OpenLearning Validates Reseller Strategy with PNU SaaS Deal

OpenLearning (ASX: OLL) has signed a one-year SaaS LMS agreement with Philippine Normal University (PNU) via its reseller CE-Logic that is set to commence on 1 June 2026.

This initial agreement will cover 5,000 students.

The company has stated an intention to expand this coverage to PNU's full ~12,000 students under a longer-term arrangement after the initial term.

The first-year net revenue expected to OpenLearning is approximately A$30,000, which management notes is not considered financially material.

Reseller Channel Validation

This agreement marks the first Philippine university customer secured under OpenLearning's reseller arrangement with CE-Logic, initially announced on 3 October 2025.

This successfully validates CE-Logic's go-to-market strategy and OpenLearning's broader reseller channel approach in the Philippines.

PNU selected OpenLearning's learning management system after a competitive procurement process.

The university's decision was based on the platform's advanced features, including AI course creation, outcomes-based assessment, integrated learner portfolios, secure cloud infrastructure, and lifelong learning capabilities.

FY25 Performance and Outlook

In FY2025, OpenLearning continued to show growth in its core business, with Platform SaaS Annual Recurring Revenue increasing by 30% year-on-year to $3.035 million as of 31 December 2025.

The company's customer base expanded to 252 active B2B SaaS customers across 19 countries.

Despite this growth, OpenLearning reported a net loss of $4.097 million for FY2025, primarily attributed to a change in accounting policy where platform development costs began to be expensed from 1 January 2025.

The company did report improved adjusted cash outflows and strengthened its balance sheet via a $2.6 million equity placement in October 2025 and the conversion of outstanding debt to equity.

Management continues to target cash flow breakeven by early 2027.

Strategic Context and Risks

The PNU agreement's 1-year term is aligned with Philippine government procurement rules, which can limit the duration and value of contracts with public institutions.

It is important to note that any expansion beyond the initial term to cover the full ~12,000 students is explicitly not guaranteed.

OpenLearning continues to navigate various operational risks, including ongoing liquidity, customer retention, and platform stability. International expansion, while a key strategy, also introduces execution and compliance challenges.

The company's reliance on its major shareholder, ECA, for funding, including the recent conversion of debt to equity, remains a key governance consideration for investors.