Beamtree Posts 12% Q4 ARR Growth and 78% Operating Profit Surge in FY25

Strong Finish to FY25

Beamtree Holdings Limited (ASX, BMT), a leader in AI-enabled healthcare decision support, closed FY25 on a high note with a record fourth quarter. Annual recurring revenue (ARR) jumped by $3.2 million, a 12% increase quarter-on-quarter, reaching $29.2 million. This surge was accompanied by a 48% year-on-year growth in Q4 operating profit, underscoring the company’s improving financial health.

For the full year, recurring revenue grew 7%, driven primarily by expansion in clinical coding services across Australia, New Zealand, and international markets. Customer renewals remained robust at over 95%, reflecting strong client satisfaction and contract stickiness. Despite investing in international expansion and product development, Beamtree managed to keep operating cost growth to a modest 2%, demonstrating disciplined cost management.

Expanding Global Footprint and Product Innovation

Beamtree’s growth story is bolstered by significant contract wins and product launches. Notably, the company secured a nearly $1 million contract with Singapore’s Ministry of Health to audit clinical coding in public and private hospitals, a project expected to complete by Q3 FY26. In Saudi Arabia, the launch of the Integrated Coding Platform (ICP) and two major recurring revenue contracts worth over $1 million annually highlight the company’s growing presence in the Middle East.

Further afield, Beamtree renewed a €2.3 million partnership with Ireland’s Healthcare Pricing Office and entered a collaboration with the UK’s NHS Confederation to develop a peer-to-peer knowledge network, expected to launch in Q3 FY26. The company also reported strong momentum with its Abbott distribution agreement, expanding into new countries and increasing revenue by over 50%.

Central to future growth is the rollout of Beamtree’s autonomous coding solution, targeting the $22 billion global coding market. This new product commands pricing six to eight times higher than the existing PICQ coding product, promising to accelerate revenue growth significantly. Additionally, the PICQ Audit module, launched during FY25, has already attracted 20 clients and is expected to contribute over $1 million in ARR in FY26.

Leadership Transition and Outlook

Amid these positive developments, Beamtree announced the resignation of CFO and COO Mark McLellan, effective mid-October 2025. McLellan has been credited with bringing financial discipline and strategic guidance during his three and a half years at the company. The search for his successor is underway, with the transition expected to be smooth.

CEO Marek Stepniak expressed confidence in the company’s trajectory, citing the strong Q4 momentum and disciplined cost management as key drivers for FY26. The board has set an ambitious medium-term target of $60 million ARR, signaling confidence in Beamtree’s ability to scale its innovative healthcare analytics solutions globally.