How Will Resonance Health’s AI-Powered Devices Drive $17M Revenue by FY26?

Strategic Growth Ambitions

Resonance Health Limited (ASX, RHT) has laid out an ambitious growth trajectory during its Investor Strategy Day on 13 October 2025, aiming to nearly quadruple its revenue from $4.4 million in FY23 to an estimated $17 million by FY26. This expansion is underpinned by a diversified approach that spans its core Software-as-Medical Devices (SaMD) business, clinical trial services, and investigator site operations through TrialsWest.

The company’s leadership, including MD & CEO Andrew Harrison and CFO Benjamin Carruthers, emphasized a disciplined financial framework targeting a 25% EBITDA margin and positive operational cash flow, reflecting a balance between aggressive growth and prudent cost control.

Innovation and AI Integration

Central to Resonance Health’s strategy is the advancement of its SaMD portfolio, which includes internationally recognized MRI-based diagnostic tools such as FerriScan® and HepaFatScan®. The company is accelerating development of AI-trained devices like FerriSmart® and LiverSmart®, which automate real-time assessments of liver iron concentration and fat, respectively. These innovations not only enhance diagnostic accuracy but also significantly increase processing capacity, with automation expected to boost throughput by up to tenfold.

Resonance Bridge, the company’s proprietary software platform, integrates seamlessly with customer workflows, improving cybersecurity and enabling immediate, encrypted data exchange. This technological backbone supports 24/7 operations across hemispheres and distributed specialist teams, positioning Resonance Health as a leader in secure, efficient medical imaging analysis.

Expanding Clinical Trial Footprint

Beyond technology, Resonance Health is broadening its clinical trial services globally. Its TrialsWest investigator sites and contract research organisation (CRO) services are expanding geographically within Australia and targeting acquisitions in the US and Europe. This expansion aims to capture larger, later-stage clinical trials, particularly in therapeutic areas such as metabolic diseases, obesity, hepatology, and hematology.

The company’s deep domain expertise and regulatory clearances across major markets (FDA, MDR, TGA) bolster its reputation among blue-chip pharmaceutical clients. Resonance Health’s strategy to increase its “share of wallet” involves offering more services to existing customers, entering new therapeutic areas, and growing its customer base organically and through acquisitions.

Financial Discipline and Future Outlook

Financially, Resonance Health is focused on maintaining a strong balance sheet with conservative gearing targets and generating free cash flow. The FY26 guidance excludes contributions from new acquisitions, geographic expansions, or the launch of a non-invasive fibrosis device, suggesting considerable upside potential. The company’s Project 50, 28 initiative encapsulates its ambition to reach $50 million in annual revenue by FY28, driven by automation, new imaging endpoints, and strategic acquisitions.

As Resonance Health prepares for its next growth phase, investors will be watching how effectively it executes on these multiple fronts while navigating regulatory and market challenges inherent in the healthcare technology sector.