Craneware (CRW) Trading Update summary

Financial performance

• Adjusted EBITDA rose 12% to over $65m, surpassing expectations, with revenue up 9% to $205.7m.

• Annual Recurring Revenue increased by 7% to approximately $184m, driven by sales momentum and recurring revenue from 340B software.

• Net Revenue Retention improved to 107%, reflecting strong expansion sales within the customer base.

• Operating cash conversion remained high, supporting investment, debt reduction, and cash reserves of $55.9m.

• Total bank debt reduced to $27.7m, down from $35.4m in the previous year.

Strategic initiatives and outlook

• Partnership with Microsoft is advancing, enhancing the profile of AI-powered Trisus offerings among US hospital CIOs.

• AI development with Microsoft continues as planned, supporting future market penetration.

• Strong uptake of the 340B "Shelter" offering provides a robust backlog entering FY26.

• Additional third-party partner offerings are being evaluated for the Trisus platform, with a new partner set to go live in H1 FY26.

• Board anticipates accelerated revenue growth in FY26, supported by a strong balance sheet and cash generation.

Company positioning and market environment

• Positioned as a leader in healthcare financial performance solutions, leveraging deep expertise and engineering excellence.

• Trisus cloud ecosystem unifies data, revenue intelligence, and analytics to optimize healthcare organizations' performance.

• Recognized as a strategic partner, not just a technology provider, empowering sustainable financial success.

• Ongoing US healthcare drive for efficiency and value supports a positive market environment.

• Unique data capabilities and insights drive expansion sales and recurring SaaS revenues.