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.