Pro Medicus Limited (ASX:PME), a leading provider of medical imaging software solutions, announced a year of robust financial performance and record sales. The company secured seven new contracts valued at a minimum of AUD $520 million, including a landmark agreement with Trinity Health. Two clients upgraded to Visage 7 Open Archive, adding $39 million, and two major renewals totalled $130 million. According to CEO Dr Sam Hupert, the company’s key financial metrics have moved positively, with implementation activities also progressing well, setting the stage for continued growth in FY26.
Pro Medicus highlighted the increasing adoption of cloud-based solutions as a key driver for streamlined implementations. Dr Hupert emphasized that cloud hosting is now the preferred choice for new clients due to its scalability, security, and cost-effectiveness, especially in the face of growing cybersecurity threats and cost pressures in the healthcare sector. The company differentiates itself with a 100% cloud offering, contrasting with competitors’ hybrid solutions that require on-premise hardware.
Renewal contracts remain a significant part of Pro Medicus’s business. The company successfully renewed contracts with Mercy Health and a large RIS contract in Australia, both renegotiated at higher transaction fees. Subsequent to year end, Pro Medicus also renewed its contract with Franciscan Missionaries of Our Lady Health System (FMOLHS), with the client adding archive and transitioning to cloud. The company currently claims 10% of the total addressable market in North America and aims to further increase its market share, with no technical or capacity-related limitations anticipated.
Looking ahead, Pro Medicus is expanding its offerings to include cardiology and other ‘ologies,’ integrating them into its Visage 7 platform. The company is also progressing in AI, with collaborations, licensing agreements, and commercialization efforts underway. With cash reserves exceeding $210 million, Pro Medicus plans to invest in business growth, return funds to shareholders through dividends and buybacks, and explore potential acquisitions and investments as part of its broader M&A strategy.
