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Alcidion Group Ltd (ASX:ALC) reported a robust performance in Q4 FY25, highlighted by a significant increase in new sales and a record positive operating cash flow. The company’s stock price surged by 12.5% following these results, reflecting investor confidence. Currently trading at $92.22, InvestingPro data shows the stock trading near its 52-week high of $101.10. With a cash position of $17.7 million and no debt, Alcidion appears well-positioned for future growth.
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Key Takeaways
- Q4 FY25 delivered new sales with a total contract value of $6.7 million.
- 73% of sales are recurring product revenues, indicating stable future income.
- Full-year new Total Contract Value sales increased by 109% year-over-year to $73.8 million.
- The company’s stock price rose by 12.5% post-earnings announcement.
Company Performance
Alcidion demonstrated strong performance in Q4 FY25, driven by substantial new sales and a robust cash flow. The company’s innovative MyaPrecision platform and expansion into new markets contributed to its success. InvestingPro analysis indicates an overall financial health score of "GREAT" at 3.0 out of 5, supporting Alcidion’s focus on healthcare digitization and AI-driven solutions positioning it well against industry trends and competitors.
Financial Highlights
- Revenue from new sales: $6.7 million in Q4 FY25
- Full-year new Total Contract Value sales: $73.8 million, up 109% year-over-year
- Q4 positive operating cash flow: $7.4 million
- Full-year positive operating cash flow: $5.8 million, compared to a negative $7.1 million in FY24
- Cash position as of June 30: $17.7 million, with no debt
Outlook & Guidance
Alcidion expects its FY25 EBITDA to exceed $4.5 million, indicating continued financial strength. The company is progressing with new and expansion opportunities, supported by a solid implementation project pipeline. According to InvestingPro, the next earnings announcement is scheduled for August 20, 2025, which could provide further insights into future performance. Get exclusive access to our detailed Pro Research Report for comprehensive analysis of Alcidion’s financial health and growth prospects.
Executive Commentary
CEO Kate emphasized the company’s unique healthcare solutions, stating, "We firmly believe we’ve got a very unique solution that is acutely focused on tackling healthcare problems." She also noted the global interest in Alcidion’s offerings, saying, "Health care is struggling the world over, and we are definitely seeing interest in what we are doing."
Risks and Challenges
- Implementation delays at key NHS Trusts could impact future revenue.
- Dependence on healthcare digitization trends, which may fluctuate.
- Expansion into new markets like the Middle East poses operational challenges.
These elements highlight Alcidion’s strategic focus and the potential risks it faces in maintaining its growth trajectory.
Full transcript - Alcidion Group Ltd (ALC) Q4 2025:
Kate, CEO/Presenter, Alcidion: Is our presentation, which will cover the three months ended June 30. I’d like to begin by acknowledging the traditional owners of the land from which I’m presenting to you today, which is the Wurundjeri people of the Kulin nation, and the lands from which all of you who are joining me today, are residing on, and I pay my respects to their elders past and present and extend that respect to any indigenous persons joining us on the call today. I’m also joined on the call by our chief financial officer, Matt Jeff. Shortly, we’ll take you through a brief presentation covering the key commercial and financial highlights for the quarter. And then as always, we’ll follow that with a opportunity for q and a.
All attendees will have the opportunity to ask questions at the conclusion of the presentation. If you’d like to ask a question, can you please use the q and a facility at the bottom of your screen, and and we will answer as many as possible. Any questions that are similar in nature, we tend to sort of combine them, so it’s, not repetitive in the questioning. And if we do run out of time or we’re unable to answer your question on the call and you’d still like it to be addressed, please send it through to investor@lcidean.com, and we will seek to address it as soon as possible. Just a reminder to everyone, the webcast today is being recorded, and it will be available on our website later today.
Let’s get into it, Matt. As I indicated in the release, that hopefully many of you have read earlier today, q four has been a very positive end to what’s been a defining year for LCDN and one where the positive momentum in the business has continued to build quarter on quarter. We have demonstrated material progress across all areas of the business, notably the deliverable, of several new marquee contract sales and customer expansions with the accelerated deployment time frames and, as demonstrated by the rollout to Hume. We’ve had exciting developments on our tech road map from my precision, particularly, with the use of AI, the work we’ve been doing with South Tees, but also the continued use of our new newest module in our emergency module, underpinned by a significant improvement in our financial, performance. During the quarter, we signed several contract expansions.
