Mach7 Technologies (M7T) Q2 2025 TU earnings summary

Executive summary

• Contracted annual recurring revenue (CAR/CARR) reached $31.8 million (A$31.8M) at Q2 end, up 15.6% from Q1 reported.

• ARR run rate was $25.1 million (A$25.1M), up 14% from Q1.

• Q2 sales orders totaled $14 million (A$14.0M), with 67% from add-ons and expansions and the remainder from renewals.

• Strong cash position with $23.6 million (A$23.6M) at Q2 end, increasing to $25.3 million by late January, and no debt.

• Announced on-market share buyback of up to $5 million (A$5M), commencing in March.

Financial highlights

• Cash receipts from customers were $9.6 million (A$9.6M), up 34% year-over-year.

• Operating cash inflow was $900,000 (A$0.9M) for Q2.

• Payments to related parties totaled $243,000 (A$243K) for the quarter.

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

• R&D capitalization in Q2 was around $200,000, with a project expected to deliver annualized cost savings of $1 million upon completion in Q4.

Outlook and guidance

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

• Confident in landing 2-4 net new customers for the year, with a strong pipeline and deals in late-stage negotiation.

• 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 as part of capital management.

• Q3 and Q4 expected to be strong cash quarters.