Oneview Healthcare PLC

Thank you for standing by and welcome to the OneView Healthcare PLC HY26 half-year results call. All participants are in a listen-only mode. There'll be a presentation followed by a question and answer session. If you would like to ask a question via the phone, you'll need to press the star key followed by the number one on your telephone keypad. If you would like to ask a question via the webcast, please enter it into the ask a question box and click submit. I now like to hand the conference over to Mr. James Fitter, CEO. Please go ahead.

Thanks very much and good morning to everyone in Australia. Good afternoon to those joining from the United States and good evening to those joining at this late hour here in Dublin, Ireland. First of all, I'd like to, as usual, just draw your attention to the legal disclaimer and particularly to comments around forward-looking statements. I'd also like to remind everyone that we are a calendar year company, so we're reporting for the first half of 2026 for the six months ended June 30th, and that our reporting currency is euros. I am joined here in Dublin by Dara Lyons, our Chief Financial Officer, and Tony Pettit, our Company Secretary. And thank you both for joining me this evening. So in terms of agenda, as usual, we'll start with the financial performance. We will look at commercial momentum, updates on product and innovation, The Outlook and obviously save some time for questions at the end. So the first half of 2026 has been a period of great progress on our path to scalable growth. A recurring revenue, which is the true measure of any software business, grew by 13% year over year. Our gross margin very pleasingly jumped nine points from 61 to 70%, offsetting the impact of the decline in non-recurring revenue, which continues to be lumpy and volatile. In March this year, we completed a $19 million placement in extremely challenging market conditions. You might recall, we started our roadshow the same week as the United States launched the war in Iran. So it was a very challenging environment, but I wanted to thank all of our shareholders who participated at what was such an uncertain time in markets. You're going to hear a lot today about our new revenue channel, which we've already announced the bedside hub product. We were working with partners at Epic and really pleasingly operating cash flow, cash outflow is down 15%, which is really speaks to the cost discipline we've demonstrated across the business. So in terms of financial highlights, Darrell will elaborate on these shortly, but just importantly, we are domiciled in euros, as I already mentioned, which means that revenues are received predominantly in US dollars and Australian dollars, and both of them have weakened materially against the euro. So total revenue is down 14% headline level, but on a constant currency basis is down just 9%. And recurring revenue, as I already mentioned, was up 13%, but on a constant currency basis was up 20% given the fairly substantial weakening of the US dollar and the Australian dollar against the euro this half year versus last half year. As mentioned, our gross margin increased nicely, which offset the fall in the non-recurring revenue. EBITDA loss improved by 11% year over year, which is very pleasing and we finished the half year with cash of 7.2 million and we still have to settle the second tranche of the placement from March, which brings our pro forma cash balance to 11.4. In terms of commercial development, we have four new logos in contract negotiation, which means we're going to continue a very successful addition and growth in new logos that we've seen over the last three years. I'll talk further about our live endpoints at the end of June, which were just over 15,000. As we already mentioned, we were added to Baxter's National Care Communication Agreement with the General Purchasing Office of one of the largest 10 health systems in the United States. We've opened Bedside Hub as a new channel to market, which we'll elaborate on shortly. And on the product side, there's been great progress with the launch of Bedside Hub. our new front end, which is now substantially complete, and of course, OB, which is evolving into a gigantic intelligence layer. So why don't I pass across to Dara, who's going to speak to the financial performance in a little bit more detail.

