Full Year 2026 Pro Medicus Ltd Earnings Call

August 18, 2026

Speaker #1: Thank you for standing by, and welcome to the Pro Medicus Ltd Full-Year Results Briefing. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the Pro Medicus Limited Full Year Results Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Dr. Sam Hupert, CEO. Please go ahead.

Operator: Thank you for standing by, and welcome to the Pro Medicus Limited Full Year Results Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question via the phones, you will need to press the star key followed by the number one on your telephone keypad. If you wish to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Dr. Sam Hupert, CEO. Please go ahead.

Speaker #1: If you wish to ask a question via the phones, you will need to press the star key, followed by the number 1 on your telephone keypad.

Speaker #1: If you wish to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Dr. Sam Hupert, CEO.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Thanks, everybody, for joining us this morning for the full-year results presentation. As you know, we currently work in three jurisdictions: Melbourne, our corporate headquarters and where we do our RIS development; Germany, our R&D and support for the Visage product; and North America, which is over 90% of our revenues and now our largest.

Sam Hupert: Thank you. Thanks everybody for joining us this morning for the full year results presentation. As you know, we currently work in 3 jurisdictions, Melbourne, our corporate headquarters and where we do our risk development, Germany, our R&D and support for the Visage product, and North America, which is over 90% of our revenues and now our largest core of people. So it is the biggest implementation group of people we have, now overtaking both Europe and Melbourne. In terms of the highlights for the year, I think I will not go through all the financials. We have some other slides to deal with it. We did win 1 contract in Europe and 9 in the US, worth a total of AUD 407 million at minimums. We completed 6 out of 6 renewals, for a total of AUD 407 million, keeping our 100% renewal run rate intact.

Sam Hupert: Thank you. Thanks everybody for joining us this morning for the full year results presentation. As you know, we currently work in three jurisdictions, Melbourne, our corporate headquarters and where we do our risk development, Germany, our R&D and support for the Visage product, and North America, which is over 90% of our revenues and now our largest core of people. So it is the biggest implementation group of people we have, now overtaking both Europe and Melbourne. In terms of the highlights for the year, I think I will not go through all the financials. We have some other slides to deal with it. We did win 1 contract in Europe and 9 in the US, worth a total of AUD 407 million at minimums. We completed 6 out of 6 renewals, for a total of AUD 407 million, keeping our 100% renewal run rate intact.

Speaker #2: CORA of people, so it's the biggest implementation group of people we have, now overtaking both Europe and the US, and Melbourne. In terms of the highlights for the year, I think I won't go through all the financials.

Speaker #2: We have some other slides to deal with. But we did win one contract in Europe and nine in the US, worth a total of $407 million at minimums.

Speaker #2: We completed six out of six renewals, for a total of $407 million, keeping our 100% renewal run rate intact. We have all our implementations on or ahead of schedule.

Sam Hupert: We have all our implementations on or ahead of schedule. Our cardiology option is gaining traction with UC Colorado, Vancouver Clinic, and others. We did announce 2 new products in digital pathology and in our optimized reporting module. We are in the process of completing 2 investments, 1 completed with 4Dx and another with EchoIQ in cardiac AI. We are further down the track with our breast cancer detection pending FDA clearance. We have a very strong pipeline going into FY27. In terms of the financials, we think that all of the key metrics went in the right direction. Revenue up to AUD 261.7 million, underlying EBIT AUD 196 million. Our margins, which were already sort of about 3 times our nearest competitor, we were able to get another 90 basis points to get them just under 75%. The underlying NPAT, again, all went up.

Speaker #2: Our cardiology option is gaining traction with Duke, Colorado, Vancouver Clinic, and others. We did announce two new products in digital pathology and in our optimized reporting module.

Speaker #2: We completed, in the process of completing, two investments—one completed with 40x and another with EcoIQ in cardiac AI. We're further down the track with our breast cancer detection, pending FDA clearance.

Speaker #2: And we have a very strong pipeline going into FY27. In terms of the financials, we think all of the key metrics went in the right direction.

Speaker #2: Revenue up to $261.7 million, underlying EBIT $196. And our margins which were already sort of about three times our nearest competitor, we were able to get another 90 basis points to become just to get them just under 75%.

Speaker #2: And the underlying impact, again, all went up. So all the figures are there—I won't go through them all, but I'm happy to take some questions on them a little later on.

Sam Hupert: All the figures are there, so I will not go through them all, but happy to have some questions on them a little later on. As we had heralded to the market earlier on, currency was an issue in as much as this time the fluctuations were more material than they have been in the past. On a constant currency basis, certainly our EBIT and NPAT were over the 30% mark, which is our benchmark that we try and achieve greater than. The impact in dollars was AUD 11.8 million for revenue and AUD 9.9 million for EBIT, so bigger than previous years. In terms of balance sheet and return to shareholders, our cash reserves went up to over AUD 216 million. Cash and financial assets now AUD 250 million, up nearly 20%.

Speaker #2: As we had heralded to the market earlier on, currency was an issue, inasmuch as this time the fluctuations were more material than they have been in the past.

Speaker #2: On a constant currency basis, certainly our EBIT and impact were over the 30% mark, which is our benchmark that we try and achieve greater than. The impact in dollars was $11.8 million for revenue and $9.9 million for EBIT.

Speaker #2: So, bigger than previous years. In terms of balance sheet and return to shareholders, our cash reserves went up to over $216 million. Cash and financial assets are now $250 million, up nearly 20%.

Speaker #2: And as a result, our total dividend increased by 25.5%, to be $0.69 per share, fully franked, for the year. In terms of revenue growth, I think this chart does show quite strong revenue growth year on year. The bright green is the exam license recurring revenue, which has grown strongly again in this last financial year.

Sam Hupert: As a result, our total dividend increased by 25.5% to be AUD 0.69 per share, fully franked for the year. In terms of revenue growth, I think this chart does show quite strong revenue growth year-on-year. For those that have seen the chart before, the bright green is the exam license recurring revenue that has grown strongly again in this last financial year. Support is for the older contracts that we have largely around RIS in Australia and some of the term contracts. Again, in the gray, that is recurring revenue. There is the archive data migration and the professional services on top, with professional services split across the length of the contract, so recurring within the life of the contract. The bulk of the revenue we have continues to be recurring revenue, which gives certainty going forward.

Speaker #2: Support is for the older contracts that we have, largely around risk in Australia and some of the German contracts. Again, in the grey, that is recurring revenue.

Speaker #2: There is the archive data migration and the professional services on top. With professional services, it's split across the length of the contract, so recurring within the life of the contract. The bulk of the revenue we have continues to be recurring revenue, which gives certainty going forward.

Speaker #2: In terms of revenue by geography, again, I think it bears out that the US is over 90% of our revenue and growing strongly, but in the current or previous year, FY26, all jurisdictions did increase, so that was very pleasing and added to the total picture.

Sam Hupert: In terms of revenue by geography, again, I think it bears out that the US is over 90% of our revenue and growing strongly. But in the previous year, FY26, all jurisdictions did increase. That was very pleasing and added to the total picture. The other thing is our forward contracts of recurring revenue over a five-year window has increased now to AUD 1.3 billion. So a substantial increase, largely fed by the renewals and also by the material new contracts we wrote in the period. This shows year-on-year. FY25 was a bit of an outlier because it had our biggest contract ever in Trinity Health, which was arguably the biggest contract ever signed in our space just for medical informatics, Visage enterprise imaging informatics.

Speaker #2: The other thing is, our forward contracts of recurring revenue over a five-year window have increased now to $1.3 billion. So, a substantial increase, largely fed by the renewals and also by the material new contracts we wrote in the period.

Speaker #2: So, this shows year on year. FY25 was a bit of an outlier because it had our biggest contract ever in Trinity, which was arguably the biggest contract ever signed in our space—just for medical informatics, visual and applied imaging informatics.

Speaker #2: But pleasing to say that we had our second strongest year, with strong growth across multiple markets. But just about two years ago, it was about half what we did in this financial year.

Sam Hupert: But pleasing to say that we had our second strongest year with strong growth across multiple markets that just about two years ago was about half what we did in this financial year. So again, another strong year for new contracts signed. Going forward, I will talk about the contract wins a little bit. We came out of the gate early with our second biggest contract in July of 2025 with UCHealth, which was AUD 170 million at minimums for 10 years. We also had one of our other biggest contracts, which came late in the period, which was Beth Israel Deaconess Medical Center. For those that do not know, it is one of the two big healthcare systems in the Boston area. It is now going to include Dana-Farber Cancer Institute that was previously with another healthcare system, is going across to Beth Israel Deaconess Medical Center to even make it even more substantial and bigger.

Speaker #2: So again, another strong year for new contracts signed. Going forward, I'll talk about the contract wins a little bit. We came out of the gate early with our second biggest contract in July of 2025 with UC Health, which was $170 million at minimum for 10 years.

Speaker #2: We also had one of our other biggest contracts, which came late in the period, which was BIDMC Israel A. For those that know, it is one of the two big healthcare systems in the Boston area.

Speaker #2: And it is now going to include Dana-Farber, that was previously with another healthcare system, is going across to BIST Israel A, to make it even more substantial and bigger.

Speaker #2: We also wrote a contract with one of the largest private reading groups in the US, called Radiology Associates of North Texas, for $44 million—again, at minimums.

Sam Hupert: We also wrote a contract with one of the largest private reading groups in the US called Radiology Associates of North Texas for AUD 44 million, again, at minimums. We added archive to BayCare, who was a previous client, and that archive sale was substantial at AUD 25 million for the length of their contract. Then there were five other contracts that we have talked about, including contract with Heidelberg University Hospital with a total of AUD 55 million. So second biggest year, very good spread across different markets. Nine in the US and one contract, but a material one in Europe. Talking about UCHealth Colorado, as I mentioned, our second biggest, it is full stack plus one. In other words, they took cardiology as well as our worklist viewer and archive. They are a highly respected hospital system and an academic medical center.

Speaker #2: And we added Archive to BayCare, who was a previous client, and that Archive sale was substantial at $25 million for the length of their contract.

Speaker #2: And then there were five other contracts that we have talked about, including a contract with Heidelberg University with a total of $55 million. So, second biggest year, very good spread across different markets—nine in the US, and one contract, but a material one, in Europe.

Speaker #2: Talking about UC Colorado, as I mentioned, it was our second biggest. It is full-stack plus one—in other words, they took cardiology as well as our worklist viewer and archive.

Speaker #2: They are a highly respected hospital system and an academic medical centre. We went live with them in May 2026, so towards the end of the financial year. However, we will get a full 12 months of UC revenue coming into FY27.

Sam Hupert: We went live with them in May 2026. Towards the end of the financial year, we will get a full 12 months of UC revenue coming into FY27. The University Hospital Heidelberg, again, a very prestigious hospital. It is regarded as one of the 12 top hospitals in the world. It is affiliated with a German Cancer Research Center, which is the largest and most prestigious in Europe. It has not only increased our physical footprint in Germany, but also our presence in that high-end academic space. That went live with a full suite of products in April 2026. Radiology Associates of North Texas, as I mentioned, it is the largest fully private remote reading group in the US.

