Remote care technology moving towards cash flow

Visionflex Group Limited (ASX:VFX) is a virtual healthcare technology company. Its FY26 results, released on 28 August 2026, show a Business that is trying to reduce losses and lean more on subscription income while Revenue stays lumpy. That balance is the main point of interest.

What the company does

Visionflex combines its own hardware and software to connect third-party medical devices, so clinicians can run remote consultations. The company says hardware costs about A$5,000 to A$50,000 per unit, with software licensing of roughly A$5,000 a year. A new unattended access capability lets a clinician examine a patient remotely without a trained operator on site; Royal Flying Doctor Service SA/NT is the first customer, with deployment starting in the first quarter of FY27.

FY26 results

Revenue for the 12 months to 30 June 2026 was A$4.2 million, down 10% from A$4.7 million, which the company attributes mainly to customers deferring hardware deliveries into FY27. Subscription and support revenue rose 27% to A$1.7 million, or 41% of revenue. Gross Margin improved to 86% from 78%, and annual Recurring Revenue was A$1.9 million, up 3%.

The underlying EBITDA loss narrowed 34% to A$1.6 million. The statutory loss before tax fell 84% to A$0.6 million, but that was helped by a A$1.6 million non-cash gain on converting convertible notes, so the underlying improvement is smaller than the headline suggests.

Cash, funding and dilution

Cash at 30 June 2026 was A$1.6 million, down from A$1.9 million a year earlier. Net operating cash outflow for the year was A$1.3 million, down from A$3.2 million, and the company reported positive operating Cash Flow in the second half. In its fourth-quarter Appendix 4C, dated 13 July 2026, Visionflex reported customer receipts of A$2.1 million for the quarter and undrawn facilities of up to A$1.05 million.

Those facilities comprise A$0.85 million under a convertible note Facility with cornerstone investor Adcock Private Equity and up to A$0.2 million under a new A$0.6 million R&D funding facility, repayable from the R&D tax incentive. About A$3.25 million of convertible notes were converted into equity in November 2025, which added to the share count. Borrowings fell from A$2.5 million to A$0.6 million, and net liabilities narrowed from A$1.8 million to about A$15,000. A further A$75,000 of the Adcock Debt facility was repaid in July 2026.

Contracts versus revenue

In the June quarter the company announced contract wins including A$0.8 million from NSW Health for clinical hardware under a statewide remote patient monitoring initiative and A$0.3 million from RFDS SA/NT. Contract announcements are not the same as recognised revenue; the company says several hardware deliveries were deferred into the first quarter of FY27 but remain committed under executed contracts. That is company guidance and depends on delivery.

Sector context and risks

Telehealth Demand is linked to public health funding, and procurement cycles can be slow. Visionflex itself flags that some primary-health-network-funded aged care facilities move to customer-funded subscriptions during FY27, which may cause variability in recurring revenue, and that larger enterprise opportunities remain subject to customer procurement. With small cash reserves, delays in hardware delivery or receipts could increase reliance on its facilities.

Upcoming milestones

The company's Annual General Meeting is scheduled for 19 November 2026, with the deadline for director nominations having been 8 October 2026. The September quarter report is due by the end of October under ASX rules.