Alcidion Group (ALC) H2 2025 earnings summary

Executive summary

• Achieved record FY25 revenue of $40.8M, with 63% from the UK and 37% from ANZ, driven by new customer wins and expansion in key markets.

• Annual Recurring Revenue (ARR) as of June 30, 2025, was $28.5M, up 31% year-over-year.

• Underlying EBITDA reached $5.1M, an $8.5M improvement over FY24, with positive operating cashflow of $5.8M.

• Secured the largest single TCV contract to date, a $39M+ 10-year EPR contract with North Cumbria NHS, and expanded presence in Australia, New Zealand, and the UK.

• Strengthened leadership team, especially in the UK, to support growth and market expansion.

Financial highlights

• FY25 revenue grew 10% year-over-year to $40.8M.

• ARR increased 31% to $28.5M; new and renewal TCV rose 109% to $73.8M.

• Underlying EBITDA improved from a $3.4M loss in FY24 to $5.1M profit in FY25.

• Gross profit margin increased to 88.2%, with operating costs down 10–12% year-over-year.

• Ended the year with $17.7M in cash and $18M in working capital, with no debt.

Outlook and guidance

• Entered FY26 with $34M in contracted revenue, the highest ever, and expects further growth with new contract wins.

• Approximately $140M of contracted revenue to be recognised through 2030.

• Expects to remain EBITDA and operating cashflow positive in FY26, subject to contract timing.

• Growth strategy focuses on scaling core products in existing markets and exploring new geographies such as Canada, Saudi Arabia, and UAE.

• Ongoing review of M&A opportunities that are strategic and synergistic.