foundational and collaborative programs, resulting in higher international student enrollment

• SERVICE COSTS - Gross margin contracted due to a 35% increase in costs of services, primarily from lower student dormitory occupancy and higher agent recruiting fees for new academic programs

• OPERATING EXPENSES - Higher non-cash share-based compensation and increased selling expenses contributed to the rise in operating expenses

• ONE-OFF ITEMS - Net loss widened due to an impairment expense related to expected lower revenue from soccer matches and the absence of a prior-year asset sale gain

Company press release: ID:nGNX30Z1sp

Key Details

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.