Great, thanks, James. So turning to the P&L, recurring revenue, as James has said, grew 13% during the first half of 2026 compared to the same period of 2015. and that growth was negatively impacted by the weaker US dollar during the first half of 26 compared to the first half of 2025. So underlying growth on a constant currency basis was actually 20% in 26 versus 25. Non-recurring revenue declined by 1.3 million euro in the half and that's due to a lower number of deployments in the first half of 26 compared to 2025 and also due to a couple of significant hardware sales alongside deployments and hardware refreshes that we made during the first half of 2025. The shift towards higher margin recurring revenue in the first half of 2026 resulted in our gross margin increasing to 70% for the first half of 26 and that's up from 61% for the same period of 2025. As a result, gross profit remains stable at 3.8 million despite the 14% reduction in total reported revenue. Our cash operating expenses is 6% lower than the same period of 2025 and the key reason there is the global restructuring that we completed in June 2025. and that means that our overall operating EBITDA loss for the first half of 2026 was €4 million, which is 11% lower than the loss for the same period of 2025. So turning then to slide 10, you can see that our strong growth in recurring revenue, 13% on a reported basis and 20% on a constant currency basis, meaning that recurring revenue represented 79% of total revenue for the first half of 2026 compared to 60% a year ago. The increase in recurring revenue during the first half of 2026 was driven by new endpoint deployments over the past year, as well as some price increases that we've secured on recent customer renewals. and obviously the continued growth of this high margin recurring revenue stack is the foundation for reaching cash flow break even in the near term and is a major focus for management. Turning down to slide 11 on costs, we have invested heavily in our platform over the past few years, but really our spend peaked in the second half of 2024 and it has reduced by 10% since then. Cash OPEX in the first half of 2026 is 6% lower than the first half of 2025. And that's driven by lower employee costs since that restructuring that we completed in mid 2025. First half 2026 costs were broadly flat with the second half of 2025. As we worked on the completion of a key development project, building new front end, but our total headcount at the end of June is now lower than it was at year end, and we expect some further efficiency gains during the second half of the year. So then turning to slide 10, look at our operating cash burn. So as you can see, it's reducing over the past three first halves of the year, and there's a 15% decline in H1 2026 compared to last year. H1 2025, and that's driven by the 11% decline in our EBITDA loss in H1 26 versus H1 2025. On slide 13, then you can see our balance sheet has been strengthened, having completed the two tranche placement of $19 million in March, 2026. tranche one of $12 million was received in March, 2026. And the receipt of tranche two of $7 million is subject to shareholder approval, which we expect to seek and receive at our AGM during the fourth quarter of the year. So our pro forma cash at 30 June, 2026, including this tranche two of the placement of $7 million or approximately €4.2 million was €11.4 million, which gives us the bandwidth to execute on our strategic growth priorities over the next period. All other balance sheet movements are broadly and largely timing related. Management is very focused on reaching cash flow break even and we're pulling on all levers that we can to achieve this as we've set out on slide 14. We have significant opportunities to build on our recurring revenue stack with more deployments and live endpoints. With Bedside Hub, which James will cover in more detail later in the presentation, we've created a new revenue channel that's targeting enterprises who are seeking lower tier and lower price tier patient engagement solution. And certainly the early momentum and our current opportunity pipeline suggests that this could become an important new channel of recurring revenue for us over time. We also continue to have significant pipeline opportunities for our core platform through both our Baxter and Direct sales channels and through our targeted expansions into the significant white space that exists within our existing customer base. And obviously the recent and forthcoming innovation, which James will cover later in the presentation, particularly around OB, is expanding our role in alleviating the burden on care teams, creating the potential for improved pricing power in the future. On the cost side, our trends on costs and cash burn over the last few periods are encouraging and we remain focused on driving further efficiencies, including through the adoption of AI into the software development lifestyle, the cycle and across the business in general. And we're already seeing substantial gains in software development, deployment and overall business efficiency. So I hand it back to James who's gonna talk through some of the commercial highlights from the period.

