Visionflex Boosts Recurring Revenue 49% Amid Strategic Shift and Contract Wins
Visionflex Group reported a 49% rise in annual recurring revenue to $1.9 million despite a 33% drop in total revenue, driven by a pivot to subscription models and key government and corporate contracts.
- Annual Recurring Revenue (ARR) up 49% to $1.9 million
- Total FY25 revenue down 33% to $4.7 million due to prior large hardware sales
- Underlying EBITDA loss widened to $2.5 million amid growth investments
- Significant contracts signed with Medibank’s Amplar Health, BHP, Bupa, and others
- Legacy debt reduced by 64%, improving financial flexibility
Visionflex’s Strategic Transition
Visionflex Group Limited (ASX – VFX), a player in virtual healthcare technology, has unveiled its FY25 results highlighting a pivotal year of transformation. The company’s annual recurring revenue (ARR) surged by 49% to $1.9 million, signaling a successful shift towards a subscription-based business model. This growth in recurring revenue contrasts with a 33% decline in total revenue to $4.7 million, primarily due to the absence of a large one-off hardware contract delivered in the previous year.
Financial Performance and Investment
Despite the revenue dip, Visionflex improved its gross profit margin significantly to 78%, up from 61% the prior year, reflecting the higher contribution of software license and support subscriptions. However, the company reported an underlying EBITDA loss of $2.5 million, widening from $0.7 million in FY24. This loss was driven by strategic investments in staff across sales, marketing, and development to accelerate future growth, alongside the integration of legacy personnel from the 1ST Group acquisition.
Contract Wins and Market Expansion
Visionflex secured multiple high-profile contracts during the year, including a transformative virtual nursing pilot with Amplar Health, the health services division of Medibank, valued at approximately $1 million over 15 months. The company also expanded its footprint with BHP, deploying its virtual care platform across 13 medical centres and an emergency medical helicopter service. Other notable contracts include agreements with Bupa to supply cameras to 57 aged care homes, and reseller arrangements with Spark Health in New Zealand.
Debt Reduction and Financial Health
On the balance sheet front, Visionflex made significant progress by reducing legacy debt from $6.8 million to $2.4 million, cutting finance costs by 64% and lowering facility limits from $8.4 million to $4 million. The company ended the year with $1.9 million in cash and an improved current ratio of 88%, reflecting stronger liquidity and financial flexibility to support ongoing growth initiatives.
Looking Ahead
Visionflex’s focus in the coming year is on scaling its recurring revenue model, expanding market share in virtual healthcare, and driving customer-led innovation. The launch of VisionHome, a platform enabling clinical care delivery directly into patients’ homes, positions the company to tap into the growing in-home care sector. With a strengthened contract portfolio and a clear strategic direction, Visionflex aims to build a sustainable and profitable business that delivers impact across healthcare communities.
Bottom Line?
Visionflex’s FY25 results mark a decisive pivot to recurring revenue and contract growth, setting the stage for scaling, but profitability remains a key watchpoint.
Questions in the middle?
- How quickly will new contracts translate into recurring revenue growth?
- What impact will ongoing staff investments have on future profitability?
- How will VisionHome influence market penetration in the in-home care sector?
