Pro Medicus Stock Earnings Reports

Pro Medicus reported a record first half driven by a mix of large new contracts, renewals, upgrades and completed implementations. Financial highlights: revenue +31.1% year-on-year, profit after tax +42.7%, EBIT margin expanded to 71.9%, cash and investments +17.7%, company remains debt-free and paid a record fully franked half-year dividend up 38.9%. Forward contracted revenue increased materially to A$894m over five years (note Trinity is a 10-year deal so only half is included). Major contract activity: Trinity (minimum A$330m over 10 years), Mercy renewal (A$98m minimum over 8 years), a large Australian RIS renewal (A$32m/5 years), NYU Langone and Duke upgrades (c. A$39m combined), Duly Health (A$30m/7 years) and post-half wins including U Kentucky and BayCare. Operational/strategic strengths: cloud-native Visage 7 streaming architecture (claims sub-1 second interaction for most reads), fast implementations (Baylor Scott & White completed in 11 months), strong renewal track record (100% renewals to date) and growing traction across academics, IDNs, private radiology groups and new ologies (cardiology roll-out starting April). AI strategy is multi‑pronged (in-house, co-developed with research partners, and third‑party integrations) with an equity and commercialization relationship with Elucid (one module FDA-cleared). Near-term outlook: management expects revenue growth to accelerate in H2 as recently completed implementations contribute full periods and as new implementations ramp; margins are expected to remain strong given scalable, low CapEx cloud delivery and modest incremental hiring. Key investor considerations: high exposure to the U.S. market (~90% of revenue) with an active quarterly hedging policy; substantial upside in announced contracts due to volume-based minimums; continued R&D investment (AI, cardiology, spatial computing) and disciplined dividend policy (~50% of retained earnings guidance).