Key Highlights

  • HY26 Revenue rose 17% to AUD 16.0 million.
  • Underlying EBITDA increased to AUD 1.27 million from a low comparison base.
  • Radiology services delivered the larger contribution to growth.
  • Currency, customer concentration and regional execution remain important risks.

ImExHS (ASX: IME), the ASX-listed radiology software and imaging-services group operating primarily across Latin America, has quietly delivered one of the more interesting turnarounds among small-cap healthcare technology names on the exchange. Half-year results released in early September 2026 show a Business moving from thin profitability to meaningfully improved margins, underpinned by an expanding artificial-intelligence product suite and a new public-sector contract win in Mexico — even as the company flags real near-term uncertainty in one of its core markets.

For the six months to 30 June 2026, ImExHS reported revenue of AUD 16.0 million, up 17% year-on-year in reported terms (13% at constant currency). More striking was the swing in profitability: underlying EBITDA came in at AUD 1.27 million, a 311% increase on the prior corresponding period, albeit off a low base. Annual Recurring Revenue (ARR) — a key metric for a software-and-services business — rose 12% on a reported basis to AUD 36.8 million, though it was roughly flat in constant-currency terms, reflecting the impact of currency movements across the company's Latin American footprint.

What the Numbers Show

The result was driven by two segments performing quite differently. ImExHS's radiology services division, known as RIMAB, generated revenue of AUD 11.2 million, up 24% year-on-year, with ARR climbing 20% to AUD 25.0 million and underlying EBITDA improving sharply to AUD 1.1 million from just AUD 0.3 million in the prior period. The software division, by contrast, generated AUD 4.8 million in revenue against ARR of AUD 11.8 million, but underlying EBITDA there fell to AUD 0.8 million from AUD 1.3 million previously — a reminder that growth across the group's various markets has not been uniform. Corporate costs improved to AUD 0.6 million from AUD 1.3 million, helping the group-level EBITDA swing so sharply higher.

The company's cash position eased to AUD 2.0 million at 30 June 2026, down from AUD 3.3 million at the end of December 2025, while Debt was reduced to AUD 0.25 million from AUD 0.5 million. For a company of ImExHS's scale, cash discipline and the pace of converting contracted revenue into billed revenue remain important variables to watch — management explicitly noted uncertainty in this conversion process, particularly given Liquidity challenges reported across parts of Colombia's healthcare sector, one of the company's established markets.

The AI and Mexico Story

A central plank of ImExHS's pitch to investors is its Aquila+ platform, which now carries ISO 9001 and ISO 27001:2022 certifications and has moved eight proprietary artificial-intelligence agents into various stages of production, with two currently live. The company has also expanded its patient portal user base to 2.9 million, up 66% year-on-year, and grown its partner network to 47 partners across 13 Latin American countries — evidence of a genuine regional distribution strategy rather than a single-market operation.

On the contract front, ImExHS secured a public tender win in Zacatecas, Mexico, worth approximately AUD 384,000 in annual recurring revenue — a relatively modest sum in absolute terms, but one management has positioned as validation of its ability to win public-sector healthcare imaging contracts in new geographies. The company's contracted-but-unbilled ARR pipeline grew 106% year-on-year to AUD 4.40 million, equivalent to about 12% of total ARR, suggesting further revenue growth is contracted but not yet reflected in current billings.

FY26 Guidance

Management has guided to full-year FY26 revenue of AUD 31.4 million to AUD 33.7 million, implying growth of 8% to 16% on the prior year, and underlying EBITDA of AUD 2.4 million to AUD 2.7 million, representing an increase of 48% to 66%. The wide guidance range itself is telling: management has attributed it to uncertainty around converting the growing contracted-but-unbilled pipeline into recognised, billed revenue, a risk Factor tied in part to the healthcare funding and liquidity environment in Colombia.

Why Investors Are Watching

ImExHS occupies a niche that has drawn growing interest as artificial intelligence moves from pilot projects to production use in medical imaging: a listed, revenue-generating radiology technology business with genuine scale across multiple Latin American healthcare systems. Its dual-segment model — combining software licensing with direct radiology service delivery through RIMAB — gives it recurring revenue characteristics alongside operational Leverage as AI tools reduce the cost of interpreting and processing medical images. The EBITDA inflection in this half-year result, even from a small base, is the kind of signal small-cap investors look for as evidence that a scaling technology business is beginning to convert growth into profitability.

The company's relatively low market profile compared with larger ASX-listed healthcare technology names means moves in its share price can be more pronounced on newsflow, whether from contract wins, AI product updates or funding developments. That Volatility cuts both ways: it can amplify gains on good news, such as this half's EBITDA surge, but can equally exaggerate reactions to any disappointment on execution, Cash Flow or the pace of contract conversion flagged in management's own guidance commentary.

Key Risks

As a genuinely small company, ImExHS carries risks that are proportionately larger than for established peers. Its cash balance of AUD 2.0 million is modest, and the gap between contracted and billed revenue creates real execution risk, particularly given the explicitly flagged liquidity pressures in Colombia's healthcare sector, which could delay payment collection or contract conversion. Currency volatility across multiple Latin American operating markets adds further Earnings variability, as this half's flat constant-currency ARR growth illustrates. The company's growth strategy also depends on continued success winning new public and private-sector contracts against larger, better-capitalised competitors, and on the commercial success of its AI agent rollout, which remains at an early stage of production deployment.

What Investors Should Watch

Key signposts for the remainder of FY26 will include the pace at which contracted-but-unbilled ARR converts into recognised revenue, further updates on AI agent commercialisation, additional contract wins beyond the Zacatecas tender, and whether cash generation stabilises the Balance Sheet without requiring additional funding. For a company still operating at a relatively small scale, sustained delivery against its own guidance range over the second half will likely be the clearest test of whether this turnaround has genuine momentum.