TDMMF (TDMMF) Q4 2026 Earnings Report, Transcript and Summary

Good morning, everyone, and welcome to the Mach7 FY '26 Results Briefing. My name is Francoise Dixon, and I'm Head of Investor Relations for Mach7. Today, our CEO, Teri Thomas, and Interim CFO, Shawni Hadfield, will provide an overview of our FY '26 results. [Operator Instructions] I'll now hand over to Teri.

Thank you, Francoise, and hello, everybody. Now before I start, a few comments. A year ago, at my first full year presentation as CEO of Mach7, I was asked a simple question: why had growth slowed? And my answer was a bit uncomfortable. I shared that I thought somewhere along the way, Mach7 had lost some of its connection with its customers. And it was a hard thing to acknowledge, but I also believe if you don't diagnose the problem, you don't have a good chance of fixing it. So this past year has been about fixing it, fixing many things and front and center really has been reconnecting deeply with our customers. I'm speaking to you today from the United States. I've spent a lot of time on the ground with our U.S. customers this year. One of my goals was personally visiting at least 10 customers over the course of the year, and I've surpassed that goal, including 4 in the last month with another 3 coming up in the next couple of weeks. I've learned a lot in those meetings, and that has shaped our strategy. So the strategic phrase on this slide from archive to architecture comes from those meetings. I also like architecture and I like building. And that's the other big shift underway at Mach7. We are building. We are building new modules. We're expanding, and we're building an architecture that helps health care organizations move and access medical images, which becomes increasingly valuable as AI creates more demand for well-organized imaging data. So today, I'll show you what changed, what we're beginning to see as a result and what we can now build on. And before I talk about the future, though, I do have to give you the standard disclaimer. Give you a second to read all that fine print. I'm sure you got that. And next slide. So before Shawni and I address the financial results, here's what we actually do. Ultimately, Mach7 is about patients. Health care is a mission and a responsibility, including the technology. And I describe Mach7 as a company that simply completes the patient's picture with patient's pictures. If you consider how much of medicine is visual, not just x-rays or CT scans, but also ultrasounds, mammograms, the pictures the eye doctor takes of your eye, the snap you take of a festering cut trying to determine if it's getting better or if it's getting worse, surgical videos. Right now, most of these images still live in different systems, different departments, different formats, some in the cloud, some in a closet on-prem, some even locked into a device. And our job is to extract and organize that. Our vendor-neutral archive gives health care organizations one place to manage the imaging information while keeping control of its own data. And eUnity serves those images right back up through a zero footprint diagnostic viewer, including inside the clinical record where the doctor or the nurse is already working. So when we say from pixel to point of care, that's what we mean. If it's in pixel or image form, it's fair game for us. So we get the right image and the combination of images organized properly to the person who needs it when they're caring for a patient. Now a lot of us at Mach7 came into health care technology because we care about health care. And I still think a bit like a nurse. However financial and technical this presentation gets, there is a patient at the end of everything that we do. Our name is Mach7. That is 7x the speed of sound, roughly 8,600 kilometers an hour. It's a reasonably ambitious name for us to live up to, and it's also an advantage as a smaller company. Not having more people, not having more money and certainly, it isn't having more meetings, our advantage is velocity of learning. The organizations that win over the next few years will learn quickly, change quickly and turn what they learn into something useful. AI is dramatically accelerating us. We are embracing a start-up pace but with an established customer base. We can now get from an idea to a working prototype in days when historically, we might have spent months on specifications alone. And the important part is the sentence at the bottom of this slide. Speed only counts with direction. You can drive very quickly in completely the wrong direction. And our direction comes from our customers. We are bringing customers into development from the start. Our leaders and our developers watch how they work, ask what makes their lives difficult, and then we're shortening the gap between learning something and doing something about it. That combination, listening to customers, learning quickly and moving fast is now how we operate at Mach7. I've organized this update into 3 parts. First, action. Fiscal year '26 was a reset year. What did we actually change and what did that produce? Then Shawni will take you through the financial results. And then we'll move second to the engine. Where does our growth come from now? And then finally, the horizon. What are we building toward? What should you watch? Today's presentation is not where I'm spending an hour telling you everything is fantastic. It isn't yet. We still have a lot of work to do. But Mach7 today is materially better positioned than it was a year ago, and I'd love to show you why. I've called fiscal year '26 