Global Health Limited Narrows Loss to $866K, Subscription Revenue Up 6%

Financial Performance and Revenue Dynamics

Global Health Limited has reported a net loss of $866,632 for the financial year ended 30 June 2025, marking a significant improvement from the prior year’s loss of $1,312,111. Despite this progress, total revenue declined by nearly 10% to $7.32 million, primarily due to the cessation of a $750,000 contract with SA Health following their transition to a statewide patient administration system.

However, the company’s subscription revenue, a key recurring income stream, increased by 6% to $6.325 million, supported by the addition of 30 new clients across a spectrum of healthcare providers. This growth underscores the company’s ongoing shift towards Software as a Service (SaaS) offerings, which provide more predictable and stable revenue.

Strategic SaaS Transition and AI Integration

Global Health is in the midst of transitioning its legacy software, including the PrimaryClinic and MasterCare electronic medical record systems, to a multi-tenant SaaS platform called MasterCare Plus. This transition is targeted for completion by June 2026 and is expected to enhance scalability and customer experience.

In parallel, the company has embraced artificial intelligence (AI) across its operations and product suite. AI-driven initiatives include internal workflow automation, AI avatars for customer support resolving over 70% of tickets with minimal human intervention, and AI-powered features embedded in healthcare platforms such as digital front doors and personal health coaching. These innovations aim to boost productivity, reduce support costs, and improve patient outcomes.

Cost Management and Research & Development

Operating expenses increased slightly as the company prioritized customer satisfaction, but research and development (R&D) expenditure was reduced by $590,000 to $2.1 million. This reduction reflects the winding down of intensive development work on the SaaS transition. The company expects R&D spend to stabilize at industry-standard levels moving forward, focusing on AI enhancements and platform improvements.

Balance Sheet and Capital Raising

Global Health’s balance sheet shows net liabilities of $3.73 million and a current ratio of 0.53, indicating a working capital deficit. The company raised capital through the issuance of 946,000 convertible notes at $1 each, including participation from directors. These notes carry embedded derivatives valued using Monte Carlo simulations, reflecting the complexity and judgment involved in their accounting.

The auditors have flagged a material uncertainty related to going concern, highlighting the need for continued revenue growth and cost control to ensure financial stability. The company’s cash flow forecasts suggest sufficient funds to meet obligations through September 2026, supported by expected R&D tax refunds and potential capital raises.

Governance and Post-Year Developments

Key management personnel remuneration remains aligned with shareholder interests, with some performance rights lapsing due to unmet hurdles. The board exercised discretion to issue shares to certain employees despite these lapses, reflecting a commitment to retain talent during the transition period.

Post-year-end, Global Health secured a new three-year contract with Jarrah House valued at $186,748, further embedding its SaaS platforms including MasterCare+, HotHealth Digital Front Door, and ReferralNet Secure Messaging into the healthcare ecosystem.