Speaker #2: The University of Heidelberg, again a very prestigious hospital, is regarded as one of the top 12 hospitals in the world. It's affiliated with a German cancer research institute, which is the largest and most prestigious in Europe.

Speaker #2: So, it has not only increased our physical footprint in Germany, but also our presence in the high-end academic space. And that went live with a full suite of products on April 26.

Speaker #2: Radiology Associates of North Texas, as I mentioned, is the largest fully private remote reading group in the US. We went live with breast imaging in April of '26, and just recently, about a week ago or a week and a half ago, went live with the rest of RAN.

Sam Hupert: We went live with breast imaging in April of 2026 and, just recently, about a week ago or a week and a half ago, went live with the rest of RadNet. It will greatly increase our presence in the private market. Another academic came relatively two-thirds of the way through the year, was University of Maryland. It is an academic medical center known for its R Adams Cowley Shock Trauma Center that became the leading center of trauma treatment in the US and globally. It is based out of Baltimore, Maryland, and it was a reference site for a key Visage competitor for many, many years. So, a good one to win from a tactical point of view as well as footprint. As I mentioned before, Beth Israel Deaconess Medical Center, it is full spec. It is a very highly respected hospital system, academic teaching center, as well as community and specialty hospitals.

Speaker #2: And so it will greatly increase our presence in the private market. Another academic that came relatively two-thirds of the way through the year was University of Maryland.

Speaker #2: It is an academic medical center, known for its R. Adams Shock Trauma Center, which became a leading center for trauma treatment in the U.S. and globally.

Speaker #2: It's based out of Baltimore, Maryland, and it was a reference site for a key Visage competitor for many, many years. So a good one to win from a tactical point of view as well as footprint.

Speaker #2: As I mentioned before, BIST Israel A is full stack. It is a highly respected hospital system, academic teaching center, as well as community and specialty hospitals.

Speaker #2: And it will now include the Dana-Farber Cancer Institute. So, it, plus our other client base in the state of Massachusetts, will give us by far the biggest share of the hospital systems in that state.

Sam Hupert: It will now include the Dana-Farber Cancer Institute. So it, plus our other client base in the state of Massachusetts, will give us by far the biggest share of the hospital systems in that state. In terms of contract renewals, I will not go through all of them, we announced them as they came, but it was six out of six, and allowed us to maintain our 100% client retention record. I think the interesting things with renewals, they were all for a five-year period, so the full contract term, and they were all for higher per transaction dollar values than the original contract done previously. So again, keeping in the way that we have been able to do renewals with increased pricing and for a minimum of five years and sometimes actually longer. In terms of implementations, it was our busiest period ever.

Speaker #2: In terms of contract renewals, I won't go through all of them—we announced them as they came. But it was six out of six.

Speaker #2: And it allowed us to maintain our 100% client retention record. I think the interesting thing with renewals is that they were all for a five-year period.

Speaker #2: So, the full contract term—and they were all for higher per transaction dollar values than the original contract done previously. So again, keeping in the way that we've been able to do renewals with increased pricing and for a minimum of five years, and sometimes actually longer.

Speaker #2: In terms of implementations, it was our busiest period ever. There were 16 if we include Trinity and the four cohorts. Because Trinity is so large, it had to be done in bits.

Sam Hupert: There were 16, if we include Trinity Health, the four cohorts, because Trinity Health is so large it had to be done in bits. Having said that, some of the cohorts, particularly one and two, were as big as doing an NYU Langone Health, as big banks, so they are huge. So four were completed in the financial year. UCHealth was completed in May. FMOL and Visum were cloud migrations. New University Hospital Heidelberg, as we have mentioned, 12th best hospital in the world, went live towards the middle of the second half. To round things out, RSNA 2025, which is our biggest conference of the year. Many of you heard me speak about it. That was our busiest to date and provided a very solid number of leads going forward. In terms of implementations, we often get asked, particularly by the analysts that are on the call, when do sites go live?

Speaker #2: But having said that, some of the cohorts, particularly one and two, were as big as doing an NYU as a big bank. So they're huge.

Speaker #2: So four were completed in the financial year. UC Health was completed in May. FMOL and VISM were cloud migrations. U Heidelberg, as we mentioned, the 12th best hospital in the world, went live towards the middle of the second half.

Speaker #2: And to round things out, RSNA 25, which is our biggest conference of the year—many of you heard me speak about it—that was our busiest to date and provided a very solid number of leads going forward.

Speaker #2: In terms of implementations, we often get asked—particularly by the analysts that are on the call—when do sites go live and how completed are they?

Sam Hupert: And how completed are they? We have decided to include this slide. You will see that as of 30 June 2026, Trinity was 75% complete, a number of the others 100% complete. As I mentioned, RadNet, which was 10% complete at 30 June, is now 100% complete as of two weeks ago. The new sales that we made subsequent to that in terms of Maryland, Beth Israel, TidalHealth, and St. Luke's, which we announced, I think, a week and a half ago, obviously, they are still in the pre-implementation planning phase, but will be live on the dates that we have put in that go-live targets. The only thing about go-live targets is sometimes the client will push the target out a week or two or a month, due to internal things. But by and large, we have never to date been the hold-up for a go-live.

Speaker #2: So we've decided to include this slide. You'll see that as of 30 June 2026, Trinity was 75% complete. A number of the others were 100% complete.

Speaker #2: As I mentioned, RANT, which was 10% complete on the 30th of June, is now 100% complete as of two weeks ago. And the new sales that we made subsequent to that, in terms of the Maryland BIST Israel title and St.

Speaker #2: Luke's, which we announced I think a week and a half ago—obviously they're still in the pre-implementation planning phase, but will be live on the dates that we have put in, that go-live targets.

Speaker #2: Now, the only thing about go-live targets is sometimes the client will push the target out a week or two, or a month, due to internal things.

Speaker #2: But by and large, we have never to date been the hold up for a go-live. And as you can see, the amounts that we did in the last fiscal year was really 16 was most probably our record.

Sam Hupert: As you can see, the amounts that we did in the last fiscal year was really, 16 was most probably our record. In terms of Trinity, this was our largest contract ever. It has a national footprint. As I said, the first four cohorts were done by June 2026. We completed the fifth cohort in 20 July 2026 and just after the end of the financial year. So that Cohort 6 and 7 have around 13% remaining. So we have now done about 87% of Trinity by volume, and pretty much all of that will contribute 12 months worth into FY27. So a material step up in terms of transaction numbers and value. We have always said, and I think it is becoming more and more prevalent, that our implementation capability is a competitive advantage.

Speaker #2: In terms of Trinity, this was our largest contract ever and has a national footprint. As I said, the first four cohorts were done by June 26.

Speaker #2: We completed the fifth cohort on July 20, 2026, just after the end of the financial year. So, for cohorts six and seven, there is around 13% remaining.

Speaker #2: So we have now done about 87% of Trinity by volume, and pretty much all of that will contribute 12 months’ worth into FY27. So, a material step up in terms of transaction numbers and value.

Speaker #2: We have always said, and I think it's becoming more and more prevalent, that our implementation capability is a competitive advantage. We're able to do very large-scale projects in a quarter to a fifth of the time of industry norms—like you, Colorado, getting Trinity live within such a short window.

Sam Hupert: We are able to do very large-scale projects in a quarter to a fifth of time of industry norms, like in Colorado, getting Trinity live within such a short window has never been done before. We think it is a huge differentiator for us, particularly as the market now is looking to move, and move to cloud quite rapidly. Being able to implement quickly and complete those implementations has turned out to be a very big strategic plus. Just going through two or three other quick things. Most of you would have been aware, we made some strategic investments. One was a AUD 10 million investment in 4D Medical. It will, for two years, maturing in July 2027. The terms of the deal were basically if the share price doubled, then we would get double our money back.

Speaker #2: This has never been done before. We think it is a huge differentiator for us, particularly as the market now is looking to move—and move to cloud—quite rapidly.

Speaker #2: Being able to implement quickly and complete those implementations has turned out to be a very big strategic plus. Just going through two or three other quick things.

Speaker #2: Most of you would be aware that we made some strategic investments. One was a $10 million investment in 4D Medical. It will be for two years, maturing in July 2027.

Speaker #2: And the terms of the deal were basically that if the share price doubled, then we would get double our money back. If it went more than that, which it clearly has, we would be able to get equity based on that.

Sam Hupert: If it went more than that, which it clearly has, we would be able to get equity based on that. So we did book an unrealized gain of AUD 172 million as of 30 June. But clearly, the final result will depend on the 4D Medical share price in July of next year. EchoIQ was another investment, similar but slightly different. It was AUD 10 million convertible notes with an option to do another AUD 10 million at the same strike price, assuming if EchoIQ received FDA clearance for their EchoSolv, which is the heart failure algorithm currently in with the FDA. It has a coupon rate, again, of 12.5%, and there are options attached should the share price continue to improve. Again, a two-year window, and the end value of that investment will largely depend on the EchoIQ share price at the time. In terms of AI progress, a few quick things.

Speaker #2: So, we did book an unrealized gain of $172 million as of 30th June, but clearly the final result will depend on the 4D share price in July of next year.

Speaker #2: EcoIQ was another investment, similar but slightly different. It was $10 million in convertible notes, with an option to do another $10 million at the same strike price.

Speaker #2: Assuming EcoIQ received FDA clearance for their EcoSolve—which is the heart failure algorithm currently under review with the FDA—it has a coupon rate, again, of 12.5%.

Speaker #2: And their options are attached should the share price continue to improve—again, a two-year window. And the end value of that investment will largely depend on the EcoIQ share price.

Speaker #2: At the time, in terms of AI progress, a few quick things. I know there's been an enormous amount of talk about AI in the market, but I think a few things have held to be true.

Sam Hupert: I know there's been an enormous lot of talk about AI in the market, but I think a few things have stood to be true. Healthcare and AI are ideally matched. Matter of fact, speaking to some of the founders of the big AI companies, they say the number one market where AI could have the most impact is in healthcare. Imaging is at the vanguard of that. 75% to 80% of FDA-approved algorithms in healthcare are for imaging. But like everything in healthcare, it is a highly regulated environment. There's FDA in America, CE in Europe, and TGA here. The important thing about healthcare is, unlike other areas, it is mission-critical. There can't be downtime, and certainly, there can't be any errors or hallucinations because people's health and welfare are at stake.

Speaker #2: Healthcare and AI are ideally matched. Meditech—speaking to some of the founders of the big AI companies—they say the number one market where AI could have the most impact is in healthcare.

Speaker #2: Imaging is at the vanguard of that. Seventy-five to eighty percent of FDA-approved algorithms in healthcare—half are for imaging. But, like everything in healthcare, it is a highly regulated environment.

Speaker #2: There's FDA in America, CE in Europe, and TGA here. And the important thing about healthcare is, unlike other areas, it is mission critical. There can't be downtime, and certainly there can't be any errors or hallucinations.

