Alcidion Delivers 44% Revenue Surge to $25.5M with Maiden H1 Profit of $1.33M
Alcidion delivers record first half with 44% revenue surge and maiden profit
Alcidion Group (ASX: ALC) has reported its strongest first half on record, with revenue climbing 44% to $25.5M in H1 FY26 and the company achieving its maiden H1 net profit of $1.33M, compared to an $889K loss in the prior corresponding period. The health informatics platform provider’s underlying EBITDA surged 675% to $4.2M, reflecting the operating leverage emerging as the business reaches scale.
The transformation from loss-making to profitable validates management’s long-stated thesis about the scalability of recurring revenue models in enterprise healthcare software. Recurring revenue grew 41% during the period, driven by the full-year impact of FY25 customer wins and the expansion of the Leidos (Australian Defence Force) contract. Gross margin remained strong at 83%, whilst fixed costs increased a modest 6% on the prior corresponding period, demonstrating disciplined cost management.
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What is health informatics and why does it matter for hospitals?
Health informatics refers to software that consolidates fragmented hospital data into real-time clinical decision-support tools. Hospitals typically operate on disconnected legacy systems that create inefficiencies, bed blockages and patient safety risks. Alcidion’s flagship product, Miya Precision, acts as a “smart layer” that sits above existing hospital IT infrastructure without requiring expensive system replacements.
If hospital IT systems are separate silos, Miya Precision functions as the orchestration layer connecting them. The platform provides clinicians with a single, longitudinal view of a patient’s healthcare journey across providers, enabling effective care collaboration and reducing administrative burden. This modular approach allows healthcare organisations to modernise incrementally, adding functionality over time without wholesale infrastructure overhauls.
Healthcare IT spending represents a structural tailwind driven by ageing populations and clinician shortages. Modular platforms that improve existing infrastructure—rather than replace it—face lower procurement barriers and faster adoption cycles, positioning Alcidion to capture market share across acute, community and virtual care settings.
$97 million in contracts won over 18 months signals enterprise validation
Alcidion has secured more than $97M in new and renewal total contract value (TCV) over the past 18 months (excluding University Hospitals Sussex), demonstrating accelerating sales momentum across the UK and Australia. These contracts typically span 5-10 years, providing multi-year revenue visibility uncommon in early-stage technology companies. During H1 FY26 alone, the company signed $31.1M in new and renewal TCV, up 29% on the prior corresponding period.
The land-and-expand strategy is delivering tangible results. Existing customers progressively add modules over time, creating a pathway from initial patient flow deployments to full electronic patient record (EPR) implementations. This modular approach accommodates customer budgets and requirements whilst building long-term contracted revenue.
| Customer | Region | Contract Type | Value / Term | Module |
|---|---|---|---|---|
| North Cumbria NHS | UK | EPR Expansion | $6.8M / 9.4 yrs | EPR |
| Leidos Australia (ADF) | AUS | Expansion | $12.3M / 2.7 yrs | Miya Precision |
| Bolton NHS | UK | Renewal | 3 yrs | Patientrack |
| NHS Lanarkshire | UK | Renewal | 3 yrs | Patientrack |
Annual recurring revenue (ARR) as at 31 December 2025 reached $25.5M, up 9% on 30 June 2025, underpinning the long-term financial stability of the business. Contracted FY26 revenue stood at $43.1M as at 31 December 2025, excluding any contribution from the University Hospitals Sussex preferred supplier agreement or new sales expected in H2.
UHSussex preferred supplier win opens $35M+ EPR opportunity
Post-period end in January 2026, Alcidion was selected as preferred supplier for University Hospitals Sussex’s (UHSussex) new EPR platform. The contract is estimated to exceed $35M in TCV over a minimum 7-year term. UHSussex is one of the largest acute trusts in the UK, providing hospital and community care across seven hospitals with more than 1.5 million outpatient appointments, A&E visits and surgery cases annually.
This marks Alcidion’s third UK EPR contract win, building referenceability alongside North Cumbria and South Tees. Each EPR win creates a reference site that de-risks future procurement decisions by other NHS Trusts. The clustering of EPR wins in England positions Alcidion for regional expansion across Integrated Care Boards (ICBs).
