How 4DMedical’s SaaS Surge and $10M Funding Could Transform Its Future
4DMedical Limited reported a 56% jump in FY2025 operating revenue driven by SaaS growth, while narrowing its net loss to $30.1 million. The company also secured $13.9 million in capital and a $10 million funding facility to accelerate product commercialisation.
- Operating revenue up 56% to $5.9 million, led by Software-as-a-Service
- Net loss improves 17% to $30.1 million despite increased commercialisation spend
- Government grants and R&D incentives contribute $10.6 million in other income
- Completed $13.9 million capital raise via placements and share purchase plan
- Secured $10 million strategic funding facility from Pro Medicus post year-end
Revenue Growth Driven by SaaS Expansion
4DMedical Limited’s FY2025 financial results reveal a significant 56% increase in operating revenue to $5.9 million, primarily fueled by its Software-as-a-Service (SaaS) offerings which accounted for $5.7 million of this total. This growth underscores the company’s successful pivot towards subscription-based software solutions, a trend increasingly favored in medical technology for its recurring revenue potential.
Lease and maintenance income, while smaller, contributed a modest $0.2 million, reflecting a decline from the prior year due to one-off hardware lease income in FY2024. Geographically, the majority of revenue was generated in the United States, highlighting 4DMedical’s expanding footprint in a key market.
Improved Losses Amid Strategic Investments
Despite the revenue uplift, 4DMedical reported a net loss after tax of $30.1 million, an improvement of 17% compared to the $36.2 million loss in FY2024. Operating expenses rose slightly by 1.1%, reflecting increased investment in commercialisation activities. However, these costs were partially offset by reductions in consultancy, travel, and clinical trial expenditures, indicating a disciplined approach to managing overheads while scaling operations.
Other income totaled $10.6 million, largely comprising government grants, including milestone payments from the Medical Research Future Fund (MRFF), Clinical Translation and Commercialisation Medtech Program, and Cooperative Research Centres Projects. These grants are critical in supporting ongoing R&D efforts, particularly the development of the XV Scanner and CT, VQ™ technologies.
Capital Raising and Acquisition Milestones
During the year, 4DMedical successfully raised $13.9 million through a combination of share placements and a share purchase plan, strengthening its balance sheet to support growth initiatives. The company also settled a contingent consideration liability related to its December 2023 acquisition of Imbio Inc. by issuing shares, following the satisfaction of certain earn-out conditions.
The acquisition earn-outs remain a key element of the company’s financial outlook, with one earn-out condition not met and released as a gain in the profit and loss statement, while others remain contingent on future revenue and regulatory milestones.
Strategic Funding Facility to Accelerate US Market Entry
Post year-end, 4DMedical secured a $10 million secured funding facility from Pro Medicus Limited, a global leader in medical imaging software. This strategic capital injection is earmarked to accelerate the commercial pipeline for existing products and advance regulatory clearance of CT, VQ™ in the United States, a critical step for market expansion.
The terms of the facility include a repayment structure linked to the company’s share price performance, reflecting confidence from Pro Medicus in 4DMedical’s growth trajectory and technology potential.
Outlook and Market Implications
While 4DMedical continues to operate at a loss, the narrowing deficit combined with robust revenue growth and strategic funding arrangements position the company for potential inflection as it progresses toward FDA clearance and broader commercial adoption. Investors will be watching closely how the company leverages its capital to convert technological innovation into sustainable profitability.
Bottom Line?
4DMedical’s FY2025 results mark a pivotal step in its commercialisation journey, but upcoming regulatory milestones and capital deployment will be critical to watch.
Questions in the middle?
- Will 4DMedical meet the revenue targets tied to remaining Imbio earn-outs?
- How will the company allocate the $10 million funding from Pro Medicus to maximise regulatory progress?
- What is the timeline and likelihood for FDA clearance of CT – VQ™, and how will it impact future revenues?
