Alcidion Reports Record $7.7M Q4 Operating Cashflow and 27% FY26 Revenue Growth Fueled by Major UK Hospital Contract

Alcidion Achieves Record Q4 Operating Cashflow and Strong FY26 Financial Results Validating Business Model

Alcidion Group Limited reported its highest-ever quarterly operating cashflow of $7.7 million in Q4 FY26, driven by $24.6 million in cash receipts. This milestone capped a transformative FY26, with positive operating cashflow reaching $6.8 million—a 19% increase from the previous year’s $5.7 million. This robust cashflow highlights Alcidion’s strong recurring revenue model and its effective conversion of EBITDA into cash, reinforcing the company’s strategic financial strength.

The company’s unaudited FY26 revenue is expected to be around $51.6 million, a 27% increase year-on-year, with EBITDA projected to exceed $5.0 million. These figures underscore Alcidion’s successful expansion across Australia, New Zealand, and the UK markets. Growth drivers include expanding customer relationships, contract renewals, and new customer acquisitions through both organic efforts and strategic acquisitions. Management expressed strong confidence in meeting FY26 guidance, pending final audit confirmation.

University Hospital Sussex’s Seven-Year EPR Contract Marks Major UK Market Expansion

During Q4 FY26, Alcidion secured a transformative seven-year Electronic Patient Record (EPR) contract with University Hospital Sussex valued at approximately $35.0 million. This expands Alcidion’s existing relationship, where its Observations and Assessments module (Patientrack) was previously deployed. The contract covers full EPR deployment, making University Hospital Sussex the third UK trust to implement Alcidion’s Miya Precision and the largest to date. The company received a $10.6 million upfront licence fee in Q4, bolstering near-term cashflow.

Company guidance indicates the contract includes about 89% recurring product revenue and 11% non-recurring implementation services. This deal highlights Alcidion’s growing success in securing long-term recurring revenue from major UK healthcare providers as it expands its sales and implementation capabilities. Implementation phases are expected to generate ongoing revenue, alongside projects at Leidos and North Cumbria Trust. This contract confirms Alcidion’s ability to deliver complex EPR systems within one of the world’s most regulated healthcare markets.

Western Health Contract Renewal Highlights Long-Term Customer Loyalty and Product Integration

Alcidion extended its relationship with Western Health, one of Victoria’s largest public health networks, through a four-year contract extension plus an optional additional year during Q4 FY26. This marks the fifth renewal over 20 years, demonstrating Alcidion’s embedded software solutions and sustained value delivery. Western Health continues to use multiple Miya Precision modules, including patient flow, access, and command, with the extension enabling further expansion across hospital beds.

This renewal underscores Alcidion’s ability to interoperate with major enterprise EPR systems from competing vendors, a critical capability for large healthcare networks with diverse technology infrastructures. The long-standing partnership and repeated renewals illustrate how Alcidion’s modular solutions provide clinical and operational value that drives customer loyalty and growth through contract expansions.

Kyra Flow Acquisition Adds 31 Customers and Strengthens Queensland Market Presence

On 29 June 2026, Alcidion completed the strategic acquisition of Kyra flow products from Telstra Health with a net payment of $1.5 million (upfront $3.0 million less adjustments). This acquisition added 31 customers, increasing Alcidion’s total to 33 in Australia and New Zealand, notably strengthening its footprint in Queensland—a previously underserved market.

The acquisition was based on Kyra’s FY26 forecast EBITDA of $1.1 million, implying a 2.7x EBITDA valuation multiple. Management views this as immediately accretive to shareholder value, with medium-term opportunities to cross-sell Miya Precision solutions and realize cost synergies through integration. This deal positions Alcidion as a leading patient flow solutions provider in the ANZ region and removes a competing point solution from the market.

