READCLOUD LIMITED — Annual Report 2025

Nov 19, 2025

ReadCloud Limited Strong earnings momentum and FY26 Outlook FY25 Audited Annual Results

FY25 Financial Highlights

Strong earnings momentum driven by revenue growth in Australian school businesses

==> picture [830 x 323] intentionally omitted <==

----- Start of picture text -----

Up 26% Up 17% Up 109% Up 26% Up 34%
VET-in-Schools Sales & Direct eBooks sales to
Underlying EBITDA Operating Cashflow Cash
Fee Revenue Australian schools
$5.7m $4.6m $0.8m $0.5m $1.9m
Organic growth Organic growth and Underlying earnings Effective working capital Self-funded for working
Positive momentum in key increase in average doubled year-on-year management capital requirements
metrics customer value Strong cash conversion
----- End of picture text -----*

*Underlying EBITDA = earnings adjusted for Interest, Tax, Depreciation and Amortisation and one-off restructuring costs.

FY25 Audited Annual Results

2

FY25 Operational Highlights

Continued organic growth for Australian schools businesses

Sales & Fee Revenue by business

==> picture [384 x 213] intentionally omitted <==

----- Start of picture text -----

$12 m
$10 m
$8 m
$6 m
$4 m
$2 m
FY21 FY22 FY23 FY24 FY25
eBooks - Direct VET-in-schools Industry training
----- End of picture text -----

Drivers of Organic Growth

• 62 new school customers successfully on-boarded for the 2025 school year across the VET-in-Schools and eBook Solutions businesses (up from 51 in 2024)

• Strong customer retention achieved by VET-in-Schools (92%) and direct eBook Solutions (91%)

• VET-in-Schools business preserving >90% gross margins while enhancing service quality

• Increased investment in advertising and marketing during FY25 expected to support future sales growth

FY25 Audited Annual Results

3

ReadCloudVET (VET-in-Schools)

Sales and fee revenue growth is accelerating

==> picture [19 x 8] intentionally omitted <==

----- Start of picture text -----

$6 m
----- End of picture text -----

==> picture [431 x 170] intentionally omitted <==

----- Start of picture text -----

$5 m
$4 m
$3 m
$2 m
FY21 FY22 FY23 FY24 FY25
----- End of picture text -----

26% Sales and fee revenue growth, including 29% growth in VET-in-Schools partnering fees, driven by:

• 92% School customer retention

• 11% growth in customer numbers: 55 Schools added (372 total)

• a 5% increase in qualifications per retained School from 1.9 to 2.0

• 14% growth in total qualifications delivered to 733

• ReadCloudVET’s premium offering translating to stronger price performance

• Gross margins continuing > 90%

==> picture [133 x 8] intentionally omitted <==

----- Start of picture text -----

Sales & fee revenue - VET in schools
----- End of picture text -----

FY25 Audited Annual Results

4

ReadCloudVET (VET-in-Schools)

Key indicators showing sustained upward momentum

Average qualifications per school

==> picture [338 x 164] intentionally omitted <==

----- Start of picture text -----

2.0
1.9
1.7
1.6
FY22 FY23 FY24 FY25
----- End of picture text -----

==> picture [359 x 213] intentionally omitted <==

----- Start of picture text -----

Average revenue per school
(partnering fees only)
$14,408
$11,491
$10,450
$9,421
FY22 FY23 FY24 FY25
----- End of picture text -----

FY25 Audited Annual Results

5

eBooks

17% Growth in Australian direct eBooks sales

• Growth driven by:

Australian eBooks strengthening

==> picture [19 x 9] intentionally omitted <==

----- Start of picture text -----

$5 m
----- End of picture text -----

• 91% customer retention

• 7 new school customers

• An increase in average customer value

• International channel contracted in FY25 and performance of Reseller channel was subdued

• Overall eBooks sales and fee revenue growth 6% over pcp

• eBooks team has been restructured and leadership of international sales transitioned for FY26

==> picture [293 x 129] intentionally omitted <==

----- Start of picture text -----

$4 m
$3 m
$2 m
FY21 FY22 FY23 FY24 FY25
Sales & fee revenue - domestic Direct eBooks
----- End of picture text -----

Average revenue per Direct school

==> picture [304 x 130] intentionally omitted <==

----- Start of picture text -----

$82,257
$70,384 $70,988 $71,473
FY22 FY23 FY24 FY25
----- End of picture text -----

FY25 Audited Annual Results

6

Industry Training

• Revenue is directly impacted by availability of State funding, which is unpredictable:

