Good morning, and good evening to those joining us from the United States. Thank you for joining ImpediMed's Investor Briefing today. My name's Christine Emmanuel-Donnelly, and I'm Chair of the Board of ImpediMed. I'm joined today by Dr Parmjot Bains, our outgoing CEO and Managing Director, and joined by Mr Erik Anderson, who today, 7th of April, commences as ImpediMed's Chief Executive Officer and Managing Director. Also on the call is our Chief Financial Officer, McGregor Grant. The company released an ASX announcement this morning outlining this leadership transition. Today's briefing provides investors with the opportunity to hear directly from both Parmjot and Erik at this important juncture for the company. Before handing over, I'd like to make a few remarks on behalf of the board. Over the past two years, ImpediMed has progressed through a period of meaningful change.
During Parmjot's tenure, the company has built robust operational and commercial foundations to support long-term growth. The addressable market for the SOZO platform has expanded significantly with the introduction of two clinical indications, body composition monitoring and weight management, and fluid status monitoring in heart health, complementing and also providing synergy to our core BCRL offering. Importantly, reimbursement coverage for BCRL in the U.S. has now reached 93% of covered lives. This represents a major commercial achievement and positions the company strongly for its next stage of development. The board believes that the next phase of growth will be driven by further enhanced commercial execution, particularly in the U.S. market. The focus now is on converting our strong market position and broad reimbursement access into accelerated revenue growth. This is the mandate entrusted to Erik, and it underpins the timing of his appointment.
Erik has embraced the strategic direction and understands the commercial challenge facing the company. He brings extensive experience in commercial leadership within the U.S. medical tech sector. Most recently, he served as Division President of Hologic's Breast and Skeletal Health business, a global leader across the breast cancer care continuum, encompassing detection, intervention, and surgery. In this role, Erik led a large multi-franchise commercial organization and consistently delivered revenue growth through disciplined execution. He has deep knowledge of the U.S. healthcare system, including hospital procurement processes, clinical adoption pathways, and reimbursement dynamics, supported by strong relationships across health systems and key industry stakeholders. The board believes this experience positions Erik well to further penetrate the U.S. hospital system and accelerate adoption of the SOZO platform.
We had welcomed Erik to the board only six weeks ago, and he's already becoming familiar with the company's strategy, operational progress, and new growth levers. He's been familiar with ImpediMed over the years, and we're delighted in his energy, enthusiasm, and confidence in ImpediMed. He's currently in our office in Carlsbad with some of the exec team, hitting the ground running, and preparing for our American Society of Breast Surgeons conference later this month. We're pleased to welcome him to ImpediMed as CEO and Managing Director. The board would also like to formally recognize Parmjot's significant contribution to the company. She joined ImpediMed at a pivotal time, a very challenging time, and has led a substantial transformation of the business, establishing the commercial, operational, and regulatory foundations that underpin the company today.
Parmjot has worked with McGregor Grant, our CFO, to continue efficient management of our costs while also launching two new indications, as well as pivoting the organization for commercial execution of the BCRL opportunity. We thank Parmjot for her leadership and dedication. We will miss her, and we are pleased that she will continue to support the company as an advisor through to 30th of June 2026. This will ensure a comprehensive and orderly transition to Erik. I will now hand over to Parmjot for some outgoing remarks.
Great. Thank you, Christine, and good morning, everyone, and good evening, Erik. It has truly been a privilege to lead ImpediMed through what has been a genuinely transformative period. When I joined the company, we had, and we still have, a very powerful technology in the SOZO platform, and an important clinical anchor in BCRL. The team's worked really hard over the last two years to build the organization and commercial infrastructure to enable this platform to realize its full potential. I am super proud of what the team has accomplished. We've broadened the platform's clinical reach, we've significantly expanded our reimbursement coverage, and we've made real progress in growing our installed base and recurring revenue. The annual recurring revenue trajectory is moving in the right direction, and the pipeline heading into the second half of this financial year is the strongest that we've had.
In terms of the state of the business, we have a very clear strategy. The foundations are strong, and this next phase is about execution at scale.
Erik's background in driving commercial growth across the U.S. healthcare systems is exactly what ImpediMed needs at this point of the journey. As Christine noted, I'm going to remain available as an advisor through to the 30th of June to make sure that that handover is comprehensive and that Erik has everything that he needs to hit the ground running. I have known Erik for two years now, and I am absolutely thrilled that Erik is leading this company into the next phase of growth. I am super confident in the team. The technology is incredible, and the direction of the company is really on the right track. I want to thank Christine and the board for the opportunity and thank our investors for their continued support. ImpediMed is in great hands. I'll now hand over to Erik.
