Alcidion Eyes $35M UK EPR Deal Amid 40% Revenue Surge in Q2 FY26
Alcidion Group has been named preferred supplier for a major UK hospital's Electronic Patient Record system, driving a 40% jump in contracted revenue and a robust cash position in Q2 FY26.
- Preferred supplier for University Hospitals Sussex NHS EPR contract valued over $35M
- Q2 new total contract value sales reach $15.4M
- FY26 contracted revenue up 40% year-on-year to $43.1M excluding Sussex deal
- Operating cash outflow limited to $1.9M with $14.2M cash on hand and no debt
- Positive EBITDA and cash flow guidance maintained for FY26 with upside potential
Alcidion Secures Strategic UK Healthcare Contract
Alcidion Group Limited (ASX, ALC) has taken a significant step forward in its international expansion by being selected as the preferred supplier for the University Hospitals Sussex NHS Foundation Trust’s new Electronic Patient Record (EPR) system. This contract, currently under negotiation, is expected to be valued at a minimum of $35 million, potentially marking Alcidion’s largest UK contract to date.
The Sussex deal will complement Alcidion’s existing UK EPR contracts with North Cumbria and South Tees, reinforcing its growing footprint in the British healthcare IT market. Deployment is targeted to commence in the fourth quarter of FY26, with substantial revenue recognition anticipated once the contract is executed.
Robust Sales and Revenue Growth Drive Momentum
During Q2 FY26, Alcidion reported new total contract value (TCV) sales of $15.4 million, including a $12.3 million expansion of its Miya Precision software modules for Leidos, supporting healthcare delivery for the Australian Defence Force. This expansion highlights the versatility and scalability of Alcidion’s platform across diverse healthcare environments.
Overall, the company’s contracted revenue for FY26 stood at $43.1 million as of 31 December 2025, representing a 40% increase compared to the same period last year and already surpassing the full-year revenue of FY25, excluding the Sussex contract. This growth underscores the effectiveness of Alcidion’s strategy of progressive module expansion and the increasing referenceability of its platform in core markets.
Financial Discipline and Strong Cash Position
Despite the investments in contract expansions and deployments, Alcidion maintained disciplined cost management, reporting a modest operating cash outflow of $1.9 million for the quarter. Cash receipts from customers totaled $8.5 million, and the company ended the quarter with a healthy cash balance of $14.2 million and zero debt.
Alcidion’s debtor ledger stood at approximately $10.7 million at quarter-end, with $8.8 million already collected in January 2026, setting the stage for a strong second half of the financial year. The company reaffirmed its guidance for FY26, expecting positive EBITDA and operating cash flow at least in line with FY25, with further upside possible depending on contract finalisations and new wins.
Outlook and Market Positioning
CEO Kate Quirke emphasised the company’s confidence in continuing its growth trajectory, citing the successful expansion of existing contracts and the strategic importance of the Sussex EPR opportunity. The company’s focus on delivering modular, scalable healthcare IT solutions appears to be resonating well with customers, enhancing its competitive positioning in key regions including the UK and Australia.
With over 400 hospitals and 87 healthcare organisations currently serviced, Alcidion is well placed to leverage its technology platform, Miya Precision, to capture further market share and drive recurring revenue streams. The upcoming deployment phases and potential new contracts in the pipeline will be critical to sustaining this momentum.
Bottom Line?
Alcidion’s Q2 momentum and strategic UK contract position it for a potentially transformative FY26, but execution risks remain as the Sussex deal awaits finalisation.
Questions in the middle?
- When will the University Hospitals Sussex contract be formally executed and revenue recognised?
- How will Alcidion manage the integration and deployment challenges of its largest UK EPR contract?
- What new contract opportunities are progressing through procurement that could further boost FY26 revenue?
