Alcidion Group (ALC) H1 2025 earnings summary

Executive summary

• First half revenue was AUD 17.6 million (or $17.64M), down 7–7.5% year-over-year, mainly due to lower implementation revenue as major projects neared completion.

• Underlying EBITDA turned positive at AUD 500,000–$0.54M, a material improvement of AUD 3.3M–$3.33M from the prior year.

• Record new sales TCV of AUD 61.3 million ($61.3M) year-to-date, with major contracts in Australia and the UK.

• Signed and renewed several contracts across Australia, New Zealand, and the UK, including North Cumbria NHS Trust and Hywel Dda.

• Net loss after tax improved to $0.89M, a 79.5% reduction from the prior period.

Financial highlights

• Recurring revenue in H1 was AUD 13.7 million ($13.7M), representing 61–78% of total revenue.

• Gross profit margin remained high at 87–87.1%.

• Cash at end of December: AUD 7.7 million ($7.68M), with no debt.

• Operating cash outflow for the half was negative AUD 4.1 million ($4.12M), a $7.3M improvement year-over-year.

• Staff costs reduced by AUD 3.4 million year-over-year, achieving an annualized reduction of AUD 6.8 million.

Outlook and guidance

• FY2025 contracted revenue stands at AUD 39.5 million ($39.5M), including new major contracts.

• Management expects positive full-year EBITDA and operating cash flow, supported by strong contracted revenue.

• H2 expected to be stronger with full six-month contributions from new contracts and at least a full quarter from recent UK wins.

• Continued engagement with new and existing customers, supporting a sustainable, growing, and profitable business.