a reset year pretty consistently and resets are not glamorous. We've changed a lot, how we work with customers, leadership, our cost structure, even where we sit. Some of these changes had a cost, but I think not changing would have cost us more. There were 4 big areas of change. The first and the one closest to my heart is customers. My goal is that Mach7 becomes our customers' best vendor experience, not their best imaging vendor, their best vendor. I actually end my customer meetings with the question: what's the best vendor experience you've ever had? And tell me why. I want us as a company learning from whatever excellence looks like to them. A year ago, Mach7 was rarely the answer to that question. But now increasingly, we are, but still not quite often enough, but more. We've created designated teams who get to know and care about our customers. We put executive sponsorship around important accounts. We've changed the roles, the technology and our accountability models. We also rebuilt a substantial part of our leadership team. We pulled what had been overlapping product strategies into one customer-driven road map and one technical organization who leverages AI to execute at Mach7 speed. And fourth, we reset our cost base and became much more deliberate about how and where we spend our money. And none of these things by itself is growth, but they are the conditions that allow growth to happen without the wheels falling off somewhere else. Now I mentioned leadership, transformation requires the right team. The leadership team today is substantially different from a year ago with more of the skills, energy and experience that we need for this next phase. New members to the team include Brian, who's led a real AI fire within engineering. He's combined some enthusiasm with a much faster execution model using small focused teams and actively bringing customers into the process. And Shawni, she brings financial discipline, but also she knows our customers, our contracts, our renewals from having led commercial excellence and customer success before moving into her interim CFO role, and you'll hear from her in a minute. Todd brings experienced commercial leadership across sales, customer success and partnerships, and Mike Moore has brought a completely different energy to marketing and demand generation. And he's also one of the people delivering most on practical use of AI across our business. Mike Peterson is a high energy executor getting from ideas to working software quickly. And Trinity, she brings deep imaging experience and growth, but also a customer-first mindset together with the attention to detail and the questioning that keeps our enthusiasm from getting us into trouble. And then, of course, speaking of keeping out of trouble, bringing in-house legal has strengthened our discipline around contracts and operating as a public company. This is a team of builders. They care about customers. They have energy, and they're good people. And that is the culture I want leadership modeling all the way across Mach7. Now customers are at the top of our culture code, and we focus heavily on them. KLAS is one of the most respected independent measures of customer experience in health care technology. A year ago, someone asked me what I thought of our KLAS scores, and I'm happy to say, improved. eUnity is 86.6% above the market average with a very strong buy-again sentiment, and our VNA score has moved from 68.7 to 73.6. I am pleased with the movement, but our expectation is to keep improving. We are not there yet. KLAS has shared with me that it typically takes 9 to 12 months for operational changes to show up in customer scores as they only call specific individuals once per year. So we're only now beginning to see the effect of some of what we've changed last year. But I do love the quotes, and I read every single comment that comes in through KLAS as well as our own customer sentiment tracking. They tell me how we're doing in our goal to be the customer's very best vendor experience. We started winning new customers again. UnityPoint, our first Flamingo module customer went live in under half the time of a typical implementation, and AMRADNET went from initial contact to deployment in under 6 months. That is fast. That's very fast. It wasn't our largest contract, but I talked about it in our last quarterly because it showed us living to our name, Mach7 speed, less bureaucracy, more urgency. And from an investor standpoint, implementation speed is important. A customer getting value sooner also means contracted revenue becomes recognized revenue sooner. It's a win-win. Another change is our revenue model. Historically, we've had a lot of large capital license transactions. And while everyone loves a big capital sale, but when it lands, it's a bit of a sugar hit and lumpiness is what we see in that kind of revenue. So we're increasingly moving customers towards subscription. Now that can make a transition year look worse, you replace a big piece of upfront revenue with smaller recurring payments, but you end up with a much better, healthier business, more predictable, one that grows as customers expand. And we executed an important conversion like that with a large academic health system this year and have started with others. Predictable revenue, durable customer relationships and evergreen contracts are a much healthier foundation than waking up on the 1st of July every year needing to rebuild our revenue base. So with that, I'm going to hand it over to Shawni to take you through the actual numbers underneath our reset. Shawni?

