PainChek Accelerates US Rollout with First Sabra Deployments and 5.9% ARR Growth

US Commercialisation Gains Traction with Sabra Deployments

PainChek Ltd (ASX:PCK) has taken a significant step in its US expansion by securing the first two commercial contracts under its master services agreement with Sabra Health Care REIT, targeting up to 20,000 beds across North America. These initial three-year deployments at Traditions memory care facilities mark the transition from market access to revenue-generating operations in the region.

Implemented licences in North America rose 22.1% during the quarter to 1,482, with implemented ARR climbing 21.1% to approximately $70,000. While the initial revenue contribution from Sabra deployments is modest, the deals validate PainChek’s owner-funded model, which leverages Sabra’s portfolio-wide endorsement and capital support to reduce adoption barriers at the facility level.

Steady Growth in ARR and Customer Base Across Key Markets

Globally, PainChek’s implemented annual recurring revenue (ARR) increased 5.9% quarter-on-quarter to $4.46 million, driven by a 5.9% rise in implemented licences to 90,198. Customer receipts jumped 27% to $1.284 million, reflecting stronger activations and revenue conversion. Active customer sites reached 1,990, with retention steady at 85%, underscoring the resilience of its subscription model.

Regionally, Australia and New Zealand remain the largest contributors, with implemented licences up 2.5% to 55,246 and ARR growing 2.7% to $2.54 million. The UK market showed robust momentum, with licences up 11.3% and ARR rising 10% to $1.85 million, supported by major activations including 3,000 licences across Methodist Homes and Scottish care groups.

Cash Flow Strengthened by Convertible Note and Tax Refund

PainChek’s cash position improved markedly during the quarter, aided by a $5.5 million unsecured convertible note raising in May, designed to fund US sales expansion and working capital needs. Net operating cash outflow narrowed by $689,000 to $1.791 million, while cash at quarter-end stood at $5.995 million.

Subsequent to quarter-end, PainChek received a $1.123 million R&D Tax Incentive refund related to FY2025 expenditure, further bolstering its liquidity. This refund, not included in the reported cash balance, supports ongoing product development and commercialisation efforts, particularly in the US market where regulatory clearance and reimbursement pathways are critical.

Leadership Changes and Product Focus

The quarter also saw a leadership transition, with CEO Philip Daffas stepping down and COO Andrew Hoggan appointed interim CEO. Shortly after, Karen Holzberger, a seasoned US medtech executive, was named CEO effective 17 August 2026, signalling a strategic push to accelerate growth in North America.

On the product front, PainChek continues to prioritise its core AI-powered pain assessment platform, enhancing clinical workflow integration and customer value. The company is also refining its PainChek Infant offering, focusing on targeted healthcare professional and pharmacy channels, exemplified by a new pilot with a national Australian community pharmacy network launched in July.

Clinical Validation Underpins Market Expansion

Supporting commercial efforts, PainChek’s growing clinical evidence base includes US validation studies presented at the Argentum conference and forthcoming peer-reviewed publications validating diverse dementia cohorts. European usability studies of localized versions further attest to the platform’s adaptability and effectiveness.

These data points are crucial for customer confidence and regulatory compliance, particularly as PainChek seeks to embed its solution within established care workflows and reimbursement frameworks.