Adheris Health (AHE) investor relations material

Executive summary

• Revenue for fiscal 2026 was $34 million, down 46% year-over-year, with gross profit at $14.6 million, down 56% year-over-year.

• Statutory net loss narrowed to $4.3 million, a 93% improvement from the prior year, aided by significant items from the ANZ business sale.

• Achieved cash flow breakeven in Q4 and ended the year with $9.5 million in cash and no debt after the ANZ business sale.

• Operational improvements included a 37% reduction in operating costs, migration to a new technology platform, and reengagement of former customers, securing over $3 million in win-back contracts and onboarding 11 new brands, 8 in the second half.

• Leadership team and board refreshed, including the addition of a new Non-Executive Director.

Financial highlights

• Revenue declined 46% year-over-year to $34 million; gross profit fell 56% to $14.6 million, with gross margin at 43%, down nine percentage points.

• Underlying loss before income tax was $16.7 million, slightly improved from the prior year.

• Statutory net loss improved to $4.3 million, 93% lower than last year.

• Cash at bank was $9.5 million at year-end, down $800,000 year-over-year, with no outstanding debt.

• Significant items included a $15.7 million profit on the ANZ business sale and $3.7 million in early discharge of borrowings.

Outlook and guidance

• Expect to maintain cash flow breakeven throughout fiscal and calendar 2027, though cash generation may be uneven quarter to quarter.

• Targeting substantial revenue growth in fiscal 2027 with a stable cost base and a focus on higher-margin digital and THRiV programs, which make up close to 60% of the pipeline.

• CY27 pipeline includes over 90 opportunities across nearly 40 customers and 80 brands, with no single opportunity exceeding 10% of pipeline value.

• First material readout on pipeline conversion expected at the AGM in November, with most decisions on opportunities expected by December 2026.

• Earn-out from ANZ business sale expected to be finalized in Q1 FY27 and paid in Q2 FY27.