Mach7 Technologies closes FY25 with solid recurring revenue growth, positive cash flow, and a refreshed leadership team focused on innovation and customer value.
- Contracted Annual Recurring Revenue (CARR) reaches A$30.2 million
- Operating cash flow positive for FY25 at A$0.7 million
- On-market share buy-back program continues with 6.3 million shares repurchased
- Leadership reshuffle includes appointment of Chief Innovation Officer
- FY25 revenue guidance reaffirmed at A$33M–A$34M with controlled operating expenses
Strong Financial Foundations
Mach7 Technologies Limited (ASX, M7T), a specialist in medical imaging software, has reported a robust finish to its 2025 financial year. The company achieved a Contracted Annual Recurring Revenue (CARR) of A$30.2 million as of June 30, 2025, reflecting steady growth in its subscription and maintenance revenue streams. The Annual Recurring Revenue (ARR) run rate held firm at A$23.5 million, underscoring the stability of Mach7’s recurring income base.
Sales orders for FY25 totaled A$29.1 million, with a notable 88% of Q4 sales orders derived from ARR-type contracts. This mix highlights Mach7’s strategic emphasis on subscription and maintenance fees, which provide predictable revenue over contract terms. Capital software sales and professional services made up smaller portions of total sales orders, indicating a balanced revenue portfolio.
Cash Flow and Capital Management
Importantly, Mach7 reported operating cash flow positivity for the full year, generating A$0.7 million in FY25 and A$0.6 million in the final quarter alone. This marks a significant milestone for the company, demonstrating disciplined cost management and operational efficiency. Cash reserves stood at a healthy A$23.1 million at quarter-end, with no debt on the balance sheet, providing a solid financial runway.
The company also continued its on-market share buy-back program, repurchasing approximately 6.3 million shares at a cost of A$2.2 million during Q4. This move signals confidence from management in the company’s valuation and future prospects.
Leadership and Strategic Direction
July 2025 saw significant leadership changes, including the departure of Chief Operating Officer David Madaffri and Vice President of Services Lisa Thompson. In their place, Mach7 appointed Paul Jensen as its inaugural Chief Innovation Officer. Jensen brings extensive global IT experience, notably from a 20-year tenure at Microsoft, and will spearhead efforts to accelerate innovation and operational excellence from the company’s US base.
CEO Teri Thomas, in her first month at the helm, has reshaped the leadership team to sharpen focus on customer-facing functions and innovation. This strategic realignment aims to deepen customer engagement, expand product adoption, and drive sustainable, profitable growth through enhanced sales and marketing efforts.
Outlook and Guidance
Mach7 reaffirmed its FY25 guidance, expecting revenue between A$33 million and A$34 million, with CARR projected around A$30 million to A$31 million. Operating expenses are anticipated to grow at a slower pace than revenue, reflecting ongoing cost discipline. Looking ahead to the first half of FY26, the company plans to develop a comprehensive strategy to accelerate innovation and enhance its customer value proposition.
The upcoming FY25 full-year results, due in late August, will provide further clarity on Mach7’s financial trajectory and execution of its refreshed strategy.
Bottom Line?
Mach7’s FY25 results and leadership overhaul set the stage for a focused push on innovation and growth in FY26.
Questions in the middle?
- How will the new Chief Innovation Officer’s initiatives impact product development timelines?
- What are the risks associated with customer attrition offsetting CARR growth?
- How aggressively will Mach7 pursue further share buy-backs amid evolving market conditions?