Pro Medicus has delivered a record first half in FY25, driven by strong revenue growth, major contract wins, and successful implementations that position it well for future expansion.
- HY 2025 revenue up 31.1% to $97.2 million
- Profit after tax rises 42.7% to $51.7 million
- Secured $385 million in new contract wins including major deals with Trinity Health and BayCare
- Completed key implementations ahead of schedule, including BS&W and OHSU
- Strong pipeline and strategic focus on AI and cloud-based healthcare IT solutions
Record Financial Performance
Pro Medicus (ASX:PME), a leader in healthcare IT specialising in enterprise imaging and radiology information systems, has reported a record first half for FY25. Revenue surged 31.1% to $97.2 million, while profit after tax jumped 42.7% to $51.7 million. Underlying EBIT also rose sharply by 42.9% to $69.9 million, reflecting strong operational leverage and a scalable software-only business model.
The company remains debt-free with a robust balance sheet, holding $182.3 million in cash, investments, and other financial assets. This financial strength underpins Pro Medicus’s ability to invest in growth initiatives and technology development.
Major Contract Wins Drive Growth
Pro Medicus secured a remarkable $385 million in new contract wins during the half, including landmark deals such as a $330 million, 10-year full-stack cloud deployment with Trinity Health, one of North America’s top integrated delivery networks (IDNs). Other significant contracts include a $53 million, 7-year deal with BayCare and renewals with Mercy and NYU Langone Health, underscoring the company’s strong market position and customer loyalty.
These contracts not only expand Pro Medicus’s footprint in the lucrative US healthcare market but also demonstrate increasing adoption of its Visage 7 and Visage RIS platforms, particularly cloud-based SaaS models that offer predictable, annuity-style revenue streams.
Operational Excellence and Innovation
Pro Medicus highlighted the completion of major implementations ahead of schedule, including projects with BS&W and Oregon Health & Science University (OHSU). Their fast-track methodology reduces implementation time to a quarter of industry norms, delivering cost savings and minimizing disruption for clients.
Innovation remains a core focus, with the company advancing AI integration through its Visage 7 AI Accelerator platform and pioneering immersive diagnostic experiences via Visage Ease VP for Apple Vision Pro. These developments position Pro Medicus well to address the growing complexity and data volumes in medical imaging, while tackling the acute shortage of radiologists globally by enhancing efficiency and diagnostic accuracy.
Market Position and Future Outlook
Pro Medicus continues to dominate the US market, with over half of the top 20 US hospitals using Visage 7 for PACS. The company’s addressable market in the US alone is vast, with 650 million exams performed annually and a penetration rate approaching 9%, leaving significant room for growth.
The company’s strategic emphasis on cloud deployment, AI capabilities, and expanding into private healthcare markets signals a clear pathway for sustained growth. The strong pipeline of opportunities and high renewal rates at increased contract values further reinforce confidence in Pro Medicus’s future performance.
Bottom Line?
With record results and a robust contract pipeline, Pro Medicus is poised to accelerate its leadership in healthcare IT amid rising demand for advanced imaging solutions.
Questions in the middle?
- How will Pro Medicus manage the complexity and risks of large-scale cloud implementations like Trinity Health?
- What impact will AI integration have on Pro Medicus’s competitive positioning and revenue streams?
- Can the company sustain its high renewal rates and expand further into private healthcare markets?