North Cumbria Phase 1 Go-Live Validates UK Implementation Expertise and Provides Reference Case

Alcidion successfully completed the Phase 1 go-live of its Miya Precision EPR system at North Cumbria Integrated Care NHS Foundation Trust in Q4 FY26, delivered on schedule and without issues. This milestone validates Alcidion’s capability to manage complex healthcare technology deployments within the highly regulated UK NHS environment.

The successful deployment serves as a valuable reference for sales efforts, providing evidence of operational success in the NHS. This enhances Alcidion’s competitive position for future UK contracts and generates ongoing implementation revenue, with potential for further expansion through additional modules or features.

Strong Quarterly Cash Receipts Reflect Robust Revenue Collection and Customer Payment Performance

Alcidion’s Q4 FY26 customer cash receipts reached $24.6 million—the highest quarterly collection in company history—including the $10.6 million upfront licence fee from University Hospital Sussex. Excluding this one-time payment, recurring cash receipts were $14.0 million, demonstrating solid collection from the expanding customer base.

Quarterly cash receipts showed growth throughout FY26: Q1 ($12.0 million), Q2 ($10.4 million), Q3 ($14.5 million), and Q4 ($24.6 million), driven by organic growth and contract timing. Full-year FY26 cash receipts totaled $56.1 million, underscoring strong customer relationships and effective billing processes. This trend validates the quality of Alcidion’s business model and the sustainability of its recurring revenue streams.

Robust Balance Sheet Supports Growth and Acquisition Strategies

As of 30 June 2026, Alcidion held $20.6 million in cash with no debt, providing financial flexibility for organic growth and strategic acquisitions. The cash balance reflects positive operating cashflow and timing of significant customer payments, including the University Hospital Sussex licence fee.

The company’s disciplined capital allocation funded the $3.0 million Kyra flow acquisition from existing cash, acquired at an attractive multiple. Management maintains strategic optionality, balancing cash reserves with investments in growth and acquisitions to strengthen market position and customer reach. The strong balance sheet and positive cashflow underpin confidence in self-funding future initiatives while preserving financial stability.

FY27 Outlook and Implementation Pipeline Position Alcidion for Continued Growth

Entering FY27, Alcidion benefits from strong momentum across all markets and a significant implementation revenue pipeline from projects at Leidos, North Cumbria, and University Hospital Sussex. Management reports ongoing progress on additional opportunities in Australia, New Zealand, and the UK, setting the stage for new contract wins.

The upcoming full-year FY26 results announcement in late August will provide detailed FY27 revenue guidance and strategic updates. The combination of recurring revenue, implementation income, and potential new contracts offers a robust growth trajectory for FY27. Investors should monitor the August update for insights on market conditions, competition, and implementation timelines.

Product Manufacturing Costs Reflect University Hospital Sussex Implementation and Third-Party Licensing

Q4 FY26 product manufacturing and operating costs totaled $4.1 million, elevated due to upfront licence payments for third-party partner products tied to the University Hospital Sussex EPR contract. These costs are necessary technology licensing fees integral to delivering the comprehensive Miya Precision EPR solution, which combines proprietary software with best-of-breed partner components.

Such elevated costs are expected to be temporary and consistent with prior contract setup phases. Alcidion’s business model leverages third-party technologies to accelerate solution delivery cost-effectively while maintaining proprietary differentiation. These upfront licensing expenses represent one-time implementation costs and do not recur quarterly.

Staffing and Incentive Costs Increase Due to Advanced Payment of Annual Short-Term Incentives

Staff cash costs rose modestly in Q4 FY26, primarily from advancing 50% of the full-year short-term incentive (STI) compensation earned by employees. This payment timing adjustment elevated Q4 costs but does not indicate ongoing operational cost increases. The remaining STI payments are scheduled for Q1 FY27. This approach reflects Alcidion’s commitment to performance-based rewards.

Related party payments to directors and associates totaled $0.38 million in Q4 FY26, comprising directors’ remuneration aligned with governance policies and shareholder-approved frameworks. These are routine expenses supporting company leadership and oversight.