Thanks, Dara, appreciate that. So first half's been an incredibly busy time. I'm just back from, I just spent five weeks in the United States and we're really starting to see the benefits of the investment we've made in the EPIC strategy. So I just wanted to elaborate a little bit on where this all fits together. So it was almost exactly a year ago at their annual user group meeting in 2025 that Epic began to place greater emphasis on the TV in the patient room by inviting vendors like us to support their bedside TV strategy. So their objective is to use the TV in the room as a clinical information hub for inpatients to access lab results and information about their care plan. Now that information is generally also available to patients on their smartphone through the MyChart app, but Epic has made a decision that they wanted to try and utilize the device in the room to try and make that more prominent. But in order to deliver that content, they need to certify patient experience specialists like us to deliver a fully integrated experience. So they themselves do not provide entertainment. They don't provide a TV player. They don't provide meal ordering or other ancillary services that we typically provide, and they don't manage the hardware that's required to deliver this experience. So this requires us to compliment them and provide a unified experience delivered on our proprietary bedside technology, which is the bedside hub that we developed some years ago, and which is standard deployment in all of our customer deployments. Because of Epic's market position with nearly 43% of acute hospitals in the United States and nearly 56% of beds, they obviously have enormous influence in the market. Deploying an electronic medical record is the single most important investment that any health system is gonna make. And large health systems in the United States can often spend as much as a billion dollars depending at deploying their Epic instance. So because of that, they want to try and leverage as much functionality as Epic can provide. So we see this as a natural extension of a very significant investment that's already been made. What it also means is that Epic customers are, I wouldn't say beholden, but they're certainly encouraged to explore Epic related solutions. So we've taken the decision to get our device certified, which will happen in May of this year. It's also consistent with the funding backdrop we're seeing in the United States. We know obviously from the big beautiful bill that there's been pressure on Medicaid and pay a mix, and that's starting to show up in some capital budgets. So Epic TV or Epic Bedside Hub is a lower cost solution that allows more cost conscious organizations to avail of an entertainment experience in a room, which is not the full immersive experience that we would typically deliver. However, what it has done is it's given us really unparalleled introductions to some very interesting Epic customers. So the unveiling of this certainly had some impact on procurement timelines. And we have seen some full platform decisions being delayed because of the focus on bedside hub. So in terms of commercial highlights, as I already mentioned, we were really thrilled that Baxter got us added to the GPO of a very significant US health system, which is the most important delivery from that partnership. We've now launched the new revenue channel. The combination of those two events is seeing us, as I mentioned earlier, in contract negotiation with four new logos, continuing the trend of new logo adoption, which we've seen in recent years. So just so everyone understands on slide 18, we're talking about the two product offerings that are now the real forefront of what we're doing. So our care experience platform is for those smart room buyers that are invested in a totally immersive experience. I should stress that all of our US customers, bar two, are existing Epic customers. So these are health systems that have placed a great emphasis on patient experience, leveraging our expertise to bring the nurse call, the virtual care, meal ordering, environmental controls, service requests, patient feedback, all built into a unified user experience. Bedside Hub customers are a slightly different profile. They are more likely to be cost-conscious and focused on really delivering the clinical insights that Epic is focused on rather than the full immersive patient experience. But for us, we see it as a great opportunity to accelerate our sales cycle and provide an offering that is more in keeping with what certain segments of the market are looking for. The Baxter funnel continues to be incredibly impactful for us. We are obviously privileged to be partnered with a company that has such extraordinary reach through their bed business, their nurse call business, their infusion pump business. I don't think there are many health systems in the United States that Baxter doesn't have a relationship with. Obviously, landing this large system at the start of the year has been a huge win for us, and we start to expect to see the benefits of that flowing through in the fourth quarter of this year. So Baxter are typically offering the full product set, the care experience platform, digital door signs, digital whiteboards for those systems that are looking for the fully immersive experience that I talked about. The benefit of bedside hub has also, and it's interesting because as always happens in this business, in the sales cycle, oftentimes sales opportunities will go quiet. You don't know why they've gone quiet, but what we've subsequently learned since we were certified in May is that a number of opportunities that were in our pipeline have resurfaced. They've been reignited and come back and said, look, we know we were looking at you. We're very interested in your care experience platform, but for now we're focused on the Epic bedside hub. So that's driven a really significant growth in our pipeline that is focused on specific bedside hub opportunities. um we have 16 opportunities representing over 20 000 beds which of course is more than our current deployment of 15 000 endpoints leading up to the user group meeting this year we already had 10 demonstrations with some very large health systems we see this as a as a much stronger proposition for epic centric customers and we now are about to kick off our first enterprise pilot where we'll be deploying a 15-bed pilot across three different hospitals for one of the top 20 health systems in the country starting next month. So what that looks like on slide 21, you can see the breadth