Mach7 Technologies Limited

Mach7 reported first-half FY26 revenue of $13.7 million, down 23% on PCP. Recurring revenue was $11.6 million, down 8% from PCP, and represented 85% of total revenue. Total CARR was $26.1 million and ARR run rate was $23 million; Daniel Lee said those were down 12% and 2%, respectively, on a constant currency basis. Gross margin was 92%, operating expenses decreased 6%, cash receipts were $12.5 million, and the company ended the half with $18.5 million in cash and 0 debt. Management said sales orders totaled $10 million in contract value, with 85% of sales orders recurring, and product revenue was split 55/45 between VNA and the eUnity Viewer. For the second half, Teri Thomas guided to revenue roughly even with last year, noting this depends partly on capital deals likely out of Asia and services opportunities; she said next year should be a year of growth.

Teri Thomas framed the period as a deliberate reset designed to rebuild Mach7’s commercial engine, sharpen focus, and position the company as a “global imaging EMR.” Her tone was confident and upbeat about the long-term opportunity, even while acknowledging that transformation creates disruption and that sales cycles of 12 to 24 months delay visible impact. She emphasized disciplined growth, a stronger customer-centered operating model, and early evidence that Flamingo and the new commercial approach are resonating.

Daniel Lee said first-half results were affected by lower capital license activity during the reset, but emphasized the business still has a resilient recurring base and strong margins. He cited 85% recurring revenue, 92% gross margin, a 6% decrease in operating expenses, $12.5 million in cash receipts, and $18.5 million in cash with no debt. He also noted that adjusted EBITDA and net profit after tax were pressured by the revenue mix shift, while the cost base realignment should create operating leverage as activity rebuilds in the second half.

Analysts asked how long the reset-driven revenue decline would last, and Teri said FY26 revenue is expected to be roughly flat versus last year, with growth more likely in FY27. On Flamingo, she said modular offerings should expand quarter by quarter over the next 2 years, with internal tracking based on how many deals include Flamingo elements and the win rate on those deals. She also said AI is mostly an opportunity rather than a threat, and that Mach7 is embracing it through partnerships and customer support. In response to a question on eUnityVue, she said Mach7 has not sold it directly yet, but is working through an engagement to make it referenceable and expects a different answer in the future.