Why Visionflex (ASX:VFX) is trying to replace lost aged care subscriptions with remote health telehealth customers

Sonal Goyal

12 November 2026 02:07 PM AEDT

Why Visionflex (ASX:VFX) is trying to replace lost aged care subscriptions with remote health telehealth customers

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Key Highlights

Annual Recurring Revenue fell to about $1.47 million from $1.95 million at 30 June, mainly as aged care facilities did not continue to paid subscriptions.
New contracts totalled about $0.30 million in the quarter, with aged care making up only 1% of the new business.
Cash fell to $657,000 at 30 September, and the company’s 2.10 quarters of funding include $1.15 million of undrawn facilities.
The company expects a $0.58 million R&D tax refund in the December quarter, which will repay $0.4 million drawn under the R&D facility.

Visionflex (ASX:VFX) sells clinical diagnostic and virtual care technology, including examination cameras, carts and mobile kits, along with software subscriptions. According to its September quarter (Q1 FY27) activity report, released on 30 October 2026, annual recurring revenue (ARR) fell to about $1.47 million from $1.95 million at 30 June. The decline was driven mainly by aged care facilities that did not continue to a paid subscription once their initial programme funding ended.

Almost all of the company's new Business in the quarter came from outside aged care: Aboriginal community controlled health organisations, workplace emergency response, the resources sector and a US reseller. Visionflex says its priority is to turn these mostly hardware sales into recurring subscriptions. It is doing this with $0.66 million in cash and relies on undrawn facilities, including one linked to its chair, for most of its stated funding.

Why ARR fell

Part of the aged care base was originally deployed under Primary Health Network (PHN) funded programmes. By the end of the quarter, 80 of those facilities had expired without a confirmed renewal, removing $0.26 million of ARR. Privately funded aged care facilities that did not renew removed a further $0.17 million. Western NSW Local Health District did not renew a support contract for legacy mobile devices, which removed $0.09 million.

The company also changed its ARR definition. Expired subscriptions without a confirmed renewal are now excluded. On the revised basis, ARR was broadly flat on the June quarter and 23% lower than a year earlier. Visionflex says the PHN transition will continue into the December quarter, so further attrition is possible.

New business and contracts

New contracts in the quarter totalled about $0.30 million, of which aged care made up only 1%. Orders included two carts for Fire and Safety Australia ($84,000), 18 examination cameras for US reseller ePlus Technology ($60,000), a further cart for Aspen Medical at an Origin Energy Facility ($34,000) and a renewal of 10 subscriptions by Kimberley Aboriginal Medical Service ($48,000). These are contract values. Revenue is recognised on delivery or over the subscription term. The company expects a delayed network expansion for the Royal Flying Doctor Service in South Australia and the Northern Territory to be delivered in November 2026, allowing $0.2 million of FY26 contract revenue to be recognised.

Cash and funding

The Appendix 4C shows customer receipts of $893,000 and net operating outflows of $860,000 for the quarter. Unaudited revenue was $0.9 million. The company also repaid $100,000 under its convertible note facility with Adcock Private Equity, an entity associated with chair Brook Adcock. Cash fell to $657,000 at 30 September. The 4C's estimate of 2.10 quarters of funding includes $1.15 million of undrawn facilities: $0.95 million under the Adcock convertible note, which charges 12.10% a year and is available until August 2027, and up to $0.2 million under an R&D funding facility.

Without those facilities, cash would cover less than one quarter at the current rate of spending. Visionflex expects a $0.58 million R&D tax refund in the December quarter, which will be used to repay $0.4 million drawn under the R&D facility plus interest.

Risks and upcoming dates

Remote and Indigenous health providers face long distances to specialist care, but many rely on government or grant funding, which can leave suppliers exposed to policy changes. Visionflex's main risks are continued aged care attrition, dependence on related-party funding and possible dilution if the convertible note is drawn and converted. The AGM is scheduled for 2:00pm (AEDT) on Thursday 19 November 2026 in Sydney. The RFDS delivery and receipt of the R&D refund are the next confirmed milestones.

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