IMEXHS has moved several proprietary AI agents into live customer use while delivering stronger revenue, earnings and operating cash flow in the third quarter. But software bookings fell sharply, ARR was flat after churn, and Colombian receivables remain a material cash risk.
- Q3 revenue rose 23% to A$8.9 million, with year-to-date revenue at A$24.8 million
- Radiology Services EBITDA reached A$1.8 million for the nine months, 241% of the prior year
- Software NARR fell to A$282,928 in Q3 from A$654,000 in Q2
- Operating cash flow was A$1.0 million, while cash rose to A$2.5 million and debt fell to A$0.17 million
- FY26 revenue and underlying EBITDA guidance was reaffirmed
AI agents move from demonstrations into live radiology workflows
IMEXHS Limited (ASX:IME) has reached an important product milestone, with its proprietary AI platform moving beyond demonstrations and into production use across the radiology workflow. The Intelligent Appointment Scheduling agent is now live with customers, the image-suggestion agent for dynamic surveys has entered production, and a new Transcription Agent is ready for deployment.
The rollout extends the platform’s reach from scheduling and image acquisition into reporting. IMEXHS said its agents now operate across scheduling, acquisition, reading and reporting, while Portal+ is live with its first two clients and the New Web Viewer has completed clinical validation. The progress builds on the earlier AI platform rollout, which included AI agents deployed in a live hospital network.
Radiology Services drives earnings improvement
The financial performance was led by Radiology Services, where nine-month revenue rose 23.7% year on year to A$17.3 million and EBITDA reached A$1.8 million, or 241% of the prior-year figure. IMEXHS said revenue growth outpaced study volumes as activity shifted away from lower-value plain radiography and mammography towards higher-value computed tomography, magnetic resonance and densitometry.
Group revenue reached A$8.9 million in Q3, up 23% on the prior corresponding period, while year-to-date revenue rose 19% to A$24.8 million. Underlying EBITDA was A$600,000 for the quarter, unchanged from the prior year, but reached A$1.9 million for the first nine months compared with A$900,000 previously. The financial figures are preliminary and unaudited.
Software bookings expose the commercial gap
The product pipeline is advancing faster than the software sales line. New software annual recurring revenue was A$282,928 in Q3, down from A$654,000 in Q2, while software ARR slipped to A$11.7 million from A$11.8 million at 30 June after churn absorbed new contract wins. Management said several partner-led closures expected during the quarter moved into Q4.
There is some contracted revenue waiting to convert: A$2.4 million of estimated software ARR went live during Q3 and is expected to ramp towards the contracted estimates, while a further A$2 million remains contracted but not yet billing. That provides a defined conversion task for Q4, but does not remove the need to show that new bookings can become repeatable rather than episodic.
Cash improves while Colombian receivables climb
IMEXHS generated A$967,000 in operating cash flow during the quarter, lifted cash to A$2.5 million and reduced borrowings to A$168,000. The balance-sheet improvement is useful, but the company cautioned that cash receipts benefited from customers settling amounts that were due in June. Trade and other receivables rose 61% year on year to A$14.5 million.
Most of the underlying increase came from higher Colombian trade receivables, accrued revenue and withholding-tax credits. IMEXHS said government-linked customers have been paying more slowly as health-sector liquidity remains under pressure. A Colombian government shock plan includes proposed funding and an ADRES credit line for health insurers, but the credit line remains in draft and its total size has not been set.
FY26 guidance remains intact ahead of Q4
The company reaffirmed FY26 revenue guidance of A$31.4 million to A$33.7 million and underlying EBITDA guidance of A$2.4 million to A$2.7 million. Year-to-date revenue stands at A$24.8 million and underlying EBITDA at A$1.9 million, leaving Q4 execution concentrated around deferred partner deals, contracted software that has yet to bill, collections and churn.
The central tension is now clear: IMEXHS is demonstrating a broader AI product, and its radiology-services operation is producing materially stronger earnings, but software growth has yet to match the pace of the technology story. The next quarter should show whether production deployments convert into durable ARR, or remain ahead of the commercial engine.
Bottom Line?
IMEXHS enters Q4 with positive cash flow and stronger radiology earnings, but software conversion and Colombian collections remain the decisive tests for its guidance.
Questions in the middle?
- Can the deferred partner-led deals and A$2 million of contracted but not yet billing software convert into durable ARR in Q4?
- Will software churn ease enough for ARR growth to resume after remaining flat at A$11.7 million?
- How quickly will Colombian health-sector funding measures translate into collections and lower receivables?