How Did Alcidion Achieve Record $7.4M Cashflow in Q4 FY25?

Strong Finish to FY25

Alcidion Group Limited (ASX – ALC), a healthcare technology company, has closed FY25 on a high note, delivering its best quarter ever in terms of operating cashflow. The company reported a record $7.4 million positive operating cashflow in Q4, contributing to a full-year positive operating cashflow of $5.8 million. This marks a significant turnaround from the prior corresponding period, where the company recorded an operating cashflow loss of $7.1 million.

Cash receipts from customers surged to $22.4 million in the quarter, up from $18.6 million a year earlier, underpinning the company’s robust financial health. Alcidion ended the fiscal year with a strong cash balance of $17.7 million and no debt, positioning it well for future growth and operational flexibility.

Sales Momentum and Contract Expansions

FY25 saw Alcidion nearly double its new total contract value (TCV) sales to $73.8 million, a 109% increase on the prior year. The company’s Miya Precision platform continues to gain traction, with several key contract expansions during the quarter. Notably, the North Cumbria Integrated Care NHS Trust expanded its contract to include clinical communications, pushing the total combined TCV for that engagement beyond $39 million.

Additional expansions included the Hume contract adding new sites and the Northern Territory contract incorporating team messaging capabilities. These contract renewals and incremental sales highlight the flexibility and scalability of Alcidion’s solutions, which can be tailored to meet evolving customer needs and budgets.

Operational and Financial Outlook

CEO and Managing Director Kate Quirke emphasized the company’s strong momentum across sales, deployments, and cashflow. She reaffirmed the company’s guidance for FY25 EBITDA to exceed $4.5 million, reflecting confidence in the underlying business model and recurring revenue streams.

While staff costs saw a slight increase due to short-term incentive payments, these were balanced by significant VAT and GST payments aligned with the surge in customer receipts. The company expects these tax-related outflows to moderate in the coming quarter.

Looking ahead, Alcidion is actively deploying its Miya platform across newly won contracts, including North Cumbria and Hywel Dda, with implementations continuing into FY26. The company plans to update the market on FY26 contracted revenue and financial guidance alongside its full-year results scheduled for release on 28 August 2025.

Strategic Positioning in Healthcare IT

Alcidion’s focus on transforming healthcare through smart, intuitive technology solutions is gaining traction in key markets such as the UK, Australia, and New Zealand. With over 400 hospitals and 87 healthcare organizations now serviced, the company is well positioned to capitalize on the growing demand for integrated clinical decision support and communication platforms.

The Miya Precision platform’s modular design allows healthcare providers to incrementally add capabilities, enhancing patient care efficiency and outcomes. This adaptability is proving to be a compelling value proposition, as evidenced by the recent contract expansions and strong recurring revenue growth.