and depth of the opportunities across the country, and you can see the ones where customers have come back. Previously stalled opportunities are highlighted in darker colors, and you can see they've come back and are now re-engaged and have confessed to us that, as I said, whilst they were very interested in the full scope of our platform of either for budgetary reasons or because of the Epic centric nature of their organization, they are looking to deploy a bedside hub. So last week was the annual user group meeting in Madison, Wisconsin, where Epic is based. There were 20,000 healthcare customers from across the country. and we were one of 15 vendors that was invited to participate. It's the first time we've been invited to this event and it's a great opportunity for our sales organization to hear firsthand what it is that these customers are looking for. And what is very clear is that the existing providers in Toolbox, so they're in our category, There are three certified vendors. The two other vendors are quite niche in their evolution. One of them only has five employees. The other is a very niche TV producer in the United States that has less than the 6% market share. And both of those two organizations seem to be having some teething problems. They don't have the length and breadth of experience that we have in the patient experience industry. So we had a lot of very exciting conversations around how we can help deliver to this very strong demand in the market. And I think it's early days, but I think we feel as though based on the feedback last week, that we are very strongly placed to be the provider of choice for those that wish to explore this strategy with Epic. So between Baxter and Epic, we're getting really unparalleled access to the market. The other really important conversation that's happening in the United States, and this was kind of the quid pro quo from the big, beautiful bill. So on the one hand, the federal government is taking away through cuts to Medicare and Medicaid funding. But on the other hand, they have launched a very large $50 billion program called the Rural Health Transformation Program. It's split into five installments of $10 billion for each year over the next five years. and that funding is made available to remote rural and community hospitals that are looking to invest in their digital infrastructure. And of course, one of the key components of that digital infrastructure is virtual nursing to deal with the issue we've been talking about now for nearly five years, which is the virtualization of care that's happening in the United States. So we are, as you know, we are the conduit to deliver that virtual care through our virtual care API. And this federal program is driving a lot of fresh interest in bedside technology. It's something that Baxter is particularly motivated by. And we're seeing a number of our virtual care partners also coming to us to bid jointly on opportunities that are available through this funding program. And to put this in context, The previous largest funding program made available was the $30 billion funding for the digitization medical records, which was a part of the Obamacare plan. So this is bigger than that. And I think it's going to have a real impact on our growth in the next five years. So live endpoint growth is probably the one frustrating part for us in the first half of this year. We had expected to deploy nearly a thousand endpoints at the Children's Hospital of Ireland. which unfortunately as noted on slide 24 has been delayed yet again. It's now been delayed 16 times, believe it or not. We are still unclear whether it's going to open this year or more likely in early 2027. But that obviously had an impact on our endpoint growth for the half. And secondly, we had another Australian public sector customer that has a decommissioned 481 endpoints in the first half. And I'll talk a little bit about Australian market conditions on the next slide. So as I think we've addressed in the past, the Australian private hospital market has been under incredible pressure. I think those on the call will be very familiar with the demise of Healthscope and the impact that's had. What we're seeing is that because of the pressure on the private sector and because public sector health systems need to go out to RFP, for those competitors of ours that operate exclusively in the Australian market. The only business that really has been available to them is in the public sector. So we've had two situations where we've gone out to RFP for existing customers. And in both cases, we have been under undercut on price by a pretty substantial margin in the most recent case by the winning bid was around about a third of what we were charging previously. So that's been a pretty difficult environment for us. We've chosen not to chase down on price. And importantly, the new endpoints that we deployed in the first half of this year in the United States have average recurring revenue that's nearly 60% higher than the Australian bids that have been decommissioned. What I would say though, is just in recent weeks and months, we have seen a bit of a pickup of inbound commercial activity in Australia. from the private sector. We had three active opportunities in the start of the year. We now have eight active opportunities, as you can see on slide 25. So we're hoping that the worst is behind us for the Australian business. We are not expecting any further churn. Our existing customer base or remaining customer base in Australia is incredibly supportive and gets great value from the work we're doing. And unsurprisingly, we have right-sized our Australian business to reflect the operating conditions in that part of the world. So just in terms of customer acquisition, as I think you all know, we've won 18 logos in the last three years. I think we're on track to obviously continue that trend with the four logos that are currently in redline contract negotiation. These opportunities alone, as you can see on slide 26, have an ARR opportunity, even if we deploy two and a half endpoints per room, we could triple the size of our recurring revenue business just by selling into these customers. So a really important opportunity in front of us and we're excited about the outlook for new logos in the second half. So let me turn now to product and innovation. On slide 28, I just wanted to remind everyone of the sort of fundamental change in the value of bedside technology, you know, pre-pandemic versus post-pandemic. We've has spoken about this at length, but the nursing shortage isn't going