Key Highlights

  • Careteq Limited (ASX:CTQ) shares fell 11.11% to $0.016 during the 22 September trading session.
  • The company completed the divestment of Embedded Health Solutions during FY26, ending the year debt-free with $3.19 million cash at bank, up from $1.05 million a year earlier.
  • Total Revenue and other income from continuing operations was $6.90 million in FY26, compared with $8.32 million in FY25, with the result impacted by only nine months of EHS revenue recognition.
  • The company is now focused on scaling its HMR Referrals marketplace platform, which streamlines the process of completing Home Medicines Reviews.

Careteq Limited (ASX:CTQ) shares were down 11.11% to $0.016 during the Trading session on 22 September. Careteq is a clinical healthtech company delivering AI-enabled healthcare solutions, with its current strategic focus centred on HMR Referrals, a marketplace platform connecting referral sources, general practitioners and accredited pharmacists to streamline Home Medicines Reviews.

FY26 Financial Summary

Recently, the company reported total revenue and other income from continuing operations of $6.90 million in FY26, compared with $8.32 million in FY25, a decrease of $1.42 million. Revenue from contracts with customers was $6.08 million, down from $7.62 million in the prior year. EBITDA from continuing operations was positive at $0.02 million, compared with $0.27 million in FY25, while net loss after tax from continuing operations was $0.40 million, compared with a net loss of $0.07 million in the previous year.

The reported result was impacted by the sale of EHS, which resulted in only nine months of EHS revenue being recognised in FY26, along with a $1.21 million write-back of previously accrued R&D claim income related to a continuing dispute with the Australian Taxation Office over FY21, FY22 and FY23 claims. The FY26 result also included a $2.02 million gain on the sale of EHS.

Careteq ended FY26 with $3.19 million cash at bank and no borrowings, compared with $1.05 million cash and $2.25 million in borrowings at 30 June 2025. Net Assets increased to $3.23 million at 30 June 2026, compared with $1.52 million a year earlier.

Divestment of Embedded Health Solutions

During FY26, Careteq completed the divestment of Embedded Health Solutions to Nationwide Investments Holdings Pty Ltd. The Business and assets were sold for a purchase price of $5.0 million, less purchase price adjustments of approximately $1.0 million, resulting in cash consideration received of approximately $4.0 million and a gain on disposal of $2.02 million. EHS operations delivered underlying EBITDA of $1.45 million before corporate overheads up to the date of sale.

Proceeds from the sale were used to fully repay vendor loans entered into in August 2024 for the Acquisition of the remaining 45% of EHS from its minority shareholders, amounting to approximately $2.47 million including outstanding interest. The company also completed a $2.2 million Capital raising during the year, and all outstanding convertible notes were converted into fully paid ordinary shares at $0.01 per share, simplifying the Capital Structure with no convertible notes or drawn Debt facilities remaining as at 30 June 2026.

HMR Referrals Strategic Focus

Following completion of the EHS divestment, the company's operating focus has shifted to HMR Referrals. The revised strategic plan centres on GP clinic activation, pharmacist recruitment, AI capability scoping and build focused on process improvements, strategic collaborations with complementary industry partners, and scaling the platform to address unmet need in the home and aged care sector.

The company also disclosed it has reduced its underlying corporate cost base to approximately $1.0 million per annum following the EHS sale and associated cost-saving initiatives. Executive Chairman Mark Simari described FY26 as a decisive reset year, noting the company is now better placed to execute on the HMR Referrals opportunity while continuing to defend its position in the ongoing ATO R&D Tax Incentive matter.

The Bottom Line

Careteq's FY26 results reflect a significant transition year for the company, marked by the divestment of Embedded Health Solutions, repayment of outstanding debt, and conversion of convertible notes, leaving the Balance Sheet materially strengthened and debt-free. With EHS now sold, the company's operating focus has shifted entirely to scaling its HMR Referrals platform. Investors will likely monitor the pace of GP clinic activation and pharmacist recruitment, along with resolution of the ongoing ATO R&D Tax Incentive dispute, as key markers of progress in FY27.