Speaker #2: Because people, health, and welfare are at stake. And the other thing we've seen, time and time again, is that AI must be embedded in the complex workflows used by clinicians.

Sam Hupert: The other thing we've seen time and time again is AI must be embedded in the complex workflows used by clinicians. It is not well accepted if it runs in a window on the side, and it must be trusted. People need to know that this is not just a black box. They need to understand the clinical evidence and support behind it in order to use it. We think we're ideally placed to benefit from AI. We are the gatekeeper for image-based AI for now at 11% of the market in the US and growing. Anyone that wants to fully integrate the AI output that's image based needs to integrate to, in our instance, the Visage Desktop. It is a very important place to be in the value proposition.

Speaker #2: It is not well accepted if it runs in a window on the side. And it must be trusted. People need to know that this is not just a black box.

Speaker #2: They need to understand the clinical evidence and support behind it in order to use it. But we think we're ideally placed to benefit from AI.

Speaker #2: We are the gatekeeper for image-based AI for now, at 11% of the market in the US and growing. So, anyone that wants to fully integrate AI output that's image-based needs to integrate an in-app instance of the Visage desktop.

Speaker #2: So, it is a very important place to be in the value proposition. We have the ability to embed AI into our core Visage offering, which we think, again, will be a strategic advantage for us.

Sam Hupert: We have the ability to embed AI into our core Visage offering, which we think, again, will be a strategic advantage for it. Importantly, we have a capital light strategy. We don't need to invest billions in data centers, and we don't need to invest hundreds of millions of dollars producing foundation models, like many others do to get the result that we're aiming for. I think we're incredibly well-positioned being the gatekeeper and adopting a capital light strategy. Things that we've done, as I mentioned, breast cancer detection, we did that with NYU. We're at pending FDA clearance.

Speaker #2: And importantly, we have a capital-light strategy. We don't need to invest billions in data centers, and we don't need to invest hundreds of millions of dollars producing foundation models like many others do to get the result that we're aiming for.

Speaker #2: So I think we're incredibly well positioned, being the gatekeeper and adopting a capitalized strategy. Things that we've done, as I mentioned: breast cancer detection.

Speaker #2: We did that with MIU. We're pending FDA clearance. We've done the investments with Elucid for cardiac CT, 4DMedical, and IQ. EcoIQ for their cardiac heart failure.

Sam Hupert: We've done the investments with Elucid for cardiac CT, 4DMedical and EchoIQ for their cardiac heart failure, and we've extended our research collaborations agreements with UCSF, Mayo, NYU, and others that will help us not only do the sourcing of the algorithms, but help in the clinical validation process, which is such an important part of it all. We are looking at a growing number of third-party AI algorithms to integrate into the platform on a curated basis. The team is the same team that leads our Visage development because both Malte Westerhoff and Detlev Stalling, the two co-founders of the Visage platform, have PhDs in this particular area, so well-suited. We have Ming, who is our PhD medical scientist based out of Yale, but also is part of the team that looks and assesses the third-party algorithms.

Speaker #2: And we've extended our research collaboration agreements with UCSF, Mayo, NYU, and others. That will help us not only do the sourcing of the algorithms, but also help in the clinical validation process, which is such an important part of it all.

Speaker #2: And we are looking at a growing number of third-party algorithms to integrate into the platform on a curated basis. The team is the same team that leads our Visage development, because both Malte Westerhoff and Dietrich Staritz, the two co-founders of the Visage platform, have PhDs in this particular area.

Speaker #2: So well suited. And we have Ming, who is our PhD medical scientist based out of Yale, that also is part of the team that looks at and assesses the third-party algorithms.

Speaker #2: Our products have made very significant progress on our concept of 'one platform.' So, unlike others that have various products that are all different, with different code bases and running on different servers, ours is one platform, one code base.

Sam Hupert: Our products, we've made very significant progress on our concept of one platform. Unlike others that have various products that are all different and different code bases and run on different servers, ours is the one platform, one code base. No one has ever done this before. We started with, obviously diagnostic imaging, including all breast imaging and advanced visualization in the one desktop. We've extended that to cardiology, which is doing well, and we've now extended it into the areas of digital pathology, and we're replacing something not pixel-based, but something that was always part of the radiologist's desktop, which was the reporting system. Because radiologists dictated in the past and used voice recognition to create a clinical opinion or report as we call it.

Speaker #2: No one has ever done this before. We started with diagnostic imaging, including all breast imaging and advanced visualization, on one desktop. We've extended that to cardiology, which is doing well.

Speaker #2: And so we've now extended it into the areas of digital pathology, and we're replacing something not pixel-based, but something that was always part of the radiologist's desktop, which was the reporting system.

Speaker #2: Because radiologists dictate it in the past and use voice recognition to create a clinical opinion or report, as we call it. So we've now brought out two products that we think fill out the mix, which are the digital pathology and the AI-optimized reporting system.

Sam Hupert: We've now bought out two products that we think fill out the mix, which is the digital pathology and the AI-optimized reporting system. Very significant steps taken in terms of new product as well as ongoing updates to the Visage 7 platform. Arguably our biggest year in development that we've had. The things that always make us different that continue to be the same in terms of legacy technology is compress and send. Many of you have heard me say this before, files are just getting too big. Ours is totally different. We use a streaming technology. We don't move the file, we just stream the pixels. A bit like the Netflix of diagnostic imaging, but it's a lot more sophisticated because it's two-way streaming, and adaptive streaming, depending on bandwidth, depending on network, depending on number of pixels need to be streamed, et cetera.

Speaker #2: So very significant steps taken in terms of new product. As well as ongoing updates to the Visage 7 platform. So arguably our biggest year in development that we've had.

Speaker #2: The things that always make us different continue to be the same in terms of legacy technology, is compression send. Many of you have heard me say this before.

Speaker #2: Files are just getting too big, so ours is totally different. We use a streaming technology—we don't move the file, we just stream the pixels.

Speaker #2: It's a bit like the Netflix of diagnostic imaging, but it's a lot more sophisticated, because it's two-way streaming and adaptive streaming, depending on bandwidth, network conditions, and the number of pixels that need to be streamed, etc.

Speaker #2: So, here's some new data points. There's some new CT called Photo Encoding CT, where you have up to 10,000 images, each image over half a meg.

Sam Hupert: Here are some new data points. There's a new CT called photoacoustic CT, where you have up to 10,000 images, each image over half a meg, so that's 5 gigs right there. High-density breast tomosynthesis can be 6 gigabytes plus a study. Digital pathology, a massive between 6 and 20 gigabytes, a set of slides. There's a new form of breast ultrasound called opto-acoustic, where the files are 10 gigabytes plus. You can see that as new equipment and new technologies come out, the files are growing exponentially, and the old compress and send technology just is not able to cope. The other thing driving the industry is not just the size of the images, but the number of images and the number of radiologists around to read them. The shortage has continued. It's acute.

Speaker #2: So that's 5 gigs right there. High-density breast tumor synthesis can be 6 gigabytes plus per study. Digital pathology—a massive, between 6 and 20 gigabytes.

Speaker #2: A set of slides. And there's a new form of breast ultrasound called optoacoustic, where the files are 10 gigabytes plus. So you can see that as new equipment and new technologies come out, the files are growing exponentially, and the old compression send technology just is not able to cope.

Speaker #2: The other thing driving the industry is not just the size of the images, but the number of images and the number of radiologists around to read them. The shortage has continued.

Speaker #2: It's acute. Pretty much every group worldwide is on the hunt for radiologists to just do the work volume that they currently have, let alone—

Sam Hupert: Pretty much every group worldwide is on the hunt for radiologists to just do the work volume that they currently have, let alone additional work. The fact that we are able to increase radiologist productivity whilst maintaining the same or better accuracy, to the degree we do, is again, a very strong strategic advantage for us. Cloud has been a big thing for us again. Many people talk about it. We believe we're the only ones that can do full cloud, even to this day. We celebrated our fifth anniversary of our first cloud kind in MedStar in 2020. Every single implementation since in the US has been 100% cloud-based. The market is beginning to understand the delta between hybrid cloud and real cloud. I think that's playing as, again, a big plus for us in the RFPs we deal with.

Speaker #2: The fact that we are able to increase radiologists' productivity whilst maintaining the same or better accuracy—to the degree we do—is, again, a very strong strategic advantage for us.

Speaker #2: Cloud has been a big thing for us again. Many people talk about it. We believe we're the only ones that can do full cloud, even to this day.

Speaker #2: We celebrated our fifth anniversary of our first cloud in MedStar in 2020. And every single implementation since, in the US, has been 100% cloud-based.

Speaker #2: It is that the market is beginning to understand the delta between hybrid cloud and real cloud. And I think that's playing as, again, a big plus for us in the RFPs we deal with.

Speaker #2: Open archive—again, I won't go into too much. But as we move more into cloud, we do more and more open archive. Not only as full stack with new clients, but also some of the clients that were originally on-premise as they moved to cloud.

Sam Hupert: Open archive, again, I won't go into too much, but as we go more into cloud, we do more and more open archive. Not only as full stack with new clients, but also some of the clients that were originally on premise. As they move to cloud, they will adopt archive, and we've had a number of instances of that. There's less and less on-premise work, as a result, going forward. The workflow, another key part. It allows for a lot of workload distribution dynamically. It's a very intelligent product. It's been well received by the market. Again, part of that full stack strategy that has played out significantly over the last 24 months, and particularly in the last year as well. Visage 7 Reporting, this is the new one. This was announced at SIIM in 2026.

Speaker #2: They will adopt archive, and we've had a number of instances of that. So there's less and less on-premise work as a result, going forward.

Speaker #2: The workflow, another key part, allows for a lot of workload distribution dynamically. It's a very intelligent product, and it's been well received by the market.

Speaker #2: And again, part of that full-stack strategy that has played out significantly over the last 24 months, and particularly in the last year as well.

Speaker #2: Visage 7 Reporting: this is the new one. This was announced at SIM in 2026. We've had our first implementations, which are in Europe at the moment.

Sam Hupert: We've had our first implementations, which are in Europe at the moment. It replaces third-party product, and it allows radiologists to have one single desktop that includes not only everything to do with image, but now also the reporting. We're looking to bring it into the US early calendar year 2027. We think it has a lot of incredibly good features, including AI optimization for drafting and revision, which will make the radiologist far more productive. Of course, it'll have complete integration between image and text, both being Visage, so measurements come straight across, areas of interest come across. Things that used to plague radiologists, we've been able to solve by this integration being the same product, the same code set. Cardiology imaging, again, I won't talk too much about it. Most of you heard about it. We did release it a few years ago.

Speaker #2: It replaces a third-party product, and it allows radiologists to have one single desktop that includes not only everything to do with imaging, but now also the reporting. We're looking to bring it into the US.

Speaker #2: Early calendar year 2027. We think it has a lot of incredibly good features, including AI optimization for drafting and revision, which will make the radiologist far more productive.

Speaker #2: And of course, it’ll have complete integration between image and text, both being Visage, so measurements come straight across, areas of interest come across. Things that used to plague radiologists—we’ve been able to solve by this integration being the same product, the same code set.

