Mach7 Technologies Limited

First-half FY26 revenue was $13.7 million, down 23% on PCP, with lower capital license activity cited as the main reason. 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; Dan 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 it expects revenue to be roughly even with last year for FY26, with some dependence on capital deals likely out of Asia and services opportunities, and expects next year to be a growth year as commercial momentum builds.

Teri Thomas framed the half as a deliberate reset intended to rebuild Mach7’s sales engine, sharpen focus, and create “growth by design” with profitability in mind. She emphasized the company’s vision to become the “global imaging EMR,” and repeatedly stressed vendor neutrality, AI enablement, and modular Flamingo offerings as the core of the strategy. Her tone was confident and candid about the disruption, but she said the foundation is now in place and that future growth should follow disciplined execution.

Daniel Lee said the first half was affected by lower capital license activity during the reset, but he highlighted resilient recurring revenue at 85% of total revenue and strong gross margin of 92%. He noted operating expenses fell 6% as cost actions began to flow through, and he emphasized liquidity with $18.5 million in cash, $12.5 million in cash receipts, and 0 debt. He described the financial setup as supportive of improving operating leverage as activity rebuilds in the second half.

In questions, management was pressed on how long the revenue reset will last; Teri said FY26 revenue should be roughly flat versus last year, but she expects FY27 to be a growth year as commercial momentum takes hold. On Flamingo, she said traction should build gradually over the next 2 years, with the main internal indicators being 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 workflows. When asked about UnityVue, she said they have not sold it directly yet, but it remains part of the go-forward strategy.