MedAdvisor Posts $60M Loss, Sells ANZ Business, and Clears Debt
MedAdvisor Limited reported a staggering $60.2 million loss for FY25, driven by operational challenges and asset impairments, while divesting its ANZ business and becoming debt-free.
- FY25 loss of $60.2 million after a prior year profit
- Revenue declined 36% to $63 million
- Full impairment of US intangible assets
- Sale of ANZ business and UK investment completed post-year-end
- Debt fully repaid using sale proceeds, company now debt-free
A Sharp Turn in Financial Performance
MedAdvisor Limited, a health technology company listed on the ASX, has reported a dramatic reversal in fortunes for the financial year ended 30 June 2025. The company swung from a modest profit of $792,133 in FY24 to a substantial loss of $60.2 million in FY25. This plunge was driven by a 36% decline in revenue to just under $63 million, combined with significant asset impairments and elevated operational expenses.
Operational Challenges and Asset Write-Downs
The company faced notable headwinds in its US operations, which led to a full impairment of goodwill and brand intangible assets related to that segment. These write-downs, alongside increased employee and marketing expenses, contributed heavily to the loss. MedAdvisor also recorded a $46.5 million impairment charge, reflecting the uncertain outlook in key markets.
Strategic Divestment of ANZ Business
In a significant strategic move, MedAdvisor sold its ANZ business division, including its main Australian operating entity MedAdvisor International Pty Ltd and associated intellectual property, to Jonas Software AUS Pty Ltd shortly after the fiscal year-end. The transaction also included the company’s investment in UK-based Charac Limited. The sale was completed on 7 July 2025, with an initial $27 million received at completion, followed by further payments and earnouts expected over the next three years.
Debt-Free and Looking Ahead
Proceeds from the sale were immediately used to repay all outstanding borrowings, rendering MedAdvisor debt-free for the first time in recent years. This deleveraging provides the company with a cleaner balance sheet and greater financial flexibility going forward. However, the company’s net tangible assets per share have turned negative, reflecting the accumulated losses and asset impairments.
No Dividends and Pending Audit
MedAdvisor did not declare or pay any dividends during the year, consistent with its focus on restructuring and stabilizing operations. The financial statements are currently undergoing audit, so figures may be subject to revision. Investors will be watching closely for the final audited results and management’s updated strategic outlook.
Bottom Line?
MedAdvisor’s FY25 results mark a pivotal reset, with the ANZ divestment and debt clearance setting the stage for a new chapter amid ongoing operational challenges.
Questions in the middle?
- How will MedAdvisor reposition its core business after divesting the ANZ segment?
- What are the prospects for the US operations following the full impairment of related assets?
- How reliable are the projected earnouts from the ANZ business sale, and what impact will they have on future cash flows?
