Too good to be true ?

I usually look at 2 indicators to identify interesting stock opportunities :
- free cash flow yield,
- and top line growth.

The case of EDU is quite surprising :
- looking just at one quarter in FY 25 (Jan to March 25), EDU has a free cash flow yield of 25 %* (assuming the net cash increase corresponds to the free cash flow for Jan-March 25),
- revenue increased by 129 % yoy (organic growth only), which translated in even more growth for EBITDA (5.4 m$ vs 0.8 m$ for Q1 24).
We do not have yet revenue figures for Q2, but Ikon continues to show a strong growth of enrolments (+ 118 % yoy).

You do not expect to see this kind of growth for a company which is driven by international students.

So, I need to do more work to better explain these trends and understand if these figures can be sustainable.
Anyway, interesting to see that these figures for FY 25 confirm the trends of FY 24, when the top line increased by 96 % and when there was already a large operating leverage.

* some elements which seem to partly explain such a level of free cash flow :
- negative working capital model which strongly benefits from the large increase of revenues,
- the company does not seem to pay much taxes due its past accumulated losses.