Speaker #2: Cardiology imaging. Again, I won't talk too much about it. Most of you have heard about it. We did release it a few years ago.

Speaker #2: We are seeing a lot of increased traction. Our first really big contract was with U Colorado. But we've now signed a number of others, both with existing clients, some with existing clients, some with new.

Sam Hupert: We are seeing a lot of increased traction. Our first really big contract was with UC Colorado, but we've now signed a number of others, both with existing clients, some with existing clients, some with new. We call it full stack plus one, and we are seeing more and more RFPs where there is diagnostic imaging and cardiology together. Definitely not all of them, but an increasing number. Digital pathology, as we mentioned, this is a new product. We have it working in Europe, and we again look to bring it to the US early in calendar year 2027. It will round out our diagnostic imaging platform. It is different to the diagnostic imaging market, which is 100% digital pathology. The market is less than 10% penetrated for various reasons.

Speaker #2: So, we call it full stack plus one. And we are seeing more and more RFPs where there is diagnostic imaging and cardiology together. Definitely not all of them.

Speaker #2: But an increasing number. Digital pathology, as we mentioned, is a new product. We have it working in Europe, and we again look to bring it to the US early in calendar year 2027.

Speaker #2: It will round out our diagnostic imaging platform. It is different from the diagnostic imaging market, which is 100% digital. Digital pathology, that market is less than 10% penetrated.

Speaker #2: For various reasons. One of the key ones being that the color slides that are produced in digital pathology create very big files, and the cost-benefit has not been there until recently.

Sam Hupert: One of the key ones being that the color slides that are produced in digital pathology create very big files and the cost benefit has not been there until recently. But we are seeing increasing interest from prospective clients and new clients in digital pathology. This will be an important part of the product mix. The RIS. Again, we've been able to eke out some growth in Australia with some new bolt-on clients, as well as increased volumes with some of our big users. We are the undisputed market leader in RIS in Australia. Clinical outcomes, we talk a lot about the money, but we are moving the needle in terms of what radiologists can do and at what speed, and therefore the clinical outcome that they achieve.

Speaker #2: But we are seeing increasing interest from prospective clients and new clients in digital pathology, so this will be an important part of the product mix.

Speaker #2: The risks. Again, we've been able to eke out some growth in Australia, with some new bolt-on clients as well as increased volumes from some of our big users.

Speaker #2: We are the undisputed market leader in risk in Australia. Clinical outcomes—we talk a lot about the money, but we are moving the needle in terms of what radiologists can do and at what speed, and therefore the clinical outcomes that they achieve.

Speaker #2: And I think this is fundamentally important because not only do we make them quicker, we make them more capable and, in many cases, more accurate.

Sam Hupert: And I think this is fundamentally important because not only do we make them quicker, we make them more capable and in many cases, more accurate. The growth strategy, we often get asked about it. I think it is the same that we have had that has been working. Win new clients, which is footprint, and as we have grown our market share, and the market share of 11% is on a higher figure. We used to estimate the market at around AUD 670 million. We now estimate it with organic growth somewhere around AUD 690 million. So the 11% is of that AUD 690 million. The launch of new products, we have just talked about that, and the enter new geographies.

Speaker #2: The growth strategy. We often get asked about it. I think it's the saying that we have had that has been working. When new clients—which is what footprint—and as we've grown our market share, and the market share of 11% is on a higher figure.

Speaker #2: We used to estimate the market at around $670 million. We now estimate it, with organic growth, somewhere around $690 million. So the 11% is of that $690 million.

Speaker #2: They launch new products; we've just talked about that. And the entry into new geographies—we think our position at U Heidelberg, which is so preeminent, so prestigious, will provide us with an excellent base not only to expand within Germany and surrounding areas, but in the future, also other parts of the EU.

Sam Hupert: We think our position at University Hospital Heidelberg, which is so preeminent, so prestigious, will provide us with an excellent base, not only to expand within Germany, and surrounding areas, but in the future also other parts of the EU. Just mention that, AUD 690 million and 11%. So whilst it is a material figure, we still have an enormous amount of runway. Pipeline is the second last thing I will talk about. It has been robust. We did have a big year of sales, but on the flip side of that, we have had an increased number of inbound RFPs across all market segments. We have opportunities at various stages of maturity in the pipeline and various sizes. So it is a diverse and robust pipeline and a reasonable portion of that came out of RSNA 25, which was our biggest.

Speaker #2: Just to mention, that's $690 million and 11%. So, while it's a material figure, we still have an enormous amount of runway. Pipeline is the last thing.

Speaker #2: The second last thing I'll talk about—it has been robust. We did have a big year of sales, but on the flip side of that, we've had an increased number of inbound RFPs across all market segments.

Speaker #2: And we have opportunities at various stages of maturity in the pipeline and various sizes. So it is a diverse and robust pipeline, and a good, reasonable portion of that came out of our NA25, which was our biggest.

Speaker #2: So yes, the pipeline has been robust, and we see opportunities across a lot of segments. We are now—there's the latest U.S. News Best Hospitals.

Sam Hupert: Yes, the pipeline has been robust, and we see opportunities across a lot of segments. We are now, there is the latest U.S. News & World Report Best Hospitals. We are greater than 50%. We do 11 of the top 20 hospitals, so by far the largest provider of systems to that client base. We are growing in the RDN space. We are growing in the private market space. So academics, RDNs, private market, all of them have improved for us in the last fiscal year. RSNA 25, as I mentioned, was huge for us. It was there that we were able to do an Apple Store event. I think it is the first time in Chicago an Apple Store has been used for such an event. There were over 450 people there.

Speaker #2: We're greater than 50%. We do 11 of the top 20 hospitals, so by far the largest provider of systems to the client base. We are growing in the RDN space.

Speaker #2: We are growing in the private market space. So, academics, RDNs, and the private market—all of them have improved for us in the last fiscal year.

Speaker #2: RSNA25, as I mentioned, was huge for us. It was there that we were able to do an Apple Store event. I think it's the first time the Chicago Apple Store has been used for such an event.

Speaker #2: There were over 450 people there. This is a photo of just some of them, and it was showing how the Vision Pro is being used by some of our clients.

Sam Hupert: This is a photo of just some of them, and it was showing how the Apple Vision Pro is being used by some of our clients. Incredibly well-attended and interesting. Some of the groups that attended have shown increased interest in the product, citing that store event as showing that we really are at the pointy edge when it comes to new product development and new technologies. This is the team. Biggest ever, and we think this will be replicated, if not outdone, by RSNA later this year. In summary, we had our record financials. Cloud was a big advantage. We had our second biggest year of contract wins with six out of six renewals. New products, cardiology, increased penetration, and strong pipeline will set us up well for FY27. Thank you for that, and we are open up to questions.

Speaker #2: Incredibly well attended and interesting. Some of the groups that attended have shown increased interest in the product, citing that the store event shows that we really are at the pointy edge when it comes to new product development and new technologies.

Speaker #2: This is the team—biggest ever—and we think it'll be replicated, if not outdone, by RSNA later this year. So, in summary, we had our record financials.

Speaker #2: Cloud was a big advantage. We had our second-biggest year of contract wins, with 6 out of 6 renewals. New products, cardiology, increased penetration.

Speaker #2: And a strong pipeline will set us up well for FY27. Thank you for that. We'll now open up to questions.

Speaker #1: Thank you. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad.

Operator: Thank you. If you wish to ask a question via the phones, you will need to press the star key followed by the number 1 on your telephone keypad. If you wish to ask a question via the webcast, please type your question into the ask a question box and click submit. We ask that questions be limited to 2 per person. Please rejoin the question queue for any follow-up questions. The first phone question today comes from Josh Kannourakis from Barrenjoey. Please go ahead.

Speaker #1: If you wish to ask a question via the webcast, please type your question into the 'Ask a Question' box and click submit. We ask that questions be limited to two per person.

Speaker #1: Please rejoin the question queue for any follow-up questions. The first phone question today comes from Joss Kanaracus from Baron Joey. Please go ahead.

Josh Kannourakis: Hi, Sam, Danny, and Gary. Thanks very much for taking my questions. Can you hear me okay?

Speaker #2: Hi Sam, Danny, and Gary. Thanks very much for taking my questions. Can you hear me okay?

Speaker #3: Yeah, that's better now, yeah.

Sam Hupert: Yeah, that's better now. Yeah.

Speaker #1: Perfect. Just the first one, just with regard to the implementation. So, obviously, that's all going on track. If we look across to '27 now, you obviously have those uplifts coming through.

Josh Kannourakis: Perfect. Just the first one, just with regard to the implementation. So obviously that's all going on track.

Sam Hupert: Yeah.

Josh Kannourakis: If we look across to 2027 now, you obviously have those uplifts coming through. What's your expectations in terms of once the go-lives happen, to be able to achieve above the minimums as you have been doing historically? When we look at, I think, consensus around AUD 340 or so for next year, it feels like a lot of next year's growth feels like it's covered by that. Is that fair to say at the moment where we're sitting?

Speaker #1: What are your expectations, in terms of once the go-lives happen, to be able to achieve above the minimums—as you have been doing historically?

Speaker #1: And when we sort of look at, I think, consensus around 340 or so for next year, it feels like a lot of next year's growth is already covered by that.

Speaker #1: Is that fair to say at the moment where we're sitting?

Speaker #3: Yeah, so there are a few things. As we mentioned in our corporate presentations, a lot of the implementations that we did in FY26 came in the second half.

Sam Hupert: Yeah. So there are a few things as we mentioned in our corporate presentations. A lot of the implementations that we did in FY26 came in the H2 and some late. That's just how they occurred. That wasn't intentional. It's when the clients were ready. So 2027 will get a big leg up with those now being 12 months. Trinity cohort 5 was third week of July, so as good as 12 months. All the rest, BayCare, UCHealth, first four cohorts. Then, yes, you're right, because it takes roughly six months from signing for the groups to be ready to go live. We know that some of the ones that are there like Beth Israel, like University of Maryland, et cetera, will fill out the rest for the financial year.

Speaker #3: And some were late. That's just how they occurred. That wasn't intentional; it's when the clients are ready. So, '27 will get a big leg up.

Speaker #3: With those now being 12 months—I mean, Trinity Cohort 5 was the third week of July—so as good as 12 months, all the rest.

Speaker #3: Daycare, University of Colorado, first four cohorts. And then, yes, you're right, because it takes roughly six months from signing for the groups to be ready to go live.

Speaker #3: We know that some of the ones that are there, like Beth Israel, like U. Maryland, etc., will fill out the rest for the financial year.

Speaker #3: And then the other thing is, our clients—the growth rate of the existing client base is roughly three times that of the industry average. So, obviously, the bigger the base is, and apply that formula, that grows as well.

Sam Hupert: The other thing is, our clients, the growth rate of the existing client base is roughly three times that of industry average. So obviously the bigger the base is and apply that formula, that grows as well. So it's multifactorial, but you're correct. The sales we made will cover a fair bit of that revenue upside.

