Alcidion Group delivered positive cashflow and strong new sales in Q3 FY26, with contract expansions in the UK and Australia. The company remains on track for a significant Electronic Patient Record contract signing in May.
- Q3 operating cashflow positive at $1.7M
- New total contract value sales of $11.7M
- Contract expansions in UK emergency and virtual care
- University Hospital Sussex EPR deal expected May 2026
- FY26 revenue guidance above $50M, EBITDA over $5M
Strong Q3 Cashflow and Sales Momentum
Alcidion Group Limited (ASX:ALC) posted a positive operating cashflow of $1.7 million in the third quarter of FY26, driven by robust cash receipts of $14.5 million. New total contract value (TCV) sales reached $11.7 million, underpinned by contract expansions and new wins across its Miya Precision platform. Notably, approximately 90% of these sales are recurring product revenue, highlighting the company’s focus on sustainable income streams.
The quarter saw expansions for the Miya Emergency (Miya ED) module with UK health services Hywel Dda and South Tees, alongside a new five-year contract with Gold Coast Health in Queensland for Remote Patient Monitoring (Virtual Care). This marks Alcidion’s first deployment of Miya Precision in Queensland, signalling growth in the Australian market beyond its traditional strongholds.
Contract renewals for Patientrack and PCS modules were also secured at multiple UK trusts including Harrogate, Dorset, and Liverpool Heart and Chest, reinforcing Alcidion’s entrenched position in the UK healthcare IT landscape.
University Hospital Sussex Contract on Track for May
Alcidion remains on course to finalise its much-anticipated Electronic Patient Record (EPR) contract with University Hospital Sussex NHS Foundation Trust (UHSussex) in May 2026. This deal, expected to contribute materially to FY26 revenue, has been a key focus after the company was named preferred provider earlier this year. The contract’s upfront license fee is expected to underpin the company’s reconfirmed FY26 guidance of revenue exceeding $50 million and EBITDA above $5 million.
The Sussex deal builds on Alcidion’s existing footprint in the UK, adding a significant new revenue stream and expanding the deployment of its Miya Precision platform. The company’s CEO Kate Quirke emphasised the strategic importance of this contract, which aligns with Alcidion’s land-and-expand growth strategy in the UK market and reflects growing demand for integrated digital healthcare solutions.
Financial Position and Guidance
As of 31 March 2026, Alcidion reported contracted revenue of $43.8 million for FY26, excluding the Sussex EPR contract. This represents a 9% increase on the prior corresponding period, indicating steady growth. The company’s cash balance stands healthy at $15.1 million, with no debt, supporting operational flexibility.
Operating costs rose to $3.4 million for the quarter, partly due to payments for third-party products associated with Alcidion’s expanded Leidos contract and provision of Mizaic to North Cumbria Integrated Care (NCIC). Despite this, the company maintained positive operating cashflow, consistent with its FY25 performance of $5.8 million.
Historically, Q4 is Alcidion’s strongest quarter for customer receipts, and the company expects this trend to continue, potentially boosting full-year cashflow and revenue outcomes. The company also extended its relationship with NCIC, adding Smartpage non-clinical capabilities following last quarter’s clinical rollout.
Innovation Driving Market Expansion
Alcidion’s Miya ED module continues to gain traction, digitising emergency department workflows and integrating disparate patient data to provide real-time clinical visibility. This innovation supports the company’s claim of rapid commercialisation of new functionalities that add tangible value to healthcare providers.
Meanwhile, the Remote Patient Monitoring contract with Gold Coast Health reflects a broader shift toward virtual care models that extend health services beyond hospital walls. This contract not only enhances Alcidion’s footprint in Australia but also taps into a growing sector trend for sustainable, patient-centric care delivery.
These developments build on earlier momentum, such as the company’s expanded Leidos contract, which increased annual recurring revenue and product integration in Australia. The company’s strategic focus on AI-enabled healthcare technology was highlighted in recent regulatory approvals for its AI-powered clinical tool, further positioning Alcidion at the forefront of digital health innovation.
Investors may recall the company’s strong H1 FY26 performance with a 44% revenue surge and return to profitability, setting the stage for the current quarter’s results and the anticipated Sussex contract signing 44 percent revenue surge and 35 million UK EPR deal.
Bottom Line?
Alcidion’s Q3 results reinforce its steady growth in digital health, but the final impact hinges on the May signing of the Sussex EPR contract and strong Q4 cash receipts.
Questions in the middle?
- Will the University Hospital Sussex contract signing proceed as scheduled in May?
- How will increased product development costs affect Alcidion’s margins going forward?
- Can Alcidion replicate its UK and Queensland contract successes in other regions?