Gross Margin ImprovementA materially higher gross margin (52.3%) indicates the business is capturing more margin at the delivery level, reflecting improved pricing or lower direct costs. That margin cushion supports sustained operating leverage, giving time to fix SG&A and move toward consistent profitability over months.
Free Cash Flow RecoverySubstantial growth and near‑1 conversion of free cash flow to net income shows the company is translating earnings into usable cash. Durable FCF supports debt servicing, working capital needs and selective reinvestment without relying solely on external funding, improving financial flexibility.
Tuition-based Recurring Revenue ModelA tuition and fee driven model creates recurring, semester‑based cash inflows tied to enrollments. This predictable revenue cadence underpins planning and scale in the education sector, offering structural visibility for revenue and the ability to optimize capacity and margins over time.