Speaker #3: So it's multifactorial, but you're correct. The sales we made will cover a fair bit of that revenue upside.

Speaker #1: Got it. And just my second question, which follows on from the market volume growth, Sam. I know there were a few concerns earlier in the year after a number of the hospital groups and some of the reading groups and things talked about some hits to elective volumes.

Josh Kannourakis: Got it. Just my second question, which follows on from the market volume growth, Sam. I know there was a few concerns earlier in the year, after a number of the hospital groups and some of the reading groups and things had talked about some hits to elective volumes, and the like as a result of some of the removal of Medicaid funding packages. I'm just keen to hear your view on whether you've seen any of that, and maybe if not, why not?

Speaker #1: And the like, as a result of some of the removal of Medicaid funding packages. We're just keen to hear your view on whether you've seen any of that and, maybe if not, why not?

Sam Hupert: We haven't. I think there's more work out there that can be grown. So that's one thing, that it's producing more.

Speaker #3: We haven't. I think there's more work out there that can be read, so that's one thing. It's producing more. When we say 8%, obviously—and sometimes it's 9%.

Josh Kannourakis: Yeah.

Sam Hupert: When we say 8%, obviously, and sometimes it's 9%, it just depends year on year. Some of that is acquisition, some of that's organic growth. But no, we haven't seen any slowing off, and we haven't seen any group number go down. Quite the opposite. They've all gone up.

Speaker #3: It just depends year on year. Some of that is acquisition; some of that’s organic growth. But, no, we haven't seen any slowing off, and we haven't seen any group number go down.

Speaker #3: Quite the opposite. They've all gone up.

Speaker #1: Right. And just on that, do you think that's so due to the type of clients that you've got within the portfolio? If you looked at more of the lower end or larger sort of public-related hospitals, would they have more impact to that, do you think?

Josh Kannourakis: Right. And just on that, do you think that's though due to the type of clients that you've got within the portfolio? If you looked at more of the lower end or larger sort of public-related hospitals, would they have more impact to that, do you think?

Speaker #3: It's possible, but again, that's not what we've seen. Some of them are a bit more expansile. There's no secret about NYU; they're opening new centers and they're sort of on the front foot.

Sam Hupert: It's possible, but again, that's not what we've seen.

Josh Kannourakis: Yeah.

Sam Hupert: Some of them are a bit more expansive, like there is no secret about NYU. They are opening new centers.

Josh Kannourakis: Yeah.

Sam Hupert: They are sort of on the front foot. They are not the only ones. We see more and more of that. Maybe it is the client base, but we do spread across a whole lot, regional ones and other bits and pieces that most people had not heard of till we announced them. They seem to be doing pretty well too. By and large, no, we have not noticed any decrease, quite the opposite.

Speaker #3: And they're not the only ones. We've seen more and more of that, so maybe it is the client base. But we do spread across a whole lot.

Speaker #3: Regional ones and other bits and pieces that most people hadn't heard of until we announced them. And they seem to be doing pretty well, too.

Speaker #3: So, by and large, no, we haven't noticed any decrease—quite the opposite.

Speaker #1: That's great. Thanks, Sam. Thanks, guys. Appreciate it.

Josh Kannourakis: That is great. Thanks, Sam. Thanks, guys. Appreciate it.

Speaker #4: Thank you. The next question is from David Stanton from Jefferies. Please go ahead.

Operator: Thank you. The next question is from David Stanton from Jefferies. Please go ahead.

Speaker #5: Good morning, team, and thanks very much for taking my questions. Just on the previous question, you talked in the presentation about a benchmark of around 30% growth.

David Stanton: Good morning, team, and thanks very much for taking my questions. Just on the previous question, you talked in the presentation about a benchmark of around 30% growth. Should we be thinking that on a constant currency basis for FY27 for revenue and profit?

Speaker #5: I mean, should we be thinking about that on a constant currency basis for FY27, for revenue and profit?

Speaker #3: That's where we are in, yes. And in some users, I've said currency doesn't have a material impact. So what we report in the current and constant currency are much the same.

Sam Hupert: Well, that's where we are aiming, yes. In some years, as I have said, currency doesn't have a material impact. So what we report in the constant currency are much the same. It just really depends how much it moves around from period to period. But yes, we think that's achievable. Given we know all the sites we have put on late in FY26, as we mentioned, Trinity and all those others. They are actually big in their own rights. It's not just that they came on towards the end of the financial year, but they are big. So having a full 12 months of them will have an impact in 2027, which we know already. Then there are the other ones we are putting on. So yes, we cannot predict currency. I do not think anyone can. But yeah, constant currency basis and hopefully reported if currency doesn't move too much.

Speaker #3: It just really depends on how much it moves around from period to period. But yes, I mean, we think that's achievable. Given we know all the stuff we put on late in FY26—as we mentioned, Trinity and all those others—they're actually big in their own right.

Speaker #3: It's not just that they came on towards the end of the financial year, but they're big. So having a full 12 months of them will have an impact in '27, which we know already.

Speaker #3: And then the other ones we're putting on. So yes, we think we can't predict currency—I don't think anyone can—but, yeah, on a constant currency basis.

Speaker #3: And hopefully, reported if currency doesn't move too much. We're still aiming for that.

Sam Hupert: We are still aiming for that.

Speaker #6: Yes. Good morning, David. And just on that, the reported number does carry just on $12 million of currency headwinds. That's got nothing to do with our underlying operating performance.

Sam Hupert: Yes. Good morning, David. Just on that, the reported numbers does carry just under AUD 12 million of currency headwinds. That's got nothing to do with our underlying operating performance. So that's something to bear in mind. Also, secondly, the growth rate is being measured off a materially larger base each year. So in absolute dollar figures, the increase in FY26 was extensive, and it will set us up really well for FY27.

[Company Representative] (Pro Medicus): Yes. Good morning, David. Just on that, the reported numbers does carry just under AUD 12 million of currency headwinds. That's got nothing to do with our underlying operating performance. So that's something to bear in mind. Also, secondly, the growth rate is being measured off a materially larger base each year. So in absolute dollar figures, the increase in FY26 was extensive, and it will set us up really well for FY27.

Speaker #6: So that's something to bear in mind. Also, secondly, the growth rate is being measured off a materially larger base each year. So, in absolute dollar figures, the increase in FY26 was extensive.

Speaker #6: And it will set us up really well for FY27.

David Stanton: Yeah. Understood. Second question, please. I would be interested in your aspiration for your North American PACS market share. Currently at 11%. What do you think that could get to as an aspirational target on a 3-year view, please?

Speaker #5: Understood. Second question, please. I'd be interested in your aspiration for your North American tax market share, currently at 11%. What do you think that could get to as an aspirational target on a three-year view, please?

Speaker #3: Yeah, that's a good question. Maybe I'll answer it this way: no one's gotten from zero to 11% as quickly as we have. No one's gotten the mix of the luminary institutions in that 11% like we have—over 50% of them.

Sam Hupert: Yeah. That is a good question. Maybe I will answer it this way. No one has gotten from zero to 11% as quickly as we have. No one has gotten the mix of the luminary institutions in that 11% like we have. We have over 50% of them. I think when we look at it, we say, "Well, what is to stop us from getting from 11 to 12 to 15% to more?" We think we have the best technology, so we do not have technological debt. We think we have a highly optimized implementation capability. Yeah, you can sell it, but you have to put it in, and I think we are proving that. Then we are looking at what is the market itself, because it is made up of slightly different segments. The private market has different drivers to a Mayo Clinic.

Speaker #3: And I think when we look at it, we say, well, what's to stop us from getting from 11% to 12%, to 15%, to more?

Speaker #3: And we think we have the best technology, so we don't have a technological debt. We think we have a highly optimized implementation capability. So, yeah, you can sell it, but you have to put it in.

Speaker #3: And I think we're proving that. And then we're looking at what is the market itself, because it's made up of slightly different segments, so the private market has different drivers to a Mayo Clinic.

Speaker #3: They need the same platform, but it looks like they have slightly different drivers. So can we address the large majority of the market with our product?

Sam Hupert: They need the same platform, but they have slightly different drivers. Can we address the large majority of the market with our product? The answer there is 100% yes, because we already are. We have it in the private market, we have it in small groups, and then we have it in Mayo Clinic and NYU. It is the same product. So we have a figure out there that we believe from a 10 point of view, it could be up to 85% of the market is addressable, if not more. The only reason that 15 or 10% is not, it is purely around commercials. It is when small is too small, with all the data security and contracting.

Speaker #3: And the answer there is 100% yes because we already are. We have it in the private market, we have it in small groups, and then we have it in Mayo Clinic and NYU.

Speaker #3: And it's the same product. So we have a figure out there that we believe, from a TAM point of view, could be up to 85% of the market is addressable, if not more.

Speaker #3: And the only reason that 15 or 10% is not, it's purely around commercials. It's when small is too small. With all the data security and contracting, but having said that, that tail is actually reducing or nearly disappearing because those clients are so small, it's not viable for them to stand on their own two feet without being part of something bigger.

Sam Hupert: Having said that tail is actually reducing or nearly disappearing because those clients are so small, it is not viable for them to stand on their own 2 feet without being part of something bigger. So, that 85% could in time go to 90%. So we are at 11. Where would I like to be? Well, 90. But, obviously, step by step, we are making good progress, and we believe going from zero to 10, when we go from 10 to hopefully 20, will be quicker than the first 10. We are starting to see that, going from, we were at 8, 9, 10, now 11. Bear in mind, the pie is bigger too. So the number that 11% is now AUD 690 million ARR. Yeah. Look, I do not think there is any impediment. It is purely how many opportunities come to market. Of those, how many we win.

Speaker #3: So that 85% could, in time, go to 90%. So, we're at 11. Where would I like to be? Oh, 90. But obviously, step by step, we are making good progress, and we believe going from zero to 10—when we go from 10 to, hopefully, 20—we'll be quicker than the first 10.

Speaker #3: And we're starting to see that, going from—we're at 9, 10, now 11. And bear in mind, the pie's bigger too. So the number—that 11% is now 690 million by our estimate.

Speaker #3: So, yeah, look, I don't think there's any impediment. It's purely how many opportunities come to market, and of those, how many we win. We're seeing more coming, and we're winning more.

Sam Hupert: And we are seeing more coming, we are winning more.

Speaker #5: Understood. Thank you very much.

David Stanton: Understood. Thank you very much.

Speaker #4: Thank you. The next question comes from Paul Mason from E&P. Please go ahead.

Operator: Thank you. The next question comes from Paul Mason from E&P. Please go ahead.

Speaker #1: Hey, Sam. Just a couple on the reporting tool. So, the first I wanted to ask about is just what proportion of your customer base you think is on the sunset of PowerScribe 360 tool?

Paul Mason: Hey, Zane. Just a couple on the reporting tool. The first I wanted to ask about is just what proportion of your customer base you think is on the sunset of PowerScribe 360 tool?

Sam Hupert: Yeah.

Speaker #1: And second, related to that, is just if you could give some color on whether you think that element might actually be tendered out separately across your client base, or whether it sort of requires a whole-of-system tender that might come up at the end of contracts before you'd be able to chase it.

