How Will MedAdvisor’s US Restructuring Shape Its FY26 Comeback?
MedAdvisor reports a significant revenue decline in FY25 amid US program delays but strengthens its balance sheet through a capital raise and ANZ business sale. The company signals a strategic pivot with potential US business divestment on the horizon.
- FY25 revenue down 27.9% to $88 million due to US health program delays
- Successful $7.7 million capital raise and $35 million ANZ business sale completed
- US business restructuring ongoing with a strong $125 million pipeline for FY26
- Company now debt-free following ANZ sale proceeds used to repay debt
- FY26 guidance revised with expected 15% revenue growth and cost reductions
FY25 Financial Performance and Challenges
MedAdvisor Limited (ASX – MDR) closed FY25 with a notable decline in revenue and gross profit, reflecting the ongoing challenges in its core US market. The company reported 4Q FY25 revenue of $18.6 million, down 16.6% from the prior year quarter, and full-year revenue of $88 million, a 27.9% drop compared to FY24. Gross profit followed a similar trend, falling 27.9% year-on-year to $53.5 million, with margins contracting from 69.5% to 59.7% in the final quarter.
These results were largely driven by delays in launching several US health programs, compounded by budgetary pressures among pharmaceutical customers and restructuring within key retail pharmacy partners. Vaccine-related programs showed growth, increasing 52% year-on-year, but some campaigns were postponed due to shifting government guidance and pharmacy readiness.
Strategic Capital Moves and ANZ Divestment
In response to these headwinds, MedAdvisor successfully completed a $7.7 million capital raise in April 2025, attracting institutional and sophisticated investors alongside participation from company directors. This capital injection supported ongoing transformation efforts and platform development.
Significantly, MedAdvisor divested its Australia and New Zealand (ANZ) business operations to Jonas Software AUS Pty Ltd for a headline price of $35 million plus an estimated $7.35 million earn-out over three years. The sale, completed post-quarter, has allowed MedAdvisor to eliminate all outstanding debt, leaving the company with a net cash position of $16.49 million. The ANZ business will continue operating under Jonas Software as a standalone entity, with current CEO Wayne Marinoff retained.
US Business Restructuring and Outlook
The US segment, which accounts for the majority of MedAdvisor’s revenue, experienced a 34% revenue decline in 4Q FY25 to $10.1 million. Gross margins contracted sharply due to lower revenue and changes in product mix. The company is actively restructuring its US commercial operations, including downsizing the business development team and enhancing customer success functions.
Despite these setbacks, MedAdvisor’s US pipeline remains robust at an unweighted value of US$125 million for FY26. The company expects a rebound in delayed general medication programs and meaningful growth in specialty medication revenue, supported by increased market interest. The ongoing Transformation 360 initiative has progressed well, with over 70% of the US platform development completed, setting the stage for launching a next-generation patient engagement platform in 2Q FY26.
Guidance Revision and Strategic Review
Reflecting the softer trading environment, MedAdvisor revised its FY25 guidance downward, now expecting revenue of $88 million and an EBITDA loss between $6.5 million and $7.3 million. The company anticipates operating expenses in FY26 to be approximately 10% lower than FY25 and nearly 27% below FY24 levels, driven by cost optimisation efforts.
Looking ahead, the Board is evaluating strategic options for the US business, including a potential sale. CEO Rick Ratliff emphasised the company’s focus on operational efficiency, strengthening pharmacy network relationships, and accelerating pipeline conversion to rebuild momentum in FY26. An update on the strategic review is expected in the first quarter of FY26.
Bottom Line?
MedAdvisor’s decisive restructuring and capital moves set a cautious yet hopeful stage for a US turnaround and renewed growth in FY26.
Questions in the middle?
- How will MedAdvisor’s US business restructuring impact revenue and margins in FY26?
- What are the potential terms and timing for the possible sale of the US business?
- How effectively will the new patient engagement platform drive program launches and customer retention?