Thank you, Teri. Good morning, everyone. Since stepping into the CFO role in May, this is my first full year results of Mach7, and I want to take you through what the 12 months to 30 June 2026 delivered. In short, FY '26 closed with a predominantly recurring revenue base, a substantially lower cost base now materially covered by quality recurring revenue and a balance sheet that funds where we go next. Both revenue and operating costs were in line with FY '26 guidance. That guidance was revised during the year to reflect geopolitical conditions in our Asia Pacific region impacting capital deals, together with stronger cost discipline. FY '26 was a year of 2 halves, a harder first half and a stronger second half despite adverse currency movements. You'll see that pattern repeat through the numbers I'll show you on the following slides. Let me put the full scorecard in front of you, and then I'll come back and unpack revenue, earnings, cash flow and the 2 halves of the year in more detail on the next 3 slides. Total revenue for the year was $27.9 million, of which $23.4 million was recurring revenue. Our CAR, contracted annual recurring revenue, was $25.5 million at 30 June 2026, and our ARR run rate was $23.5 million. Operating expenses were $26.7 million. Adjusted EBITDA was a loss of $0.9 million. Net profit after tax, but before amortization of acquired intangibles was a loss of $2.9 million and net profit after tax was a loss of $8.9 million. We closed the year with $19.9 million in cash and no debt. Total revenue ended the year 17% down on last year's revenue, largely driven by lower capital license revenue and softer professional services. Capital license revenue is our most volatile revenue line and was down 17% in FY '26 to $1.5 million. That's revenue recognized at a single point in time tied to the timing of scheduled capital term renewals and expansions. There were fewer renewals this year and expansion volume was lower, partly because of timing and in part because we're actively converting capital expansion into subscriptions where we can, consistent with what Teri described earlier. Recurring revenue was down 8% on prior year. Growth from new and existing customers, including the UnityPoint go-live in May was offset by adverse currency movements and nonrenewals such as Trinity Health and the Veterans Health Administration, the VHA. Within the year, revenue improved in the second half, reflecting growth in subscription and professional services revenue as we embedded and executed on strategic priorities. CAR was down 9% on a constant currency basis. The main driver here was the VHA contract. A significant part of that contract sat in backlog, not in recognized revenue yet. So its discontinuation reduced CAR disproportionately without reducing recurring revenue to the same degree. Our ARR run rate, the annualized value of our subscription and support and maintenance book at 30 June was up 7.6% year-on-year on a constant currency basis, with growth from new and existing customers more than offsetting nonrenewals. One clarification on comparisons. Recurring revenue and total revenue are shown on an as-reported basis, so they include the impact of adverse currency movements. When we compare CAR and ARR run rate to prior year, these are done on a constant currency basis, specifically to strip that out and evidence the growth in our underlying customer base. I'll talk more to currency effects later on. Now to what we did about it. Gross margin held at 93%. Cost of sales was broadly flat for FY '26, and so the platform continues to scale the way we'd expect. Operating expenses decreased $5.1 million or 16% in FY '26 on the restructure of the cost base. We reshaped the workforce, exited long-term leases that no longer match the size of the business, moved customer support and services into a new flight-through model and held the line on discretionary spend elsewhere. This reset establishes a leaner and more efficient cost base from which the group can scale, supporting improved operating leverage as revenue grows in future periods. Adjusted EBITDA loss widened by $0.6 million in FY '26. This relatively modest increase in loss against the backdrop of significantly lower revenue for the year reflects the extent to which the cost base helped to reduce the impact of lower revenue. That wider net loss after tax reflects 2 items that sit outside our ongoing operating performance: restructuring costs of $1.9 million and a deferred tax asset write-off of approximately $1 million relating to our Canadian entity. These are one-off or noncash items and none of them reflect a change in how the underlying business is trading. Cash receipt was $28 million for the year, down on prior year, in line with the lower revenue base. Net operating cash flow was negative for the full year, reflecting a difficult first half of lost revenue, followed by a positive second half as we rebuild momentum. We delivered positive operating cash flow for 3 of the 4 quarters this year. This slide brings the second half reset into one picture across sales, revenue and cost. We sold more in the second half. Sales orders on a total contract value basis were up 80% on the first half, and that growth was high quality. 86% of FY '26 sales orders were ARR-type sales, consistent with building the recurring revenue base. 40% of the year's order volume was secured in the fourth quarter alone. So we ended the year with the pipeline still building rather than winding down. 21% of FY '26 sales orders came from new customers, including 2 new logos that Teri mentioned earlier, with the remainder coming from growth in our existing installed base as our new flight crew and Advocates for Customer Success or ACS, sales model took hold. That sales order growth began to show through in revenue in the second half. On a constant currency basis, which strips out the Australian dollar's movement against the U.S. dollar, second half revenue was $15.6 million, up 15% on first half $13.5 million. I highlight the constant currency view here because the currency movement was working against us within the half as well as across the full year. The AUD-USD rate appreciated about 4% through the second half from USD 0.67 in December 2025 to USD 0.70 in June '26. The restructuring I described earlier continued in earnest through the second half. Operating expenses came down from $14.1 million in the first half to $12.6 million in the second half, an 11% reduction half-on-half. Taken together, this is a business that has reset, reestablished its commercial momentum, grown its existing customer base and done it all on a smaller, leaner cost base. And with that, I'll hand back to Teri.

