One-on-One Scores High in Profitability During Q3

• E-Learning Solution Company, One-on-One Educational Services Limited (ONE) reported a 51.3% increase in earnings to $36.55Mn for its third quarter ended May 2025 (Q3 2025).  This strong quarterly performance contributed to a nine-month turnaround in profitability, reaching $55.08Mn, driven by revenue growth and efficiency gains that resulted in lower costs.
• Quarterly revenues reached $100.54Mn, marking a 5.9% year-over-year increase, underpinned by the delivery of customised Edtech Solution. However, cost-of-Sales (+22.7%) outpaced the growth in revenues as the Company deployed hardware and services to support the expansion of One Academy. Although this led to a 2.7% reduction in gross margin, gross margins still rose by 2.4% to $80.39Mn. Moreover, the company expects the front-loaded investment to yield long-term operational efficiencies and revenue leverage.
• Administrative and selling expenses declined by 8.6% year-over-year, primarily due to improved internal processes, streamlined operations, and more strategic resource allocation.
• Building on this strong quarterly performance, which significantly contributed to a turnaround in profitability, the company plans to leverage its recent investments to further boost earnings. Its commitment to the Educational Management Information System (EMIS) and Learning Management System (LMS) aligns with its broader strategy to drive sustainable growth, and enhance operational efficiency.
• One’s stock price has decreased by 9.1% year-to-date, closing at $0.90 as of Tuesday. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 23.4x, which is higher than the Junior Market Other Sector’s average of 20.3x.

(Sources: JSE &NCBCM Research)