Paul Mason: And second, related to that, is just if you could give some color on whether you think that element might actually be tendered out separately across your client base or whether it requires a whole of system tender that might come up at the end of contracts before you would be able to chase it. Thanks.

Speaker #1: Thanks.

Speaker #3: Oh, yeah. Well, I'll answer the second one last. Yes, it comes tendered out. We've already received some RFIs and things. And coming back to your first question, there is this moment, there's been this talk in the road.

Sam Hupert: I will answer the second one last. Yes, it comes tendered out. We have already received some RFIs and things. Coming back to your first question, there is this moment, there has been this fork in the road. So you are right, there was a company called Nuance that had most of the voice speech-to-text engines. They used to be called Dragon, and they had Dragon Medical. They really cornered the majority of the diagnostic imaging market, particularly in the US. There was a second group, came out of Europe called M*Modal, it is now called Fluency, I think. 3M bought them years ago. We see some of that. Some of the groups in Australia use Fluency. They are the two big ones.

Speaker #3: So you're right, there was a company called Nuance that had most of the voice speech-to-text engines. They used to be called Dragon, and they had Dragon Medical.

Speaker #3: And they really cornered the majority of the diagnostic imaging market, particularly in the US. There was a second group that came out of Europe, called M-Modal.

Speaker #3: It's now called Fluidity, I think. 3M bought them years ago. And we see some of that—some of the groups in Australia use Fluidity.

Speaker #3: They're the two big ones, but we think there's been this fork in the road where, all of a sudden, PowerScribe and its original version are coming to end of life.

Sam Hupert: But we think there has been this fork in the road where all of a sudden, PowerScribe in its original version is coming to end of life, and people would have to upgrade to the new version now. Nuance has been bought by Microsoft a few years ago, and that is not their core business, as you know. So we think there is a huge opportunity and that could be mid-cycle, absolutely. You could easily sell that back to existing clients. We think because it is the same platform and image and text fully integrated because it is the one platform, there are some big advantages there. Clearly, we have to sell it. There is a whole product cycle to it. But we are already off and running because it is live in Europe at the moment.

Speaker #3: And people would have to upgrade to a new version now. Nuance was bought by Microsoft a few years ago, and that's not their core business, as you know.

Speaker #3: So we think there's a huge opportunity. And yeah, there could be mid-cycle, absolutely. You could easily sell that back to existing clients. And we think because it's the same platform, and image and text are fully integrated—because it's the one platform—there are some big advantages there.

Speaker #3: And clearly, we have to sell it. There's a whole product cycle to it, but we're already off and running because it's live in Europe at the moment.

Speaker #1: Yeah. Oh, so just on that— I was just wondering, would most of your existing customers actually probably use PowerScribe then, or Nuance, or...?

Paul Mason: Yeah. Just on that, I was just wondering, would most of your existing customers actually probably use PowerScribe then or M*Modal or?

Speaker #3: Yeah.

Speaker #1: Yeah. Okay. Great. Thank you.

Sam Hupert: Yeah.

Paul Mason: Yeah. Okay. Great. Thank you.

Speaker #4: Thank you. The next question comes from Chris Cooper from J.P. Morgan. Please go ahead.

Operator: Thank you. The next question comes from Chris Cooper from J.P. Morgan. Please go ahead.

Operator: Thank you. The next question comes from Chris Cooper from JPMorgan. Please go ahead.

Speaker #5: Thanks, Sam. Maybe just a quick follow-up on that one, out of a similar line of questioning. But can you contextualize what the incremental contribution might be, in some way?

Chris Cooper: Thanks, Sam. Maybe just a quick follow-up on that one. I had a similar line of questioning, but can you contextualize what the incremental contribution might be in some way? Maybe just give us some sense of incremental pricing or maybe just an idea about the business model. Is this going to be a pay-per-click model in the way that clearly Visage is, or is this going to be something more like a subscription model?

Speaker #5: Maybe just give us some sense of incremental pricing, or maybe just an idea about the business model. Is this going to be a per-click model in the way that clearly Visa is, or is this going to be something more like a subscription model?

Speaker #3: Yeah. So, it’ll be paper-click, because it’s a one-for-one correlation. Pretty much every exam, every test, needs a report. So, they'll pay per usage.

Sam Hupert: Yeah. So it will be pay-per-click because it is a one-for-one correlation, pretty much every exam, every test needs a report. So they will pay for usage, and that is a model that is currently in the market for reporting systems. In terms of the pricing, we haven't finalized it yet, but my gut feel would be it could be material. It could be somewhere around 30% to 35% additional, if they took it for everything. Depending on the modules, could be a bit more. So it is a material component. It will be a material component and add-on if people take it. Now, having said that, we are not the only new shiny toy on the block. There are a number of reporting tools that have either been around or are around that will try and compete with us.

Speaker #3: And that is a model that is currently in the market for reporting systems. In terms of the pricing, we haven't finalized it yet, but my gut feel would be it could be material.

Speaker #3: It could be somewhere around 30–35 percent additional if they took it for everything. Depending on the modules, it could be a bit more. So, it's a material component.

Speaker #3: It'll be a material component, and I don't think "incumbent" people take it. Now, having said that, we're not the only new shiny toy on the block.

Speaker #3: There are a number of reporting tools that have either been around or are currently around that will try to compete with us. I think our main advantage will be the quality of the product and the fact that it's part of the desktop.

Sam Hupert: I think our main advantage will be the quality of the product and the fact that it is part of the desktop, so you do not need to do data elements between various, from pixels to text, which is what you need. So whilst there is competition and there will be price pressure, it could be quite material if clients do take it.

Speaker #3: So you don't need to do data elements between various—from pixels to text—which is what you need. So whilst there's competition and there'll be price pressure, it could be quite material if clients do take it.

Speaker #5: Great, thank you. And maybe just one more on AI, please. I mean, we're obviously seeing one of your peers in particular demonstrating very clear demand for these cardiac CT algorithms.

Chris Cooper: Great. Thank you. Maybe just one more on AI, please. We are obviously seeing one of your peers in particular demonstrating very clear demand for these cardiac CT algorithms. You have obviously got your own partnership with Elucid. What are the next steps at this point for integrating that into the Visage workflow, and how could the economics for that work, please?

Speaker #5: You've obviously got your own partnership with Elucid. What are the next steps at this point for integrating that into the VIS workflow? And how could the economics for that work, please?

Speaker #3: Yeah. So we're not wedded to any one AI area. So we did do the—made a small investment in Elucid to get inside the tent.

Sam Hupert: Yeah. We are not wedded to one in any one AI area. So we did make a small investment in Elucid to get inside the tent, and we would resell the product. Why would people buy it from us? Because they are already dealing with us. That is a huge thing. Also if there is pixel-based output, in other words, image-based output, we could integrate that into the desktop. So we are in the process of finalizing reseller agreements like we will be within a process with EchoIQ and others, and it will be a reseller where we get a pass-through plus an integration fee. So that is the way we see it. If it is our own AI, then we will just sell that ourselves.

Speaker #3: And we would just—we would resell the product. Why would people buy it from us? Because they're already dealing with us. That's a huge thing.

Speaker #3: And also, if there's pixel-based output—in other words, image-based output—we could integrate that into the desktop. So, we are in the process of finalizing reseller agreements.

Speaker #3: Like, we will be within the process with Echo IQ and others, and it'll be a reseller where we get a pass-through, plus an integration fee.

Speaker #3: So that's the way we see it. If it's our own AI, then we'll just sell that ourselves.

Chris Cooper: Great. Thanks for taking the questions.

Speaker #5: Great, thanks for taking the questions.

Speaker #4: Thank you. The next question is from Sarah Mann from Mowis Australia. Please go ahead.

Operator: Thank you. The next question is from Sarah Mann from Morningstar Australia. Please go ahead.

Sarah Mann: Good morning, Sam and Danny. Just a question on the renewals. Clearly you have had a good run rate this year in terms of what you have achieved. Can I just ask, have any of those discussions been, I guess, assessed against other competitors, or have they all been closed-door discussions?

Speaker #6: Good morning, Sam and Dani. Just a question on the renewal. So, clearly you've had a good run this year in terms of what you've achieved.

Speaker #6: Can I just ask, have any of those discussions been, I guess, assessed against other competitors, or have they all been closed-door discussions?

Speaker #3: I just have to go through them all in my head. I believe they've all been closed-door. As you know, we've been successful that way.

Sam Hupert: I will just have to go through them all in my head. I believe they have all been closed door. As you know, we have been successful that way, and yeah, it is all about term and price. In some cases, people like Ohio State University have taken additional product at that point in time. Yeah, we were very pleased to get six out of six, maintain our record, and obviously deal with the ones that are still ahead of us.

Speaker #3: And yeah, it's all about term and price. And in some cases, people like OSU have taken additional product at that point in time.

Speaker #3: So yeah, we were very pleased to get 6 out of 6, maintain our record, and obviously deal with the ones that are still ahead of us.

Speaker #6: Right. Okay. And then just on the Veterans Affairs opportunity, so obviously, you've transitioned over your existing business customer to the cloud. Can you talk about, I guess, how this is impacting or how this is, I guess, changing interest from other kind of VA customers?

Sarah Mann: Right. Okay. Just on the U.S. Department of Veterans Affairs opportunity. Obviously you have transitioned over your existing business customer to the cloud. Can you talk about, I guess, how this is impacting or how this is changing interest from other VA customers?

Speaker #3: Sorry, I couldn't quite hear the last bit.

Sam Hupert: Sorry, I couldn't quite hear the last bit. We heard that

Speaker #6: Sorry. I'm just.

Sarah Mann: Sorry. I'm just

Speaker #3: We're transitioning them to the cloud. Yes, that's correct.

Sam Hupert: transitioning them to cloud. Yes, that's correct.

Speaker #6: Yeah, I'm just asking, I guess, how it's driving interest from other Veterans Affairs.

Sarah Mann: Yeah. I'm just asking, I guess how it's driving interest from other Veterans Affairs.

Speaker #3: Oh, no. Lots huge. But what's up with the Veterans Affairs is that it has now gone to a whole-of-VA RFP process, which they haven't released yet.

Sam Hupert: Oh, no, like huge. What's happened with the U.S. Department of Veterans Affairs is it has now gone to a whole of VA RFP process, which they haven't released yet, but they said they will. In the past, various business could buy on their own, and they've taken the U.S. Department of Veterans Affairs teleradiology project and the new PACS project and bundling it into a whole U.S. Department of Veterans Affairs RFP, which is due to come out, well, they say within 60 days. But with the government, you never know. Certainly two things happened with VISN 23. First of all, they were a viewer and archive client, and then they actually acquired worklists from us in the year. We actually took them into cloud and added worklists as well.

Speaker #3: But they said they will. So, in the past, various VISNs could buy on their own. And they've taken the Veterans Affairs teleradiology project and the new PACS project, and are bundling it into a whole of Veterans Affairs RFP.

