Gordon Swaby Chief Executive Officer & Founder of EduFocal Limited has released the following Management Discussion & Analysis For the Nine Months Ended September 30, 2025
Dear Shareholders, 2025 has been a year of transformation for EduFocal Limited. While our financial results continue to reflect the deliberate strategic pivot we began last year, we are confident that the foundation we are building today will position the company for sustainable, long-term success.
In June 2025, TIME Magazine and Statista recognized EduFocal as one of the World’s Top 350 EdTech Companies, ranking us at #225 globally and #1 in the Caribbean. This recognition came unsolicited. It was earned purely through the work we continue to do. For a company from a Small Island Developing State to rank alongside global giants backed by hundreds of millions in venture capital is a powerful testament to Jamaican innovation and the caliber of our team.
As I often say, Marcus Garvey’s story reminds us that greatness can come from anywhere. An unknown man from St. Ann rose to become one of the most impactful figures in the world. EduFocal embodies that spirit.
Strategic Transformation: From Projects to Predictable Revenue
For much of our history, EduFocal’s revenue was largely project-based: custom development work, one-off contracts, and implementations with extended payment cycles. While this approach helped us build deep relationships with clients across the public and private sectors, it created volatility in our top line and placed significant strain on cash flow and operations.
In 2025, we have made a deliberate and disciplined shift toward recurring revenue streams. This transformation is the single most important strategic decision the company has made since our IPO in 2022. We believe it will fundamentally change EduFocal’s risk profile, improve our margins, and create more predictable value for shareholders over time.
Our new revenue architecture focuses on three pillars:
1. Business-to-Consumer (B2C): Direct subscriptions for test preparation, exam readiness, and educational content through our EduFocal Academy and Quizzative platforms.
2. Business-to-Business (B2B): Recurring contracts with schools, institutions, and corporate clients for learning management systems, compliance training, and workforce development. We continue to serve enterprise clients on a project basis, but increasingly through retainer and subscription arrangements with repeat customers.
3. Business-to-Government (B2G): Partnerships with Ministries of Education and government agencies across the Caribbean for assessment tools, curriculum alignment, and digital learning infrastructure.
We still undertake project-based work, particularly for B2B enterprise clients, but we are building out recurring revenue on the B2B side through repeat clients and longer-term service agreements. The result is a more balanced portfolio that reduces our dependence on large, one-time contracts while preserving our ability to take on high-value strategic projects.
Financial Performance
Nine Months Ended September 30, 2025
For the nine months ended September 30, 2025, the Group generated revenue of $55.7 million, compared to $83.0 million in the same period of 2024. This 33% decline in top-line revenue reflects our strategic transition away from large project-based contracts toward smaller but more predictable recurring revenue streams.
Operating Profit: We generated an operating profit of $12.7 million for the nine-month period, compared to an operating loss of $(24.2) million in the prior year. That represents a swing of nearly $37 million.
Adjusted EBITDA: $14.0 million positive, versus $(13.9) million in 2024. This represents a $28 million improvement in our core operating performance.
Administrative Expenses: Reduced by 73% from $91.4 million to $24.2 million, reflecting disciplined cost management and a leaner organizational structure.
Net Loss: $(10.4) million, significantly improved from $(54.5) million in the prior year. That is an 81% reduction in losses.
While our top line is smaller, our margins have improved dramatically. We believe this trend will continue and that, over time, the top-line numbers will recover as our recurring revenue base scales.
Third Quarter 2025
Q3 2025 revenue of $12.6 million was down from $21.8 million in Q3 2024. However, Adjusted EBITDA improved to $3.0 million positive from $(2.2) million negative in the prior year. Administrative expenses were reduced by 57% year-over-year. The quarterly net loss of $(9.6) million was an improvement from $(14.9) million in Q3 2024.
Balance Sheet and Capital Position
We are candid with our shareholders: EduFocal’s balance sheet remains under stress. As at September 30, 2025, total equity stood at a deficit of $(143.9) million, with accumulated losses of $(322.2) million. Total liabilities of $341.5 million include long-term borrowings of $152.2 million and accounts payable of $111.1 million. Cash and cash equivalents were $353,423 at period end.
We are actively engaged with our creditors to manage this situation. Our lenders and key creditors have shown a willingness to work with us as we execute our turnaround plan. These ongoing discussions have been constructive, and we appreciate the patience and partnership of those who have extended us credit during this challenging period. We remain committed to meeting our obligations and believe that our improved operating performance provides the foundation for a sustainable path forward.
The planned rights issue, which we announced earlier in 2025, remains an important element of our capital strategy. The proceeds will be used to strengthen our balance sheet, fund strategic investments in our product roadmap, and reduce our debt burden. We will provide further details on timing and structure as we progress.
Strengthened Governance and Leadership
2025 has been a year of significant governance transformation at EduFocal. We have taken decisive steps to strengthen our board, improve transparency, and rebuild trust with our shareholders.
New Board Leadership
In September 2025, Harry Campbell joined EduFocal as Chairman of the Board and Independent Non-Executive Director, following the resignation of founding Chairman Peter Levy after 12 years of distinguished service. Mr. Campbell brings over 20 years of experience driving digital transformation across the financial, energy, and public sectors. He most recently served as Chief Technology Officer at Cornerstone Trust & Merchant Bank, where he led strategic technology initiatives for CTMB, Barita Investments Limited, and their parent company. His background in financial technology, infrastructure modernization, and innovation strategy aligns perfectly with EduFocal’s mission.
The Board has been substantially reconstituted in 2025, with experienced directors who bring fresh perspectives and renewed commitment to shareholder value. Our current Board includes Durval Williams, Kevin Donaldson, Mark Pike, and Olivia Cream, with AspireSec Limited serving as Company Secretary.
Change of Auditors
In October 2025, the Board appointed Garcia Campbell & Associates as EduFocal’s external auditor, following the voluntary withdrawal of Baker Tilly Strachan Lafayette. This change was not related to any disagreement regarding accounting principles or audit procedures. We thank Baker Tilly for their service since 2021 and welcome our new auditors as we continue to strengthen our financial reporting processes.
Enhanced Transparency
As Chairman Campbell stated at our September extraordinary meeting: “One of the key issues that we have already discussed, and I think you will already see a change in the right direction, is communication. We just want to be very clear and incredibly transparent, irrespective of how we feel about what we are communicating. We will speak more, share more, but we’ll also listen more and absorb what you’re trying to tell us going forward.”
In 2025, we introduced a voluntary Q4 unaudited financial disclosure, providing shareholders with more timely insight into our performance. We have also increased the frequency of our market communications and are committed to maintaining the highest standards of disclosure going forward.
Outlook
We are cautiously optimistic about EduFocal’s trajectory. The hard work of restructuring is substantially complete. We have cut costs, right-sized the organization, pivoted our business model, rationalized our geographic footprint, and strengthened governance. We are now focused on execution and growth.
Our priorities for the remainder of 2025 and into 2026 include:
• Scaling Quizzative adoption across Jamaica and the Caribbean
• Growing EduFocal Academy’s B2C subscriber base
• Expanding B2B recurring revenue through retainer and subscription arrangements
• Pursuing strategic M&A opportunities in the Caribbean
• Continuing constructive engagement with our creditors
• Maintaining compliance with all JSE continuing listing requirements
While the path to sustained profitability will be gradual, the steps we have taken in 2025 have fundamentally improved our business. We are leaner, more focused, and better positioned than at any point in recent years. The balance sheet challenges we face are real, but we believe our improved operating performance and ongoing creditor discussions provide a viable path forward.
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