Thank you, Shawni. The combination of financial discipline without starving growth is so critical, and Shawni knows we need both discipline everywhere and also intelligent investment where we can generate clear returns. So let's shift to closing the book. Some of the changes are visible, some are harder to see. Before we leave fiscal year '26 behind me -- behind us, let me put the year in some context. There were 3 distinct things that affected our numbers. First, we cycled through a couple of sizable customer losses and a large project that we delivered on, but the overall initiative was halted. Second, we deliberately cleaned up a few legacy arrangements that either didn't make much money or didn't make strategic sense. There's not much virtue in keeping around bad revenue. And then currency, I'm going to hand it back to Shawni for a minute to just explain that a little more.

Thank you, Teri. Most of our business operates in North America. 100% of our CAR and around 70% of our cost base is not denominated in Australian dollars, but we report in Australian dollars. This is a presentation issue that can make the underlying business movement look worse or better, depending on what currencies are doing. What matters most is that the underlying customer base continues to expand despite these challenges that Teri mentioned. And look at the operating cash flow progression along the bottom. We started with negative $3.7 million in Q1, then essentially breakeven in Q2 and positive $1.2 million, then positive $1.1 million.

That is what stabilization looks like. It doesn't look spectacular yet, but it is more dependable, and dependable is a really good place from which we can grow. So let's talk about growth, the engine. Where does it come from for Mach7? I see 3 main places. It's new customer relationships. It's a larger and happier installed base, and it's partners that can widen our pipeline and sales reach without us having to build expensive sales organizations all around the world. And of course, underneath all 3 is the innovative and growing product architecture. Time with customers this year has directly shaped our strategy. I started off with that, but I'm going to give you a little bit more color. One of our customers told me they found 18 copies of a single specific image in their system, 18. At that point, you don't have redundancy. You have an image breeding program. This isn't unusual in health care. Systems get added, PACS gets replaced, cloud applications show up, AI applications show up. Somebody spins up another backup or a departmental repository just in case. And pretty soon, you've got what one customer described to me as imaging spaghetti, and that's expensive. But the real cost is actually clinical. Doctors, technologists digging through that complexity to find the image that they actually need in the way that they need it. This is the problem that Mach7 solves. We don't ask a hospital to rip out what they already own. We organize and connect what's there, and we give them the freedom to switch if a piece of equipment or a system somewhere else has an edge. And there's one more wrinkle coming. Image exchange between organizations is very good for patients. It cuts down on repeat scans, but it also multiplies copies of the same image across systems that don't talk to each other. Epic announced a release of a diagnostic image exchange in August this month, and this creates duplicate images. It's the right thing for patients, and it's an opportunity for us. But then you also layer on AI, adding more connections and more demands on the data. And you see a number of elements happening in our industry that makes what Mach7 offers so much more strategic. The more the imaging spreads, the more our customers need an independent layer that can organize it and make it usable. The market is large. The total market across our primary region is expected to grow and the part that is most relevant to what we sell estimated at around $2.7 billion, but the key is it's growing, and that's plenty. Our scope is pretty broad, even to the growing use case of patients. My son broke his arm and he loved to show off his X-rays. And in the United States, this is becoming an expectation and a key viewer for patients, eUnity. The fastest-growing layer of all though, is imaging intelligence, AI. And our approach isn't to build our own diagnostic algorithms, but it is to provide the architecture underneath it, which brings me to the next slide. Software is changing. And historically, somebody built software and then taught you how to use it. Now software will learn how you work, understand the context and anticipate what you need and then surface the information before you think to go looking for it. But that only works