Highlights

  • Customer receipts for the 12 months to June 2026 increased 12.6% to A$9.53 million, compared with A$8.46 million in the previous corresponding period.
  • The company completed key software development milestones, including SaaS platform upgrades, AI integration and new healthcare productivity solutions.
  • Operating and investing cash outflow for the 12 months declined 30% to A$812,000, supported by lower operating expenses and AI-driven productivity improvements.
  • SaaS recurring revenue represented 31.2% of Annual Recurring Revenue (ARR), up from 27.8% in FY2025.
  • Global Health outlined plans to focus on revenue scaling, international expansion and continued EBITDA-positive operations during FY2027.

Global Health Limited (ASX:GLH) released its June 2026 Quarterly Business Activity Report and Appendix 4C, highlighting progress in completing a multi-year technology transformation, expanding its software-as-a-service (SaaS) platform and improving operating cash flow. The company also reported higher customer receipts, continued adoption of artificial intelligence across its operations and outlined a strategy centred on scaling recurring revenue following approximately A$10 million of technology investment over the past four years.

Global Health shares were trading flat at A$0.065 during the morning session on 23 July 2026. The stock remains down 18.75% over the past year.

Technology Transformation Reaches an Important Milestone

The June quarter marked the completion of several software development initiatives that form part of Global Health's transition from traditional on-premises software to a multi-tenant SaaS platform.

The company completed the technology upgrade of its three client/server healthcare provider applications into a single configurable SaaS platform designed to support future growth.

Among the major developments completed during the quarter was the integration of the Heidi Scribe artificial intelligence platform into both the MasterCare Plus SaaS platform and the MasterCare Electronic Medical Record (EMR) on-premises application. The company said compliance requirements had been completed and the integrated solution had been released to the market.

Global Health also completed the integration of its HotHealth patient portal and ReferralNet Secure Messaging platform with the Best Practice Practice Management System, with the upgraded solution now commercially available.

In addition, development of the upgraded Lifecard Personal Health Record platform reached final quality assurance testing and is expected to be released during August 2026.

The company also completed and launched its Theatre Management and Bed Flow productivity platforms for overnight and day hospitals.

Management indicated that these developments complete an important stage of the company's technology investment and provide the foundation for a greater focus on revenue expansion during FY2027.

Customer Receipts Continue to Increase

Customer receipts for the twelve months to June 2026 reached A$9.532 million, representing an increase of 12.6% from A$8.463 million recorded during the corresponding period of FY2025.

Quarterly customer receipts totalled A$2.519 million during the June quarter.

The company noted that its recurring SaaS revenue continued to increase as more customers adopted subscription-based services.

SaaS recurring revenue accounted for 31.2% of Annual Recurring Revenue, compared with 27.8% during FY2025.

Management indicated that the continued migration toward monthly recurring revenue reflects the company's broader transition from perpetual software licensing to a SaaS-based operating model.

This recurring revenue structure is expected to provide greater revenue visibility as customer adoption expands.

Cash Flow Improves Despite Continued Investment

Global Health reported that operating and investing cash outflow for the twelve months to June 2026 declined to A$812,000, compared with A$1.147 million in FY2025, representing a reduction of approximately 30%.

According to the company, the improvement primarily reflected lower staff and contractor expenses as artificial intelligence was adopted across multiple operating functions.

AI tools have now been implemented across sales and marketing, software design, software development, testing, customer onboarding and customer support activities.

Management believes these productivity improvements have reduced operating costs while maintaining software development progress.

The company also stated that positive cash flow generated during the period was used to redeem A$100,000 of Convertible Notes.

For the June quarter itself, Global Health generated A$70,000 of positive net operating cash flow.

Cash used in investing activities was nil during the quarter, while financing activities contributed A$197,000 after borrowings of A$422,000, repayment of borrowings of A$125,000 and repayment of A$100,000 of Convertible Notes.

Cash and cash equivalents increased to A$739,000 at 30 June 2026 from A$475,000 at the end of the March quarter.

Artificial Intelligence Expected to Lower Future Costs

Management outlined additional operating cost reductions expected from further adoption of artificial intelligence.