Speaker #3: Which is due to come out, well, they say, within 60 days. But with the government, you never know. But certainly, two things happened with Vision 23.

Speaker #3: First of all, they were a viewer and archive client. And then they actually acquired Worklist from us in the year. So we actually took them into cloud and added Worklist as well.

Speaker #3: So they're full stack cloud. And as you know, it's the VAEC, which is that hyper-secure cloud that you have to be in, and get all these ATOs to work in, and whatever else.

Sam Hupert: They're full stack cloud, and as you know, it's the VAEC, which is that hyper-secure cloud that you have to be in and get all these ATOs to work in and whatever else. We've cleared all the hurdles for that, and we believe we're the only ones that have been able to do that, the only company to this point in time.

Speaker #3: So, we've cleared pretty much all—well, we've cleared all the hurdles for that. And we believe we're the only ones that have been able to do that.

Speaker #3: The only company to this point in time.

Speaker #6: Great. Thanks very much.

Sarah Mann: Great. Thanks very much.

Speaker #4: Thank you. The next question is from Peter Mikkelbok from Select Equities. Please go ahead.

Operator: Thank you. The next question is from Peter Meiklejohn from Select Equities. Please go ahead.

Sarah Mann: Thank you. The next question is from Peter Meichelboeck from Select Equities.

Speaker #5: Hi, guys. Thanks for taking my question. Just on the operating cash flow, I think it was up 15% over the full year, but it was flat in the second half versus the PCP.

Peter Meiklejohn: Hi, guys. Thanks for taking my question. Just on the operating cash flow. I think it was up 15% over the full year, but it was flat in the H2 versus PCP. I gather that's got a fair bit to do with the timing of the implementations that came towards the end of the year. But just wanted to check if there are any sort of one-offs or any other timing issues in that H2.

Peter Meichelboeck: Hi, guys. Thanks for taking my question. Just on the operating cash flow. I think it was up 15% over the full year, but it was flat in the H2 versus PCP. I gather that's got a fair bit to do with the timing of the implementations that came towards the end of the year. But just wanted to check if there are any sort of one-offs or any other timing issues in that H2.

Speaker #5: I gather that's got a fair bit to do with the timing of the implementations that sort of came towards the end of the year.

Speaker #5: But I just wanted to check if there are any sort of one-offs or any other timing issues in that second half.

Speaker #6: No, we haven't. Peter, in terms of capital, we've obviously invested into 40 Medical and done some share buybacks, so that has an impact on the actual growth of cash.

[Company Representative] (Pro Medicus): No, we haven't, Peter. In terms of capital, we've obviously invested into 4D Medical and some share buyback. So, that has an impact on the actual growth of cash. But by and large, our capital priorities haven't changed. We still fund our R&D and delivery and capability whilst maintaining a strong balance sheet and return any surplus capital through fully franked dividends.

Speaker #6: But by and large, our capital priorities haven't changed. We still fund our R&D and delivery capability, whilst maintaining a strong balance sheet, and return any surplus capital through fully funded dividends.

Speaker #5: Yeah, yeah. I was specifically just thinking about operating cash flow when I was looking at that. And I guess, look, the second part of my question was going to be sort of following on from the implementations.

Peter Meiklejohn: Yeah. I was specifically just thinking about operating cash flow, when I was looking at that.

Peter Meichelboeck: Yeah. I was specifically just thinking about operating cash flow, when I was looking at that.

Peter Meiklejohn: I guess, look, the second part of my question was going to be following on from the implementations. I mean, historically, you've had a fairly consistent H2 bias in terms of revenue, given the status of where this year's implementations or FY26 implementations have come through.

Peter Meichelboeck: I guess, look, the second part of my question was going to be following on from the implementations. I mean, historically, you've had a fairly consistent H2 bias in terms of revenue, given the status of where this year's implementations or FY26 implementations have come through.

Speaker #5: I mean, historically, you've had a fairly consistent sort of second-half bias in terms of revenue, given the status of where this year's implementations, or 26 implementations, have come through.

Speaker #5: Should we be thinking about a similar revenue seasonality in '27? I know it depends on what other contracts come along this year, but just given the sort of implementation that you had in '26, could we be looking at '27 being a bit more even in terms of revenue seasonality?

Peter Meiklejohn: Should we be thinking a similar revenue seasonality in 2027? I know it depends on what other contracts come along this year. But just given that implementation that you had in 2026, could we be looking at 2027 being a bit more even in terms of revenue seasonality?

Peter Meichelboeck: Should we be thinking a similar revenue seasonality in 2027? I know it depends on what other contracts come along this year. But just given that implementation that you had in 2026, could we be looking at 2027 being a bit more even in terms of revenue seasonality?

Speaker #6: Well, there are two things to that. The pattern is what you would expect from us. So, where revenue sets up as each implementation goes live, we are fortunate for '26.

[Company Representative] (Pro Medicus): Well, there are two things to that. The pattern is what you would expect from us. So our revenue steps up as each implementation goes live. We have four Trinity cohorts in FY2026, and you see how all went live at different points throughout the year. So the revenue contribution builds rather than arriving in one step. That is very much reflected in our absolute numbers and revenue growth in the H2. This build positions us really well for FY2027. Now, on that, secondly, FY2027 will be bigger. As you already mentioned, a lot of these contracts that were implemented towards the latter end in the H2 2026 will now come to fruition in FY2027. So you will see a step-up from there.

Speaker #6: And you see how all went live at different points throughout the year, so the revenue contribution builds rather than arriving in one step. That is very much reflected in our absolute numbers and revenue growth in the second half.

Speaker #6: And this really positions us well for FY27. Now, secondly, FY27 will be bigger. As you already mentioned, a lot of these contracts that were implemented towards the latter end, in the second half of FY26, will now come to full fruition in FY27.

Speaker #6: So, you will see a step up from that.

Speaker #3: Yeah. And look, then the question is, do you see a step up in second half '27 from first half '27? There always is, because we put more and more on.

Sam Hupert: Yeah. Then the question is: do you see a step-up H2 2027 from H1 2027? There always is because we put more and more on. Given that there will be such a big step-up in H1 2027 already, then the question is how big will the delta be. There will be a delta. It just really depends how quickly we bring on the new contracts in the H1.

Speaker #3: Given that there'll be such a big step up in the first half of '27 already, then the question is, how big will the delta be? There will be a delta.

Speaker #3: It just really depends on how quickly we bring on the new contracts in the first half.

Speaker #5: Great. Thank you.

Peter Meiklejohn: Great. Thank you.

Peter Meichelboeck: Great. Thank you.

Speaker #4: Thank you. The next question is from Madeline Williams from Canaccord. Please go ahead.

Operator: Thank you. The next question is from Madeline Williams from Canaccord. Please go ahead.

Speaker #6: Again, thanks for answering my questions. Just firstly, I mean the sort of contracts that you've been winning, and the cycles that the company goes through.

Madeleine Williams: Thanks for answering my questions. Just firstly, the sort of contracts that you have been winning, and the cycles that the company goes through. I am just wondering if you can comment on if you are seeing anything in terms of the cycles, in terms of the contracts that you are winning, and how that might look over the next couple of years. The second part to the question is: is there any consideration of the staffing situation and I guess your capacity to take on additional contracts?

Speaker #6: I'm just wondering if you can comment on sort of if you're seeing anything in terms of the cycles in terms of the contracts that you're winning and how that might look over the next couple of years.

Speaker #6: And then the second part to the question is, is there any consideration of the staffing situation and, I guess, your capacity to take on additional contracts?

Speaker #3: Yeah. So I think a few things about the contracts that we see now and what's happened recently. The market's sort of a lot more attuned to cloud.

Sam Hupert: Yeah. I think a few things about the contracts that we see now and what has happened recently. The market is a lot more attuned to cloud and starting to understand what is really cloud and what is not. The market is also a lot more attuned to implementation capability. In the old days, everybody took 3 years to do a site. Regardless of who you chose, you figured it was going to take you 2 or 3 years' time, and that was standard. That has now changed because more and more people are aware that we can do these things because we have done it for their peers. We are seeing a different dynamic in the industry and that network effect we talk about in terms of our sales.

Speaker #3: And starting to understand what's really cloud and what's not. The market's also a lot more attuned to implementation capability, because in the old days, everybody took three years to do a site.

Speaker #3: So regardless of who you chose, you figured it was going to take you two or three years of pain, and that was standard. That's now changed because more and more people are aware that we can do these things, because we've done it for their peers.

Speaker #3: So, we are seeing a different dynamic in the industry and that network effect we talk about in terms of our sales. And then the last dynamic is, because we have more product, we tend to sell more at the get-go.

Sam Hupert: The last dynamic is because we have more product, we tend to sell more at the get-go, not to everybody, but to the majority, and so bigger TCVs. That has worked well. Sorry, and the second part of the question? Staff. Staff, yeah. With staff, that is the balancing act we go through all day, every day. In other words, how to right-size things. Obviously, we bring on new staff. You look at our cost base, it has gone up in a very measured way. We bring on staff across the organization, trying to predict where we need them, so that when we did do Trinity, we were able to do it on time. When we did do BayCare and we did do New Colorado, sure, it was tough because they were also compressed timelines, but we were able to get them all done.

Speaker #3: Not to everybody, but to the majority, and so bigger TCVs. So that's worked well. So, to the second part of the question—staff. Yeah.

Speaker #3: So, with staff, yeah, that's the balancing act we go through all day, every day—in other words, how to right-size things. Obviously, we bring on new staff.

Speaker #3: You look at our cost base—it's gone up in a very measured way. And we bring on staff across the organization, trying to predict where we need them.

Speaker #3: So that when we did do Trinity, we were able to do it on time. When we did do Daycare and we did do New Colorado, sure, it was tough because they were also compressed in some ways, but we were able to get them all done.

Speaker #3: So, I don't think at this point that we see any constraint, staff-wise, to taking on new business. We've never, ever been the hold-up for a go-live.

Sam Hupert: I do not think at this point that we see any constraint staff-wise to taking on new business. We have never, ever been held up for a go-live. We do not intend to be. We know what is coming down the pipe with the ones we have, and clearly with the ones that we hope to get. We try and look forward and understand what sort of staffing requirements we will have. The last thing is, because we do it so much quicker than others, we can recycle the teams so they are not out on site for 3 years. They are out on site for a few weeks, then they rest up, other teams go out, and we have a lot more flexibility by rotating the people that we have.

Speaker #3: And we don't intend to be. So we know what's coming down the path with the ones we've got, and clearly, with the ones that we hope to get, we try to look forward and understand what sort of staffing requirements we'll have.

Speaker #3: But then the last thing is, because we do it so much quicker than others, we can recycle the teams, so they're not out on site for three years.

Speaker #3: They're out on site for a few weeks, then they rest up. Other teams go out, and so we have a lot more flexibility by rotating the people that we have.

Speaker #6: Thanks for that. And just the second question is in relation to cardiology. Obviously, there's crossover in the hospitals and things like that.

Madeleine Williams: Thanks for that. The second question is just in relation to cardiology.

