Adheris Health (AHE) Q3 2025 earnings summary

Executive summary

• Revenue and gross profit declined 49% and 52% year-over-year in 3Q FY25, with operating revenue at $12.3 million and gross profit at $7.4 million, mainly due to U.S. business headwinds.

• Group gross margin declined to 60.2% from 63.2% in 3Q FY24.

• Strategic review process is ongoing, with strong interest and multiple proposals for both Australian and U.S. businesses; expected to conclude by June 30.

• Raised $5 million in new equity post-quarter to support strategic and cost optimization initiatives; cash on hand at March 31, 2025, was $7.9 million, with proforma cash post-raise at $12.9 million.

• Leadership changes include the Chair stepping down and an interim Chair appointed.

Financial highlights

• Third-quarter transaction fee revenue in Australia rose 12% year-over-year.

• 72% of ANZ revenue is recurring, with a four-year CAGR of 22.6%.

• U.S. revenue guidance for 2H FY25 is $14–18 million; group revenue guidance is AUD 93–99 million.

• Operating cash receipts were $21.8 million, down from $34.5 million in 3Q FY24, reflecting delayed US health program execution.

• Staff costs were $11.0 million, including $0.6 million in one-off redundancy payments.

Outlook and guidance

• FY25 revenue guidance reaffirmed at AUD 93–99 million; EBITDA loss expected between $2.6–5.5 million.

• Forecasting 15% group revenue growth and margin expansion in FY26.

• 90% of the lower end of FY25 revenue guidance already contracted.

• Key 4Q FY25 priorities: US commercial team restructuring, new software module pricing, cost reductions, and launch of next-gen platform in US for 2Q FY26.