IMEXHS Limited reported steady revenue growth and a strategic push to scale its SaaS medical imaging platform, while navigating margin challenges and regulatory risks in Colombia.
- Sales revenue rose 4% to $13.7 million in 1H FY25
- Annual recurring revenue (ARR) increased 11% to $32.8 million
- Software ARR surged 20% but underlying EBITDA declined
- Radiology services showed modest revenue growth and improved EBITDA
- New pricing model and cost optimizations aim to boost margins
Steady Growth in a Complex Market
IMEXHS Limited (ASX, IME), a global provider of cloud-based medical imaging software and radiology services, has delivered a solid first half for fiscal year 2025. The company reported a 4% year-on-year increase in sales revenue to $13.7 million, supported by an 11% rise in annual recurring revenue (ARR) to $32.8 million. This growth underscores IMEXHS’s expanding footprint across 18 countries, including key markets such as Colombia, the US, and Australia.
IMEXHS operates two complementary businesses, a software division offering SaaS imaging solutions like RIS, PACS, and AI-enhanced tools, and a radiology services arm primarily based in Colombia. The software segment saw ARR jump 20% to $11.9 million, driven by strong adoption of its Aquila+ platform and robust customer retention. However, underlying EBITDA in software declined from $1.9 million to $1.3 million, reflecting ongoing investments in product development and market expansion.
Radiology Services Show Resilience Amid Regulatory Challenges
The radiology services business, including RIMAB, posted a modest 1% revenue increase to $9 million and improved underlying EBITDA to $0.3 million from a prior loss. Despite Colombia’s healthcare sector facing structural reforms and payment delays, IMEXHS has focused on margin improvement, strategic customer selection, and strict credit management to mitigate financial risks.
IMEXHS’s strategic priorities include consolidating its leadership in Latin America, scaling its SaaS model, and leveraging AI to enhance efficiency and patient outcomes. The company highlighted recent product innovations such as AI-powered workflow automation, cybersecurity certifications, and a new customer-centric pricing model designed to improve profitability and sales effectiveness.
Looking Ahead, Guidance and Strategic Focus
For the full fiscal year 2025, IMEXHS projects revenue growth between 4.0% and 6.6%, targeting $27.5 million to $28.2 million, alongside an underlying EBITDA improvement to a range of $1.3 million to $1.6 million. The company plans to continue optimizing cloud costs, refining its pricing strategy, and expanding its partner network, which already accounts for a third of new annual recurring revenue.
While the company’s SaaS platform gains traction, margin pressures and regulatory uncertainties in Colombia remain key challenges. Investors will be watching how IMEXHS balances growth investments with profitability and manages working capital risks in its radiology services division.
Bottom Line?
IMEXHS’s 1H FY25 results reveal a company in growth mode, but margin recovery and regulatory headwinds will test its strategic execution in the months ahead.
Questions in the middle?
- How will IMEXHS’s new pricing model impact long-term profitability?
- What is the outlook for regulatory reforms in Colombia and their effect on radiology services?
- Can Aquila+ maintain its adoption momentum amid increasing competition in medical imaging software?