Research and development expenditure is budgeted to decline by approximately A$700,000 to A$1.1 million during FY2027, compared with A$1.87 million during FY2026.

The company also expects productivity improvements from artificial intelligence to generate an additional A$500,000 reduction in operating expenses during FY2027.

According to Global Health, AI is now contributing across nearly every operational function and is expected to remain an important component of future product innovation as well as internal efficiency improvements.

The company indicated that future software innovation will increasingly be AI-driven, with the objective of improving customer productivity while supporting scalable business growth.

SaaS Deployment Continues Across Customer Base

Customer migration toward the new SaaS platform continued throughout the June quarter.

Five new healthcare sites commenced operations using the MasterCare Plus Case Management SaaS platform.

In addition, three existing customers migrated from the legacy on-premises MasterCare Electronic Medical Record and Practice Management System to the MasterCare Plus SaaS environment.

Management expects these migrations to continue as additional customers adopt the new platform.

The company's strategy combines cloud deployment, artificial intelligence and recurring subscription revenue as the primary growth drivers for future periods.

International Expansion Forms Part of FY2027 Strategy

With the core SaaS platform now commercially available, Global Health plans to shift greater attention toward revenue growth during FY2027.

The company intends to pursue expansion into overseas markets through its cloud-based healthcare software offerings together with AI-enabled productivity tools.

Management noted that SaaS platforms can be delivered internationally through online sales channels and low-touch onboarding processes, reducing implementation complexity compared with traditional software deployment.

The company expects international revenue to complement domestic sales from FY2027 onwards.

Global Health also believes healthcare providers are increasingly seeking technology solutions that improve productivity while managing ongoing funding and staffing pressures.

Management stated that the growing commercial availability of artificial intelligence provides opportunities to address these challenges by improving operational efficiency across healthcare organisations.

EBITDA and Profitability Objectives

The company reported that it achieved positive cash-basis EBITDA during both the March and June 2026 quarters after expensing all research and development costs.

Building on reduced operating expenses and the completion of major technology development work, Global Health has set an objective of maintaining EBITDA-positive operations and positive cash flow throughout FY2027 and beyond.

The company expects lower research and development expenditure, higher recurring SaaS revenue and increased operating efficiency to support this objective.

Management also noted that approximately A$10 million has been invested over the past four years to establish the current SaaS product suite, allowing future efforts to focus more heavily on commercial expansion rather than major platform redevelopment.

Convertible Notes and Financing Position

Global Health is reviewing several options regarding its Convertible Notes, which mature during June and July 2027.

Possible approaches include repayment from future free cash flow or replacing the Convertible Note debt with lower-cost non-convertible borrowings.

At the end of June 2026, the company reported total financing facilities of A$2.032 million, all of which were drawn.

These facilities include Convertible Notes, equipment finance arrangements, insurance premium funding and an unsecured corporate credit card facility.

The company reported no unused financing facilities at quarter end.

Required disclosures accompanying the Appendix 4C also noted that operating expenses for the June quarter included product manufacturing and operating costs of A$844,000, staff costs of A$1.322 million, administration and corporate costs of A$173,000, advertising and marketing expenditure of A$26,000 and leased asset costs of A$40,000.

Payments to related parties during the quarter totalled approximately A$81,800, relating primarily to directors' remuneration.

What Could Investors Watch Next?

Global Health has completed several technology initiatives that underpin its transition to a SaaS-focused healthcare software provider.

Attention is now likely to shift toward the commercial rollout of recently completed platforms, further customer migration to MasterCare Plus, expansion of recurring subscription revenue and execution of the company's international growth strategy.

Investors may also monitor the August release of the upgraded Lifecard Personal Health Record platform, continued adoption of AI-enabled healthcare solutions, growth in SaaS recurring revenue, and management's objective of sustaining EBITDA-positive operations and positive operating cash flow throughout FY2027.

While the company continues to explore financing options for Convertible Notes maturing in 2027, management expects lower operating expenses, reduced research and development spending and increased recurring revenue to support future financial performance.