MedAdvisor’s 4Q FY25 Revenue Drops 16.6%, ANZ Business Sold for A$35m

4Q FY25 Financial Performance

MedAdvisor Solutions has reported a challenging fourth quarter for fiscal year 2025, with group revenue declining 16.6% year-on-year to A$18.6 million. The US segment, which represents a significant portion of the business, experienced a steep 34% revenue drop to A$10.1 million, largely due to delayed health program launches and ongoing budget pressures within the healthcare sector.

Conversely, the Australia and New Zealand (ANZ) operations showed resilience, posting a 21.4% revenue increase to A$8.5 million, driven by growth in pharmacy development fees and government program contributions. Despite this growth, the ANZ business was divested on 7 July 2025 to Jonas Software AUS Pty Ltd for an upfront payment of A$35 million, with additional earn-outs potentially adding A$7.35 million over three years.

Strategic Moves and Capital Position

The sale of the ANZ business has significantly strengthened MedAdvisor’s balance sheet, enabling the company to fully repay its debt and hold a net cash position of approximately A$16.49 million as of early July 2025. This improved liquidity provides the company with flexibility as it considers capital management initiatives, including a possible capital return to shareholders.

Leadership changes have also been announced, with Sean Slattery appointed as Chief Financial Officer and Company Secretary, and Kate Hill stepping in as Interim Chair, signaling a refreshed governance approach as the company navigates its next phase.

US Market Challenges and Strategic Review

The US market remains a complex environment for MedAdvisor, with ongoing budget constraints, delayed program activations, and shifting government vaccination guidelines impacting revenue recognition. Approximately A$4.8 million in program revenue was deferred from 4Q FY25 into the first quarter of FY26, contributing to the downward revision of FY25 revenue guidance to A$88 million and an expected EBITDA loss between A$6.5 million and A$7.3 million.

In response, MedAdvisor has launched a formal strategic options review focused on maximising shareholder value from its US business, including the potential sale of this segment. This review is expected to conclude by the end of calendar year 2025, with an update anticipated in the first quarter of FY26.

Looking Ahead – FY26 Priorities and Outlook

Despite the setbacks in FY25, MedAdvisor enters FY26 with a robust US pipeline valued at US$125 million (unweighted), underpinning confidence in delivering at least 15% revenue growth year-on-year. The company plans to complete its US commercial team restructure, scale customer success operations, and launch a next-generation patient engagement platform by the second quarter of FY26.

Cost optimisation remains a key focus, with operating expenses expected to fall approximately 10% compared to FY25, reflecting ongoing efficiency initiatives. While vaccine revenue is anticipated to remain below prior years due to market dynamics, growth in specialty medication programs is expected to offset some of these pressures.