• Operating cash outflow reduced to $(0.07m) - 85% reduction on Q1
• Receipts from customers ~$2m, FY25 revenue at $8.3m up 2% YOY
• Balance-sheet strengthened via $0.5m convertible note and $0.125m director loans

Careteq Limited (ASX: CTQ), a clinical healthtech company, provided a quarterly update and commentary on its Appendix 4C for the quarter ending 30 June 2025. The company demonstrated strong operational improvements, with operating cash outflow significantly reduced to $(0.07m), representing an 85% reduction on Q1. This was accompanied by solid revenue performance, with customer receipts reaching $8.3m for the year, reflecting a 2% year-on-year increase. The company's balance-sheet was strengthened via a $0.5m convertible note with Antanas Guoga and $0.125m in director loans, lifting quarter-end cash to $1.03 million and extending the funding runway. However, the integration of the 1-System platform for Embedded Health Solutions (EHS) and HMR Referrals was delayed due to the need to transition to a new outsourced development team. The company also received an amended assessment from the ATO regarding its R&D Tax Incentive claims, which it strongly disputes and has lodged a formal objection. The company remains focused on its key priorities for FY26, including delivering consistent positive operating cash flow, realizing cost synergies from the new 1-System platform, expanding strategic partnerships, and introducing new service offerings.

The company expects to deliver consistent positive operating cash flow for FY26, realise cost synergies post completion and roll out of its new 1-System platform, and continue to expand strategic partnerships in the aged care and home care sectors.

Key priorities for FY26 include delivering consistent positive operating cash flow, realising cost synergies from the new 1-System platform, expanding strategic partnerships, introducing new service offerings, and finalising the ATO R&D dispute. The company's streamlined operations, strengthened capital position, and disciplined cost management position it well to deliver sustained growth and shareholder value.