well if you've got organized data underneath that is accessible and trustworthy. There are plenty of smart companies building diagnostic AI, and we can partner with them. We can serve it up, but we don't have to be one. Our opportunity is to help those tools get access to the right imaging data and then bring those results back into the clinician's workflow at the right time. We can also help customers use their own data to create their own foundation models, to test AI, to evaluate AI. So the value of the Mach7 platform moves beyond storing an image. It's what is it? Who needs it? Where should it go? What should happen next? That's orchestration, and that's where Flamingo takes us beyond being an archive company. Now this is probably the easiest way to understand our architecture. The VNA manages the data, eUnity lets people see it, and Flamingo orchestrates what happens to it. Customers can buy those capabilities together or they can take one piece at a time. They can solve one problem first, keep systems that are working well and add more as they see value. That is deliberate. A number of enterprise technology vendors still ask a customer to make a huge replacement decision before they can get any benefit. And so we're coming in with a lower risk way in. We will prove ourselves and expand from there, which again brings me to Flamingo. I suspect some of you might be slightly bemused that we named a serious health care infrastructure after a pink or white or orange bird, and I don't apologize. Flamingos are actually really remarkable. They adapt to extreme environments. They're surprisingly tough. They have a huge wings span, and they are difficult to confuse with anyone else. There is some useful product strategy thought in Flamingo. Flamingo is how we're modernizing the platform from within, containerized architecture, modern database options, new capabilities delivered as modules. And at RSNA, our planned next set includes modernized foundation storage, new worklists and the next generation of flow orchestration. Our customers do not need to take a huge traumatic shift and the risks associated with it in order to modernize. We can give them new capabilities and save them money while protecting what already works. And that's important in health care right now where customers tell us their budgets are tight and margins are slim. eUnity is a strong product, and it is well loved by our customers. Full diagnostic fidelity, 0 footprint, runs in the browser, advanced visualization. But the thing I care about more is where the image appears. Clinicians should not have to leave the clinical workflow and go hunting for images. And if they're in the electronic health record, the image should be there. And if a patient is in the patient portal, their images also should be available, usable, easy to understand and quick to access. So we've made some great progress this year with major electronic medical record workflows. Our viewer is now published in the connection hub of Epic, which is the largest EHR ecosystem in our core U.S. market and growing internationally. And we also have additional integration work shipping ahead of schedule with Epic as well as integration work with Oracle and others. We're also engaged around image exchange and how health care organizations can avoid creating even more copies and cost as those networks grow. Our direction comes from listening to our customers. The clinical record owns the workflow and Mach7 makes the imaging inside of it complete. So here's where it gets interesting. It's eye, images, teeth, wounds, scopes, pathology, ultrasound, surgery videos. If somebody takes a clinically relevant picture of a patient, my view is it ought to become part of the patient's record. And today, far too often, it doesn't. It can sit on a departmental server or in a camera or on a phone, a specialized application today that nobody can reach, and it's not just a technology problem. It's a clinical workflow problem, and it even is a billing problem. It gives us a department-by-department growth opportunity inside customers that already know us. We've already started conversations around areas like dental, point-of-care ultrasound, non-DICOM imaging. This is creating differentiators that will drive new sales. And this is what completing the patient's picture means commercially, and it's also genuinely useful to health care. Now this is a Mach7 loop, and I do believe in it even more now than I did when I introduced it last year. It starts with delighting the customer, not satisfying them, not closing a ticket, delighting them. It's a small industry. Customers talk. They advocate for you, they speak at events, they take reference calls and KLAS scores improve, selling gets easier. That gives us