Resonance Health Posts 29% Revenue Growth, Eyes $2M EBITDA

Strong Financial Momentum in FY25

Resonance Health Ltd (ASX – RHT) has delivered a compelling set of full-year results for FY25, reporting revenue of $11.1 million, a 29% increase over the prior year. Normalised operating EBITDA rose 24% to $1.4 million, reflecting improved operational leverage and cost efficiencies. Cash receipts surged 72% to $14 million, underscoring strong customer demand and effective cash management. The company’s net cash position remains modest at $0.1 million after factoring in $2.9 million in bank debt, but free cash flow held steady at $1.1 million.

Transformation into a Diversified Clinical Trial Ecosystem Player

Resonance has successfully transitioned from a single revenue stream to a diversified business model comprising three profit-generating segments – Software-as-a-Medical Device (SaMD), Contract Research Organisation (CRO), and Investigator Sites (operated under the TrialsWest brand). This strategic diversification is already bearing fruit, with each segment contributing positively to operating results. The SaMD business, which includes AI-enhanced MRI-based diagnostic tools such as FerriScan® and HepaFatScan®, generated $5 million in revenue and secured new multi-year contracts worth approximately $4.5 million. Meanwhile, the CRO segment has won $20.1 million in contracts since August 2023, including a major $13.8 million clinical trial progressing on schedule. TrialsWest expanded its footprint with a second site now profitable and a third site underway.

Innovation and Operational Efficiency Driving Growth

Resonance is advancing several innovative projects, including an Extended Proof of Concept study for a non-invasive MRI Liver Fibrosis device, poised for early commercialisation in clinical trials. The company is also enhancing its service delivery through automation and integration initiatives, such as the Bridge Project, which connects its SaMD systems directly to customer platforms, improving efficiency and customer experience. A cost efficiency program completed in March 2025 is expected to yield annual savings of approximately $1.1 million, supporting margin expansion.

Confident Outlook for FY26 and Beyond

Looking ahead, Resonance projects FY26 revenue of $17 million and underlying EBITDA of $2 million, targeting an EBITDA margin of around 25% as operational leverage continues to build. This guidance is based on conservative assumptions, excluding potential new TrialsWest sites, contract wins, geographic expansion, or contributions from the new Liver Fibrosis device and acquisitions. The company’s strategic focus remains on capturing a greater share of the clinical trial ecosystem, expanding its investigator site network, and leveraging AI-driven product innovation to fuel growth.

Positioning for Long-Term Success

Resonance Health’s transformation and strong FY25 performance position it well to capitalise on the growing global clinical trials market, supported by favourable regulatory environments and increasing outsourcing trends. The company’s integrated approach, combining diagnostic software, clinical trial management, and investigator site services, offers a compelling value proposition to pharmaceutical and biotech customers worldwide. As Resonance continues to execute on its growth strategy, investors will be watching closely for progress on clinical trial recruitment, regulatory approvals for new products, and potential acquisitions that could accelerate its market presence.