Just for clarity what we mean by contract expansion, that’s the cross sell or upsell of a new module or product to an existing customer. If we refer to a contract extension, is generally an extension of the term of the contract, to be renewed into, further or longer periods. So during the quarter of note was the expansion of our contract with Northumbria for the deployment of a modern EPR solution, which will now include our widely adopted clinical communications module. And for those of you who followed us for a while, you’ll remember we would previously have referred to that, capability as SmartPage. Additionally, we delivered several financial records in the quarter, including, and for the year, including our highest quarterly period for cash receipts, which also culminated in our strongest ever quarter for positive operating cash flow.
In line with our continued strong trading, we further upgraded our EBITDA guidance in June with FY twenty five EBITDA to exceed 4 and a half million, which will be a record result for the business. We’re now seeing real momentum around the Alcidion business, and we’re increasingly confident in the value position, proposition that we have and our ability for our customers to take advantage of that and for that to present and deliver on the opportunity for Alcidion as we move forward. It goes without saying that the health care system in Australia and abroad is only gonna face further strain as population can continues to age. Those patients in care, with longer life expectancy are in some cases living those longer lives with complex conditions, and that is impacting the health care system worldwide. We firmly believe we’ve got a very unique solution that is acutely focused on tackling that problem in particular, but also being the platform manner in which we, deploy it allows us to continue to grow and expand the capability with each of our customers so that not just patient flow is the focus, but from starting the journey with us in patient flow, they can continue to evolve their use of the platform and tackle many of the other challenges that we’re seeing in health care at the moment.
Talking a little bit more about the financial highlights, looking at some of those that were outlined in the release this morning. During the quarter, we delivered new sales with a combined total contract value of 6,700,000.0, and approximately 73% of that are recurring product revenues, the rest obviously being implementation revenues that are generally related to the implementation of our products. As I mentioned earlier, most of those were new, were contract expansions whereby we either cross sold or upsold new members, modules to existing customers. We finished f y twenty five with new TCV sales for the year of 73,800,000.0. That’s up a 109% on the prior calendar period, a record for the business and demonstrating that continued validation of our product offering, and that go to market strategy that we have.
We delivered q four customer cash receipts of 22,400,000.0, which also includes that upfront capital license payment from North Cumbria. The strong q four receipts helped drive q four positive operating cash flow of 7,400,000.0, which is also a record result for the business in any quarter. On the costs and cash outflows side, I thought it’d be worthwhile to mention a couple of points, as I speak to the future periods and, you know, worth our shareholders’ understanding. Our staff cash costs increased slightly in this quarter per you know, compared to the prior few quarters. And that is due to us paying half of the one off short term incentive bonuses achieved that were achieved during the year.
The balance of those will be paid in q one f y twenty six. Previously, the majority of that, if they were payable, would have been paid, fully in q one. We also have a 4,300,000.0 outflow, which relates solely to VAT and GST tax payment, tax payments, VAT and GST. They were made during the quarter, so we made those in q four, and they aligned to the significant, you know, customer cash receipts we obviously collected in that quarter. And those, having sometimes in the past been paid in q one depending on, where they land.
So, you know, with that payment into q four, we expect we’ll have lower overall payments in q one, which is a positive for the business as we head into what has historically been a lower billing period for Alcidion. For the full f y twenty five year, we generated positive operating cash flow of 5,800,000, which is a material improvement compared to the negative operating cash flow of f y twenty four of 7,100,000.0. As at the June 30, we had 17,700,000.0 of cash and no debt. Just, giving you sort of a a a reflective view of, the quarterly new sales. On the left hand side, and you’ll see we whilst we had a very strong q three result, pleasingly, over the course of the year, we’ve steadily signed new customers in almost every quarter and subsequently gone on to expand those contracts in a short space of time.
And I’ll talk a little bit more about some of those q four deals and how they expanded in the next slide. On the right hand side, it clearly shows the seasonality in our cash receipts, and the material uplift we typically see in the second half of the year, this year, of course, being no exception to that. As I outlined and mentioned in the opening comments, over the course of q four, we were pleased to expand several important and long term customer relationships. At North Cumbria, one of which is, as many of you know, our flagship one of our flagship EPR deployments, but the most recent, they are deploying the Myo Precision platform with a number of our modules. That contract was expanded to include the clinical communications and task management capability, which was not part of the original contract.
