The warning came as IDP – one of the three co-owners of IELTS – reported a 9% fall in revenue to AUD $795.4m for FY26.
Student placement numbers fell 27% during the year, while English language testing volumes fell 8%. Language teaching volumes increased 1%.
IDP said it earned more from each student and test than in previous years, helping to offset some of the decline in volumes.
“Our focus this year has been to manage financial performance whilst progressing the multi-year transformation program to reduce cost, simplify the business and position for future growth,” said IDP chief executive and managing director Tennealle O’Shannessy.
“The team has executed well in a dynamic operating environment with a focus on profitable revenue, and an ongoing commitment to quality and yield.”
The team has executed well in a dynamic operating environment with a focus on profitable revenue, and an ongoing commitment to quality and yield
Tennealle O’Shannessy, IDP
IDP cut around 1,250 roles, or 20% of its workforce, during the year. It also reduced its IELTS testing network from around 1,500 venues to fewer than 600.
The company said it reduced its costs by $32m during FY26, ahead of its $25m target. It plans to reduce costs by a further $15m in FY27.
Despite the fall in student numbers, IDP said it continued to see strong levels of trust among students. More than 90% of surveyed students said they trusted or highly trusted the company, while its student Net Promoter Score remained above 70.
The company is also investing in technology and AI-supported counselling, which it says is helping students find better matches with courses and universities.
O’Shannessy said the changing market could also create opportunities for IDP.
“Universities place increasing importance on student quality, compliance and enrolment certainty, and students rely more on trusted advice to navigate an increasingly complex international education landscape,” she said.
“IDP’s trusted role continues to grow.”
The company has also expanded its student placement offering into Malaysia and the UAE and opened 13 new IELTS centres in China.
“Our market-leading position, trusted brands, longstanding university partnerships and proprietary data position IDP strongly for the future,” she said.
“This positions us to deepen our relationships with students and university partners, capture more value across the student placement journey, and drive sustainable growth through a higher-quality, more resilient earnings profile.”