more capacity to invest in the products and improvements that customers are asking for and the loop turns again. There's nothing that revolutionary about it. Some of the very best companies in tech have been doing this for decades. We are happy to steal good ideas that work. But what encourages me is getting this loop turning. And more often, when I ask, who is your best vendor experience, I hear the answer I'm hoping for, which is Mach7. Our partnerships are another area where we've changed. We used to have quite a lot of partner logos and partner logos are much easier to collect than revenue. So we are concentrating on fewer deeper relationships that have a reason to exist. That includes cloud and infrastructure partners that can help us co-sell and make procurements easier. It includes the clinical record ecosystem because our types of decisions sit with enterprise CIOs often well outside of radiology. And that lines up well with our strategy to bring in more types of imaging into the patient record. And in markets where it doesn't make sense for Mach7 to build a large direct sales organization, we're using selected regional partners who already have people and relationships on the ground like in the Middle East. And we're taking the same approach to adjacent products like reporting. Now partners are still early for us. They're not yet a large revenue stream, but we've established the programs, and we now judge partnerships by outcomes, not by how many logos we can fit on our PowerPoint slide. So that's the engine. Now where are we going? I think about our reset in 3 distinct phases. And the first was to stabilize. You see that we've reset our cost base, protecting the recurring business, strengthening our team, repairing customer relationships and building a coherent and visionary product strategy. And that phase is largely behind us, not perfectly, not 100%, but largely. And so we are now entering Phase 2, prove the growth engine. Can we sell the new modules? Can we add new customers and continue expanding the customers we already have? Can our strategic partnerships start contributing revenue? And can we demonstrate operating leverage as we grow. That's the work in front of us. And then as we execute well, the business has the opportunity to compound more customers, more modules per customer, more types of imaging, more value in that data layer. So the third column on this slide is it's our ambition. It's not yet a forecast. We know we have to earn our way there. But this is how I see a healthy software company and what we think about. Good quality recurring revenue, operating discipline, disciplined growth and a strategic position that gets stronger over time. Our recurring revenue mix has improved. Gross margins remain strong. We reset the cost base. We have cash, no debt, and we're being selective about where we invest. I do love the Gretzky quote addressing the importance of getting to where the hockey puck is going, not where it is. And in imaging, what interests me most is what happens as the imaging environment gets more complicated through image exchanges, AI and the growth of imaging overall. Every image we manage, every system we connect and every AI tool that needs access to imaging increases the usefulness of an independent, well-organized data layer. At the same time, health care organizations are beginning to revisit imaging infrastructure that, in some cases, has been in place for decades. We don't need to be the biggest company in the market. We need to be credible, flexible and economic choice when those customers decide they want something different. So here are the measures that we're going to hold ourselves to in fiscal year '27. ARR growth, new customers, Flamingo adoption and OpEx discipline. And I chose the image of this woman deliberately. Health care is extraordinarily visual. Before we even enter the world, images can tell clinicians something about us that words cannot. It also captures where Mach7 is today. There is real potential here. We have strengthened the company, rebuilt customer relationships and created an architecture designed for where health care imaging is going. Now I tell my staff regularly, do not confuse activity with outcomes. And I recognize to you all that potential is not performance. Fiscal year '27 is about turning that potential into evidence, recurring revenue growth, customers choose us, new modules being adopted and operating leverage emerging. A year ago, our job was to fix the business. And this year, our job is to prove that a better business can grow. So I'm quite excited about where this business is going, and I'm really looking forward to showing you this year what this transformed team and company can do. And now I'm ready for questions.