And with that expansion, the total TCV, for that contract will now exceed 39,000,000 over a ten year period. The implementation phase of North North Cumbria, which is expected to take around eighteen months from beginning to end, is going well. The Alcidion staff are working closely with North Cumbria staff and and working through that transition process, so we’re very happy with how that is progressing. As along with our other e r APR deployments as well, was very pleased to see South Tees go live with outpatient’s capability in the last twenty four hours. In Australia, we expanded our partnership with the Hume Rural Health Alliance to include additional sites using additional modules.
So there is 15 hospitals as part of that deployment. Only two of them originally were using the full capabilities of our access and command center, and flow capabilities. They have now, due to the success of the first rollout, expanded that contract to take on, those modules through all of the hospitals in that region. You’ll recall we signed Hume in July with the first site being operational by October, which is the fastest ever rollout of the MyaPrecision platform. And, you know, that capability within our implementation team is really what allows our customers to achieve the value from our solutions really quickly and then position us to then go in and sell them additional capabilities.
We also expanded our relationship with Northern Territory Health, who’ve been a long standing customer of Mya having had the original Mya platform, having upgraded to Mya Precision. They now, have taken on an additional product that is actually part of our partner ecosystem. So it’s really around messaging team to team messaging. But it’s a really excellent, demonstration of how the interoperability of MyaPrecision can allow us to bring partners into our ecosystem and enhance the overall offering that our customers, are getting and the overall benefits that they’re getting from deploying the MyaPrecision platform. One thing I really want to highlight was the way in which we’re able to generate those new TCV sales in the quarter.
And and I mean the diversification of the sales platform across new customer opportunities and expansion of existing customers, the modular sale versus a new customer taking the platform. Throughout f y twenty five, we’ve achieved a good mix of both of those, which just goes to continually, continue to validate one of the things that I’ve probably said many times on these webinars, and that is that our core value proposition is our ability to deliver a solution that meets the needs of our customers irrespective of their solution requirement or budget budget. It’s a platform with modules that can be interchanged and mixed and matched as the customer needs evolve. And that is, you know, something that really places Alcidion quite uniquely, in respect of, digital health deployment. As we, just looking forward and as we announced in June, we confirm our guidance of f y twenty five EBITDA to exceed 4 and a half million.
Whilst we have delivered several material new contract wins in f y twenty five, we also continue to progress new and expansion opportunities with increasing momentum. And that makes a lot of sense when you think about it. You when as you start to build on the number of customers that have the MyoPrecision platform, you are building the base from which you can then go and sell additional upsell to customers. Furthermore, we’ve got a solid book of Mayer implementation projects in play, notably North Cumbria and Haldar as well as, moving through the final stages of Nalan. Peninsula is ongoing in terms of those deployments, and they’ll continue on through FY ’26, particularly, North Cumbria, obviously.
Our full year results will be released on the August 28, at which point we’ll give you an update, we’ll provide you an update on the both what we’ve achieved in terms of revenue and EBITDA in FY ’25, but also the contracted revenue, that we start the year with for FY ’26. So I hope that has given you a good, overview of the results for q four. Apologies for my voice being a little croaky today. I’m subject to some of these winter lurgies that are going on. But I’m very happy now to take any questions, and we have received also a few questions prior to the webinar.
Matt Jeff, Chief Financial Officer, Alcidion: Thank you, Kate. Thanks for the update. So, look, we’ve received a number of questions upfront, and I’ll go through those first. And we have a flurry of online questions that have to get through as well. So I’ll ask the first question that we got early on.
Are you able to provide a detailed update on Hume, Nalan, and Bayside? I expected more sales in h two based on a pretty incredible number coming out of Alfred Health. An update on the overall market would be appreciated.
Kate, CEO/Presenter, Alcidion: Okay. So, first of all, I think we’re talking about, yeah, deployments. As you can see, we’ve had significant sales in q four. They are not individually announceable to the ASX from a value perspective. We we operate I mean, the guidance from the ASX is around 10% of total revenue, so you’d be thinking that, you know, our contracts would need to be around the 4,000,000 to be able to do that.
You can argue sometimes about the strategic nature of it, but, typically, we’re probably targeting around contracts over $4,000,000 or more. And yet we’re able to achieve significant revenue, as we as we progress. As you also probably all know, most sales, not all, but most sales, if they’re new sales, require a tender process, so that takes some time for our customers to go through those process. We continue to see very positive activity and opportunity in the market, and, you know, I’m looking forward to continuing, to grow our presence in those markets.
