Alcidion Group (ALC) Q2 2025 earnings summary

Executive summary

• Q2 FY25 saw strong performance with AUD 13.1 million in new sales, mainly from new customer wins, including two flagship five-year contracts in Australia focused on patient flow command centre management, with 88% of new sales recurring product revenue.

• Major new contracts signed with Northern Adelaide Local Health Network and Peninsula Health for Miya Precision platform, expanding presence in Australian acute healthcare.

• Ongoing relationships extended with Sydney Local Health District and Northumbria NHS Foundation Trust, supporting recurring revenue growth.

• Contracted revenue at the end of Q2 stood at AUD 30.8 million, not including the North Cumbria contract, which is nearing completion.

• Cash outflow was minimal at AUD 260,000, a material improvement of AUD 3.1 million compared to the same period last year, with expectations of EBITDA and cash flow positivity for the full year.

Financial highlights

• Q2 cash receipts from customers reached AUD 9.1 million, marking the strongest Q2 for cash receipts in recent years.

• Operating cash outflow was only AUD 260,000, reflecting disciplined cost management and improved sales, a $3.1M improvement over Q2 FY24.

• Cash position as of December 31 was AUD 7.7 million with no debt; an additional AUD 5.9 million collected in January.

• H1 FY25 cash receipts totaled AUD 15.3 million, with an operating cash outflow of AUD 4.1 million, a AUD 7.3 million improvement over H1 FY24.

• Payments to related parties totaled AUD 240,000 in Q2, relating solely to Director's remuneration.

Outlook and guidance

• Expectation to be EBITDA and cash flow positive for FY25, with break-even at around AUD 36 million in revenue.

• Strong second half anticipated, with Q3 and Q4 historically being the highest periods for customer receipts.

• Continued growth in the sales pipeline, with significant opportunities in both EPR and modular sales.

• FY25 contracted (sold and renewal) revenue at end of Q2 was AUD 30.8 million, excluding North Cumbria contract and potential new deals.

• Several large contracts are still progressing through the tender and selection stages, which may impact future revenue.