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PowerSchool Announces Second Quarter 2021 Financial Results FOLSOM , CA - September 9 , 2021 : PowerSchool Holdings , Inc. ( NYSE : PWSC ) ( " PowerSchool " or the " Company " ) , the leading provider of cloud - based software for K - 12 education , today announced financial results for its second quarter ended June 30 , 2021 . " The demand for our unified solutions that help accelerate learning outcomes and improve school operations is demonstrated by continued business momentum driving strong and balanced results in the second quarter , " said Hardeep Gulati , PowerSchool CEO . " We believe our unified solutions are filling that need for our customers and are helping to drive real impact within their communities . The funding environment for K - 12 education remains robust and has resulted in continued investments in technology from our school and district customers , and the momentum we are seeing gives us confidence in our ability to deliver on our 2021 and 2022 plans . " Second Quarter 2021 Financial Results Total revenue was $ 145.4 million for the three months ended June 30 , 2021 , up 41.0 % year - over - year . Subscriptions and Support revenues were $ 121.8 million , up 37.5 % year - over - year . Gross Profit was $ 85.6 million , or 58.9 % of total revenue , compared to 57.1 million , or 55.4 % of total revenue , in the prior year period . Adjusted Gross Profit was $ 99.6 million , or 68.5 % of total revenue , compared to $ 67.3 million , or 65.2 % of total revenue , in the prior year period . Net loss was $ 2.5 million compared to $ 12.4 million in the prior year period , an improvement of 79.5 % year over - year . Adjusted EBITDA was $ 50.2 million compared to $ 31.6 million in the prior year period , up 58.8 % year - over - year . Adjusted EBITDA margin was 34.5 % , up 12.6 % year - over - year . Net cash provided by operations was $ 0.5 million , compared to net cash used in operations of $ 5.9 million in the prior year period . Free cash flow was negative $ 11.9 million compared to negative $ 14.6 million in the prior year period . Unlevered free cash flow was $ 5.6 million compared to $ 8.9 million in the prior year period . Annual Recurring Revenue ( ARR ) was $ 526.6 million ( including the impact from our most recent acquisition ) , up 30.7 % year - over - year . Net Revenue Retention Rate was 108.0 % , compared to 107.0 % in the prior year period . ● PowerSchool ● ● * Definitions of the key business metrics and the non - GAAP financial measures used in this press release and reconciliations of such measures to the most closely comparable GAAP measures are included below under the headings " Definitions of Certain Key Business Metrics " and " Use and Reconciliation of Non - GAAP Financial Measures . " Recent Business Highlights PowerSchool became a publicly listed company on the New York Stock Exchange after completing its initial public offering ( " IPO " ) on July 30 , 2021 , raising $ 673.2 million , net of underwriting discounts and commissions , used primarily to pay down debt . Subsequent to the IPO , on August 10 , 2021 , the underwriters exercised their option to purchase additional shares , raising an additional $ 92.9 million , net of underwriting discounts and commissions . PowerSchool pledged $ 1 million of the IPO proceeds to the PowerSchool Education Fund which aims to provide over 2,500 education students from diverse backgrounds with financial support to cover their teacher certification . PowerSchool had continued success with over 400 cross - sell transactions in the second quarter of 2021 , including Miami - Dade County Public Schools , the fourth largest school district by student enrollment in the U.S. , selecting to deploy Unified ClassroomTM Schoology Learning and the South Carolina State Department of Education expanding their PowerSchool SIS deployment with eCollect Forms . PowerSchool launched Unified Classroom ™ 2021 , bringing together market - leading K - 12 classroom technology to simplify teaching and learning . -1