• Cash receipts of $2.1m for the quarter and $4.02m for H1 FY26
• Net Operating cash flow $(0.1m) for Q2 and $(0.36m) for the half
• Embedded Health Solutions continues to experience strong growth

Careteq Limited (ASX: CTQ), a clinical healthtech company specialising in innovative medication management and clinical governance solutions, has provided its quarterly update and commentary on its Appendix 4C for the quarter ending 31 December 2025. The company reported cash receipts of $2.1m for the quarter and $4.02m for H1 FY26. Net Operating cash flow was $(0.1m) for Q2 and $(0.36m) for the half, which includes one-off costs of $0.08m for the quarter and $0.22m for the half associated with the ATO matter. The company continues to demonstrate strong operational discipline, with an underlying operating cash outflow of $(0.02m) for the quarter. Embedded Health Solutions (EHS) delivered another quarter of growth, with facilities under contract now 667, and in excess of 60,000 aged-care beds, an increase of ~9% for the quarter. The sales pipeline of new facilities remains encouraging, with a number of opportunities deep into the process and support continued growth over the coming quarters. The delivery of the 1-System platform has recommenced this month with a specialist firm engaged to complete the project, with completion expected by year-end. The company advised that it had lodged a formal objection to the previously disclosed ATO issued amended assessments on 29 May 2025 following its review of Careteq's R&D Tax Incentive claims for FY21-FY23, and the process remains ongoing.