Mach7 Technologies (M7T) H1 2026 earnings summary

Executive summary

• Undertook a comprehensive organizational and commercial reset, including leadership changes, cost discipline, and a sharpened product and go-to-market strategy, with a focus on sustainable, disciplined sales growth and aligning the commercial engine with strategic objectives.

• Launched the modular Flamingo architecture, securing the first customer in December 2025 and targeting customer-specific imaging needs to enable new revenue streams.

• Enhanced sales and marketing with new leadership, clear ownership, and improved customer engagement, resulting in higher KLAS scores and the initiation of the Flight Crew customer engagement model.

• Achieved CE mark for eUnity under EU Medical Device Regulation, expanding access to Europe and the Middle East.

• Achieved operational efficiencies through headcount rationalisation, infrastructure optimisation, and vendor contract renegotiation, reducing operating expenses.

Financial highlights

• Revenue for H1 FY26 was AUD 13.7 million, down 23% year-over-year due to lower capital license sales, customer churn, and reduced professional services revenue.

• Recurring revenue was AUD 11.6 million (85% of total), down 8% year-over-year, and covered 78% of operating expenditure.

• Gross margin remained strong at 92% (down from 94% year-over-year), reflecting platform scalability.

• Operating expenses decreased by 6% as cost initiatives took effect, with operating expenses at AUD 14.8 million.

• Adjusted EBITDA was -AUD 2.3 million, down from AUD 0.8 million in the prior period; NPAT was -AUD 5.7 million.

• Ended the half with AUD 18.5 million in cash and zero debt.

Outlook and guidance

• Expecting flat revenue for FY26, with growth anticipated in FY27 as commercial momentum builds and Flamingo drives ARR growth progressively over the next two years.

• Continued disciplined investment in sales, partnerships, product development, and platform scalability, with selective investment in growth-critical capabilities.

• Enhanced marketing and sales initiatives, including a refreshed brand and digital presence, are underway.