[Operator Instructions] We did receive a couple of questions via e-mail this morning, and they came from Craig Stephens. And the first question, Teri was, what are your plans for RSNA?

RSNA is kind of going to be a coming out party for some of our new -- when I said we're building the development we've been doing, new Flamingo modules. We can showcase the Epic Connection Hub and engage with some Epic sites about our increased interoperability going live. We also have some new partnerships in the works. We're looking a lot at the reporting side as we expect this is an area that will get a lot of RSNA attention. We're quite excited to show off our new team, our new innovation and show the market everything that we are building. We've also organized our approach to leverage more partnerships, get more attention leading up to RSNA and even a new interactive website with a cute AI agent named Ace to direct inquiries in a fun way. It's a Flamingo. We expect more inbounds, a very organized strong showing and a very unique Mach7 booth. Can't wait to show it to you all after RSNA.

Our next question is about currency and Craig asks: how did currency affect this result?

Yes. Currency was a headwind for us because most of our business operates in North America. But Shawni shared a bit about this. I'm going to turn it over to you, Shawni, more because you're an expert in analyzing our numbers.

Thank you, Teri. Yes, as Teri mentioned, most of our business operates in North America, while we report in Australian dollars. And that's why we've been deliberate about showing you our ARR and CAR numbers on a constant currency basis so that you can see what's happening in the underlying business rather than confusing operating performance with exchange rate movements. Our main currency issue, as I mentioned, is a presentation issue, and it results from reporting to the ASX in Australian dollars when our functional currency is largely the U.S. dollar. The Australian dollar and U.S. dollar exchange rate ended the year approximately 8% higher than where it started and average exchange rates for the year increased 4% over the year. On a constant currency basis, assuming FY '26 exchange rates, our FY '26 revenue would have been closer to a 14% decrease on prior year. And our OpEx, excluding restructuring expenses, would have been closer to a 5% decrease on FY '25. All of our contracts but 5 are in USD and 60% of our cost base is in USD. So we have a natural hedge. And the remaining non-USD costs are fortunately covered by a stronger revenue currency. Should this structure change materially in the future, we may consider hedging our non-U.S. costs. But for now, the natural hedge in place is sufficient, and we see no need for a formal hedging program.

Our next question comes from the live chat, and it's from Yousef Alameddine. And he asks, there is $9.9 million (sic) [ $19.9 million ] cash and no debt. Has inorganic growth been considered and which markets would be of interest?

While we always are scanning for any accretive opportunities that could be substantial for the growth of our business, it is important, given that the majority of our customers and prospective customers and the biggest global health care IT market is the United States, that we demonstrate that we've got a healthy bank account as a sign of stability. It is something that a lot of our prospective and current customers care about. So at this point, we're not proceeding with any opportunities, again, although we'll always opportunistically evaluate options.

[Operator Instructions] We have no more questions coming through the chat, Teri. So I'll hand back to you for closing remarks.

All right. Thank you so much. I'm going to leave with one thought, and that is that turnarounds can look like spreadsheets from the outside. You see costs come down, you see revenue lines move around, but companies are people. And our staff came through a year of enormous change while continuing to care for our customers. And those customers are caring for patients who depend on having the right information at the right time. And that's why I care so deeply about getting this right and helping Mach7 become all it can be. I'm proud of how far we've come, and I'm very aware that we still have work ahead. But I want to message to our Mach7 team, thank you for your resilience and your energy and keeping customers at the center. And to our customers, if any of you see this, thank you for pushing us and engaging with us and increasingly advocating for us. And then finally, to our shareholders, thank you so much for your patience and for your support through a challenging reset year. We do intend to use your support well. So thank you so much.