- IDP’s revenue declined by 15% to $882.2m and gross profit fell by 21% to $525.8m
- IELTS volumes are down 50% in India in 2025, compounding a 42% drop in India in 2024
- Poor performance driven by market-wide declines in student volumes, while amortisation and organisational restructure have also impacted the figures
- IDP’s highly anticipated launch of IELTS in China has been delayed
Global agent and co-owner of the IELTS English language testing service, IDP Education has released its annual report and full financial results ahead of a meeting with shareholders, as well as announcing a “multi-year transformation” to address rising costs and manage change.
The company has revealed significant losses with gross profit falling by 21% to $525.8m in 2025.
University placements experienced a volume decline of 29% in FY25 attributed to “policy-driven supply issues” with all major study destinations.
Placement volumes were down in Canada (-56%), Australia ( -22%), UK (-18%) and the US (-25%), while students securing university places in alternative study destinations grew; New Zealand (+40%) and Ireland (+37%).
While student placement revenue declined by 16% to $427m, the average price growth of IDP products actually grew by 15%, driven by partner negotiations and value-added services.
English Language Testing volumes fell 18%, linked to the decline in student demand. IELTS revenue declined by 15% to $410.7m despite an increase in average test price of 4%.
IELTS volumes were particularly impacted in India with a 50% decline in test takers compounding a previous 42% fall in 2024.
IDP operations in Asia have been severely impacted in 2025 with a 40% decline in earnings linked to Indian operations, IELTS UCLES (retesting) fee increase, increased sub-agent volumes in China and the removal of the British Council royalty.
The highly anticipated launch of IDP’s IELTS delivery in China has also been delayed beyond the current financial year.
Other financial factors impacting financial performance include the $4.2m of amortisation relating to the acquisitions of The Ambassador Platform (May 2023), Intake Education (November 2022) and Hotcourses (January 2017), and a further $2.1m of amortisation arising from the acquisition of Speak (March 2025).
In July 2025, IDP share prices tumbled to the same level as their original IPO market price cap from 2015, as reports of profit losses emerged. The share price has since rallied by more than 30% with several of the company’s directors reportedly increasing their shareholding.
FY25 was also a challenging period, with the smaller market affecting student and test taker volumes. However, it was also a pivotal year in which we laid the groundwork for a multi-year transformation.
Tennealle O’Shannessy, IDP
The company has launched a “multi-year transformation” to reshape IDP by ‘shifting to a more agile, AI-enabled operating model’. The company has already spent $7.6m on restructure costs resulting in direct costs savings of 6% and overhead costs savings of 5%.
Writing in the annual report, Tennealle O’Shannessy, CEO and managing director of IDP said: “For IDP, FY25 was also a challenging period, with the smaller market affecting student and test taker volumes. However, it was also a pivotal year in which we laid the groundwork for a multi-year transformation.
“The first phase is expected to deliver $25m of net cost reduction in FY26 with work to simplify the business significantly offsetting the inherent inflationary elements in our business”.
