• Refreshed leadership team appointed, bringing deep industry knowledge
• Successful launch of new technology platform to drive growth
• Accelerated cost reduction program to improve profitability

Adheris Health Limited (ASX: AHE) has announced its financial results for the first half of FY26, reporting a 49% decline in revenue to $23.3 million and a 58.6% decline in gross profit to $10.6 million due to lower program volumes, specifically lower vaccine revenue driven by continued decline in US vaccination rates, and lower average deal sizes due to pharma budget pressures. Gross margin decreased by 10.5 percentage points to 45.6%. Net operating cash outflow was $6.2 million, consistent with the prior year. The company has responded with a number of key initiatives, including appointing a refreshed leadership team with deep industry knowledge and a proven track record, successfully launching a new technology platform to enable accelerated digital innovation and more efficient program execution, and implementing a substantial cost-out program designed to reduce operating costs by more than 30% between FY25 and FY27. The company has also re-engaged with customers whose spend declined or stopped in prior periods, resulting in the addition of over US$25 million in win-back opportunities to its pipeline. The company's focus is now on building a more resilient and diversified revenue base, reducing reliance on vaccine programs, expanding into high-growth and specialty therapeutic areas, and prioritising higher-margin solutions such as THRiV and digital messaging.

The company believes the business is now better positioned to improve performance and return to profitability by broadening its pharmacy network and enhancing its digital engagement capabilities.