Mach7 Technologies Limited

Good morning everyone and welcome to the Mark 7 Q3 FY26 Result Briefing. My name is Françoise Deberlac and I'm Head of Investor Relations for Mark 7. Today our CEO Terry Thomas, CFO Daniel Lee and EVP Sales and Marketing Todd Stellard will provide an overview of our Q3 results. We will then open it up for questions. If you have a question, please submit it via the Q&A text box at the bottom of the screen. I'll now hand over to Terri.

All right. Thank you, Francois. And hello. And I want to start by thanking all of you for your continued support of Mach 7. I am currently talking with you from Canada, our excellent eUnity development hub, and just coming from our new very entrepreneurial and less expensive office in Vermont, and before that, from visiting Class, which is the company that provides customer insights about health technology vendors, which are often referenced by potential buyers globally. Class is based in Utah, so I've been on the road a bit. During this build phase in our strategy, I'm spending the majority of my time in North America, and that's to be with my teams, with customers, and with future customers. Very important to be in the field, and I'm showing up myself with energy, urgency, and a startup mindset, because this company is a bit like a startup, but it's coming from an enterprise-grade foundation. Now, we started this reset six months ago, and our vision has grown while our costs have reduced. I know our share price volatility has tested some patience, and the market is has not made it easy to be a Mach 7 shareholder lately. I don't ignore that, and I don't hide from it. I take it very seriously, and I believe our future will be different. So I bought some stock myself, as have some directors. We collectively believe in Mach 7's future. So today I'll cover a little bit about our present, talk a bit about our future, what we delivered in Q3, progress on our reset, and how this translates into our outlook. Next slide. So a little bit on our vision. Mach 7 is moving beyond storing and viewing images. We are building the engine that organizes and connects imaging across the enterprise. And when we say from pixel to point of care, we mean shifting from disconnected images to imaging as a core part of the patient's record, bringing together radiology, pathology, video, and other clinical images into one integrated view. And that's how we'll compete and complement, complete and complement the traditional patient record. And as healthcare becomes more AI-driven, value will shift to that data layer. And that's where Mach 7 is positioned to win. Next slide. Now, this is a shift. And yes, I had to include at least one slightly wacky AI-generated slide. The slide's a little weird. because the future will feel a little bit weird too. AI is everywhere, and it is the future. I just came out of a strategy retreat alongside our visit to class, and our theme was operating as a performance team and leveraging AI. And as a hockey fan, I love Wayne Gretzky's quote and applying it to us. We have to build for where the puck is going, not where the puck is. The future will be different, and that is not threatening to us. like it is for many software companies who put their focus on complex user interfaces. For us, it's an opportunity. AI will change how people interact with software and how decisions are made. For years and years, people have been trained on how to use software. Now, software is being trained on people and their preferences, and AI will be a main interaction engine for many types of software. And we at Mach 7 are building for just that. AI is only as good as the data behind it. In healthcare, imaging today, imaging data particularly, is fragmented. It's hard to access. It's disorganized. Pair that with one of the biggest barriers to leveraging AI, trust. Many people don't have any idea exactly how AI is generated, where that data comes from, and can you trust it? That intersection of fragmentation and trust is a problem. But for us, that problem is opportunity. Trust and truth will define AI adoption, and that's exactly what we're building, the imaging foundation for AI that you can trust, stored in the right place, served up in the right way, Watch for more on this in our next Q4 and our year-end webinars. But for now, let's turn to the financials. Next slide. All right. We're seeing some clear progress following the operational reset we initiated in the first half. So starting with recurring revenue, ARR closed at $22.8 million, up 2% in constant currency quarter-on-quarter. Growth was driven by renewals, by expansions and upgrades, reinforcing the strength and durability of our recurring base. CAR was $25.8 million, including $3 million of contracted backlog, to be recognized as customers' reach for productive use. Then on sales. Q3 sales orders totaled $6 million in TCV, up 25% from $4.8 million in the third quarter of 25, reflecting continued underlying demand for Mach 7 solutions and improving partner execution. From a cash perspective, Q3 was operating cash flow positive at $1.2 million, representing a significant improvement over the second quarter and driven by increased efficiency across the business. Cash receipts were $8.1 million, up 2.7% quarter-on-quarter, as billing and renewal timing continues to normalize. On our costs, operating payments were down 15% year-on-year and 13% quarter-on-quarter in constant currency. We are proud to share that this discipline has been achieved while continuing to invest in product, partnerships, and pipeline generation. Our product and operating costs increased over the prior period, reflecting targeted investment that will support future revenue growth. We closed the quarter with $19.2 million in cash, no debt, up from $18.5 million at the end of December, maintaining a strong and flexible balance sheet. Overall, Q3 reflects improved financial discipline, stronger cash generation, and a more efficient cost base. Put simply, we are improving profitability while continuing to invest in growth. Next slide. Now, we've progressed key elements of our strategy. Our financials reflect