RM FY25 revenue impacted by UK and overseas macroconditions
Momentum in the firm’s ‘assessment’ unit partially offset decline in ‘technology’ and ‘TTS’
Educational technology, digital learning and assessment solution provider RM has shared mixed results for FY25, due to tough market conditions in the UK and overseas.
For the year ended 30 November 2025, top line from continuing operations landed at £162.1m, a 2.5 per cent decrease from £166.1m.
On the other hand, adjusted operating profit skyrocketed 33.2 per cent, from £8.6m to £11.5m, while adjusted EBITDA soared 19.9 per cent to £16.5m (FY24: £13.7m).
Performance in both the 'teacher technology solution (TTS) and ‘technology’ units dragged results down, despite momentum in RM ‘assessment’, in which the organisation has placed its hopes for the future.
RM TTS revenue drops…
TTS top line dipped 7.2 per cent to £67.3m.
Results were dragged down by UK sales, which dipped 6.1 per cent to £50.5m, impacted by what the company described as a tough schools market.
International turnover fell 10.5 per cent to £16.8m, constrained by the US trade tariffs imposed on products manufactured in China, as well as a delay to European orders which are now expected to land in FY26.
Oxfordshire-based RM notes it has made further investment in Dubai and intends to capitalise on growing market opportunities overseas, despite the current instability in the region.
TTS’ Middle East turnover rose 20.1 per cent to £3.7m in FY25.
…While RM Technology top line drags…
‘Technology’ revenue fell 12.5 per cent, from £54m to £47.2m, with hardware and installation services most affected.
The organisation noted this was caused by delays in initiatives such as ‘Connect the Classroom’ funding, a government-backed scheme aimed at enhancing internet speed in schools through the upgrading of Wi-Fi access points and network switches.
RM also mentioned a general slowdown across the UK schools market impacting its sales.
Moving forward, the segment has reportedly secured managed services contract renewals and wins which represent recurring earnings for years to come.
The firm also hired Ian Mackinnon as CEO of ‘technology’ and ‘TTS’ in November in an effort to bring the branches back to growth.
…But RM ‘assessment’ rises
On the other hand, the business’ ‘assessment’ arm turnover jumped 19.9 per cent to £47.6m.
The unit’s digital platform earnings leapt 17.3 per cent year-on-year, while recurring revenue soared 15.5 per cent.
The rise within this division was partly driven by RM Ava, its adaptive virtual accreditation platform launched in June to support the global transition to digital assessment and drive profitable growth.
The solution provider reportedly invested a further £6m during FY25 to develop the platform, bringing the total investment to £20m to date.
RM expects its development to be fully completed by the end of FY27.
“This year has seen us build real momentum in executing our strategy as we continue to grow our core ‘assessment’ platform revenue and drive a meaningful increase in our profitability year-on-year,” said Mark Cook, CEO of RM.
“This is underpinned by our relentless focus on providing a brilliant experience for learners globally and the positive impact from the cost saving initiatives we put in place.”
FY26 best- and worst-case scenarios
Trading in the first months of FY26 has reportedly been consistent with expectations, with the full-year outlook remaining in line with forecasts.
The company said it is working to deliver the legal and operational separation of divisions to facilitate disposals and unlock future cost savings and sees RM Ava as the key driver of future growth.
"Looking ahead, we remain focused on driving growth, by continuing to invest in RM Ava and our core, higher margin, ‘assessment’ business,” Cook added.
“Simultaneously, we are actively working on delivering the operational and legal separation necessary to facilitate future disposals of non-core assets and further improve efficiencies.”
Moving forward, the organisation is assuming turnover increase across all businesses.
It expects momentum from existing and new customer wins in RM ‘assessment’, increased revenues principally derived from hardware and software sales in RM ‘technology’, and growth from UK and international sales in RM TTS.
RM has also monitored financial forecasts, uncertainties and sensitivities to create what it referred to as a reasonable worst-case downside scenario.
The worst-case scenario plans for an earnings drop of £12.2m in FY26 alongside an EBITDA decline of £7m.
For FY27, a worst-case scenario includes a top line reduction of £15.3m as well as an EBITDA fall of £8.4m.