Matt Jeff, Chief Financial Officer, Alcidion: Actually, answered one of the online questions there, which was around the materiality of announcements to the ASX. The second question we have is how many tender opportunities remain in The UK that you believe Alcidion has the competitive edge to win? And what opportunities in different countries are currently being explored? Thanks. Keep up the good work.
Kate, CEO/Presenter, Alcidion: There continues to be tender activity across all of our markets. The UK EPR tenders continue. And whilst, obviously, they’re getting towards the end of those, there is still tenders in market. And where we believe we’ve got a competitive position, we will be bidding. That isn’t all of them, as I’ve indicated on these webinars before.
But as you also probably all know, they take a long time to go through the process. We’re equally fact focused on platform opportunities and the continued increasing demand for our technology to assist with patient flow and hospital in the home. We also continue to look at opportunities beyond our existing markets, but it’s important to strike the balance appropriately because, you know, the The UK and Australia are are very continue to be very active in opportunities for us.
Matt Jeff, Chief Financial Officer, Alcidion: Thanks, Kate. And the next question we have is regarding some UK implementations. Recent board meetings of both Southampton and Tameside NHS Trusts have noted delays in their respective Alcidion implementations. Can you please account for this, especially as our three year Southampton contract signed in December 22 nears its end?
Kate, CEO/Presenter, Alcidion: So UHS deployment has seen a number of delays, most of them not to do with us. They are moving from one system to another rather than from paper to a new system, and sometimes that creates more change management needed on the ground. But they’re on track to go live early September, And they’re already in the process of extensing exercising their extension rights for that. So looking forward to that, being able to report on that probably towards the end towards the next quarterly. Tame side, have not had the staff to raise, or resources to implement, and that’s wholly on them.
And we are ready when they are, but, you know, sometimes, you know, they they it is about the priorities in in respect of deployment, and that be that part of it is somewhat out of our hands.
Matt Jeff, Chief Financial Officer, Alcidion: Thanks, Kate. The next question is for me, actually. I note in your results that 27% of revenue is implementation, mostly nonrecurring, I assume. Can you give an indication of what percentage of your cost base is is associated with implementation and what portion is associated with steady state? So the first thing I’ll say is so the 27% number relates to the implementation revenue component of the q four new sales of 6,700,000.0, not our whole revenue base.
But to answer the question generally, around 15% of our staff base work directly on delivery projects. I’ll go to the next question. Can you provide an update on your US partnership with Genie Solaire as announced on LinkedIn? And if there are any leads or opportunities that have arisen so far?
Kate, CEO/Presenter, Alcidion: Thanks. Well, first of all, Jenny is based in The US, but, we have really engaged her primarily to focus on a go to market strategy for The Middle East where she has done a great deal of work. But we will be using her contacts to identify US opportunities if they arise as a sideline from that. We’ve only just engaged her. She’s working with us initially on the go to market strategy, and that takes some time, but very happy with the progress that we’re seeing there thus far.
Matt Jeff, Chief Financial Officer, Alcidion: Okay. So thank you, Kate. And on to the online questions we’re receiving this morning. Are we starting to see some of the positive impact from the new in NHS digital health funding initiatives even if in the pipeline?
Kate, CEO/Presenter, Alcidion: What we’re seeing is a continued commitment in the NHS to digitization. So there are still tenders coming to market. What we’re waiting for though, the ten year plan’s been announced, and that’s fantastic. Gives us a really good indication of their continued intention to invest in digital. What we’re waiting for is phase two of that ten year plan, which is an implementation plan due out in September, which is gonna give us a bit more of an indication of where they’re going to focus.
In the meantime, we are continuing to see activity in The UK.
Matt Jeff, Chief Financial Officer, Alcidion: Okay. We have an Australian based question here. With WA and Tasmania both looking at EMR solutions, solutions, do you feel there has been a recent focus and increase in spending being made available for enterprise health tech in Australia?
Kate, CEO/Presenter, Alcidion: I think we’re seeing an uptick on it. I think we’ve, post we we had a bit of challenge post COVID, and there was a lot of constraints on the health care system in Australia in particular. And we’re starting to see, investment in many different places, and, you know, WA and and Tassie are certainly out to market, but we’re seeing a lot of activity in Queensland. I was just up there last week. The budget there is very focused on, investment to tackle very particular areas of which patient flow is one of them.
