Alcidion Group (ALC) Q2 2026 earnings summary

Executive summary

• Achieved strong momentum in Q2 FY 2026 with material contract wins, including selection as preferred provider for UHS Sussex NHS Foundation Trust and a $12.3M Leidos contract expansion, marking the third expansion of the original contract.

• UHS Sussex contract expected to be at least AUD 35 million (or $35M) over seven years, potentially the largest UK contract to date, with negotiations ongoing and deployment targeted for Q4 FY26.

• Secured several contract renewals and extensions, supporting a robust recurring revenue base.

Financial highlights

• Q2 new sales totaled AUD 15.4 million (or $15.4M) in total contract value, mainly from the Leidos contract expansion.

• 62% of new sales were recurring product revenue; the remainder was primarily implementation or non-recurring services.

• Contracted revenue for FY 2026 stands at AUD 43.1 million (or $43.1M), up 40% year-over-year, excluding Sussex and future deals.

• Q2 cash receipts from customers were AUD 8.5 million; operating cash outflow was AUD 1.9 million, attributed to year-end timing.

• Cash balance at quarter-end was AUD 14.2 million (or $14.2M) with no debt.

Outlook and guidance

• FY 2026 EBITDA and operating cash flow expected to be at least in line with FY 2025, with further upside possible pending Sussex contract finalization and other new deals.

• Second half of the year anticipated to be stronger for customer receipts, supporting confidence in being cash flow positive.

• Continued confidence in pipeline conversion and new opportunities in ANZ and UK, with several new contract opportunities progressing.