• Revenue impacted by government policy pressures, financial challenges in pharmacy sector, and increased competition
• Gross margin affected by increased platform costs and product mix shift to traditional solutions
• Solid foundation for future growth with long-standing partnerships, measurable ROI, and modernized platform

MedAdvisor Ltd reported its 1Q FY26 results, with revenue declining 52.8% year-over-year to $9.6 million. This was driven by additional U.S. government policy pressures, financial challenges across the pharmacy sector, and increased competition. Over 40% of the revenue decline was due to regulatory delays impacting vaccine programs in the quarter. Gross margin was 42.4%, down from 50.5% in the prior year period, impacted by increased platform costs and a shift in product mix to traditional solutions. The company has a solid foundation for future growth, with long-standing partnerships with 9 of the top 10 pharmacy chains and 10 of the top 10 and 17 of the top 20 pharmaceutical companies. MedAdvisor's addressable market opportunity is estimated at over $500 million across specialty, general medicine, and vaccine categories. The company is focused on business transformation initiatives, including launching a next-generation patient engagement system, rebuilding the sales team, accelerating business process re-design, expanding digital reach, and initiating selective partnerships to accelerate AI solutions. These efforts are expected to deliver at least a 15% reduction in operating expenses in FY26. While market uncertainty is expected to continue into 2Q FY26, the company anticipates vaccine revenue to be below prior years, several general medications programs to restart in 2Q and 3Q, and specialty medication revenue to be up on the prior year.

Entering FY26 with a strong pipeline of US$100 million (unweighted). Vaccine revenue is expected to be below prior years, several general medications programs will restart in 2Q and continue into 3Q FY26, and specialty medication revenue is expected to be up on the prior year. Gross margins will continue to be affected by the product mix leaning more toward traditional products. Platform costs and operating expense will trend lower as platform migration completes toward the end of FY26.

MedAdvisor is focused on business transformation initiatives, including launching a next-generation patient engagement system, rebuilding the sales team, accelerating business process re-design, expanding digital reach, and initiating selective partnerships to accelerate AI solutions. These efforts are expected to deliver at least a 15% reduction in operating expenses in FY26.