Alcidion Group (ALC) H1 2025 earnings summary

Executive summary

• H1 FY25 revenue was AUD 17.6M (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 ($0.5M), a material improvement of AUD 3.3M ($3.33M) from the prior year.

• Record new sales TCV for FY25 YTD reached AUD 61.3M ($61.3M), driven by major contracts in Australia and the UK.

• Significant new contracts and renewals included a 10-year, AUD 37.5M ($37.5M) deal with North Cumbria NHS Trust and a $5.5M, 5-year contract in Wales.

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

Financial highlights

• Recurring revenue in H1 was AUD 13.7M ($13.7M), representing 78% of total revenue; non-recurring implementation revenue fell 29%.

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

• Staff/operating expenses reduced by 24% year-over-year, with staff costs down AUD 3.4M and annualized reduction of AUD 6.8M.

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

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

Outlook and guidance

• Minimum FY25 contracted and scheduled renewal revenue stands at AUD 39.5M ($39.5M), including at least $8M from North Cumbria.

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

• Strong momentum into H2 with full six-month contributions from new contracts and at least a full quarter from recent UK wins.

• Expanding referenceability of Miya Precision platform expected to drive further customer engagement and growth.