So, yes, in short, there is certainly an increased focus on digital health investment in Australia of late.
Matt Jeff, Chief Financial Officer, Alcidion: K. Thank you, Kate. I think the next question could be for me. Can you please remind us what the quantum of the upfront capital license receipts is for North Cumbria? In addition, what quant quantum of implementation services cash receipts were received in the June?
So the the upfront capital license is around I’ll talk in Australian dollars, not sterling, is is around $8,000,000 Aussie, and that was received in the quarter. With respect to the implementation services, implementation is built based on milestones. And as of the June, we we had billed around 15 percent of the total implementation for NCIC, but those milestones will continue to be billed as we move through the implementation process over the next eighteen months or so. Sorry. I’m just trying to figure out the question here.
What is the status of the APR decisions of the NHS trust that our city and are involved in the bidding process? Think you’ve answered that.
Kate, CEO/Presenter, Alcidion: Well, I mean, in reality, I don’t know what the status is until sometime at such point in time as we are given an indication that we are preferred provider. If that information is made available to our city and that is appropriate for the market to be, made aware of, we will do that at the time. But other than that, I need you know, I’m waiting to for these processes to go through.
Matt Jeff, Chief Financial Officer, Alcidion: Thanks, Kate. Yeah. There’s another question very similar to that, which I think you just answered. What do you expect the GST slash VAT amount will be in FY ’26? Look.
It’s very much dependent on on on how much we bill. You know, keeping in mind The UK has a very high VAT rate at 20%. Australia is at 10%. So the more we bill in The UK, the more VAT we will pay. I think that answers the question.
Kate, CEO/Presenter, Alcidion: It just depends on how much we sell, really.
Matt Jeff, Chief Financial Officer, Alcidion: Yeah. Right. And all and also the timing as well of when those bills come through. And I think we’ve answered all the open questions Online, we have oh, actually, one more. Here, are there any specific product lines or modules that are seeing the most interest both in The UK and Australia?
Are there any gaps in the offering that you’re looking to fill?
Kate, CEO/Presenter, Alcidion: Good question. I mean, in Australia, definitely, there is a focus on flow, access, and command, but also hospital in the home or virtual care, although those ones are a bit bit slower to take up. So, we’re seeing a definite focus in this market. I think it’s pretty spread, in The UK. Obviously, it’s the EPR.
There’s a lot of interest in our clinical noting and e noting capability because the markets are slightly different in the approach that they take. We’re seeing significant interest in ED in The UK. So, it’s a bit more clinical in nature in The UK, perhaps, than it is here.
Matt Jeff, Chief Financial Officer, Alcidion: Thanks, Kate. Look. We have a number of questions asking about, forward forward forecasts for FY ’26. I think we will be talking about that at the August when we release our full year results. So not the right forum for that one, I don’t think.
And then we’ve got one last question, Kate, which is in terms of demographics of our business, are we still too heavily reliant on The UK and Australia? And are there plans or prospects for business in the in the Asia regions?
Kate, CEO/Presenter, Alcidion: Thanks. Look, we’re evenly spread in terms of where our revenue comes from, you know, sort of half from The UK, half from ANZ. And we’ve but we do remain active, which I think I’ve talked about answering some of these questions, active, in those markets, and there’s a significant opportunity there that we don’t wanna be drawn away from. However, we are looking at Canada and Middle East as I’ve indicated, and Southeast Asia remains an opportunity as well. I think we need to be judicious and strategic in what we are pursuing, to ensure that we, you know, are focused on the very significant opportunity that we have in ANZ and UK, but we are definitely turning our mind to to opportunities in new markets.
As I said at the outset, health care is struggling the world over, and we are definitely seeing interest in what we are doing, in markets outside those that we currently operate in. So I look forward to that. I think that finishes our q and a session for today.
Matt Jeff, Chief Financial Officer, Alcidion: Very much. Yep.
Kate, CEO/Presenter, Alcidion: Thank you very much for attending. Thank you very much for your continued support, of Alcidion. Look forward to updating you, towards the August with our full year revenue and, EBITDA results. Thanks again.
Matt Jeff, Chief Financial Officer, Alcidion: Thanks, everybody.
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