that. We're working through our reset, but we continue moving from archive to architecture. With Brian Weerle now on board as our chief technology officer, we're sharpening our product roadmap and adding more feathers to our flamingo. expanding the modular platform which orchestrates and transforms imaging data into something are more usable, portable, and intelligently accessible. We are leaning into the cloud where it creates real value, but recognizing it is not a one-size-fits-all solution. Our approach is deliberate, enabling smart strategic migration that meets customers where they are and moves them forward. We've accelerated the cadence of VMA releases, and digital pathology viewing in eUnity 7.9 is progressing very well. It will be provided to two university teaching institutions in the U.S. for reference and referral viewing of whole slide images, and we're also in conversations with a veterinary pathologist group for diagnostic use. E-Unity can be used for veterinary because it doesn't fall under the same regulatory scrutiny as us humans for digital pathology. So it's a great way to validate this new technology safely. Our developers, they're busy. But I've invited Todd to join and talk more about our commercial execution. I know what investors want to see, sales. This is a top focus area for us. I've spent a lot of my career in sales and in healthcare technology sales specifically, and I love it. To educate you, though, these are typically long sales cycles, often 12 to 18 months. But the good news is that we have some opportunities at the tail end. And with Flamingo, we're also seeing some opportunities that can move through the process faster. So we're now six months into rebuilding our commercial engine. And in that time, we've brought on new staff, materially improved our pipeline quality, strengthened our sales and partner infrastructure. We're seeing strong activity translating into high-quality opportunity growth. And my last point before I hand it over to Todd, marketing is a big focus right now as well. You can't sell a secret. So we're investing now. We're coming out with some sharper new images, some higher volume of outbound marketing, and fresh and crisp content, including a new website. So stay tuned on that. But for now, I'm going to stop talking for a minute and hand it over to Todd. I noted the developers are busy and the sales engine is hot. So, Todd, you go.

Thanks, Terri. Hello, everyone. I'm lucky to be able to partner closely with Terri and the rest of the executives here at Mach 7 as I leave the commercial side of the business. which is sales, marketing, ops, and the partner ecosystem. I do want to talk real quick, though, one item. I want to talk about the business transformation that's occurred here, and I want to talk about how that has fundamentally reset this company both culturally and commercially. We are doing some things that are different than it has been done here. We have, for example, taken each of the executive leaders and we've taken on multiple customers to And with that, we're driving and reinforcing Mach 7's value with those customers, but also building relationship depth. The more intelligence that we understand about what our customers are going through daily, how we can help to, you know, spend our time not only with the product but our future roadmap, it just helps us as a company be a little bit more holistic in where our future vision is as it approaches our new goals around Flamingo, the digital path, opportunities and finding a way that we can help bring our customers along. Terry talked briefly about the commercial reset, so let me give you a little more color. We have completely rebuilt the commercial engine over the last six months. We have refined our CRM. We've put hygiene in place. We have a discipline for engagement around leads. We have now pricing rigor. We have deal inspections, et cetera. We are cleaning up the entire process around how We're driving sales, how we're driving coordinated marketing to drive leads, and where our pipeline goes and stands. As we talk about that, as we talk about our pipeline, we are diversifying our marketing outreach, which is diversifying a lot of the opportunities that are coming in. We are seeing V&A. We are seeing eUnity. We are also seeing opportunities now with the digital pathology pathway. and a couple of other things that will reflect into the Flamingo suite of products. There's also services that we're looking at. But as we kind of go to build our sales capacity, we are bringing on new hires. I brought on a couple in the last quarter. We'll continue to hire, but we're being very selective about those that we're bringing on. We are raising the bar, and we are raising the IT level within the company as we do that. On the marketing front, you'll see some very different-looking Mach 7 products information out there. We've taken a different spin as we've revitalized the social engine, and we're driving our rolling thunder plan, if you will, starting off with our SEM conference that's going to occur in June, and we'll drive that all the way to RS&A, and we'll be using those two primary trade shows as a big kickoff for the refresh of what Mach 7 is turning out from products, from partner engagement, from customer engagement, and our overall vision as we move forward. We'll provide a better roadmap. We're going to come with more energy and excitement. And we will be bringing true innovation and delivery. That is our game. We believe our outbound marketing currently is a little bit more targeted, more focused on markets that we're trying to penetrate. And we have specific call to actions, which is something that collaboratively with our partners, we're able to now drive deeper campaigns, which result in great new quality leads, which we've had a great quarter on leads coming in. So we expect that to continue to accelerate and building our velocity with inbound leads. We will be launching a new website over the next couple of months, so we'll stay tuned for that. We'll make that announcement as we do that. One highlight for this last quarter in regards to presence, we