Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in EDU Holdings (ASX:EDU). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

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EDU Holdings' Improving Profits

In business, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS) performance. So a growing EPS generally brings attention to a company in the eyes of prospective investors. Commendations have to be given in seeing that EDU Holdings grew its EPS from AU$0.016 to AU$0.12, in one short year. When you see earnings grow that quickly, it often means good things ahead for the company. But the key is discerning whether something profound has changed, or if this is a just a one-off boost.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. The music to the ears of EDU Holdings shareholders is that EBIT margins have grown from 10% to 26% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book.

The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.ASX:EDU Earnings and Revenue History April 14th 2026

Check out our latest analysis for EDU Holdings

While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for EDU Holdings?

Are EDU Holdings Insiders Aligned With All Shareholders?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

Story Continues

Despite AU$6.2m worth of sales, EDU Holdings insiders have overwhelmingly been buying the stock, spending AU$6.8m on purchases in the last twelve months. You could argue that level of buying implies genuine confidence in the business. Zooming in, we can see that the biggest insider purchase was by company insider Jeremy RaperRaper for AU$1.8m worth of shares, at about AU$0.16 per share.

On top of the insider buying, it's good to see that EDU Holdings insiders have a valuable investment in the business. To be specific, they have AU$36m worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Those holdings account for over 35% of the company; visible skin in the game.

Should You Add EDU Holdings To Your Watchlist?

EDU Holdings' earnings have taken off in quite an impressive fashion. Just as heartening; insiders both own and are buying more stock. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe EDU Holdings deserves timely attention. Before you take the next step you should know about the 1 warning sign for EDU Holdings that we have uncovered.

Keen growth investors love to see insider activity. Thankfully, EDU Holdings isn't the only one. You can see a a curated list of Australian companies which have exhibited consistent growth accompanied by high insider ownership.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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