All of a sudden my internet said it's going out, so I had to re-log on. Sorry about that. Nothing like a little technical difficulties to introduce yourself as the new CEO. Thank you very much, Parmjot, and thank you, Christine and the board, for the confidence you've placed in me. I want to begin by acknowledging you, Parmjot, directly. The groundwork that you and the team have laid in reimbursement coverage, in expanding the SOZO platform's clinical indications, in building the commercial organization is genuinely impressive. I am stepping into a business that is well-positioned, and I don't take that for granted. I do have familiarity with ImpediMed. I should note this is not a company I have come to cold.
I've been following ImpediMed and its technology for many years, and joining the board over six weeks ago gave me the opportunity to go deeper into the strategy, the commercial progress, the team, and the growth levers ahead. I came into this role with conviction, and that conviction has only strengthened. What I've found is a business that with the right clinical foundation, the right reimbursement position, and a team that understand what needs to be done. My job is to bring the commercial experience to accelerate what has already been in motion, not to change direction, but to move faster. Why ImpediMed? During my time at Hologic, I spent years working alongside the oncologists, surgeons, and breast healthcare teams that sit kind of at the center of ImpediMed's addressable market.
I can tell you that what I observed consistently was a growing clinical focus on survivorship and what happens to patients after treatment, and how to improve their quality of life over the long term. Breast cancer-related lymphedema is one of the most significant and underserved survivorship challenges in breast care. I have seen firsthand how clinicians are looking for better tools to detect, monitor, and manage it. ImpediMed's SOZO platform is exactly that tool. With 93% reimbursement coverage, we're in a uniquely strong position to meet that demand. There is a direct parallel to what I experienced at Hologic in the early stages of scaling a clinical solution across health systems. The technology and clinical evidence were strong. The reimbursement was in place. The missing ingredient was a focused, disciplined, commercial execution.
Knowing which doors to knock on, how to engage procurement and clinical leaders simultaneously, and how to build the relationships that turn pilots into partnerships. We did that at Hologic, and I intend to bring that same approach to ImpediMed. The area where I believe I can add the most value quickly is market access and distribution through the U.S. hospital system. I spent the better part of my career building and managing relationships with health system executives, clinical program directors, and procurement leaders. I know how purchasing decisions are made and what it takes to move from a single department to enterprise-wide adoption.
To give you a sense of what this looks like in practice, at Hologic, we took a strong but under-penetrated product franchise, and by systematically mapping the right health system entry points and putting the right commercial resources against them, we grew from a fragmented account base to a broad institutional coverage. That kind of growth doesn't happen from a brochure. It happens from relationships, from understanding the clinical and administrative workflows, and from making it easy for the health system to say yes. ImpediMed has the clinical and commercial blocks to replicate that. My priority is to put them together more deliberately and at greater scale. Moving on to strategic priorities. My priorities are fully consistent with the direction the company has been pursuing. There is no pivot here. This is about acceleration. First, accelerating revenue growth in the U.S.
93% reimbursement, as we've talked about, is a tremendous asset. My job is to convert that coverage into contract volume and growing recurring revenue. Second, deepening health system engagement, expanding into new hospital networks, and making it easier for clinicians to adopt and use SOZO at scale. Third, financial discipline. I am focused on controlling costs and progressing the company toward cash flow breakeven. Growth and financial discipline are not in tension with one another. They are complementary, and both are non-negotiable. Fourth, long-term shareholder value. That is the measure of everything we do. In terms of next steps, I intend to spend the coming weeks going deeper with the team, with our commercial, clinical, operational leads, and build upon our plans for how we accelerate growth and momentum.
I want to make sure those plans are grounded in what we know works and what we are resourcing our highest leverage opportunities with the focus they deserve. In fact, as Christine said, I'm already here, day one in Carlsbad, California at our U.S. headquarters now, and absolutely thrilled to spend the next few days with a number of our U.S.-based leaders. Lastly, quickly, I'll hit on Q3 trading update. While we are still finalizing our results for Q3 FY 2026, I can confirm the company achieved solid quarter-on-quarter unit sales growth in the U.S. We also continued actions to further reduce the cost base. I'm looking forward to reviewing and discussing the Q3 results with you later this month, which will also include a more comprehensive business update from me. I'm excited to get started. Thanks for joining today.
I look forward to meeting many of you in the weeks ahead, as I will be coming to Australia soon. With that, Christine, I will kick it back to you.
Thank you. Thanks, Erik. It's wonderful to have your enthusiasm on board. Welcome to the role. Thank you to all the participants for joining us today. We appreciate your continued interest and support of ImpediMed. Just to let you know, a recording of this webinar will be available on our website. You will have an opportunity for a full Q&A with the quarterly results later this month. If you have any questions following today's call, please reach out to us, the investorrelations@impedimed.com email, and you obviously have some phone numbers as well. We look forward to updating you as Erik settles in and as the business continues to progress. Thank you all, and have a good day.