Revenue fell to USD $15.7m in Q2 2026, from USD $17.5m in the same quarter last year. For the first half of the year, revenue was down 5% to USD $35.3m.
Keystone said the decline was “mainly concentrated” in the UK and US, where international student recruitment has continued to be affected by visa policy, affordability and compliance requirements.
The Oslo-headquartered education technology and student recruitment company said domestic recruitment across the Nordics, Germany, Austria, Switzerland and parts of the UK remained “comparatively stable”.
CEO Fredrik Högemark described Q2 as a “weak quarter financially”, saying revenue had been affected by continued pressure in the UK and US as well as changes in digital search.
Q2 was a weak quarter financially and we are not satisfied with the result: revenue was affected by continued pressure in the UK and the US, as well as structural changes in digital discovery
Fredrik Högemark, Keystone
The company is facing changes in how prospective students find higher education information online. Keystone said AI-generated search summaries and “zero-click” search had reduced organic visits to its Search & Discovery business.
However, it said the listing business remained a substantial and recurring part of the group, while it was broadening its traffic acquisition through direct traffic, AI-mediated discovery, paid search and social channels.
The company is also cutting around 75 full-time equivalent roles as part of a wider cost-saving program, expected to generate around USD $8m in annualised savings, with its full effect expected from January 2027. Combined with a cost program launched in late 2025, Keystone expects annualised savings of approximately USD $14m.
Despite the weaker quarter, Keystone said it was making progress in its Enrolment Services business. Its next-generation platform went live with its first partner in June, while its admissions support service has secured “significant revenue in contracts across 17 institutions and expansion in Australia and New Zealand”.
The company said its current business plan forecasts 2026 revenue of approximately $70m–72m.
Keystone expects 2027 to remain a transition year, with revenue broadly stable, before growth in revenue and earnings from 2028 as cost savings take full effect, its Search & Discovery business stabilises and Enrolment Services expands.
Separately, Keystone is seeking approval from bondholders to extend the maturity of its bonds by two years.
Högemark said the financing measures were intended to give Keystone the “time and financial flexibility” to complete its cost program and continue its strategic initiatives.
