Mach7 Technologies Strengthens Position with Solid Q3 FY25 Results and CEO Transition

Quarterly Financial Performance

Mach7 Technologies Limited (ASX:M7T), a specialist in medical imaging software solutions, has delivered a solid third quarter for FY25, maintaining strong momentum across key financial metrics. The company reported a Contracted Annual Recurring Revenue (CARR) of A$30.8 million as at 31 March 2025, slightly down from A$31.5 million at the end of December 2024 in constant currency terms. This minor dip was attributed to one customer transitioning to a local solution after their license expiry.

Meanwhile, the Annual Recurring Revenue (ARR) run rate stood at A$24.4 million, reflecting the revenue from subscription and maintenance fees recognised over contract terms. Despite the slight ARR decrease, Mach7 continues to benefit from a healthy pipeline of renewals, expansions, and new customer onboarding, which are expected to drive ARR growth as these contracts reach First Productive Use (FPU).

Cash Flow and Capital Management

Mach7’s cash receipts surged 28.4% year-on-year to A$11.4 million in Q3 FY25, underscoring strong customer engagement and contract execution. The company reported positive operating cash flow of A$2.6 million for the quarter, marking the second consecutive quarter of cash flow positivity. This performance contributed to a robust cash position of A$24.9 million at quarter-end, with no debt on the balance sheet.

In a strategic move to enhance shareholder value, Mach7 initiated an on-market share buy-back program in March 2025. To date, approximately 3.4 million shares have been repurchased at a cost of A$1.2 million, reflecting management’s confidence in the company’s intrinsic value and future prospects.

Operational Efficiency and Cost Savings

Cost reduction initiatives launched in Q3 are projected to yield annualised savings between A$2 million and A$3 million. Additionally, a research and development project nearing completion in Q4 FY25 is expected to deliver further annualised cost savings of around A$1 million. These measures align with Mach7’s commitment to disciplined operating expense growth, which is forecasted to remain below revenue growth for FY25.

Leadership Transition and Strategic Outlook

On 1 April 2025, Mach7 announced a significant leadership change with the appointment of Teri Thomas as Managing Director and CEO, effective 1 July 2025. Ms. Thomas brings extensive experience in healthcare technology and global markets, succeeding current CEO Mike Lampron, who will step down at the end of June.

Looking ahead, Mach7 expects sustained demand growth across its key regions, North America, APAC, and the Middle East, driven by both new customer acquisitions and expansions within its existing client base. The company reaffirmed its FY25 guidance, targeting 15-25% growth in both CARR and revenue compared to the prior corresponding period.

Investor Engagement

Mach7’s management team, including CEO Mike Lampron and CFO Dyan O’Herne, hosted an investor webinar coinciding with this update, providing further insights and addressing questions from the investment community. This engagement underscores the company’s transparency and commitment to keeping shareholders informed as it navigates its growth trajectory and leadership transition.