IMEXHS Reports 4% Revenue Growth and $32.8M ARR in 1H FY25
IMEXHS reported a steady first half of FY25 with revenue up 4% and annualised recurring revenue climbing 11%, driven by strong adoption of its Aquila+ radiology platform and strategic capital raising.
- 1H FY25 revenue increased 4% to $13.7 million
- Annualised Recurring Revenue (ARR) rose 11% to $32.8 million
- Aquila+ platform commercially launched with new contracts in Colombia and Mexico
- Capital raising of $2.6 million completed to support growth initiatives
- Operational focus on cost discipline, automation, and tighter credit control amid sector liquidity pressures
Financial Performance and Growth
IMEXHS Limited (ASX, IME), a provider of cloud-based medical imaging software and radiology services, has delivered a disciplined first half for FY25, reporting revenue of $13.7 million, up 4% year-on-year excluding one-off sales. The company’s annualised recurring revenue (ARR) rose 11% to $32.8 million, reflecting steady momentum in both its software and radiology services businesses.
Underlying EBITDA remained flat at $0.3 million, while the company reported a non-cash goodwill impairment charge of $1.78 million related to its radiology business unit. Despite this, management remains confident in the long-term prospects of the radiology segment.
Aquila+ Platform Drives Commercial Adoption
The highlight of the period was the commercial launch of Aquila+, IMEXHS’s next-generation radiology platform. Since going live in Q1 FY25, Aquila+ has secured several new contracts, including a three-year agreement with Clínica del Occidente and Hospital Moncaleano in Colombia, and a significant public tender win at Mexico’s National Institute of Neurology and Neurosurgery. These deals are expected to add nearly $400,000 in new annual recurring revenue.
The company’s partner programme has also expanded, now encompassing 25 high-performing partners across 15 countries. This channel contributed over 40% of software revenue in Q2, underscoring the effectiveness of IMEXHS’s capital-efficient distribution strategy.
Operational Discipline Amid Sector Challenges
IMEXHS has maintained a strong operational focus on profitability and cash flow management. Radiology services margins improved through disciplined repricing and automation initiatives, while tighter credit control measures were implemented in response to liquidity pressures in Colombia’s healthcare sector. The company is actively managing receivables and has put in place an action plan to improve collections.
Automation efforts include AI-driven workflow optimisations in call centres and radiology worklists, alongside cost optimisation programmes targeting cloud hosting and storage expenses. These initiatives aim to enhance efficiency and support sustainable growth.
Capital Raising and Outlook
To support its growth ambitions, IMEXHS successfully raised $2.6 million through a combination of placements and a share purchase plan, with strong backing from directors. The company closed the half with $2.5 million in cash and net assets of $14.5 million, positioning it well to execute on its pipeline.
Looking ahead, IMEXHS expects FY25 revenue between $27.5 million and $28.2 million, representing growth of 4% to 6.6%, and underlying EBITDA in the range of $1.3 million to $1.6 million. The company’s priorities include accelerating Aquila+ sales, maintaining margin discipline in radiology services, and continuing cost and automation programmes to drive profitable, capital-efficient growth.
Bottom Line?
IMEXHS’s steady progress with Aquila+ and disciplined financial management set the stage for a pivotal second half of FY25.
Questions in the middle?
- How quickly will Aquila+ sales scale beyond initial contract wins?
- What impact will sector liquidity pressures have on radiology services growth?
- Will the company’s cost optimisation efforts translate into improved margins in FY25?
