• Commercial transformation well underway
• Operating cashflow positive in Q2 FY26
• First Flamingo Architecture customer secured

Mach7 Technologies Limited (ASX:M7T) reported a strong Q2 FY26, with the company's commercial transformation well underway. Key highlights include operating cashflow turning positive in Q2 FY26, a significant improvement on Q1 FY26, and the company securing its first Flamingo Architecture customer in the quarter. Operating activity payments in Q2 FY26 were 9% lower than the prior corresponding period, driven by a 7% reduction in staff costs due to ongoing efficiencies. Contracted Annual Recurring Revenue (CARR) at 31 December 2025 was A$26.1M, down A$2.9M largely due to the discontinuation of the VHA's NextGen PACS program, while the company's Annual Recurring Revenue (ARR) Run Rate remained stable at A$23.0M. Mach7 ended the quarter with A$18.5M in cash and no debt. The company made progress on key strategic initiatives, including showcasing its Flamingo Architecture at RSNA 2025, signing its first Flamingo contract, re-energizing sales and marketing, and progressing towards Medical Device Regulation (MDR) compliance. Mach7 enters the second half of FY26 with a refined strategy, stronger operational foundation, and improving commercial momentum.

Mach7 remains focused on disciplined cost management while selectively investing in growth-critical capabilities across sales, product development and platform scalability. The company is prioritizing financial discipline and efficient resource allocation to deliver against its strategy and capture emerging market opportunities.