Highlights

  • Q1 FY27 revenue was US$6.4 million, up 1.6% on the prior corresponding period and 60.5% on Q4 FY26.
  • Gross margin improved to 45.2%, up 2.8 percentage points on the prior corresponding period.
  • GLP-1 and specialty medicine programs made up 41% of revenue, up from 23% a year earlier.
  • The CY27 pipeline includes close to 110 opportunities across more than 40 clients.

Adheris Health Limited (ASX:AHE) has released its Q1 FY27 quarterly activities report and Appendix 4C for the quarter ended 30 September 2026. CEO and Managing Director John Ciccio said the quarter showed steady progress, with revenue, gross profit and margin all improving on both the prior year and the prior quarter.

Q1 FY27 Financial Performance

Revenue was US$6.4 million, up 1.6% on the prior corresponding period and 60.5% on Q4 FY26. Gross profit rose 8.4% to US$2.9 million, and gross margin improved to 45.2%, supported by higher revenue, lower platform costs and better program execution. Underlying product margin was 52.2%.

Net operating cash outflow was US$3.1 million, as customer receipts of US$3.2 million reflected lower opening receivables and longer collection cycles. Cash was US$3.5 million at 30 September 2026, which management said was in line with expectations. The company said outflows were elevated by payment timing and that it does not expect to need additional funding.

Revenue Mix and CY27 Pipeline

GLP-1 programs accounted for 19% of revenue, up from 6%, and specialty medicine 22%, up from 17%. General medicine remained the largest category at 39%. A top-five pharmacy partner completed technology integration and launched its first digital programs, and a contract was signed for the first program using the AI Patient Concierge.

As at 23 October 2026, the CY27 pipeline included close to 110 opportunities across more than 40 clients and almost 90 brands, with no single program or brand above 10% of pipeline value. More than half of pipeline value relates to THRiV and digital engagement programs. Since 21 August 2026, weighted pipeline value rose 25.1% and new business opportunities increased 23.2%. Mr Ciccio described CY27 budget planning as the most important selling season since the company's strategic reset.

Corporate and Governance Updates

Adheris is changing its financial year end from 30 June to 31 December, with a six-month transitional period to 31 December 2026. Its functional currency changed from Australian dollars to US dollars from 1 July 2026. Alison Hale became Chief Financial Officer on 1 September 2026.

EBOS Group exited its 8.5% stake on 1 October 2026, with half acquired by directors and managers and the rest by Jencay Capital. A large pharmacy partner will stop participating in sponsored programs from 1 January 2027, though this is not expected to affect FY27 budgeted revenue. Separately, Mindsprint has filed a claim against Adheris LLC seeking at least US$2.3 million, which the company disputes and intends to defend. The AGM will be held on 18 November 2026.

Key Takeaways

  • Revenue and gross margin improved on both the prior year and prior quarter.
  • GLP-1 and specialty programs are becoming a larger share of revenue.
  • The CY27 pipeline is growing, with a tilt toward higher-margin solutions.
  • Cash outflows and the Mindsprint claim are areas to monitor.