away. In fact, arguably it's getting worse in the United States. The demographics are such that the population is aging faster. The number of Americans over the age of 65 is doubling from 40 million to 80 million by 2040. So the demand for hospital beds is growing. The virtualization of care continues to be the dominant theme that is driving the demand for bedside technology. and our decision to build a virtual care API and to partner with the various virtual care companies is really underlying that continued growth in our annual recurring revenue. As Dara mentioned, we are just coming to the end of the rebuild of our new front end, which is probably the most significant investment the company's made in the last decade. It's really about reimagining how we deliver an experience that is appropriate for the agentic world that we're all living in. We know we're moving to a voice centric user experience where patients are going to control their environment using Ovi. The care team is going to get real time context and insights from Ovi and the new front end is going to deliver that in spades. We've had fantastic feedback from customers that we have obviously existing customers have been very involved in the design of this. It is a contemporary design system with a great modern experience. And this is the thing that is going to differentiate us from the bedside TV cohort to those that want to invest in a truly immersive experience. I think this is going to raise the table stakes and I think will be the most sophisticated patient experience platform available anywhere in the world. So super excited to get that deployed. We're currently deploying for our first two customers this quarter. So in terms of innovation delivered in the first half, and again, I want to acknowledge the great job that we've done on cost control, because we've delivered bedside hub, we've delivered the new front end, we are building our agentic intelligence layer. And we've also made a really significant upgrade to our data and analytics platform that brings the concept of real time data into the hands of care teams as part of the evolution of OB and the orchestration of care. So it's been a really significant time for innovation that is going to deliver dividends. And again, we've spoken at some length about the progress we've made in AI. I want to give a shout out to Declan Bright, our Chief Technology Officer, and his team around him who continue to really drive significant innovation across the whole software development lifecycle. We are continuing to invest in internal training, We're bringing in external experts to help to drive that initiative. But some of the gains here on slide 31, you'll see that 85% of code is now written by AI agents, obviously supervised by humans at every step of the process. We've increased the speed of our feature development by about 170% based on story points delivered. And perhaps more importantly, we have seen a dramatic acceleration in our ability to use AI to identify root causes for bugs and deliver a higher quality product at a better velocity. And ultimately, that's going to drive speed to value, which is hugely important. And all of this is being done under the guise of the AI governance we've already spoken about in the past. We're currently also undergoing SOC2 certification, which we think is going to be incredibly important in continuing to put more discipline around our processes and the way we deliver our product. So turning to the outlook, again, I want to just quickly remind everyone on slide 33, you know, how we're differentiated. This is a very sophisticated product. It looks very simple on the front end. It's extraordinarily complex on the back end. We're wired into the electronic health record, the nurse call system, the dietary system, building automation, virtual care systems. We're effectively becoming the operating system for the patient room. Every time we layer in new integrations, that obviously increases the power of our moat. Our installed infrastructure means that switching costs to move are really material. We're already seeing that in in some of the conversations we're having where we are trying to displace competitors, there is a pretty significant cost involved in that. So you need to have a product that is dramatically better than what's currently on offer. I think we can say now that with the new user experience, we're going to have that. We are obviously deeply embedded in the clinicians. We are hosting and acting as the conduit for the virtualization of care, which makes us incredibly valuable from a platform point of view. We are laser focused on regulatory requirements and healthcare, as everyone knows, I think we've talked before about how the sales cycle here moves at the speed of trust. It's a really high bar for new entrants and it's something that we're very proud of and it's shown in the quality and the retention of our customer base. We have three of the top 25 US hospitals. And whilst we have had the churn of two public sector hospitals in Australia, we've only ever lost one customer in the United States. And that was due to their financial predicament post pandemic where they almost went bankrupt. So incredibly proud of our customer retention. So in terms of commercial priorities in the second half, obviously we are in this late stage negotiation with some really exciting new logos. We want to get them landed. In addition, we want to land another three or four bedside hub logo wins before the end of the year. I think we're going to finish the year very strongly. Dara is doing a great job, as you heard, optimizing our operating cost base. We're laser focused on recurring revenue, trying to get as much of the non-recurring revenue out of the business because it's low margin, low quality revenue. In terms of product, we're really excited to be getting the new front end in the customer hands in the coming weeks. We're going to be getting customer feedback from the first two OB pilots, and we've also launched some further innovations on the whiteboard and the dual sign. And then from an operational point of view, we'll be out deploying Bedside Hub. I should stress that it is a much lighter touch deployment than our care experience platform. So that's also going to help speed to market. And then, as I mentioned earlier, we are excited to finally kick off this big new project with Baxter with the top 10 health system. We hopefully will be able to tell you who there is in the very near future. So with that, Darcy, I think we're ready to pass it back and see if there's any questions.

