Alcidion’s Leidos Contract Extension: What Risks Lie Ahead for Revenue Growth?
Alcidion Group has expanded its contract with Leidos Australia, adding $12.3 million in value and increasing annual recurring revenue by $2.5 million through to 2028.
- Contract expansion valued at $12.3 million through June 2028
- Annual recurring revenue boosted by $2.5 million
- Expected revenue recognition of $5.5M-$6.5M in fiscal year 2026
- Contract term aligns with existing Leidos agreement, with potential extensions to 2036
- Expansion involves additional Miya Precision software modules for Commonwealth of Australia
Alcidion Deepens Partnership with Leidos Australia
Alcidion Group Limited (ASX – ALC), a healthcare technology company, has announced a significant expansion of its contract with Leidos Australia. The deal, valued at $12.3 million over approximately 2.7 years, will see Alcidion provide additional software modules from its flagship Miya Precision platform. This expansion is designed to support Leidos in delivering enhanced healthcare solutions to the Commonwealth of Australia.
Financial Impact and Revenue Outlook
The contract expansion adds $2.5 million to Alcidion’s annual recurring revenue (ARR), a key metric reflecting the company’s predictable income stream. Alcidion expects to recognise between $5.5 million and $6.5 million of this new revenue during the fiscal year 2026, signalling a meaningful boost to its near-term financial performance. The alignment of this contract’s term through to June 2028 with an existing larger agreement with Leidos Australia provides a stable revenue foundation, with potential extensions extending the relationship to 2036.
Strategic Significance in Healthcare IT
The Miya Precision platform is central to Alcidion’s mission to transform healthcare through smart, intuitive technology. By aggregating clinical data into centralised dashboards and facilitating communication and task management, Miya Precision supports improved patient outcomes. This contract expansion not only reinforces Alcidion’s foothold in the Australian healthcare IT market but also underscores its strategic partnership with Leidos, a major government contractor.
Looking Ahead
With over 400 hospitals and 87 healthcare organisations already using its solutions across Australia, New Zealand, and the UK, Alcidion is well positioned for further growth. The expanded contract with Leidos is a testament to the company’s growing influence and the increasing demand for integrated healthcare IT solutions that improve operational efficiency and patient care quality.
Bottom Line?
Alcidion’s expanded contract with Leidos solidifies its revenue base and sets the stage for sustained growth in healthcare technology.
Questions in the middle?
- What are the specific implementation milestones and timelines for the new Miya Precision modules?
- How might potential contract extensions to 2036 impact Alcidion’s long-term revenue forecasts?
- What competitive pressures could affect Alcidion’s ability to secure similar contracts in other regions?
