ReadCloud Limited (ASX:RCL) services the education and training sectors through the provision of digital learning content, proprietary interactive technology and support for students and educators. The company released its 4C September quarter activities report and a trading update containing data points for its upcoming FY25 full year result (September year-end). The company delivered a solid result in what is a seasonally quiet last quarter resulting in FY25 unaudited revenue of $12.9m (directly in line with RaaS forecast), representing 4.9% growth over FY24. This was fuelled by strong performances from the Australian schools-facing businesses in VET-in-Schools and eBooks, partially offset by the underperformance from the Industry Training division due to its previously flagged challenges predominantly related to changes in government funding. VET-in-Schools revenue was the standout, growing 26% to $5.7m, complemented by Australian direct eBook sales growth of 17% to $4.6m. Strong margins in VET-in-Schools and ongoing cost management across the group has resulted in improving operating leverage with underlying EBITDA growth of 109% to $0.8m, ahead of the RaaS forecast of $0.5m. The year end cash balance, a seasonal low point due to the timing of the Australian school curriculum, of $1.9m is up from $1.4m 12 months ago and ahead of the RaaS forecast of $1.7m. In summary, the core strategic businesses in eBooks and VET-in-Schools are performing strongly domestically, with growth expected to continue in FY26, and potential upside from international eBooks after an announced restructuring of the team. The domestic Industry Training business is being closely monitored and managed to reduce ongoing revenue volatility. We retain our existing forecasts and DCF valuation of $0.35, representing potential upside of 293% over the current share price.