Global Health Boosts Cash by 66% and Cuts R&D by 30% in June Quarter
Global Health Limited reported a robust June quarter with a 65% rise in annual sales and a strategic pivot towards AI-driven efficiencies, aiming for profitability by mid-2026.
- 65% increase in annual sales to over $2.4 million
- 66% growth in closing cash to $1.38 million
- 30% reduction in R&D expenditure year-on-year
- AI integration underway to boost productivity and reduce costs
- Strong order backlog supports FY26 revenue growth
Sales Momentum and Financial Position
Global Health Limited (ASX, GLH) has delivered a strong performance in the June 2025 quarter, announcing over $700,000 in new sales orders and a 65% increase in annual sales compared to the previous year. This surge has lifted total sales for the financial year to more than $2.4 million, driven primarily by its MasterCare Plus platform and the HotHealth Digital Front Door, both targeting mental health service providers.
The company’s cash position also improved significantly, with closing cash rising 66% quarter-on-quarter to $1.38 million. This enhanced liquidity provides a solid foundation as Global Health navigates the challenging Australian healthcare landscape.
Strategic Cost Management and R&D Focus
Global Health has strategically reduced its research and development expenditure by 30% year-on-year, trimming investment from $2.7 million in FY24 to $2.1 million in FY25. This reduction reflects the nearing completion of its major platform upgrades, particularly the MasterCare Plus composable SaaS platform, which aims to fully replace legacy hospital administration systems by June 2026.
The company anticipates receiving a federal government R&D rebate of approximately $700,000 in the coming months, which will further support its financial position. As R&D investment tapers, funds will be redirected towards market growth initiatives, including expanding remote service offerings both domestically and internationally.
AI Integration and Productivity Gains
Recognizing the pressing need for efficiency in a strained healthcare sector, Global Health has established an AI executive group to embed artificial intelligence across its operations and product suite. This initiative is already delivering measurable productivity improvements and is expected to reduce operating expenses further.
With healthcare providers facing funding constraints and workforce pressures, the adoption of AI-enabled workflows is positioned as a critical enabler for doing "more with less." Global Health’s patient-centric SaaS platforms are being progressively enhanced with AI capabilities, with regular market releases planned throughout the current financial year.
Sector Challenges and Growth Outlook
The Australian healthcare sector continues to grapple with funding pressures, rising operating costs, and increased demand for services. Public hospitals face state government budget constraints, while private hospitals contend with insurer funding lagging behind cost increases. Despite these challenges, digitization and AI adoption are widely seen as essential to improving efficiency and patient outcomes.
Global Health is well positioned to capitalize on these trends, leveraging its integrated SaaS platforms that cover the patient journey. The company’s strong backlog of orders and focus on AI-driven innovation underpin its target to return to profitability and positive cash flow by June 2026.
Bottom Line?
As Global Health transitions from heavy R&D to AI-powered growth, its ability to convert backlog into profit will be key to watch.
Questions in the middle?
- How quickly will AI integration translate into sustained cost savings and revenue growth?
- What is the timeline and risk associated with completing the MasterCare Plus platform upgrade?
- How will ongoing funding pressures in the Australian healthcare sector impact customer adoption and contract renewals?