Durrant Pate/Contributor

Digital educational and technology company, One on One Educational Services, has delivered a strong start to the first quarter of its 2026 financial year with net profits surging by 101.8%, moving from $11.2 million to close on $22.6 million. 

During Q1, which ended November 30, 2025, gross profit climbed to $68.4 million, up from $60.0 million, driven by improved margins, disciplined cost control, and a higher share of recurring platform revenues. Notably, this increase in profitability was achieved despite a modest 9.4% year-over-year reduction in total revenues, which slumped from $91.8 million in 2025 to $83.2 million for the period under review.

Company Chairman, Michael Bernard, says, “This decline reflects the non-recurrence of a one-time equipment sale booked last year. Excluding this item, underlying operational revenues remained stable. The company’s gross margin rose to 82%, reflecting a more efficient cost structure as direct costs declined significantly from $31.8 million in Q1 FY2025 to J$14.8 million in Q1 FY2026.” He adds that these gains underscore the scalability of the platform model and validate the ongoing shift toward high-margin, recurring revenue streams. 

Bernard told shareholders in his foreword to the audited Q1 financials, “The balance sheet remains resilient, with total assets exceeding $740 million and total equity improving by 23.3% over Q1 FY2025. Management continues to prioritise strengthening working capital and aligning operating cash flow with earnings.”

Business Model Transformation 

One on One continues its strategic transition from project-based implementations toward platform-based recurring revenues, supported by licensing, subscriptions, and multi-year contracts. This transformation, the chairman articulates, is already reflected in the company’s cost structure, cash efficiency, and margin expansion. As service delivery becomes less dependent on hardware deployment and onsite implementation, One on One is seeing enhanced operational leverage and predictability in financial outcomes. 

The digital learning and technology company continued execution of its strategic contracts across the education and government sectors. These included the ongoing delivery of services with governments for Learning Management Systems (LMS) and Education Management Information Systems (EMIS) contracts, onboarding of academic institutions to the One Academy platform, and enhancements to its digital content infrastructure. 

In addition, One on One’s development team completed several platform architecture upgrades to improve scalability, performance, and analytics capabilities in anticipation of growth. During the review quarter, the company continued to invest in the development of advanced data and artificial intelligence capabilities across its digital platforms. These initiatives are focused on improving personalisation, analytics, and adaptive learning outcomes, while strengthening the company’s intellectual property base. 

Bernard asserts that any future commercialisation, partnerships, or structural arrangements will be subject to appropriate governance approvals and regulatory considerations, promising to provide updates in due course, as initiatives mature and material milestones are achieved. 

Capital position and funding strategy 

One on One remains profitable and asset-rich with retained earnings of over $99 million and total equity of $513 million. Working capital, however, continues to be influenced by elevated trade receivables totalling $147.8 million and sustained investment in research and development. The management is actively evaluating appropriate options to support the capitalisation of the company’s innovation-led strategic initiatives, taking into account its financial position, governance framework, and shareholder interests.

In parallel, focused efforts are underway to strengthen credit management and debt collection processes, to maintain receivables within a 60–90-day cycle. Interim cash management measures, including tighter receivables monitoring and disciplined expense pacing, continue to be implemented to ensure liquidity is managed prudently while supporting ongoing operational and strategic priorities.

For the remainder of the first half of the financial year, priorities include deepening adoption and utilisation of the company’s core platforms across existing institutional and enterprise clients; continuing the transition toward recurring, platform-based revenue streams; advancing internal capability development to support scalability and performance, as well as maintaining prudent cost management and working capital discipline. Bernard reports that the company will continue to evaluate strategic opportunities to support future growth, including partnerships, technology development, and capital structuring options, in a manner consistent with shareholder interests and the Company’s governance framework.