Resonance Health (ASX: RHT) reported a profitable turnaround in FY26, driven by growth across its imaging software, clinical trial services, and site network businesses.
- 42% revenue growth to $15.75 million
- Net profit after tax of $1.51 million vs prior year loss
- Positive operating cash flow each quarter, $4.85 million cash balance
- Completion of major $13.8 million MASH clinical trial recruitment
- Progress on liver fibrosis MRI device and strong sales pipeline
Profitability Returns with Revenue Growth Across All Segments
Resonance Health Limited (ASX:RHT) has reversed its fortunes in the year ended 30 June 2026, reporting a net profit after tax of $1.51 million compared to a loss of $1.73 million in FY25. This turnaround was powered by a 42% jump in revenues to $15.75 million, reflecting broad-based growth across its three core businesses: Software-as-Medical-Device (SaMD) imaging products, clinical trial services (CRO), and the TrialsWest investigator site network.
Operating cash flow was positive in every quarter, culminating in a $2.9 million net inflow for the year and a cash balance of $4.85 million at year-end, comfortably covering the $2.53 million in debt. The company’s ability to fund growth from its own operations underscores the resilience of its business model.
Clinical Trial Momentum and Expanding Imaging Services
A highlight was the completion of recruitment for a $13.8 million MASH clinical trial, a significant milestone in Resonance Health’s clinical research organisation operations. This trial contributed substantially to the CRO segment’s $7.5 million revenue in FY26. Meanwhile, the TrialsWest network expanded to three sites in the Perth area, delivering a 56% increase in revenue and growing patient numbers ahead of expectations.
The SaMD segment saw an 88% surge in clinical trial imaging revenue, driven by new endpoints like Magnetic Resonance Elastography (MRE) and visceral/subcutaneous fat quantification (VAT & SAT). The company also advanced its Resonance Bridge technology, aiming to streamline integration with customers’ imaging systems and enhance scalability.
Liver Fibrosis Device Development and Strategic Board Appointments
Resonance Health is progressing its MRI Liver Fibrosis device through an extended proof-of-concept study, with recruitment completed and data analysis underway. A successful outcome could enable investigational use in pharmaceutical trials from FY27/28, addressing a $40 billion global liver diagnostics market challenged by the limitations of invasive biopsies.
Reflecting the company’s growth ambitions, the Board was strengthened in April 2026 with the appointments of Dr David Fuller, a pharmaceutical physician with three decades of drug development experience, and Michael Sistenich, a healthcare investment banker and funds manager. Their expertise aligns with the company’s clinical, regulatory, and capital strategy priorities.
Risks and Near-Term Priorities
Replacing revenue from the completed MASH trial is the company’s immediate challenge. Resonance Health has a record pipeline exceeding $12 million in SaMD orders and bids, alongside multiple CRO opportunities under active review, but contract signings remain the key hurdle. Additionally, the company’s $2.5 million NAB financing facility matures in March 2027, with renewal discussions underway.
Commercial diagnostics revenue was flat, with management targeting insurance reimbursement pathways to bolster this segment. The liver fibrosis device development continues to be prudently funded from operating cash flow, with no revenue assumed in near-term forecasts.
Outlook Focused on Growth and Operational Leverage
Resonance Health’s management and Board have set ambitious targets under 'Project 50:28' to grow revenue from $16 million to $50 million by FY28. Central to this is leveraging AI-assisted automation tools and the Resonance Bridge to increase scan analysis capacity by 5 to 10 times without proportional cost increases, aiming for EBITDA margins around 25% at $30 million revenue.
The company’s integrated platform model; combining imaging software, clinical trial management, and site network services; creates a synergistic referral engine that has driven the strong growth in FY26. This model positions Resonance Health well to capitalise on structural tailwinds such as rising liver disease prevalence, newly approved MASH therapies requiring imaging diagnostics, and a wave of GLP-1 clinical trials.
Bottom Line?
Resonance Health has proven its business model with profitable growth and cash generation in FY26, but the near-term focus will be on converting its strong sales pipeline into firm contracts and managing financing risks ahead of its NAB facility renewal.
Questions in the middle?
- Will the company secure contracts to replace revenue from the completed MASH trial?
- How soon can the MRI Liver Fibrosis device achieve investigational use and commercial clearance?
- What terms will the NAB financing facility renewal take, and how might this impact capital structure?