Revenue Up 28%, Net Profit Soars 230% on Strategic Investment Gains
Pro Medicus Limited has reported a stellar half-year performance with revenue up 28.4% and a surge in net profit, driven by major US contract wins and strategic investments.
- Revenue climbs 28.4% to $124.8 million
- Underlying profit before tax rises 29.7% to $90.7 million
- Reported net profit soars 230.9% to $171.2 million due to unrealised investment gains
- Seven new contracts secured, valued over $280 million
- Company remains debt-free with strong cash position and declares 32c fully franked dividend
Strong Financial Performance
Pro Medicus Limited, a leader in healthcare imaging software, has delivered an impressive interim result for the six months ending December 2025. The company reported revenue of $124.8 million, marking a 28.4% increase compared to the previous corresponding period. Underlying profit before tax rose by nearly 30% to $90.7 million, reflecting robust operational growth and efficiency.
Reported net profit after tax, however, saw an extraordinary jump of 230.9% to $171.2 million. This spike was largely influenced by unrealised gains of $149.1 million before tax from a $10 million hybrid debt and equity investment in 4D Medical Limited, made in July 2025. Despite this one-off boost, the underlying business fundamentals remain strong, with EBIT margins improving slightly to 73%.
Contract Wins Fuel Growth
The company’s growth story is underpinned by a series of significant contract wins, particularly in the US market. Pro Medicus secured seven new contracts during the half, collectively valued at over $280 million. These include a landmark 10-year $170 million deal with the University of Colorado and a $44 million contract with Advanced Radiology Management. Many of these agreements involve the full suite of Visage products, including the company’s new cardiology offering, signalling strong market acceptance of its expanding product portfolio.
CEO Dr Sam Hupert highlighted that these contracts span a broad range of healthcare providers, from specialised health systems to large academic medical centres. The company’s ability to address diverse market segments with a single, scalable product suite is a key competitive advantage.
Cloud-Based Implementations and Future Outlook
All six key implementations completed during the period were cloud-based, aligning with broader industry trends towards digital transformation in healthcare. Pro Medicus plans to complete seven more go-lives before the end of the financial year, including additional Trinity cohorts, which should further bolster revenue streams in the second half.
Despite increased dividend payments, share buybacks, and the 4D Medical investment, the company’s cash and financial assets grew by 5.3% to $221.8 million. Pro Medicus remains debt-free, maintaining a strong balance sheet to support future growth initiatives.
Dr Hupert also noted the company’s strong pipeline, boosted by a successful presence at the RSNA 2025 conference, the largest to date for Pro Medicus. This bodes well for sustained contract momentum and market penetration in the US diagnostic imaging sector.
Bottom Line?
With record profits and a robust contract pipeline, Pro Medicus is well-positioned for continued growth in a competitive healthcare market.
Questions in the middle?
- How will the unrealised gains from 4D Medical impact future reported profits?
- What is the timeline and risk associated with the upcoming contract implementations?
- How will the new cardiology offerings influence Pro Medicus’s market share in the US?
