• 1Q FY26 operating revenue of $9.6 million, down 52.8% on prior corresponding period
• Gross margin of 42.4% for the quarter, compared with 50.5% in 1Q FY25
• Net cash at period end of $13.0 million, with all outstanding debt discharged

MedAdvisor Limited (ASX: MDR) has provided its quarterly activities report and Appendix 4C for the three months ended 30 September 2025 (1Q FY26). The US business continued to face significant headwinds, with 1Q FY26 operating revenue of $9.6 million, down 52.8% on the prior corresponding period (1Q FY25: $20.4 million). Gross profit and gross margin declined to $4.1 million and 42.4% respectively, reflecting the lower revenue, allocation of platform costs, and a shift in product mix. The company completed the sale of its ANZ business operations to Jonas Software AUS for a headline value of $35.0 million, plus an estimated $7.4 million earn-out over three years. This left MedAdvisor debt-free, with a net cash position of $13.0 million at the end of the period. The US Transformation 360° program is progressing well, with over 80% of the platform development complete and full delivery expected by the end of 2Q FY26. The new platform, combined with the FY25 restructuring program, are expected to reduce operating expenses by at least 15% in FY26. The board has been further streamlined, and the company is prioritizing the transformation of the US business ahead of any potential sale. The unweighted pipeline for US health programs in FY26 is in excess of US$100 million, and the near-term focus is on managing ongoing headwinds, converting pipeline opportunities, and completing the new platform.

The company's near-term focus is on managing ongoing headwinds, converting pipeline opportunities, and completing the new platform. In 2H FY26, the focus will shift to delivering transformation benefits, accelerating innovation, and embedding AI to drive new revenue streams.