Tribal LON:TRB, the AIM-quoted provider of student information systems and education services, reported a rise in first-half earnings as its transition to cloud-based subscriptions and new service launches offset a decline in legacy contracts.
For the six months to June 30, 2025, annual recurring revenue rose 5.5 per cent to £59.9m, up from £56.8m at the end of December. Group revenues increased 2.3 per cent to £45.3m, supported by demand for Tribal’s cloud-based Student Information Systems (SIS).
SIS revenues, the group’s largest division, grew 4.2 per cent to £36.1m, with strong adoption of its Foundation Cloud services. The segment posted 16.5 per cent growth, more than offsetting expected declines in legacy contracts. Tribal also reported a positive contribution from its vocational education unit, which added seven new customers in the period.
The news was sufficient to boost Tribal’s share price, which had gained 27% by lunchtime in London.
Tribal’s higher education offering gaining traction
The company’s newly launched Higher Education Full-Service proposition gained traction quickly, with 16 customers signed in the first half, generating £1.3m of recurring revenue. In total, 54 institutions have now adopted the full-service subscription model, which management said provides the foundation for future cloud migrations.
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Etio, Tribal’s digital services arm, saw revenues fall 4.5 per cent to £9.2m following the completion of two large contracts in 2024. That decline was partially offset by the start of a contract for attendance monitoring services. Despite the top-line drop, Etio’s operating profit rose 24.3 per cent to £1.1m in constant currency, helped by cost efficiencies.
At group level, adjusted earnings before interest, tax, depreciation and amortisation climbed 18.4 per cent to £8.3m, lifting margins by 2.5 percentage points to 18.4 per cent. The improvement reflected growth in SIS revenues, higher volumes of cloud migrations and efficiency gains, which together outweighed the erosion of high-margin legacy contracts.
Statutory profit after tax increased to £3.9m, from £3.4m a year earlier, aided by stronger operating performance and lower exceptional charges. The prior year’s £2.8m settlement with Nottingham Trent University accounted for the bulk of those exceptional costs.
Cash generation also improved. Net debt narrowed by £6.1m year-on-year to £3.9m, while free cash outflows improved to £0.8m from £1.9m, reflecting the seasonal skew of renewals towards the second half. Management said cash performance was in line with expectations and that the balance sheet remained well positioned to support continued investment in product development and cloud delivery.
Significant investment in core platforms
Tribal has continued to invest in its core platforms. Three significant upgrades were released in the half: Tribal Cloud v3, SITS v7 and EBS v4, all designed to aid customers’ migration to the cloud and support entry into new markets.
Tribal’s performance underscores the importance of the shift from on-premise software licences towards cloud-based subscription services in the higher and vocational education sectors. With customer uptake of the full-service model accelerating, recurring revenues are expected to become a larger share of the group’s income, reducing reliance on one-off implementation projects.
Tribal’s progress comes as education technology peers also adjust to the structural shift towards subscription revenues. Companies such as Canada’s D2L and US-listed Instructure have likewise highlighted cloud adoption as a driver of stability in earnings, even as institutions face tighter budgets. Investors have rewarded providers able to demonstrate predictable cashflows and margin expansion, while penalising those reliant on project-driven sales.
In that context, Tribal’s steady accumulation of contracted revenues and its strengthening balance sheet mark it out as well-positioned for the next phase of sector consolidation.
