Mach7 Technologies (M7T) Q2 2025 TU earnings summary

Executive summary

• Contracted annual recurring revenue (CAR/CARR) reached $31.8 million at Q2 end, up 15.6% from Q1, with ARR run rate at $25.1 million, up 14.1% sequentially.

• Q2 sales orders totaled $14 million, with 67% from add-ons and expansions; renewals made up the rest.

• Cash at Q2 end was $23.6 million, increasing to $25.3 million by January 29, with no debt.

• Announced on-market share buyback of up to $5 million, commencing March 2025.

• Products showcased at RSNA, generating a 78% increase in net new leads.

Financial highlights

• Cash receipts from customers in Q2 were $9.6 million, up 34% year-over-year.

• Operating cash inflow of $900,000 in Q2, compared to outflows in prior periods.

• $200,000 in R&D costs capitalized in Q2.

• Payments to related parties totaled $243,000 for the quarter.

• No borrowings or financing facilities drawn; all cash held in bank balances and call deposits.

Outlook and guidance

• FY25 guidance reaffirmed: 15%-25% growth in CAR/CARR and revenue, with OpEx growth below revenue growth.

• Focus on landing 2-4 net new customers for the year, with a strong pipeline and high confidence in H2 deals.

• Continued demand and volume growth expected across North America, APAC, and the Middle East.

• Buyback program of up to $5 million to commence in early March.