Key Highlights

  • FY26 Revenue increased 27% to $51.6 million, while NPAT rose 38% to $2.3 million.
  • Annual Recurring Revenue increased 34% to $38.3 million at 30 June 2026.
  • Underlying EBITDA rose 34% to $6.8 million, with Operating Cash Flow also reaching $6.8 million.
  • FY27 contracted revenue stood at $44.9 million, up 32%, while the company ended FY26 with $20.6 million in cash and no debt.

Alcidion Group Limited (ASX:ALC) reported its financial results for the year ended 30 June 2026, recording revenue of $51.6 million, an increase of 27% from the prior corresponding period. The company generated 37% of revenue from Australia and New Zealand, while the United Kingdom contributed the remaining 63%.

Recurring product revenue, comprising support and maintenance, licence subscriptions and hosting, increased 23% to $31.9 million. Annual Recurring Revenue reached $38.3 million at the end of FY26, representing a 34% increase from the previous year and including approximately $3.6 million of ARR from the acquired Kyra flow business.

The company also reported $44.9 million of contracted FY27 revenue as at 30 June 2026, comprising sold and renewal revenue. This represented a 32% increase from the corresponding prior-year position. Recurring revenue from the newly secured University Hospitals Sussex EPR agreement is expected to commence in FY27 because of the timing of contract execution.

Profitability and Cash Flow

Underlying EBITDA increased 34% to $6.8 million, compared with revenue growth of 27%. FY26 NPAT was $2.3 million, an increase of 38% from FY25. Operating cash flow was positive at $6.8 million, up 19%, equivalent to 100% conversion of underlying EBITDA into operating cash flow.

Gross profit increased 15% to $41.5 million. However, gross Margin declined to 80.3% from 88.2% in FY25. Alcidion attributed the reduction to a greater contribution from strategic third-party products under contracts where it operates as prime contractor. The company expects gross margin to return to the mid-80% range in FY27.

Salaries and wages increased 3%, while the employee base remained broadly unchanged during the year at approximately 140 employees.

Enterprise Contracts Expand

Alcidion added and expanded several enterprise relationships during FY26. University Hospitals Sussex NHS Foundation Trust awarded the company a comprehensive EPR contract with a minimum value of approximately $35 million over seven years and potential total contract value exceeding $45 million through extension options.

The company's Leidos Australia and Australian Defence Force relationship was expanded by $12.3 million in total contract value. Current ARR from the Leidos contract is approximately $6.1 million, while the combined lifetime contract value could reach approximately $100 million if extensions are exercised.

North Cumbria Integrated Care NHS Foundation Trust expanded its agreement to include third-party electronic document management and additional communications functionality, taking the total contract value to approximately $50 million over 10 years.

In Australia, Gold Coast Health became Alcidion's first Miya Precision customer in Queensland through a five-year remote patient monitoring agreement. Alcidion also expanded its contracts with Hywel Dda University Health Board and South Tees Hospitals NHS Foundation Trust through its Miya Emergency module.

Kyra Acquisition and Balance Sheet

Alcidion completed the acquisition of the Kyra flow products suite from Telstra Health on 29 June 2026. The transaction added 31 new customers, taking the customer base to 33 across the ANZ region, with particular exposure to Queensland. The acquired Business contributed approximately $3.6 million to ARR and was described by Alcidion as immediately Earnings accretive.

The company finished FY26 with $20.6 million in cash and no debt. This compares with no reported Debt at the end of the financial year and provides a debt-free Balance Sheet as Alcidion enters FY27.

FY27 Outlook

Alcidion expects FY27 revenue and underlying EBITDA to exceed FY26 levels. The starting contracted revenue base of $44.9 million provides coverage for a substantial portion of the previous year's revenue before additional FY27 sales are included.

The company said its outlook is supported by its existing customer pipeline, Demand for healthcare technology and continued conversion of contracts into revenue. The business also expects opportunities from the Kyra customer base and further expansion of its Miya Precision platform.

Conclusion

Alcidion enters FY27 with higher revenue, recurring income, EBITDA and NPAT than a year earlier, while operating cash flow remained positive and the balance sheet carried $20.6 million of cash with no debt. The principal financial pressure during FY26 was the decline in gross margin from 88.2% to 80.3%, although management expects a recovery toward the mid-80% range. With ARR at $38.3 million, contracted FY27 revenue of $44.9 million and a growing portfolio of multi-year healthcare contracts, the company's FY26 results provide a clear set of operating metrics to monitor through the next financial year.