Adheris Health (AHE) investor relations material

Executive summary

• Q3 FY26 revenue was $5.4 million, with gross profit at $2.1 million and gross margin at 39.7%, reflecting a year-over-year decline due to lower renewals and pharma budget pressures.

• Cash at quarter-end was $9.4 million, supported by a $6.1 million holdback payment from the ANZ business sale and minor FX movement.

• Significant cost reductions achieved, with annualized staff costs projected at $14.5 million, down from $22 million in FY25.

• Focus on revenue diversification, digital product expansion, and rebuilding customer trust, with enhanced digital engagement and AI-driven solutions central to growth.

• Operational momentum is returning, with scalable operations and technology upgrades driving efficiency.

Financial highlights

• Q3 FY26 revenue was $5.4 million, down 23.9% year-over-year, with gross profit at $2.1 million and gross margin at 39.7%.

• Net operating cash outflow was $4.6 million for Q3.

• Non-vaccine products now represent 82% of revenue YTD FY26, up from 64% in FY25.

• Underlying product margin was 51.5%, nearly flat year-over-year.

• No debt on the balance sheet; no new financing facilities drawn.

Outlook and guidance

• Targeting cashflow neutral or break-even position in Q4 FY26, with profitability aimed for FY27.

• Full benefits of cost reduction program expected by Q4 FY26.

• Gross margin expected to rise to 45–50% in the medium term, with a long-term goal above 50% as digital and higher-margin products grow.

• Strategic groundwork being laid for late CY26 contracting season to secure greater pharma budget share.

• Seasonal revenue skew between first and second halves expected to persist.