• Strong growth in recurring subscription revenues validating shift to SaaS model
• Delayed enterprise hardware sales expected to be secured in H2 FY25
• Targeting to be underlying EBITDA positive in Q4 FY25

Visionflex Group Ltd, a provider of virtual healthcare solutions, reported its H1 FY25 results. The company saw strong growth in recurring subscription revenues, validating its shift towards a SaaS-based business model. However, delayed enterprise hardware sales in H1 FY25 impacted overall revenue, with these large contracts expected to be secured over H2 FY25. Gross profit margin increased to 81%, highlighting the strength of Visionflex's business model as recurring software revenue becomes a higher percentage of total revenue. The company is targeting to be underlying EBITDA positive in Q4 FY25, with a qualified pipeline exceeding $25 million. Visionflex also reported a material improvement in its balance sheet, with $2.4 million in cash and a reduction in external debt, providing the necessary flexibility to pursue growth opportunities. The company is focused on expanding its customer base across key industry verticals, including primary health networks, aged care, and the resources sector, both in Australia and overseas markets.

Visionflex is targeting to be underlying EBITDA positive in Q4 FY25.

Visionflex is focused on accelerating customer traction, transitioning to a recurring revenue-based SaaS model, and expanding its presence in overseas markets, particularly in New Zealand and Vietnam. The company expects its international revenue contribution to increase in H2 FY25.