Pro Medicus Limited

For FY '25, management said revenue was up just under 32%, profit after tax was up approximately 40%, underlying EBIT was around 40% higher, and margins increased from the mid-72% range to 74%. Retained earnings increased about 36%, and the company announced a fully franked dividend of $0.30 per share for the half, up 37.5%. During the year, Pro Medicus won 7 contracts totaling $520 million at minimums, renewed 2 large contracts worth $130 million, and recorded $39 million of upgrades with existing clients. Forward revenue increased from the low-$600 million range to $948 million, and management described it as a 5-year minimum revenue base with additional upside from exam growth.

Sam Hupert framed the year as the strongest in company history, pointing to broad-based progress across new sales, renewals, upgrades, implementations, and product development. He stressed that Pro Medicus’ cloud-first streaming architecture, fast implementations, and transaction-based model continue to differentiate it from legacy competitors. His tone was confident and expansive, especially around the opening of new adjacent markets such as cardiology and pathology.

Clayton Hatch focused on the mechanics of revenue recognition and contract economics. He explained that upgrade deals like NYU’s $24 million are partly recognized upfront through data-migration milestones, while exam revenue is spread over the contract term; for example, a $15 million deal over 5 years equates to $3 million per year at minimum. He also clarified that billing is largely quarterly in arrears for exam activity, with some professional services billed upfront, and reiterated the long-duration, subscription-like nature of the model.

Analysts focused heavily on digital pathology, AI, cardiology, and how much room remains in the installed base. Management said pathology is still nascent, the market size is uncertain, pricing has not been finalized, and uptake should be gradual, though the product is already in soft-launch discussions and will use the existing R&D budget. On cardiology, management sized the opportunity at roughly 15% to 20% of radiology by value depending on the organization, and said the first ultrasound-focused step is material. Questions on legacy systems, remote scanning, and funding pressure drew the answer that older systems are increasingly strained by larger imaging datasets, while hospital cost optimization may actually favor Pro Medicus’ efficiency proposition.