were invited by one of our technology partners, Amazon Web Services health imaging team, We were able to speak at the HIMSS conference in Las Vegas. Outstanding opportunity for us to get more exposure, especially standing next to a large partner that has a significant presence within the marketplace. And while we've been kind of focusing on pipeline refresh and the partner program, we've also continued to drive direct sales. And we feel pretty good about signing a couple of new logos before the end of the fiscal year. When it comes to the partner ecosystem, I wanted to kind of cover a couple of topics there for you. First and foremost, the partner channel is a cornerstone to how we're going to scale. As we look forward to diversifying our sales force, diversifying the marketplace, and going out and really changing the category of where we're delivering our services and our products, we need to look at the ecosystem that we're driving. And to do that, we've expanded the ecosystem in a sense of new reseller partnerships have come in We've revitalized some previous resellers that were involved with Mach 7. We've built stronger cloud alliances. We have AWS. We are looking and playing right now with Oracle, which is really good. That gives us two strong players in the cloud. We have a very strong relationship with Dell from a standpoint of hardware and on-prem. And we also have a great relationship with Ingram Micro, and we're digging deeper into that partner aspect. This gives us an opportunity to get a broader reach, and we're expanding into the Middle East as well with another partner program piece that we have there as a partner that we're going to put in place as a distributor. I feel very positive about that. What does that do for us, though, as we expand and we bring more partners in and we drive this? What it does is it gives us access to more customers. Their customers, it gives us more access to more markets. markets where they may have strongholds, where they have a footprint. It also gives us the ability to drive partner-generated pipeline in addition to Mach 7-generated pipeline, so we can get some scale through leverage of these assets that are partners, and it allows us to get some strategic market penetration as well. The biggest thing of all of it, though, is giving us the agility to increase our speed to market, and that In today's marketplace, with the prominence of AI and our products evolving as quickly as they are, speed to market is critical. And we'll be able to do that with partners that have great reach, and we'll be able to do it with less bodies on our side, lowering our costs, and increasing our margins and revenue. A couple things we are looking at, and as Terry does love differentiators, and I'm a big fan of them. But one of our biggest ones right now that's coming out is the digital pathology solution. It is a key differentiator for us. It's very interesting for our strategic partners. We have the insight to understand that a digital pathology study is roughly three to five times larger than an MR or a CT scan. That, to our data platform partners, is very exciting. And to our on-prem partners, again, very exciting. What do they need to make those things happen for them? They need us. We are the point for them to be able to make that penetration into the market. The customers use us and store their data with them. It's blue ocean for Mach 7, and especially with our eUNI solution, which is very elegant and fast. And Terry, she's sitting in Waterloo. She just got to see that up close and personal, it is a very, very compelling product for us, and we feel really good about it. Besides digital pathology, our parallel route to win long-term is Flamingo. And Flamingo is very important to the path for our future, for new sales, and for new revenue growth. We are driving... Next slide. Yeah. We're actually... Yeah, next slide. I think for Flamingo. Sorry. I thought I missed that. My bad. One of the things we're doing with Flamingo is basically creating a new category, and you heard me say that earlier. The world where we won't have people focusing on what's the V&A, what's the PACs, what they're going to focus on is their data. How do they leverage their data? How do they analyze their data? How do they monetize their data? And that is really through the imaging EMR platform that Mach 7 will provide. Where does Mach 7 see the Flamingo suite of products and services? What does it give us? Well, it gives us a modular entry point. So we don't have to sell the entire solution to make penetration into a customer. We also have the potential for faster sales cycles because we don't have to wait on that long sales cycle of putting in a complete system. We can make penetration with smaller modules and overtake other opportunities. We do have the expansion opportunities within our existing customer accounts to add on, And there's an ecosystem of services that will surround us that will drive new revenue streams for us. So we're very excited about what Flamingo does for us in FY27 and beyond. It supports our ARR growth. It also supports and grows modules and services that we'll be getting feedback from those partners and customers that our executives are engaged with and my team on the partner side is very deeply engaged with. Our goal is to own the broad imaging data platform. and we will get there step by step through the Flamingo modules and services. We're going to start with orchestration, which is our secret sauce, and we're going to drive the expanded API layer into migrations, et cetera, so that our customers, no matter the model, hybrid, cloud only, on-prem only, they will be able to do more and more over time by leveraging the Mach 7 platform. So I'm excited about the current products we've got. I'm excited about Brian being on as the CTO. I'm juiced coming out of our retreat last week. We've got an intelligent group of people leading the company. I look so much forward to coming back in the next couple of quarters and telling more of the story as we drive our growth and our new customers into profitability. So with that, I'll throw it back to you, Terry.