Mach7 Technologies (M7T) H2 2025 earnings summary

Executive summary

• Achieved 16% year-over-year revenue growth to A$33.8M, in line with guidance, with recurring revenue rising 20% to A$25.3M, now 75% of total revenue and covering 80% of OPEX.

• Operating cash flow turned positive, with A$23.1M cash and no debt at year-end.

• Leadership renewal included new CEO and Chief Innovation Officer appointments, and transformation of customer-facing operations.

• Implemented a new customer engagement model, receiving highly positive feedback and driving improved customer satisfaction.

• Strategic focus on value-centric growth, customer-centricity, and leveraging global talent.

Financial highlights

• Revenue increased by A$4.7M (+16%) year-over-year to A$33.8M; recurring revenue up A$4.3M (+20%) to A$25.3M.

• Adjusted EBITDA improved to -A$0.3M from -A$2.0M; NPATA at A$0.4M, NPAT at -A$6.2M.

• Operating expenses rose 9% to A$31.8M, below revenue growth; H2 OPEX up only 3%.

• Cash receipts from customers up 2% to A$35.7M.

• On-market share buy-back acquired 6.3M shares for A$2.2M in H2 FY25.

Outlook and guidance

• Strategic review underway; new growth strategy and FY26 guidance to be released in Q2 FY26.

• Focus for FY26 is on ideal customer targeting, sales effectiveness, and new logo acquisition.

• Continued investment in subscription sales in North America to drive recurring revenue.

• Share buy-back program paused pending completion of strategic review.