How Enlitic’s GE Healthcare Deal Could Transform Its Revenue Trajectory

Revenue Growth Amid Persistent Losses

Enlitic, Inc., a player in the healthcare IT sector specialising in AI-driven radiology software, has reported a significant increase in revenue for the half-year ended 30 June 2025. Total revenues rose by over 800% to US$1.89 million, primarily fueled by migration services and subscription contracts. This marks a notable expansion from the prior period’s US$204,000, reflecting growing market traction for Enlitic’s AI-powered medical imaging management solutions.

Despite this revenue growth, the company’s net loss remained largely unchanged at US$6.86 million, underscoring ongoing challenges in achieving profitability. Operating expenses increased by approximately 15%, partly due to the acquisition of Laitek, which expanded Enlitic’s migration service capabilities. The company also reported cost savings of US$1.4 million within operating expenses, indicating efforts to improve operational efficiency.

Strategic Partnership with GE Healthcare

A key highlight of the period was the signing of a binding Memorandum of Understanding (MOU) with GE Healthcare. Under this agreement, Enlitic’s subsidiary Laitek is committed to delivering between US$3 million and US$6 million annually in migration services over the next five years. This partnership not only provides a substantial revenue pipeline but also validates Enlitic’s technology and service offerings within a major global healthcare provider.

Importantly, GE Healthcare has made an advance payment of US$2 million following Enlitic’s successful capital raise, signaling confidence in the collaboration. While the MOU is binding, it is not yet a definitive contract, leaving room for further negotiation and formalisation of terms.

Capital Raising and Financial Position

To support its growth initiatives and working capital needs, Enlitic completed a two-tranche placement raising A$10 million in mid-2025. This capital injection is critical given the company’s net cash outflows from operating activities of over US$7 million during the half-year. The directors acknowledge a material uncertainty regarding the company’s ability to continue as a going concern but remain confident in securing additional funding from existing and new investors.

At period end, Enlitic held US$5.56 million in cash and cash equivalents, down from US$7.15 million at the start of the year. The company’s net tangible assets per share declined to 0.73 cents from 4.71 cents, reflecting the accumulated losses and increased share count following the capital raise and option issuances.

Outlook and Market Implications

Enlitic’s progress in securing a major client like GE Healthcare and expanding its migration services revenue stream positions it well within the competitive healthcare AI landscape. However, the sustained losses and cash burn highlight the challenges of scaling in this capital-intensive sector. Investors will be watching closely for the finalisation of the GE Healthcare agreement and the company’s ability to convert revenue growth into profitability.

The company’s strategy to leverage AI for managing medical imaging data taps into a growing demand for digital transformation in healthcare, but execution risks remain. The next chapters will be critical in demonstrating whether Enlitic can sustain its growth momentum while managing costs and funding requirements.