Mach7 Technologies H1 Earnings Call Highlights

26 Feb 2026, 20:10 by Scott Moore · The Cerbat Gem

Mach7 Technologies (ASX:M7T) executives used the company’s first-half fiscal 2026 earnings call to frame the period as a deliberate “reset” aimed at rebuilding commercial execution, sharpening product strategy, and tightening cost discipline, while acknowledging that the transition contributed to weaker reported revenue.

Management frames first-half as a “reset” focused on sales execution

CEO Teri Thomas opened the call emphasizing that “sales matters” and said the company has “an enhanced, growing, and focused team” working to improve pipeline quality, conversion discipline, and alignment between strategy and execution. Thomas described the first half as a “true top to bottom review” spanning people, structure, technology, locations, commercial models, pricing, costs, and culture, stating that “nothing has been off the table.”

Thomas said the company is “largely through the reset phase,” citing leadership and organizational changes, a refined product roadmap, a reshaped organization, and a cultural shift toward “performance and accountability.” She also noted that sales cycles in the sector can run 12 to 24 months, meaning commercial changes take time to show up in results.

Product strategy: from archive to “architecture,” with Flamingo positioned as modular growth lever

Thomas reiterated Mach7’s vision to become the “global Imaging EMR,” arguing that while healthcare has organized text-based clinical data, imaging remains fragmented across systems and departments. She described the company’s shift “from archive to architecture” as making imaging more accessible and “AI-ready” while remaining vendor neutral.

A key product focus discussed on the call was “Flamingo,” which management positioned as a modular set of capabilities that can be used with Mach7 products or layered on top of other vendors’ systems. Thomas said Mach7 secured its “first new logo this half in quite a while,” describing it as a Flamingo customer using “image data orchestration on top of another vendor’s radiology system.” She added that Mach7 believes the customer “may buy more modules” over time.

Thomas said Flamingo is now available for sale both within Mach7’s existing customer base and to new customers. She told investors the company expects “Flamingo-related supportive growth” in annual recurring revenue (ARR) “from this half onward,” while cautioning it “won’t be overnight.” In Q&A, she said the broader Flamingo offering and differentiation are expected to “increase roughly on a quarterly basis over the next two years,” with internal leading indicators including how many deals include Flamingo elements and the associated win rate.

Operational changes: headcount reductions, “Flight Crew,” and CE mark milestone

Thomas said Mach7 implemented “difficult but necessary headcount reductions” during the reset, but emphasized the company intends to grow headcount over time “deliberately and strategically,” including the use of “lower cost innovation hubs” to improve development velocity while maintaining cost discipline.

On customer delivery and support, Thomas highlighted the creation of a dedicated implementation, support, and customer success team dubbed the “Flight Crew,” initiated in August. She said elements that were “working well in eUnity support,” including performance reflected in KLAS scores, are being extended into “deeper and more proactive engagement” for VNA customers.

Thomas also reported a regulatory milestone: in January, Mach7 received a CE mark for its medical device software eUnity under the EU Medical Device Regulation. She said the certification supports access to Europe and the Middle East and validates safety, performance, clinical evaluation, and post-market surveillance requirements.

Financial results: revenue down on lower capital license activity; recurring revenue base remains majority of mix

CFO Daniel Lee said the first half reflected “lower capital license activity” during the commercial and organizational reset, which impacted reported revenue, while describing underlying fundamentals as strong. Key metrics he highlighted included:

Revenue: AUD 13.7 million, down 23% year over year, driven by lower capital license sales.
Recurring revenue: AUD 11.6 million, down 8% year over year, and representing 85% of total revenue.
Total CAR: AUD 26.1 million, down 8% on a constant-currency basis.
ARR run rate: AUD 23 million, down 2% on a constant-currency basis.
Gross margin: 92%.
Operating expenses: down 6%.
Cash receipts: AUD 12.5 million.
Cash balance: AUD 18.5 million with zero debt at the end of the half.

Lee said sales orders totaled AUD 10 million in total contract value, with 85% of sales orders coming from recurring revenue. He added that capital software sales “came primarily from expansions within our existing customer base.” Professional services orders were lower during the reset, but Lee said the company anticipates an uptick “as new deployments come online.”

Commercial reset: pipeline discipline, partner scaling, and brand push planned for March

Executive Vice President of Sales Todd Stallard, who joined about five months prior to the call, said his mandate includes direct enterprise sales, a global channel partner program, and marketing to reposition Mach7 around what he called “a category-defining opportunity” in imaging infrastructure. Stallard said Mach7’s net new CAR pipeline for new logos grew 30% over the past three months, attributing the improvement to pipeline cleanup, better qualification, and more disciplined forecasting.

Stallard outlined three commercial priorities:

Pipeline discipline: qualifying opportunities against factors including customer outcomes, budget authority, evaluation criteria, buying process, identified pain, and internal champions.
Partner at scale: a partner program built around onboarding/training, joint planning and QBRs, co-sell and co-marketing, and joint investment, with an emphasis on scaling reach without linear headcount growth.
Market position: launching the “Imaging EMR” brand in March across demand generation, thought leadership, and customer marketing.

Thomas added that customer feedback at RSNA validated the Flamingo positioning, but said one of Mach7’s key challenges is awareness: “a lot of people don’t know who Mach7 is,” and she characterized prior marketing as “underdeveloped.”

On outlook, Thomas said the company expects revenue to be “somewhere around even” with last year, while noting reliance on “some capital deals likely out of Asia” and potential services opportunities tied to new customer wins. She said she expects “next year to be a year of growth” as commercial momentum builds. Thomas also said the company was in final discussions to hire a new CTO, with an expectation of commitment within “the next couple weeks” and a start “in the next month or two.”

About Mach7 Technologies (ASX:M7T)

Mach7 Technologies Limited provides enterprise imaging data sharing, storage, and interoperability for healthcare enterprises in North America, the Asia Pacific, the Middle East, Europe and internationally. The company offers enterprise diagnostic viewing, which includes eUnity zero-footprint viewer that connects departmental imaging from across the enterprise to deliver studies to care providers via the EMR. It also offers enterprise data management solutions that enable cross-department and cross-enterprise workflows to capture, index, manage, store, distribute, view, exchange, and analyze clinical imaging and multimedia content.