Delayed R&D Refund Leaves Global Health With Tight Cash Despite EBIT Gains

SaaS Expansion and Integration Progress

Global Health Limited (ASX, GLH) has reported steady progress in the September 2025 quarter, focusing on the rollout of its MasterCare+ software-as-a-service (SaaS) platform. Five new sites went live during the quarter, with an additional 15 implementations anticipated by March 2026. These deployments primarily involve new customers, reflecting the company’s ongoing sales momentum.

Alongside the SaaS rollout, the company advanced integration projects connecting its Digital Front Door and ReferralNet Secure Messaging platforms with Best Practice and MasterCare electronic medical records (EMR). These integrations are slated for completion and release in the December quarter, promising enhanced interoperability across healthcare providers.

AI-Driven Efficiency and Workforce Changes

Global Health is embracing artificial intelligence internally to optimize workflows and reduce costs. This strategic adoption has already enabled a 10% reduction in workforce during the quarter, with further productivity improvements expected as AI integration deepens. The company is also exploring partnerships with third-party AI vendors and specialist developers to embed AI capabilities directly into its healthcare platforms.

Financial Performance and Cash Flow Dynamics

Despite a challenging cash position at quarter-end, with closing cash of $439,000, the company’s earnings before interest and tax (EBIT) improved by more than 25% compared to the same period last year. The lower cash balance was primarily due to a delayed research and development (R&D) tax refund of $720,000, which was received in early October. Operating cash flow was negative $1.065 million, reflecting increased professional services expenses related to new site implementations, partially offset by reduced R&D expenditure.

Global Health’s management highlighted that the September quarter included one-off expenses and final payouts to departing staff, with further staff reductions planned to generate annualized savings of approximately $431,000. The company does not anticipate raising additional capital, relying instead on expected receivables of $1.5 million from subscription renewals in the coming months to support operations.

Strategic Outlook and Market Expansion

Looking ahead, Global Health aims to diversify beyond traditional healthcare segments by leveraging its strong position in mental health, chronic conditions, and addiction services. The company is targeting growth in home-based and remote care markets, supported by its Lifecard Personal Health Record platform enhanced with AI-driven monitoring and coaching features.

Management plans to reduce R&D spending by 20% in fiscal 2026, reallocating resources toward customer acquisition initiatives such as online channels and corporate partnerships. This pivot aligns with broader healthcare trends emphasizing digitization and AI adoption to manage rising costs and improve patient outcomes.

Overall, Global Health’s portfolio of cloud-based SaaS platforms positions it as a catalyst for digital transformation in healthcare, with a clear focus on expanding both B2B and emerging B2C business models.