3P Learning Ltd. (3PL) AI Stock Analysis

• Market Cap: AU$167.84M
• Dividend Yield: N/A
• Average Volume (3M): 168.46K
• Price to Earnings (P/E): 768.8
• Beta (1Y): >-0.01
• Revenue Growth: -1.08%
• EPS Growth: N/A
• Country: AU
• Employees: 390
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): <0.01
• Shares Outstanding: 272,906,520
• 10 Day Avg. Volume: 10,908
• 30 Day Avg. Volume: 168,459
• PEG Ratio: -8.35
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 22.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: AU$0.50 ▼(-19.35% Downside)

3P Learning Ltd. faces significant valuation challenges with an extremely high P/E ratio and no dividend yield, making it less attractive to value investors. Financial performance shows steady revenue growth and a strong balance sheet, but profitability and cash flow issues persist. Technical indicators suggest a bearish trend with potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for 3P Learning's educational products, supporting long-term business sustainability and market presence.

Strong Balance Sheet

A strong balance sheet with minimal debt enhances financial stability, providing 3P Learning with the flexibility to invest in growth opportunities and weather economic fluctuations.

Recurring Revenue Model

A subscription-based model ensures predictable and recurring revenue, which is crucial for long-term financial planning and stability in the EdTech industry.

Negative Factors

Profitability Challenges

Low profitability margins suggest inefficiencies in cost management, which could hinder the company's ability to reinvest in growth and innovation over the long term.

Declining Free Cash Flow

Declining free cash flow indicates potential cash management issues, which could limit the company's ability to fund new projects or respond to market changes effectively.

Operational Efficiency

Modest operational efficiency indicates room for improvement in cost control and resource allocation, essential for enhancing profitability and competitiveness in the EdTech sector.

3P Learning Ltd. Business Overview & Revenue Model

Company Description

3P Learning Limited, together with its subsidiaries, engages in the development, marketing, and sale of educational software and e-books to schools and parents of school-aged students. It provides online education, and adaptive and collaborative learning, including mathematics and literacy products. The company offers Mathseeds, Mathletics, Reading Eggs, and Spellodrome, as well as ReadiWriter, and WordFlyers products. It serves approximately 6 million students in approximately 17,000 schools worldwide. 3P Learning Limited was incorporated in 2003 and is headquartered in Leichhardt, Australia.

How the Company Makes Money

3P Learning generates revenue primarily through subscription fees from schools and individual users who access its learning platforms. The company offers various pricing tiers based on the number of users and the specific products chosen, allowing for scalable revenue growth as schools adopt more of its services. Additionally, 3PL may engage in partnerships with educational institutions and government bodies to provide tailored solutions, which can lead to bulk subscription sales. The company also benefits from ongoing renewals of subscriptions, creating a recurring revenue stream that is critical to its financial stability.

3P Learning Ltd. Financial Statement Overview

Summary

3P Learning Ltd. shows steady revenue growth and a strong balance sheet with minimal leverage. However, low net profit margins and declining free cash flow highlight profitability challenges. The company needs to enhance operational efficiencies and cash flow management.

