ImpediMed Limited

Revenue for the quarter was a record $3.9 million, up 18% year on year and 8% from the prior quarter. Cash outflow was $2.9 million, better than expected and down from $5.6 million in quarter 1, with cash receipts rebounding to $3.8 million. Staff costs were $5.3 million versus $4.9 million in the previous quarter, partly due to redundancy payments. TCV declined to $4.1 million from $4.7 million, while renewal pricing averaged 14%. Contracts in place at 31st December 2025 are expected to generate ARR of $14.4 million for the 12 months to 31st December 2026, a 15% year-on-year increase. Cash on hand was $18.9 million, equal to 6.5 quarters of operating cash flow. For the rest of the financial year, management said it is focused on converting more than 700 validated opportunities, expanding reimbursement toward 100% for BCRL, and building sales in heart health and wellness/weight management.

Parmjot Bains framed the quarter as a mix of progress and frustration: the company is making strong advances in reimbursement, product expansion, and new market positioning, but U.S. sales were below expectations. He repeatedly stressed that SOZO is becoming a service-line revenue opportunity for hospitals, not a cost item, and said the company is now executing against a large pipeline rather than building the market from scratch. His tone was optimistic but candid, especially about short-term hospital budget pressure and the slow pace of sales conversion.

McGregor Grant focused on cash discipline and a better-than-expected cash result. He said cash outflow improved to $2.9 million, driven by higher receipts of $3.8 million, the absence of a one-off component payment, and the expected $1.2 million R&D tax incentive, while cash on hand was $18.9 million or 6.5 quarters of operating cash flow. He also highlighted record revenue of $3.9 million, the 15% increase in ARR to $14.4 million, 14% average renewal price increases, and noted that stronger Australian dollar effects reduced reported growth. Staff costs were $5.3 million, up from $4.9 million, due to redundancy payments, and he reiterated an ongoing cost-control program aimed at cash flow breakeven.

Analysts pressed management on why BCRL growth was not accelerating faster despite reimbursement gains, and management said it hopes revenue growth can move above the recent 25% pace because the pipeline is now stronger and the new sales team is in place. Management was also challenged on why budget constraints remain an issue if SOZO creates savings for hospitals; Parmjot Bains said hospitals still evaluate purchases against budget allocations and that the team must keep reinforcing the revenue-generating service-line message. Questions on body composition commercialization, competitor devices, Apple Health integration, and home use for heart failure led management to emphasize clinical settings first, the device’s FDA-cleared prescription status, and that home-based pathways are only being explored, not launched.