ARR Milestone
Passed USD 100 million ARR (reported USD 149M ARR at calendar year end; AUD 154M ARR on a constant currency basis) with ARR growth ~20% year-over-year (slightly lower when adjusted for FX).
Strong Net ARR Addition
Added $5.1 million of net ARR in the period (with >$4M from the education business and ~ $2.1M from Qustodio during the half), demonstrating continued new-sales momentum.
Qustodio Acceleration
Qustodio is accelerating — annualized growth >34% in the first half; nearly $2.1M ARR added in the period; marketing ROI of ~300%–400% with unit economics approaching breakeven (average order value vs. cost to acquire essentially breakeven).
Large Market Reach and Penetration
Platform protects ~30 million kids, serves 32,000 schools, has ~9 million parents using tools, and operates in 100+ countries; 20% of U.S. students are on the platform (organic growth since 2018).
Pipeline Strength in North America K-12
Nearly $40 million total pipeline with $14 million weighted pipeline (weighted pipeline up ~30% vs. prior record), positioning the company for a strong second half.
Cash Receipts and Free Cash Flow Improvement
Cash receipts of $79 million for the half, up 20% year-over-year on prior comparable period; free cash flow positive for the half (~$9M positive for H1) and free cash flow up 46% for the half.
High Gross Margins and Operating Leverage
Reported gross margins >90% (excludes acquisition costs); stabilizing cost base and operating leverage driven by product integration and marketing efficiencies.
Cross-sell Momentum
Cross-sell generated $1.5M of ARR in the half and now accounts for 30%+ of new ARR (up from ~23% last year), reflecting improved expansion within existing customers.
AI-Driven Cost and Productivity Gains
Investments in AI produced measurable gains: ~30% reduction in human moderation workload, ~$2M of reduced support costs called out, 15 engineering FTEs saved, and ~88% of teams using generative AI; feature development cycles shortened from years to months.
Qustodio B2B2C Traction
Approximately 200,000 Qustodio accounts connected via U.S. schools to homes; schools that follow the marketing plan see ~20% parent take-up, creating a material addressable consumer base to monetize with upcoming communications and pricing experiments.