Wow man! As a new shareholder I’m not used to reading reports like this! I know the market will be expecting a lot, so I’ll be analysing the information and updating my valuation soon.
REVIEW AND RESULTS OF OPERATIONS
The Company reported a first half after tax profit of $171.2m, an increase of $119.48m (up 230.9%) compared to the same period last year. Revenue from contracts with customers for the 6-month period increased from $97.2m to $124.8m, an increase of 28.4%.
Underlying profit before tax was $90.7m compared with $69.9m for the previous corresponding period, an increase of 29.7%. Underlying profit before tax comprises reported statutory profit before tax of $243.3m, minus the fair value gain on the movement of other financial assets and interest income of $153.2m, plus the net currency loss of $0.6m. The underlying profit for the previous corresponding half year of $69.9m, comprised reported profit before tax of $73.3m, minus the fair value gain on the movement of other financial assets and interest income of $3.8m plus the net currency loss of $0.4m.
Underlying profit before tax is a non-IFRS measure and has been included in the analysis of financial performance as the Directors consider it provides a more meaningful comparison of results from period to period.
The currencies of the countries in which the Company has its activities have fluctuated during the half year. On a constant currency basis1, the revenue would have been $123.4m (up 26.9%) and the underlying profit before tax would have been $90.2m (up 29.1%) for the half year ended 31 December 2025.
During the period the Company continued to grow its North American presence (revenue up 30.6%) with six implementations completed for Trinity Health Phase 1, Children’s Hospital of Alabama, Lurie’s Children’s Hospital,
University of Kentucky, University of Iowa, and Lucid Health.
The North American business continued to expand, winning six new contracts with UCHealth Colorado, Advanced Radiology Management, Roswell Park Comprehensive Cancer Centre, Children’s Hospital of Alabama,
Vancouver Clinic and BayCare Archive (combined A$278.0m; 5-to-10-year contracts). The Company also successfully renewed its contract with FMOL Health (A$20.0m; 5-year term), alongside a Visage 7 Worklist addition at VISN23 (A$3.0m).
The Company is looking to grow market share in North America, Germany and Australia and is actively pursuing a growing number of opportunities within the academic/teaching hospital, integrated delivery network (IDN) and corporate/private imaging centre markets.
The Company’s European revenue increased 40.5% compared to the same period last year, including winning a key contract with the University Hospital of Heidelberg (A$10m). The Archive data migration in the first half of FY26 is the main contributor to the increased revenue compared to the same period last year.
The Company’s Australian business increased revenue by 4.2% compared to the same period last year, and this is on par with the prior period.
The Company maintained its investment in research and development (“R&D”), both in Australia as well as overseas. This investment highlights the company’s ongoing commitment to innovation and its focus on advancing product development. Pro Medicus aims to maintain its competitive edge and ensure long-term growth in the marketplace.
We continue to actively integrate valuable insights from customer feedback, to guide the evolution of our products through version upgrades and newly introduced product features. Additionally, we have continued to prioritise product demonstrations, offering customers and prospective customers a firsthand look at our latest advancements and gathering real-time input. This ongoing dialogue with our customers helps ensure that our products meet their needs and exceed expectations, fuelling our commitment to excellence and positioning us for long-term success.
Exam volumes, particularly in the US, continued to grow throughout the period, both through increases from existing customers and new customers that now have been fully deployed throughout the first half of this financial year.
The Company's cash reserves increased by $11.2m despite an increase in the final dividend payout versus last year of $8.4m during the period, two share buybacks totalling $10.1m, and a $10.0m investment in ASX listed 4D Medical (4DX). Cash reserves and other financial assets, excluding forward contracts, unlisted debt instrument and unlisted equity instruments were $221.8m at the end of December 2025, an increase of 5.3% in the half. The company remains debt free.
The Board is of the view that there are sufficient cash reserves to fund the anticipated growth of the business from internal sources. Consistent with the Company’s dividend policy, the Company has announced a fully franked interim dividend of 32.0c per share payable on 20 March 2026. On 31 July 2025 the Company also made an investment in 4D Medical Limited of $10m in debt instrument with equity features. The investment will crystalise on 31 July 2027 (share issue) and 14 August 2027 (exit fee), and the ultimate value will be determined by reference to the 4D Medical share price at that date (Refer to note 12 of the financial statements).
Under International Accounting Standards the company is required to reflect the fair value of the debt investment in the financial statements at each reporting date. The Company has undertaken a valuation having regard to the volatility of the 4D Medical share price and the unexpired period before the investment will be realised.
At 31 December 2025 the value of the investment in 4D Medical is $159.1m which results in an unrealised fair value gain of $149.1m. This is reflected in Other Income in the profit and loss account.
The value of the investment may change at each reporting period, largely dependent on the share price at the relevant date.
Held IRL and SM
