IMEXHS Limited posted a 21% revenue increase in Q2 FY26, driven by a landmark public tender in Mexico deploying its AI-powered Aquila+ radiology platform. The company’s proprietary AI agents are now operational in live environments, supporting its strategy to own the full radiology workflow.
- Q2 FY26 revenue up 21% to $8.0m
- Largest enterprise software contract secured in Mexico
- Eight proprietary AI agents developed, five live or in deployment
- Annualised Recurring Revenue rises 12% to $36.8m
- Cash at $2.0m with debt reduced to $0.25m
Record Revenue Backed by Transformational Mexico Tender
IMEXHS Limited (ASX:IME) posted a standout Q2 FY26 with revenue climbing 21% year-on-year to $8.0 million, propelled by its largest-ever enterprise software contract. The public tender win in Zacatecas, Mexico, will see the company’s Aquila+ platform deployed across 20 public hospitals and clinics, adding approximately $384,000 in new annual recurring revenue (ARR). This deal marks a significant validation of IMEXHS’s AI-native strategy, embedding five proprietary AI workflow agents alongside Gleamer diagnostic algorithms from day one in what the CEO describes as one of the most comprehensive AI-integrated radiology deployments in a public hospital network globally.
AI Agentic Platform Driving Workflow Automation
IMEXHS continues to push the boundaries of radiology automation with its agentic platform, which now features eight proprietary AI agents developed ahead of schedule. Five agents are either live or in advanced deployment stages, automating critical workflow tasks such as intelligent appointment scheduling, study prioritisation, auto-distribution of workloads, non-attendance alerts, and an AI co-pilot for radiologists called RV Mentor. These agents operate seamlessly within Aquila+, automating operational tasks in the background to free radiologists to focus on clinical decision-making. Additional agents targeting image visualisation and patient survey workflows are also progressing through development and quality assurance phases.
Financial Performance and Recurring Revenue Growth
The company’s 1H FY26 revenue reached $16 million, up 17% on the prior corresponding period and 13% on a constant currency basis. Underlying EBITDA doubled in Q2 to $0.4 million, with 1H underlying EBITDA up $1.0 million to $1.3 million. ARR climbed 12% year-on-year to $36.8 million, comprising $25 million from radiology services and $11.7 million from software. Notably, $2.3 million of software ARR was contracted but not yet billing at quarter-end, with $1.2 million expected to start billing by September 2026. The company’s cash position stood at $2.0 million, down from $2.5 million in the previous quarter, while debt was halved to $0.25 million.
Commercial Execution and Market Expansion Challenges
While the Mexico tender win was transformational, IMEXHS acknowledges uneven commercial execution elsewhere. New software annual recurring revenue was heavily concentrated in this single large deal, with smaller deals converting less consistently than desired. The company is actively reshaping its sales and marketing approach to foster a steadier pipeline of mid-market opportunities and balance territory performance. The partner network, spanning 47 partners across 13 Latin American countries, remains the primary route to market, contributing the majority of software NARR during the quarter.
Navigating Political and Liquidity Risks in Latin America
IMEXHS continues to manage liquidity pressures in Colombia’s healthcare sector, which have been exacerbated by delayed government payments and political transition following the June 2026 presidential election. Early signs indicate improved business sentiment, but the company maintains conservative credit controls and working capital management to safeguard cash flow. Two new radiology contracts in Colombia are set to add approximately $2 million in ARR from Q3, supporting ongoing revenue growth despite sector challenges.
Leadership Transition and Future Outlook
Effective 1 August 2026, IMEXHS appointed Fabio Carrillo as Chief Financial Officer, succeeding Reena Minhas who resigned to pursue new opportunities. Carrillo brings two decades of accounting and advisory experience and will be supported by a strengthened finance team. The company reaffirmed its FY26 guidance to exceed FY25 underlying EBITDA, achieve cash positivity, and accelerate software revenue growth, with expectations that the second half will deliver stronger revenue, earnings, and cash flow results.
Bottom Line?
IMEXHS’s AI-driven radiology platform is gaining commercial traction, but the challenge remains to translate breakthrough wins into consistent mid-market growth amid regional liquidity risks.
Questions in the middle?
- Can IMEXHS replicate its large Mexico tender success across other Latin American markets?
- How will the evolving political landscape in Colombia impact healthcare sector liquidity and IMEXHS’s collections?
- Will the new CFO and revamped sales strategy accelerate the conversion of smaller, higher-probability software deals?