Thank you. If you would like to ask a question by the phone, you'll need to press the star key followed by the number one on your telephone keypad. If you would like to ask a question via the webcast, please type your question into the ask a question box and click submit. Once again, if you would like to ask a question, please press star 1 on your telephone and wait for your name to be announced. There are no phone questions at this time. I'd now like to hand the conference over to Tony to address any webcast questions.

Darcy, we have some questions here from Wei Sim from Hamadeus Research, some of which I think you've already addressed, James. The first one here, could we bring Epic Solution to Australia to compete with those undercut opportunities as a cheap and cheerful alternative?

It's a great question, Wei. Thanks for the question. So as you undoubtedly know, New South Wales Health made the decision to deploy Epic as their single patient record. And that current deployment, I think, has just gone live in Hunter, New England. The first deployment's gone live. So absolutely, New South Wales Health is ripe for Epic deployments. We're also in conversation. There's an Epic deployment in Canberra, and there's a couple of Epic deployments in Melbourne. and obviously our sales organization down there is laser focused on starting those conversations. So I think as we get into a more broader rollout of Epic across New South Wales Health in 2027, I think this is a solution that is really ripe for the Australian market as well.

Thanks James. Our next question from Wade of what has AI done for development expenses? What other levers are there to see us get to cash flow break even sooner?

I think we've made real progress. We have embraced AI across the entire software development lifecycle. We know because we're plugged into a pretty rich technology ecosystem here in Ireland because 18 of the top 20 US technology companies have the European headquarters here. And I think we're well ahead of the curve. I think that's showing up in the operating cost line that Dara already spoke to. But I think the main benefit we're seeing is that we're delivering a better quality product faster. And I think that's gonna lead to greater customer satisfaction. It's gonna lead us to be able to deliver faster on our roadmap, which is gonna create more value and lead to higher retention and hopefully pricing power. In fact, we've seen some great pricing power in a couple of renewals this year in the States. We've seen 15 to 20% price hikes as part of the renewal process. So we're pretty proud of that. And I think, look, at the end of the day, the hardest thing about this business, as you know, because you've been following us for a while, is the length of the sales cycle and the length of the deployment cycle. And I think Bedside Hub is going to address both of those issues. I think in certain cases, you know, bedside hub, the sales cycle is going to be measured in weeks, not months. And the deployment cycle similarly will be much less painstaking because we're not relying on the customer to provide us access to their Epic interface team. Epic is simply pushing a URL to our hardware to get the devices up and running. So it's going to be a lot lighter touch from us as we scale. So I think that's going to give us good operating leverage as well.

