Oslo, Norway - Keystone Education Group today announced its Q3 financial results, highlighting continued strategic investment, disciplined cost management, and expanding geographic reach as the Company positions itself for markets stabilizing and improved profitability in 2026.
Revenue for the quarter was USD 21.1 million, compared to USD 22.5 million year-on-year (-6%). The lower-than-expected growth reflects lower enrollment volumes in the U.S. and UK markets.
Adjusted EBITDA was USD 3.8 million versus USD 7.1 million in the prior year, corresponding to an EBITDA margin of 18% compared to 31% last year.
The year-on-year decrease was mainly driven by lower gross profit, and higher operating costs related to continued investments in technology, platform integration, and geographic expansion initiatives.
The UK and the U.S. - markets where Keystone has historically achieved strong growth - have been impacted heavily by policy-driven declines in international student demand, creating short-term headwinds. This has meant U.S. revenues declined by 30% year-over-year, and UK growth remained flat despite rising search activity and visa applications.
As a result, earlier in the quarter, Keystone initiated a cost saving program totaling USD 6 million in annualized savings. These savings will have full impact from 2026 and position the company for improved profitability as markets stabilize.
However, even under these conditions, Keystone advanced strategically across platform integration, AI development, and geographic expansion of Enrollment Services.
The company launched operations in Australia and New Zealand with early contract wins, expanded into France, and continued building out its modular U.S. Enrollment Services offering.
In domestic recruitment markets in the Nordics, Germany and the UK, Keystone's position remained robust and strong, providing balance to international volatility, with the Nordics showing healthy organic growth.
Fredrik Högemark, CEO of Keystone Education Group, said:
"Q3 has been one of the most challenging quarters we have seen, largely because two of our largest growth markets - the U.S. and the UK - were hit by policy-driven disruptions at the same time. These are markets where we have built strong positions and delivered double-digit growth for many years, so the simultaneous slowdown has had a noticeable impact on our revenue performance.
"However, we have acted quickly and decisively - executing a USD 6 million cost reduction program, focusing our investments on the most strategic areas, and continuing to deliver on our technology roadmap. At the same time, we successfully expanded Enrollment Services into Australia and New Zealand and continued scaling our U.S. offering. These steps improve our geographical balance and strengthen the foundations for long-term growth.
"Our domestic markets have remained stable and healthy, and our early-signal data shows signs of normalization in several international markets. Combined with a more efficient cost base, we believe this positions Keystone well heading into 2026.
"We continue to invest in the future - in AI, in platform integration, and in scalable global products - with confidence in the long-term growth of global student mobility. Our mission remains unchanged: helping students connect with the right education and helping institutions recruit the students who will thrive with them."
About Keystone Education Group
More than 100 million students trust Keystone to help them pursue higher education every year. In turn, Keystone helps over 5,500 education institutions reach, recruit, and enroll prospective students in more than 190 countries. Keystone also operates a range of global student recruitment services including UniQuest, Asia Exchange, Blueberry, SONOR, Edunation, and Keystone Sports.
Headquartered in Oslo, Norway, Keystone is backed by Viking Venture and Verdane, two leading Nordic venture firms. Keystone has more than 850+ employees worldwide, with offices across the Nordics, Germany, Spain, and the UK.
Media contact:
Danijela Jurjevic
PR Specialist
danijela.jurjevic@keg.com
+34 621 023 472
