Mach7 Technologies Limited

Good morning, everyone, and welcome to the Mark 7 Q4 FY26 result briefing. My name is Frances Dixon, and I'm Head of Investor Relations for Mark 7. Today, our CEO, Terry Thomas, and Interim CFO, Shawnee Hadsfield, will provide an overview of our Q4 result. We will then open it up for questions. If you have a question, please submit it by the Q&A text box at the bottom of the screen. I'll now hand over to Terry. Thanks, Francoise.

Hi, everybody. Nice to be here. Given my propensity for bird analogies, I can't resist starting off by saying that this quarter has flown by. When you're this busy, quarters have a way of doing that. Let me give a little bit of quick context for anybody who's not familiar with Mach 7. We're a company of just over 100 people and our job is to get every medical image, whether it's x-rays or PACs, ultrasound, MRI, CT, mammography, whatever the modality, to be able to get that organized into one archive, served up very quickly through our zero footprint viewer, and then make those images even more usable through a growing set of new products. We help hospitals and imaging centers actually do something with their imaging data under the wings of our Flamingo set of products, starting with strong interoperability, some ingestion foundational components, hybrid cloud and on-prem storage, orchestration of those images, routing them appropriately, and workflow automation. So back to the quarter. Not a huge headline quarter. It's a proof point quarter. All year, I've called fiscal year 2016, The Year of a Reset, a time for us to reassess, adjust, design some improvements, and then execute. And we've done this. Better products, better revenue quality, tighter operating expenses, and more discipline across the board. We only announced this reset at Halloween, and here we are nine months later, and this is what we've actually built. Q4 is where the transformation starts showing up in the numbers instead of just in my talking points. So I expect some of you would rather I spend this whole presentation on Flamingo and AI and where we're headed strategically, and I would love to do that, but that's next month's conversation alongside our full year results. Today I'm going to focus very much on the quarter. And it was a solid quarter. It gives us increasing confidence that we are heading in the right direction with our strategy. Now, a couple highlights that I'll call out before Shawnee takes you through the details. I'm happy to say it's our third straight quarter of positive operating cash flow. I'll tell you it's a little bit like how I like to operate in general, spend less than you make. But I do want you to know the first quarter tends to be historically a top quarter for revenue and OpEx for Mark 7, so we are working on it. While this may not look super exciting, it is a strong foundation that everything else can build on. We have $19.9 million in cash. We have no debt. We're up from $19.2 million last quarter, which is some runway. It gives us the ability to invest and room for us to sell from a position of strength instead of a position of urgency. Our ARR run rate is up 7.6% in constant currency year on year to 23.5 million. Now, I do like to talk about commercials, so on to the commercial side. Flamingo went live in production for the first time at UnityPoint Health with orchestration. We've signed a five-year, $2.8 million contract with a prestigious U.S. customer. It's an expansion and building on an existing relationship. But it's important for you to know about this because it's the first step in us migrating to convert legacy capital customers to our now standard subscription model in North America. That's a higher quality and more predictable revenue stream, and it's the foundation for our future. Also, AmradNet, brand new customer. They went from contract to implementation faster than any other sale in Mach 7's history. And while it wasn't our biggest sale by size, it was one that shows that we can be nimble, we can be responsive, and it's the new Mach 7 way. Howard Medical gives us a connection into 3,700 plus hospitals, and eUnity is now listed in the Epic Connection Hub. For those of you who don't know, Epic is the dominant clinical systems vendor in the United States and globally, increasingly, even in Australia with New South Wales Health installing Epic. So, none of us individually rewrites the Mach 7 story, but together, there's evidence that our reset is turning into a pattern of execution. Now, I'm going to turn it over to Shawnee, our interim CFO, but before I do, Most of you haven't met Shawnee yet. She's not new to Mach 7. She was promoted into the interim CFO role after running commercial excellence and customer success. So she's seen our contracts, our renewals, and established customer relationships before she ever touched a P&L. That combination of financial discipline that you'd expect from a public company CFO plus fluency in the customer journey is unusual. And it fits the culture that we're building at Mach 7. Delight the customers, provide real value, and the business value will grow as well. So, Shawnee, please tell everybody a little bit about yourself and then roll on into the numbers. All you. Great. Thank you, Terry.

Good morning, everyone. Building on what Terry said, my background is in finance and business operations with experience in restructuring, M&A, and execution in technology businesses. I've spent much of my career working with boards and management teams through periods of change, whether that's improving performance, simplifying structures, scaling for growth, or sharpening capital discipline. I'm a chartered accountant and CFA charterholder, and before Mach 7, I was CFO of a lean, agile SaaS business based in New Zealand with global offices and sales, which gave me a practical grounding in scaling recurring revenue models. As Terry mentioned, Coming into this seat from Commercial Excellence means I already know our contracts, renewal, and customer relationships from the ground up. I've been involved with Musk Devon for the last 12 months, and so while I'm new in the CFO seat, I'm not new to Musk Devon's business operations, priorities, or value drivers. And now let me take you through the detail behind the cash number Terry gave you. We finished the quarter net cash flow positive, increasing our cash balance 4% from the end of Q3 to $19.9 million at 30 June, driven by positive net operating cash flow of $1.1 million. Behind that $1.1 million of net operating cash flow, cash receipts from customers were $7.4 million this quarter, down 7.9% on Q3's $8.1 million. That's timing of customer payments between quarters, not a change in collection quality. Operating payments came down too, 7.3% lower than Q3, mainly on reduced costs and lower staff and admin costs. This cost discipline hasn't come at the expense of growth investment. This quarter, we capitalized $260,000 of development costs in connection with existing R&D projects. which drove the overall cash outflow in investing activities. There were no cash flows associated with financing activities this quarter. One more layer for anyone tracking the cash balance closely. The move from $19.2 million to $19.9 million also reflects a $66,000 unfavorable currency effect on cash held during the quarter. Work flagging, given epic volatility over the last 12 months,