Income Statement

3P Learning Ltd. has shown a consistent revenue growth over the years, with a 1% increase in the latest year. The gross profit margin is exceptionally high at 100% due to the nature of the business. However, the net profit margin remains very low at 0.19%, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins have improved but remain modest, suggesting operational efficiency improvements are needed.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.006, indicating minimal leverage and financial risk. The return on equity is positive but low at 0.15%, reflecting limited profitability. The equity ratio is strong, showcasing a solid capital structure.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio indicates some inefficiencies in cash conversion. The company needs to focus on improving cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	109.08M	108.89M	109.95M	106.90M	97.22M	57.45M
Gross Profit	37.96M	108.89M	25.15M	32.40M	25.59M	9.23M
EBITDA	3.06M	11.08M	-44.57M	19.29M	14.94M	-2.21M
Net Income	210.00K	210.00K	-57.06M	6.37M	-536.00K	-9.37M
Balance Sheet
Total Assets	199.04M	199.04M	198.69M	262.74M	257.74M	255.86M
Cash, Cash Equivalents and Short-Term Investments	8.74M	8.74M	2.33M	21.30M	31.17M	24.91M
Total Debt	884.00K	884.00K	3.09M	1.54M	2.16M	3.12M
Total Liabilities	58.50M	58.50M	59.32M	62.09M	63.85M	61.01M
Stockholders Equity	140.54M	140.54M	139.37M	200.69M	193.90M	194.83M
Cash Flow
Free Cash Flow	12.17M	7.77M	-16.42M	4.64M	6.26M	-4.56M
Operating Cash Flow	12.57M	12.57M	-12.19M	8.72M	11.37M	1.29M
Investing Cash Flow	-4.55M	-4.55M	4.58M	-25.21M	-4.53M	-1.70M
Financing Cash Flow	-1.79M	-1.79M	-4.25M	-635.00K	-2.08M	-1.81M

3P Learning Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:3PL, the sentiment is Positive. The current price of 0.62 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.61, and below the 200-day MA of 0.65, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:3PL.

3P Learning Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	69 Neutral	AU$82.83M	10.02	60.13%	1.03%	120.57%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3PL	53 Neutral	AU$167.84M	768.75	0.15%	―	-1.08%	―
NXD	48 Neutral	AU$65.63M	―	-53.18%	―	-13.91%	53.37%
AKG	48 Neutral	AU$16.58M	-13.02	-7.51%	―	1.42%	86.97%
KME	48 Neutral	AU$31.39M	-5.99	10.80%	1.82%	-2.81%	-503.02%
CLU	41 Neutral	AU$26.80M	-4.64	-126.76%	―	-14.55%	70.98%

3P Learning Ltd. Corporate Events

3P Learning Ltd. Announces Cessation of Share Appreciation Rights

3P Learning Ltd. announced the cessation of 223,856 share appreciation rights due to unmet conditions, impacting its issued capital. This development may influence the company’s financial structuring and stakeholder interests, reflecting on its strategic adjustments in the competitive education technology market.

3P Learning Ltd. Successfully Concludes 2025 AGM with Key Resolutions Passed

3P Learning Ltd. announced the results of its 2025 Annual General Meeting, where all proposed resolutions were successfully passed. The adoption of the FY25 Remuneration Report and the re-election of Mr. Craig Coleman as a director were both carried as ordinary resolutions, indicating strong shareholder support and stability in the company’s governance.

3P Learning Ltd. Reports Strong Financial Growth and Strategic Advancements

3P Learning Ltd. reported a 30% increase in Underlying EBITDA to $15.5 million for the 2024-2025 financial year, despite a slight drop in revenue to $109.1 million. The company has made significant strides in business transformation, aiming to become a leading source for educational programs in the English-speaking markets. Notable achievements include improved retention rates for Reading Eggs in the US and successful launch of Homeschool Max, contributing to consistent revenue. The integration of AI is expected to enhance productivity and maintain a flat cost base, boosting margins in the coming years. The company anticipates a stronger cash position in the 2025-2026 financial year and plans to provide further updates in February 2026.

3P Learning Ltd. Announces 2025 Annual General Meeting Details

3P Learning Ltd. has announced its 2025 Annual General Meeting (AGM) scheduled for 18 November 2025, where key items on the agenda include the receipt of the annual financial report, adoption of the FY25 remuneration report, and the re-election of Mr. Craig Coleman as a Non-Executive Director. The AGM will address important governance matters, with shareholders encouraged to participate in voting on resolutions, although certain voting exclusions apply, particularly concerning the remuneration report.

3P Learning Ltd. Issues Share Appreciation Rights to Employees

3P Learning Ltd. has announced the issuance of 3,271,931 share appreciation rights as part of an employee incentive scheme. This move is intended to motivate and retain employees by aligning their interests with the company’s performance, potentially impacting the company’s operational dynamics and market positioning positively.