Mach7 Technologies (M7T) Q2 2026 earnings summary

Executive summary

• Executed a comprehensive reset strategy focused on sustainable, profitable growth and disciplined execution, including commercial transformation and cost management.

• Achieved positive operating cash flow in Q2 FY26, a significant improvement over Q1 FY26.

• Launched Flamingo architecture, securing the first new direct customer since July 2023 with a five-year subscription contract, and expanded partnerships with AWS, Dell, and Ingram.

• Leadership realignment underway, including a search for a new CTO following the departure of the Chief Innovation Officer.

Financial highlights

• Annual recurring revenue (ARR) run rate stable at AUD 23 million as of 31 December 2025.

• Contracted ARR (CARR) closed at AUD 26.1 million, down AUD 2.9 million due to removal of the NTP/VHA project and Trinity contract reductions, partially offset by new sales.

• Sales orders totaled AUD 6.8 million, with 82% representing ARR-type sales and AUD 3.1 million from new sales.

• Cash receipts from customers were AUD 7.9 million in Q2 FY26, up from AUD 4.6 million in Q1 FY26, driving positive operating cash flow.

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

Outlook and guidance

• Focus remains on disciplined cost management and selective investment in growth-critical areas, especially sales, product development, and platform scalability.

• Flamingo-related opportunities expected to contribute more meaningfully to ARR in H2 FY26 and into FY27.

• Emphasis on capital deals in Asia and the Middle East to offset the impact of the VHA contract cessation.

• Full impact of transformation on revenue and KLAS scores expected over 12-24 months.