Alcidion Secures $13.1M in Q2 Sales, Eyes EBITDA Positivity in FY25

Strong Sales Momentum in Q2

Alcidion Group Limited (ASX: ALC) has delivered a compelling performance in the second quarter of FY25, announcing new sales of $13.1 million. Of this, approximately $4.5 million is expected to be recognised as revenue within the current financial year. This sales surge is primarily driven by recurring product revenue, which accounted for 88% of the new sales, underscoring the company's growing foothold in healthcare IT solutions.

The company’s CEO and Managing Director, Kate Quirke, highlighted the significance of recent contract wins, including a five-year partnership with Northern Adelaide Local Health Network and a new agreement with Peninsula Health in Victoria. Both contracts leverage Alcidion’s Miya Precision platform to enhance patient flow and clinical operations, further cementing the company’s presence across the Australian acute healthcare market.

Improved Cash Flow and Financial Position

Alcidion reported cash receipts of $9.1 million in Q2, with an operating cash outflow of just $0.26 million, a marked improvement of $3.1 million compared to the same quarter last year. This reflects effective cost management and stronger cash collections from new business. The company’s cash balance remains healthy at $7.7 million, with no debt on the books as of 31 December 2024.

Additionally, the debtor ledger stood at $8.2 million at quarter-end, positioning Alcidion well for a strong second half of FY25, especially given the $5.9 million cash received in January 2025 alone. Historically, Q3 and Q4 are the company’s peak periods for cash collections, which bodes well for upcoming quarters.

Contracted Revenue and Outlook

At the close of Q2, Alcidion’s contracted and renewal revenue for FY25 was approximately $30.8 million, excluding the North Cumbria contract, which is nearing completion. The company maintains its guidance that EBITDA breakeven will be achieved once revenue hits around $36 million. Given the current sales trajectory and pipeline maturation, Alcidion expects to be both EBITDA and cashflow positive by the end of FY25.

Quirke emphasized the strategic value of expanding annually recurring revenue streams, which enhance the company’s financial stability and reflect the critical nature of its healthcare technology offerings. The ongoing renewal with Sydney Local Health District and Northumbria NHS Foundation Trust further validates the strength and stickiness of Alcidion’s solutions.

Strategic Positioning and Market Expansion

Alcidion’s Miya Precision platform continues to gain traction, particularly for larger-scale deployments. The company’s expanding footprint across Australia, the UK, and New Zealand, servicing over 400 hospitals and 87 healthcare organisations, positions it well for sustained growth. The evolving pipeline includes several tender-stage opportunities that could translate into new contracts before FY25 closes.

With a disciplined approach to cost management and a clear path to profitability, Alcidion is navigating the competitive healthcare IT landscape with increasing confidence. The company’s focus on improving patient outcomes through technology remains a compelling narrative for investors and healthcare providers alike.