Enlitic, Inc. reported its strongest quarter yet with record contract wins totalling A$4.3 million, alongside a strategic capital raise and new cost-saving measures to fuel growth.
- Record quarterly contract value of A$4.3 million driven by enterprise and OEM deals
- 16 new client agreements signed with higher average contract sizes
- Revenue dipped to US$0.8 million due to extended project scopes delaying recognition
- Completed A$2.6 million convertible notes raise, with A$5.4 million tranche pending shareholder approval
- Implemented additional cost reductions expected to save US$2.5 million annually
Record Contract Wins Highlight Growth Momentum
Enlitic, Inc. (ASX, ENL), a medical technology software company specialising in AI-driven management of medical imaging data, has reported a landmark quarter for contract wins in Q4 FY25. The company secured a total contract value of A$4.3 million, its highest ever quarterly figure, reflecting strong demand from enterprise clients and original equipment manufacturer (OEM) partners. This surge underscores Enlitic's growing footprint in the healthcare technology sector, particularly in its migration technology and Ensight software offerings.
During the quarter, Enlitic signed 16 new client agreements, fewer than the previous quarter but notably of higher average value. The company also expanded existing contracts, deepening long-term partnerships that promise scalable growth. CEO Michael Sistenich emphasised that while revenue recognition timing shifted due to expanded project scopes, the underlying commercial momentum remains robust.
Revenue and Cash Flow Dynamics
Despite the record contract wins, Enlitic's revenue for the quarter decreased to US$0.8 million from US$1.16 million in Q3 FY25. This decline was primarily due to extended delivery schedules on key projects, which delayed revenue recognition but increased overall contract size. Cash receipts also fell to US$0.5 million, contributing to a net operating cash outflow of US$3.3 million, up from US$0.8 million in the previous quarter.
The company’s cash balance stood at US$2.57 million at the end of December 2025, down from US$4.44 million the prior quarter. To bolster its financial position, Enlitic completed a capital raise via convertible notes, securing A$2.6 million in December 2025, with an additional A$5.4 million tranche awaiting shareholder approval in early February 2026. These funds are earmarked to support ongoing commercialisation efforts and operational growth.
Cost Discipline and Operational Efficiency
Enlitic continues to prioritise cost management, having realised annualised savings of approximately US$3.0–3.5 million from prior efficiency initiatives, including synergies following its acquisition of Laitek. In January 2026, the company introduced further cost reduction measures expected to deliver an additional US$2.5 million in annualised savings. These actions align the cost base with current operational priorities and support the company’s path toward operational cash flow breakeven.
Operating expenses saw some increases related to marketing and manufacturing, notably due to participation in the RSNA conference, but other cost areas such as administration, research and development, and staff costs saw reductions. This balanced approach reflects Enlitic’s strategic focus on sustainable growth while maintaining financial discipline.
Looking Ahead
Enlitic’s management remains confident that the company is well-positioned entering FY26. The combination of record contract wins, a strengthened balance sheet, and ongoing cost efficiencies provides a solid foundation for scaling its AI-enabled healthcare solutions. However, the timing of revenue recognition and the outcome of the shareholder vote on the convertible notes will be critical factors to monitor in the coming months.
Bottom Line?
Enlitic’s record contract wins and capital raise set the stage for growth, but revenue timing and funding approval remain key watchpoints.
Questions in the middle?
- Will the shareholder vote approve the additional A$5.4 million convertible notes tranche?
- How quickly will expanded project scopes translate into recognised revenue?
- What impact will the new cost savings have on Enlitic’s path to cash flow breakeven?