Madeleine Williams: There is obviously crossover in the hospitals and things like that, but they are quite distinct departments. I am just wondering what your thoughts are as it relates to any additional investments and staff that you would need to really go after that market, considering that it is seeming like it is a pretty big opportunity with the expanding products.

Speaker #6: But they are sort of quite distinct departments. I'm just wondering what your thoughts are as it relates to any additional investments in staff that you would need to really go after that market, considering it is seeming like it is a pretty big opportunity with sort of the expanding products.

Speaker #3: Yeah, so we do have people that are more cardiology-focused—that's their remit. And it'll be the same with pathology; they're in the mix of our current staffing numbers.

Sam Hupert: Yeah. We do have people that are more cardiology-focused. That is their remit. It will be the same with pathology. They are in the mix of our current staffing numbers. We have people that in Berlin are more product-focused around cardiology, but not solely. Bear in mind, it is a lot easier if it is all on the same platform because it is already implemented in radiology. We do not have to do anything else to try and convince them to get new servers or new infrastructure or all the stuff that would hold up the sales process. Being on one platform and using one team makes it easier. Yes, you need people who understand how to speak to cardiologists, which are slightly different to radiologists. Obviously, we are staffing for that as well, and it will be the same for pathology.

Speaker #3: We have people that, in Berlin, are more product-focused around cardiology, but not solely. And bear in mind, it's a lot easier if it's all on the same platform, because it's already implemented in radiology.

Speaker #3: We don't have to do anything else to try and convince them to get new servers or new infrastructure, or all the stuff that would hold up a sales process.

Speaker #3: So being on one platform and using one team makes it easier. But yes, you need people who understand how to speak to cardiologists, which are slightly different to radiologists.

Speaker #3: And obviously, we're staffing for that as well, and it'll be the same for pathology.

Speaker #6: Great. Thank you.

Madeleine Williams: Great. Thank you.

Speaker #4: Thank you. Moving to the webcast questions, the first webcast question is: Did the company lose any tenders to competitors during the last six months?

Operator: Thank you. Moving to the webcast questions. The first webcast question is: Did the company lose any tenders to competitors during the last six months? If so, why?

Speaker #4: And if so, why?

Sam Hupert: I am trying to think. Off the top of my head, I would have to think about it. I do not believe we did. I mean, we do. Obviously, we do not win every single one. Usually, the ones we do not win are around price. Some groups do not look at the value, they just look at the price. But in the last six months, I do not think we have lost any that I know of.

Speaker #3: I'm trying to think. Off the top of my head, I'd have to think about it. I don't believe we did. I mean, we do. Obviously, we don't win every single one.

Speaker #3: Usually, the ones we don't win are around price. Some groups don't look at the value; they just look at the price. But in the last six months, I don't think we have lost any that I know of.

Speaker #4: Thank you. The next webcast question is: What is the addressable market outside of the USA for your Visage product? What is the limiting factor in expanding this platform worldwide?

Operator: Thank you. The next webcast question is: What is the addressable market outside of the US for your Visage product? What is the limiting factor in expanding this platform worldwide?

Speaker #3: So there are two regions where we don't actively look at the moment. One is Japan, because you have to go through a Japanese regulatory cycle.

Sam Hupert: There are two regions where we do not actively look at the moment. One is Japan, because you have to go through a Japanese regulatory cycle, and Japan is very parochial. They tend to buy from Konica and Fujifilm that are Japanese-based companies. The other one is China. That is a black box to us and issues about IP and IP sovereignty and all of those things that we do not think are resolved to the point where it would make sense for us to address those markets. Anything outside those two, technically, we can do. We can implement support anywhere. Some places in Europe may be language. We already have it in German, obviously English, Italian of all things, but could have it in multiple languages. Those sort of standard type of things that we would need to look at.

Speaker #3: And Japan is very parochial, so they tend to buy from Konica and Fuji, which are Japanese-based companies. The other one is China. That's a black box to us, and there are issues about IP and IP sovereignty and all of those things that we don't think are resolved to the point where it would make sense for us to address those markets.

Speaker #3: Anything outside those two, technically, we can do. We can implement support anywhere. Some places in Europe may be a language issue. We already have it in German, obviously English, Italian, and all things, but could have it in multiple languages.

Speaker #3: So those are the sort of standard types of things that we would need to look at. But I think the biggest one is really the size of the market.

Sam Hupert: I think the biggest one is really the size of the market. US is just so much bigger than everything else. That is why we focus on it. Having said that, we have made a strong step by getting University Hospital Heidelberg, which is so preeminent, and that could open up other opportunities within the EU in particular. Then there is, of course, the UK and NHS, and the problem there is, the NHS itself rather than anything else. It is the market. Things are changing. I think cloud is becoming, just starting to be distributed inside the EU, which I think will be good for us. We are looking at opportunities there, but our main focus certainly, as we sit here today, is the US. Any other region, other than the two I mentioned, we could easily do.

Speaker #3: The US is just so much bigger than everything else, that's why we focus on it. But having said that, we've made a strong step by getting you Heidelberg, which is so preeminent, and that could open up other opportunities within the EU in particular.

Speaker #3: Then there's, of course, the UK and the NHS, and the problem there is the NHS itself rather than anything else—it's the market. So things are changing.

Speaker #3: I think cloud is just starting to be distributed inside the EU, which I think will be good for us. So we are looking at opportunities there, but our main focus, certainly as we sit here today, is the US.

Speaker #3: But any other region, other than the two I mentioned, we could easily do.

Speaker #4: Thank you. The next webcast question is: As Visage incorporates more AI capabilities, do you see new competitive dynamics or partnership opportunities? For example, DeepHealth with its expanding AI-powered and FDA-approved clinical solutions.

Operator: Thank you. The next webcast question is: As Visage incorporates more AI capabilities, do you see new competitive dynamics or partnership opportunities? For example, DeepHealth with its expanding AI-powered and FDA-approved clinical solutions. Do you see them more as an emerging competitor or a potential partner?

Speaker #4: Do you see them more as an emerging competitor or a potential partner?

Speaker #3: So that's really two questions in one, I think. Look, we see a lot more partnership opportunities. It's not possible for one group to have every single algorithm.

Sam Hupert: That is really two questions in one, I think. Look, we see a lot more partnership opportunities. It is not possible for one group to have every single algorithm. There are just too many of them. We have a combination of our own, those we develop with partners and third party. For groups like DeepHealth, it is possible we could partner with them on some of their algorithms. I think the thing for them is they are actually a provider. They are part of RadNet and a provider. They wear two hats, which could preclude them from selling their algorithms more widely. Look, we could definitely look at some of their things. We have not to date, but that does not mean we would not if it made sense.

Speaker #3: There are just too many of them. So, we have a combination of our own, those we develop with partners, and third-party. For groups like DeepHealth, it's possible we could partner with them on some of their algorithms.

Speaker #3: I think the thing for them is they're actually—they're part of Rednet and a provider. So they wear two hats, which could preclude them from selling their algorithms more widely.

Speaker #3: So look, we could definitely look at some of their things. We haven't today, but that doesn't mean we wouldn't if it made sense.

Speaker #4: Thank you. The next webcast question is: What is the outlook for EU sales? Why is that a much tougher market for PME, and is this changing?

Operator: Thank you. The next webcast question is: what is the outlook for EU sales? Why is that much tougher market for PME, and is this changing?

Speaker #3: Yeah, the sort of question before the last one was addressed to that. But the basic idea is that the opportunities, each one, are much smaller.

Sam Hupert: Well, the question before the last one was sort of addressed to that, but the basic idea is the opportunities, each one is much smaller. Europe is maybe five years behind the way the US look at informatics in our area. Cloud is just starting to come in. Then you have things like regional. The problem is it is all funded by government. Most governments say they do not have money for healthcare. So Europe is a tougher market, but not impossible. As you can see, we won Heidelberg. So, we are looking for opportunities there and opportunities outside Germany. Having said that, we just do not believe there are as many or as large as what we see in the US. But we will look to do both.

Speaker #3: And also, Europe is maybe five years behind the way the US looks at informatics in our area. Cloud's just starting to come in, and then you've got things like regional—the problem is it's all funded by government.

Speaker #3: And most governments don't say they don't have money for healthcare, so Europe's a tougher market. But not impossible. As you can see, we run new Heidelberg.

Speaker #3: So we are looking for opportunities there, and opportunities outside Germany. But having said that, we just don't believe there are as many, or as large, as what we see in the US.

Speaker #3: But we'll look to do both.

Speaker #4: Thank you. The next webcast question is: Have any existing Visage customers expressed interest in deploying 4DMedical's CT VQ or Echo IQ's EchoSolve products through the platform?

Operator: Thank you. The next webcast question is: have any existing Visage customers expressed interest in deploying 4DMedical's CT:VQ or EchoIQ's EchoSolv products through the platform?

Speaker #3: It's a bit early for that. We think we will find some. As you know, we are looking at finalizing Echo iQ. We just the other day finalized the convertible note, which was a combined MOU to contract.

Sam Hupert: It is a bit early for that. We think we will find some. As you know, we are looking at finalizing EchoIQ. We just the other day finalized the convertible note, which was combining MOU to contract. So I think we will see some of that, but it is a bit early for that.

Speaker #3: And so I think we will see some of that, but it is a bit early for that.

Speaker #4: Thank you. The next webcast question is: What is Dr. Hubert's view on Bill HR7558 passing through the US Congress, and does he view this as an opportunity?

Operator: Thank you. The next webcast question is: what is Dr. Hupert's view on the bill H.R. 7558 passing through the US Congress, and does he view this as an opportunity?

Speaker #3: I'm not an expert on it, but my understanding is it is about interoperability of images in the Veterans Affairs. So any standard and any interoperability can only be good.

Sam Hupert: I am not an expert on it, but my understanding it is about interoperability of images in the U.S. Department of Veterans Affairs. Any standard and any interoperability can only be good. Certainly, if the VA go to one platform, as I mentioned a little earlier when I was asked about VA, then that need is not fully, but largely mitigated because of one platform. All the images would be available, whereas currently, it is a hodgepodge of platforms. But if they do pass it, I think it could only be good for the industry and we do not see that as being a negative for us, quite the opposite.

Speaker #3: Certainly, if the VA go to one platform, as I mentioned a little earlier when I was asked about VA, then that need is not fully but largely mitigated, because with one platform, all the images would be available as they are currently.

Speaker #3: It's a hotspot of platforms. But look, if they do pass it, I think it could only be good for the industry, and we don't see that as being a negative for us; quite the opposite.

Speaker #4: Thank you very much. That does conclude the Q&A session. I'll hand the conference back to Sam for any closing remarks.

Operator: Thank you very much. That does conclude the Q&A session. I will hand the conference back to Sam for any closing remarks.

Speaker #3: Yeah, just really wanted to say thanks, everybody, for your interest. I know it's been a busy reporting season, and we appreciate you being on the demonstration.

Sam Hupert: Just really wanted to say thanks everybody for your interest. I know it has been a busy reporting season, and we appreciate you being on the demonstration and webcast. So thank you.

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