Management anticipates contract signing by mid-Q4 FY26, with an upfront licence fee payment expected shortly after. The contract structure aligns with larger UK NHS funding mechanisms, which typically feature upfront capital licence fees for multi-year periods, followed by recurring maintenance, support and hosting subscriptions.
Recurring revenue model drives margin expansion and cash conversion
Alcidion operates a recurring revenue model comprising three distinct streams:
- Capital licence fees – upfront payments for multi-year licence periods (typically 5-10 years), representing 10-15% of total contract value
- Implementation and services fees – charged based on project milestones, with timeframes varying from 3-6 months for patient flow solutions to 12-24 months for EPR deployments
- Maintenance, support and hosting subscriptions – recurring annual fees billed quarterly or annually in advance
Recurring revenue grew 41% in H1 FY26, underpinning the gross margin of 83%. The geographic revenue split remained balanced, with 52% derived from the UK and 48% from Australia and New Zealand. This diversification mitigates single-market risk and provides multiple avenues for growth.
Cash position as at 31 December 2025 stood at $14.2M with no debt. The H1 FY26 operating cash outflow of $2.6M represented a $1.6M improvement on the prior corresponding period outflow of $4.1M. Management attributed the H1 outflow to timing issues related to working capital movements, including increased receivables from December invoicing. Historically, H2 delivers stronger cash receipts, with management expecting material uplift in H2 operating cash inflows.
The high gross margin demonstrates the capital-light nature of enterprise software. Multi-year contracts with long renewal cycles provide revenue visibility uncommon in early-stage technology companies, reducing execution risk and supporting predictable cash flow generation.
Industry recognition validates clinical impact
Miya Precision customers have been nominated for six awards at the 2026 HSJ Digital Awards, one of the largest UK healthcare industry publications. South Tees NHS was nominated for Digital Transformation Organisation of the Year, whilst University Hospital Southampton received a nomination for Digital Team of the Year following the implementation of Miya ED.
Independent research by Black Book Market Research in January 2026 ranked Alcidion’s Miya Precision as the top vendor for clinical decision support and virtual care in Australia:
Black Book Market Research LLC Insights
“In the emergency and prehospital segment, Alcidion Miya Precision is rated #1 across Clinical & Operational Effectiveness, Interoperability, Data & Innovation and Partnership, Value & Strategic Alignment, emphasising its role as an overlay and command-centre platform for ED, flow and prehospital integration.”
This third-party validation strengthens Alcidion’s competitive positioning in regulated healthcare markets and supports the company’s thesis that modular, interoperable platforms are gaining traction over monolithic legacy systems.
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FY26 guidance and growth strategy
Management issued FY26 guidance expecting revenue to exceed $50M with EBITDA in excess of $5M. Operating cashflow is anticipated to remain positive in line with FY25 operating cashflow of $5.8M. As at 31 December 2025, contracted and renewal revenue to be recognised in FY26 totalled $43.1M, excluding any expected revenue contribution from UHSussex or new sales in H2.
The gap between contracted revenue ($43.1M) and guidance ($50M+) implies limited execution risk for the remaining half, with the guidance increment largely dependent on the timing of the UHSussex contract signing and deployment commencement.
Alcidion’s growth strategy rests on four pillars:
- Scale in existing markets – leveraging increased referenceability in the UK and Australia to win new customers and expand existing contracts
- Evolve product functionality and adjacencies – deepening AI capabilities across the platform and expanding into new models of care, including virtual care, remote patient monitoring and aged care connectivity
- Geographic expansion – entering Canada and the Middle East (Saudi Arabia, UAE), with procurement discussions underway in Canada and reseller partner appointments imminent in the Middle East
- Disciplined M&A opportunities – assessing potential acquisitions focused on expanding market share or product capabilities, ensuring transactions are EBITDA accretive
Near-term catalysts include finalisation of the UHSussex contract expected mid-Q4 FY26 and the appointment of Middle East reseller partners. Geographic expansion into Canada and the Middle East represents incremental upside not yet reflected in contracted figures, whilst the modular EPR wins in England position Alcidion for regional clustering across Integrated Care Boards.
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