Staying with Wei, could you provide more color on the conversations at UGM? Being invited to participate in UGM suggests that Epic is very positive on the idea of collaboration on the bedside TV opportunity.

Yeah, I think they absolutely are. And I should stress that one of the other two competitors was there. One other one was not invited. As I said, the thing that I think stands out in the side by side comparison is that the company that we're competing with primarily is a five person company. And if you're thinking about deploying a solution on every television in your enterprise in a three and a half thousand bed system, do you really want to tie your success to a company that has five people? And just if you think about the support model our support desk in the United States. We have a 24-7 support desk with 12 engineers. So I think that was a really impactful differentiator for us. And we heard, volunteered to us, that there's been a lot of frustrations with one of the other vendors, which is this niche TV producer in the United States that seems to be struggling to get the solution to actually work on their hardware. and that hardware has actually just been removed from Epic Toolbox because of the frustrations that customers have been having with it. So I think we're in a really unique position. We've obviously got the heritage, we've got the proven scalability. I think we have the best piece of hardware to deliver the experience and certainly the pipeline would suggest that's the case.

Last question from Wei James. Can you provide a sense of what the 50 billion US dollar rural health program could potentially bring for OneView?

Yeah, a little hard to say right now, Wei. So we are being asked to bid, Baxter is, we have been careful not to get ourselves into what I'd call subscale deployments with Baxter. So typically, we don't want to be deploying to customer sites that have less than 200 beds. However, a lot of this fund, the vast majority of this funding is targeting critical access and community hospitals who all have less than 200 beds. So Dara is working very closely with Baxter to see if we can come up with a package that makes sense I think we can, and I think it's a little bit early to read how impactful that's going to be. But anytime there's $50 billion up for grabs, I think you can suspect that we're all going to have a pretty good go at getting our hands on as much of it as we can.

Final question on the board is from Martin Jacobs from Bell Potter. Do you think costs can decrease further beyond H2 2026? Darren, do you want to take that one?

Yeah, sure. Yeah, Martin, I think, yeah, we're obviously continuing to try and, you know, stretch the operating costs as far as we can. So I think there are certainly further efficiencies that we can gain in the second half of the year. We have mentioned a few times that we've sort of had, we've come out of peak innovation, if you like. So we've built quite a lot of product over the past few years. And we've just now finishing up the new front end and I think in terms of the future development, when we think about Ovi and all related innovation to that, we are gaining the benefits from the AI in the software development lifecycle and all the other efficiency gains from that that James has referred to. So that will certainly benefit us going beyond H2 2026. I think there's obviously only so far we can cut costs and continue to support a group of very high profile and prestigious logos in the US. We will obviously continue to require account management, team sales, support desk, all those sort of things and continue to innovate. So I think beyond there is a level where costs can't be cut further. and that's where really the other side of the P&L really needs to kick in and we need to leverage that existing infrastructure that we have in place and grow our revenue on that. So Epic TV, for instance, there's no major investment needed for that new revenue channel. We'd be using largely our existing infrastructure. And likewise, as we add new logos, including the top 10 health system, with 15,000 plus bed opportunity there, we're not adding to our cost base. So really it's around scaling the revenue and leveraging our cost base fully beyond a certain level. But certainly we'll continue to sharpen the pencil into 2027 on costs also.

Thanks, Dara. There are no further questions. James, I'll hand back over to you.

Thanks, everyone. I know it's a busy time. Really appreciate it. And if anyone has any follow-up questions, I think you know where to find us. So thanks for your time. Thanks for your support.

That does conclude our conference for today. Thank you for participating. You may now disconnect.