Mach7 Technologies (M7T) H1 2025 earnings summary

Executive summary

• Revenue grew 33% year-over-year to $17.74 million for the first half, driven by subscription and capital software licence sales, with positive adjusted EBITDA and NPATA, and a focus on recurring revenue and cost discipline.

• Net loss after tax narrowed to $1.87 million from $4.63 million in the prior period, reflecting improved operating leverage.

• Strategic realignment of the sales team to focus on net new customer acquisition and customer success, aiming for three to four new logos by year-end.

• Completed investment in three strategic pillars: cloud enablement, supportability, and interoperability, with ongoing cost optimization initiatives.

• Maintained a strong financial position with no debt and initiated an on-market share buy-back program.

Financial highlights

• Revenue for the first half was $17.74 million, up 33% year-over-year; recurring revenue reached $12.65 million, covering 80% of operating expenses.

• CARR grew 19% to $31.8 million; ARR at $25.1 million, both covering about 80% of OpEx.

• Adjusted EBITDA was $0.81 million, up from a loss of $1.58 million year-over-year; adjusted NPATA was $1.4 million.

• Operating expenses were $15.81 million, up 15% year-over-year due to targeted investments.

• Cash on hand at period end was $23.6 million, increasing to $25.3 million by end of January, with no debt.

Outlook and guidance

• Reaffirmed FY2025 guidance for 15–25% growth in CARR and revenue, with OpEx growth below revenue growth.

• Sales pipeline remains robust and diverse across regions, care settings, and product lines.

• Targeting three to four net new customer wins by year-end and expecting professional services revenue to rebound in the second half.

• Anticipate further OpEx savings in FY2026 as internal 3D engine project eliminates royalty fees.