Sales & fee rev - Industry training

• FY24 revenue + 50% on pcp

• 1H25 revenue + 2% on pcp

• FY25 revenue -28% on pcp

• Southern Solutions is heavily dependent on Smart & Skilled funding contract with NSW which is currently under threat with no certainty of renewal

• Since acquisition in November 2022, the industry training team has evolved to be highly skilled and proficient but industry headwinds and funding dynamics are proving challenging to overcome

==> picture [338 x 170] intentionally omitted <==

----- Start of picture text -----

$1.8 m
$1.6 m
$1.4 m
$1.2 m
$1.0 m
$0.8 m
$0.6 m
$0.4 m
$0.2 m
$0.0 m
1HFY23 2HFY23 1HFY24 2HFY24 1HFY25 2HFY25
----- End of picture text -----

• Unlike our school-facing operations that leverage a scalable tech platform, Southern Solutions’ industry trainers are funded by Southern Solutions which exposes the business to diseconomies of scale during periods of funding contraction

• The Board is initiating a review of the industry training business

FY25 Audited Annual Results

7

FY25 Summary Profit and Loss

$’000	30-Sept-25	30-Sept-24	YOY
Sales and fee revenue	12,634	11,904	6%
Less direct costs	(5,338)	(5,340)	0%
Gross profit	7,295	6,564	11%
Gross profit %	58%	55%
Add: Other revenue	289	365	-21%
Less operating expenses:
Advertising and marketing	(188)	(122)	53%
Computer software	(182)	(187)	-3%
Employment expenses	(5,286)	(5,263)	0%
Legal & compliance	(114)	(100)	14%
Office expenses	(60)	(58)	3%
Professional services expenses	(509)	(425)	20%
Telephone, internet & data hosting	(96)	(103)	-7%
Travel expenses	(140)	(86)	62%
Other expenses	(221)	(187)	18%
Total operating expenses	(6,796)	(6,533)	4%
Less interest revenue	(31)	(33)	-7%
Underlying EBITDA*	757	363	109%

*Underlying EBITDA = earnings adjusted for Interest, Tax, Depreciation and Amortisation and one-off restructuring costs.

Notes

• Sales & Fee Revenue up 6% reflecting:

• 26% growth for VET-in-Schools

• 17% growth in Australian direct eBooks sales

• declines in domestic Reseller and international eBooks, reducing overall eBooks sales and fee revenue growth to 6%

• a 28% decline in industry training revenue

• Consolidated gross profit up 11%

• Operating expenses up 4%

• Employment expenses remained consistent

• Increased investment in Advertising & marketing and travel (conferences and customer visits)

Continued earnings improvement – FY25 Underlying EBITDA* up 109%

==> picture [321 x 159] intentionally omitted <==

----- Start of picture text -----

Underlying EBITDA
FY23 FY24 FY25
757
363
(786)
$'000
----- End of picture text -----*

FY25 Audited Annual Results

8

Core revenue growth and cost discipline driving earnings momentum

Sales and fee revenue growth - Australian school Operating expenses[1] % of Sales & fee revenue businesses

==> picture [874 x 211] intentionally omitted <==

----- Start of picture text -----

$11 m 80%
$10 m 75%
$9 m 70%
65%
$8 m
60%
$7 m
55%
$6 m
50%
$5 m
45%
$4 m 40%
$3 m 35%
$2 m 30%
FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25
Sales & fee revenue - VET in schools Sales & fee revenue - domestic Direct eBooks Employment costs Non-employment costs
----- End of picture text -----

Further reduction in operating expenses as a proportion of sales and fee revenue in FY25 despite increased investment in Advertising & marketing and travel

1 Excluding abnormal items

FY25 Audited Annual Results

9

FY24 to FY25 Underlying EBITDA Earnings Bridge

==> picture [719 x 317] intentionally omitted <==

----- Start of picture text -----

1,600
34
295
1,400
1,200
730
(327)
1,000 (74)
(23)
800 757
(240)
600
400 363
200
-
$'000
----- End of picture text -----

==> picture [157 x 52] intentionally omitted <==

==> picture [192 x 54] intentionally omitted <==

==> picture [270 x 52] intentionally omitted <==

FY25 Audited Annual Results

10

Cashflow

$’000	30-Sept-25	30-Sept-24	YOY
Receipts from customers	12,558	12,042	4%
Payments to suppliers and employees	(12,398)	(12,006)	3%
Research and development tax incentive refund	332	333	0%
Interest income	31	33	-7%
Income tax	-	12	-100%
Net cash from operating activities	523	414	26%
Payments for property, plant and equipment	(27)	(19)	40%
Payments for software development	(414)	(523)	-21%
Purchase of intangible assets	(34)	(10)	230%
Net cash used in investing activities	(475)	(552)	-14%
Repayment of lease liabilities (including interest)	(143)	(139)	2%
Proceeds from issue of shares (net of costs)	584	-	-
Net cash from / (used in) financing activities	441	(139)	+416%
Net increase/(decrease) in cash	489	(278)	+276%
Cash at the beginning of the financial year	1,431	1,709	-16%
Cash at end of the financial year	1,920	1,431	34%

