ImpediMed Limited

Quarterly revenue was a record $3.9 million, up 18% year over year and 8% from the prior quarter. Cash receipts from customers were $3.8 million, up 12% quarter over quarter. Operating cash outflow was $2.9 million, better than the $5.6 million reported in Q1, and the cash balance at 31 December was $18.9 million, equal to 6.5 quarters of operating cash flow. TCV fell from $4.7 million to $4.1 million, while patient testing rose 1% sequentially with a 3-year compound growth rate of 15%. ARR tied to contracts in place at 31 December 2025 was $14.4 million for the 12 months to 31 December 2026, up 15% year over year. Management did not provide formal next-quarter or full-year financial guidance, but said sales should build with the pipeline, conferences, and new market opportunities.

Parmjot Bains framed the quarter as a mix of progress and frustration: the company is building value across BCRL, heart health, and wellness/weight management, but U.S. sales were below expectations. He emphasized that reimbursement has become much stronger, calling 93% national coverage a major milestone and saying SOZO is increasingly viewed as a revenue-generating service line for hospitals. His tone was constructive and determined, repeatedly pointing to a large pipeline, new sales team, new website and microsites, FDA clearance for the bilateral lymphedema algorithm, and a filed 510(k) to support expansion.

McGregor Grant said cash outflow improved to $2.9 million from $5.6 million in Q1, driven by higher cash receipts of $3.8 million, no repeat of a one-off long-lead component payment, and receipt of the $1.2 million R&D tax incentive. Staff costs were $5.3 million versus $4.9 million last quarter, mainly due to redundancy payments, while the cash balance was $18.9 million at 31 December, or 6.5 quarters of operating cash flow. He also noted TCV declined to $4.1 million from $4.7 million because fewer devices were sold and fewer contracts came up for renewal, though renewal pricing was solid at 14% on average and ARR reached $14.4 million, up 15% year over year.

Analysts focused on why U.S. sales lagged, whether revenue growth could accelerate above the roughly 25% rate seen in the first half after NCCN guideline changes, and whether budget constraints made sense if SOZO is a cost benefit. Management said the quarter was “extraordinarily frustrating,” blamed delayed purchase-order signatures and hospital budget pressure, and said the team is still chasing a number of large multisystem deals. On growth, management said it would “hope so” on exceeding the earlier growth rate, citing more than 700 opportunities, a new sales team, 93% reimbursement coverage, and additional upside from heart failure and body composition. They also said SOZO Pro is being used more actively to help close sales and better fit clinical workflows.