Adheris Health (AHE) H1 2025 earnings summary

Executive summary

• Group revenue for 1H FY25 was $57.1 million, down 24.4% year-over-year, mainly due to reduced vaccine-related pharma spend and lower vaccination rates in the US, but the group remained profitable with NPAT of $1.4 million.

• Gross margin improved by 3.8 percentage points to 61.3%, driven by higher-margin digital and THRIV-powered programs, which now represent 35% of US revenue.

• Transformation 360° initiative, launched in October 2024, is progressing on time and under budget, targeting $5 million in annualized cost savings from FY26 and delivering $1.4 million in 2H FY25.

• Strategic review of business options is underway to maximize shareholder value, with completion targeted by June 30, 2025.

• ANZ business saw modest revenue growth, new digital and telehealth services, and 90% of pharmacy clients migrated to the cloud platform.

Financial highlights

• Revenue for 1H FY25 was $57.1 million, down from $75.5 million in 1H FY24, with gross profit at $35.0 million and gross margin at 61.3%.

• EBITDA was $4.8 million, down 53.8% year-over-year; NPAT was $1.4 million, down 79.7%.

• Cash position at December 31, 2024, was $12.4 million, down from $15.6 million at June 2024.

• Gross debt increased to $17.6 million as of December 31, 2024, after a $5.3 million drawdown.

• Net assets at December 31, 2024, were $56.4 million.

Outlook and guidance

• Focus for 2H FY25 is on redesigning the US business, expanding ANZ operations, and ongoing cost optimization, with pipeline conversion expected to accelerate.

• Transformation 360° and redundancies are expected to deliver $5 million in annual savings from FY26.

• Strategic review completion and plan announcement targeted for June 30, 2025.