Sales in the review period fell by 55.8 percent to Sh679.8 million, with Longhorn attributing the decline to reduced demand from households and the government.
“Revenue for the year declined by 56 percent … reflecting disruption in both the private and government markets,” the Nairobi Securities Exchange-listed firm said in a statement.
“Final approvals for revised [learning] materials were issued only in January 2025, creating uncertainty at the start of the school year. Parents deferred purchases, government procurement was delayed, and Sh463m of revenue was consequently pushed into the 2025 financial year.”
The company reduced operating expenses by Sh82.8 million to Sh328.1 million in the review period, but this was not enough to compensate for the revenue decline.
“Management reduced operating expenses by 20 percent, but the company still recorded an operating loss of Sh35 million (excluding provisions and impairments), compared to an operating profit of Sh165 million in the prior year,” the publisher said.
Longhorn says it has had a turbulent operating period since the introduction of the Competency-Based Curriculum (CBC) in Kenya, its biggest market.
“The past seven years have been a testing period for the education sector and for the company. The transition from the 8-4-4 system to the Competency-Based Curriculum (CBC) required significant investment and adaptation,” the company said.
“Between 2018 and 2025, the company invested over Sh714 million in CBC content development, absorbed Sh254 million in inventory and debtor impairments, and wrote off Sh149 million in development costs.”
Longhorn expects costs to fall and sales to rise going forward as the CBC settles down.
“With curriculum rationalisation complete and final CBC approvals in place, stability is expected to return to the sector. Development costs will decline, while clarity in curriculum requirements should support renewed sales momentum,” the company said.
With the rollout to Grade 12 nearing completion, the business is positioned to move into a more stable and profitable phase, Longhorn added.
The company noted that it has secured government contracts and anticipates stronger uptake in the private market.
Longhorn said that its digital platforms — now serving more than 300 schools and 50,000 learners — continue to grow, providing an additional engine of expansion.