Notes

• Effective Working Capital Management

• 69% Underlying EBITDA to operating cashflow conversion

• Cash generated from operating activities up 26%

• Proceeds from share issues represent funds received from the exercise of options at $0.10 each (including by Directors, management and institutional shareholders)

FY25 Audited Annual Results

11

Balance Sheet

$’000	$’000	$’000	$’000	$’000	30-Sept-25	30-Sep-24
Cash and cash equivalents					1,920	1,431
Trade and other receivables					801	978
Prepayments					148	115
Total current assets					2,869	2,524
Non	-current deposits				36	0
Property, plant & equipment					40	40
Intangibles					8,423	8,700
Right		-of	-use assets		215	69
Total non				-current assets	8,714	8,809
Total assets					11,583	11,333
Trade and other payables					1,067	1,119
Contract liabilities					693	823
Employee entitlements (Current & NC)					505	504
Lease Liabilities (Current & NC)					233	92
Deferred tax liability					2	15
Total liabilities					2,500	2,533
Net assets					9,083	8,780

Notes

• Maintaining a strong cash position (cash up 34% on pcp)

• Debt free

FY25 Audited Annual Results

12

FY26 Outlook

Management is focussed on disciplined execution that fuels organic growth and unlocks operating leverage

FY26 Priorities:

• extend strong earnings momentum

• win >50 new school customers

• ensure school customer retention >90%

• preserve VET-in-Schools gross margin >90%

• increase average customer value >7%

By concentrating resources on our core competencies in school-based digital learning, ReadCloud will deliver stronger, more predictable returns for shareholders

FY25 Audited Annual Results

13

Investment Highlights

• Large addressable markets in education present a deep pool of opportunity resilient to geopolitical and economic shocks

• Operating leverage being unlocked by sustained revenue growth and disciplined cost control

• Recurring revenue models with 90-95% retention rates

• Market leading position in VET-in-schools

• Proprietary technology enables global reach with sales in 6 countries

• Exciting organic growth prospects on a self-funded and BAU basis

FY25 Audited Annual Results

14

Corporate Snapshot

Corporate Snapshot	Corporate Snapshot
ASX Code: RCL
Share Price (19 November 2025)	$0.11
Market capitalisation (@ 11 cents)	$16.9m
Shares on issue	153.6m
Options on issue (unlisted)	6.1m
Current cash (30 September 2025)	$1.9m

Board & Management	Board & Management
Cristiano Nicolli	Non-Executive Chairman
Paul Collins	Non-Executive Director
Jonathan Isaacs	Non-Executive Director
Lars Lindstrom	Non-Executive Director (Founder)
Andrew Skelton	Chief Executive Officer
Darren Hunter	Chief Information Officer
Luke Murphy	Chief Financial Officer & Co Sec

Substantial Shareholders	Substantial Shareholders
Board and management shareholdings*	22.7%
ThorneyGroup*	12.2%
Microequities Asset Management	8.7%
Hunmar Holdings/Darren Hunter*	4.9%
Lars Lindstrom	4.8%
Cyan Investment Management	4.0%
Top20	65.2%
*Includesindirectholdings

==> picture [399 x 180] intentionally omitted <==

FY25 Audited Annual Results

15

Disclaimer

This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision.

This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in ReadCloud, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but should make its own assessment of ReadCloud as part of its own investigations. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. ReadCloud is not licensed to provide financial product advice in respect of ReadCloud securities or any other financial products.

Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, neither ReadCloud, nor any of its officers, directors, employees and agents, nor any other person, accepts any responsibility and liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it.

Forward looking statements

This presentation contains certain forward looking statements that are based on ReadCloud’s beliefs, assumptions and expectations and on information currently available to ReadCloud’s management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of ReadCloud to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding present and future business strategies and the political and economic environment in which they operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. To the full extent permitted by law, ReadCloud and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation).

The information presented in this presentation is subject to change without notice and ReadCloud does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation. Images are illustrative only.

The distribution of this presentation may be restricted by law and you should observe any such restrictions.

FY25 Audited Annual Results

16