Thank you, Françoise. Good morning, everyone, and welcome to Mach7's FY2025 third-quarter business update. We'll start off with some highlights and then go into a bit more detail on the third-quarter results. Some highlights for us this quarter: CAR, Contracted Annual Recurring Revenue, of AUD 30.8 million, slightly down on a constant currency basis by a little over 2%, 2.2%. Annual Recurring Revenue run rate of AUD 24.4 million at the end of March. That's down about just under 2%, 1.9%, again, constant currency basis. Sales orders of AUD 5.1 million for the quarter. Cash receipts were a highlight of AUD 11.4 million, up a little over 28%. Remain operating cash flow positive in Q3 and for the nine months ending 31 March.
We remained to have cash on hand of just under AUD 25 million, AUD 24.9 million, up slightly from where we ended Q2 the first half of the year, and we still have no debt. We were able to complete some cost-out initiatives in Q3. That will result in about AUD 2-AUD 3 million in annualized savings. We'll talk more about that in a minute. We were also able to commence our on-market share buyback. Through that buyback, we bought about 1.9 million shares in March and about 3.3 million shares bought back to date. We think still finding value in doing that. We did announce mid-quarter CEO transition. That was announced at the beginning of April. Terry Thomas has been appointed as Managing Director and CEO, commencing on the 1st of July, and I'll comment on that at the end.
We are also reaffirming our FY2025 guidance, remembering 15%-25% growth in CAR and revenue, and OpEx growth to be less than revenue growth. You know, as we think about Q3, you know, the message for Q3 is simply that we remain on track to meet FY2025 guidance. We continue to deliver on our cost controls throughout the quarter. We remained cash flow positive for the year, and cash collections were strong, again, over AUD 11 million in Q3, which, you know, among many different metrics, shows the strength of our customer relationships. We began to move forward throughout the quarter on our planned buyback, again, a total of 3.3 million shares bought back to date.
Further to our continued focus on operational improvement in Q3, we announced the succession plan for myself and are going through that transition to welcome Terry to the Mach7 team as our newest CEO. More on that later. All in all, from my perspective, this quarter and this year are on track with expectations, and we expect to have a strong sales quarter in Q4 to finish off the year. As we sort of get into the meat of the business update for everyone, we'll talk about sales orders first. You know, sales orders for the third quarter, AUD 5 million, AUD 5.1 million. The majority of those sales orders received were ARR-type sales. The remaining sales orders were capital licenses and professional services, about AUD 1.1 million in professional services, AUD 600,000 in capital licenses, about AUD 3.4 million in recurring revenue sales.
When you look through the business update, you'll see a chart there that's been included. You know, and this is a chart that we tend to include on every quarterly now. It just sort of shows you that we continue to have lumpiness in our quarter-over-quarter results, right? This isn't a sign of any predictable seasonality, but it's really the result of a growing business. As our total book of business grows, we'll see that lumpiness start to smooth out. In regard to our pipeline and sales growth, while we're talking about sales, we have a very strong near-term pipeline for this fiscal year.
I mean, look, knowing there's only about 60 days left in Q4, we still feel strongly that we have the supporting pipeline to meet our guidance and to build our net new customer by two to four net new logos, as I indicated we would earlier. We have a very healthy short-term and long-term pipeline for the business. Remember what I've said previously, a healthy pipeline for us is somewhere in the realm of having at least three times coverage in the pipe. All right? Moving on from sales to revenue, first I'll talk about annual recurring revenue. We produced about AUD 24.4 million in ARR on a run rate. Of course, that's calculated by annualizing the revenue, right, earned from subscription and maintenance and support fees. The run rate did decrease slightly by about AUD 500,000 since the 31st of December in constant currency.
That was a reflection of we did have a customer leave us, and they shifted away from our solution to a vendor that was more local to their facility. They were up for renewal. Although disappointing, we do know that this will happen on a rare occasion. We also know, though, that our ARR will grow as new customers achieve first productive use and existing customers expand through more licensing or add-on products, or as they renew with increased rates or achieve first productive use on add-ons. All that will help increase our ARR over time. It is difficult to look at little things like a contract like that in isolation. It is best to look at it on the aggregate, but always disappointing to lose a customer, for sure. The contracted annual recurring number, the CAR, is about AUD 30.8 million at the end of March.
That decreased by about AUD 700,000 in constant currency. That meant that our growth from renewals and expansions was offset by this customer loss, right? Mach7's CAR consists of the AUD 24.4 million ARR run rate for customers that have achieved first productive use of the software, plus another AUD 6.4 million of subscription and maintenance and support fees not yet recognized as revenue. Once again, as a reminder for everyone, the gap between our CAR and ARR represents future revenue once first productive use is achieved from new customers. Moving on from revenue, talking about cash for a moment, sort of a bright spot for us for the quarter. Cash receipts from customers in Q3 were AUD 11.4 million. It's actually up 28% compared to Q3 of FY2024 and up 18% on Q2 of FY2025.
Again, reflecting the signing of expansion renewal agreements, as well as the achievement of project milestones during the quarter. I would say also an indicator to, again, not to be looked at in isolation, but an indicator of having a happy customer base as well, customers that are paying their bills, right? Mach7 was also operating cash flow positive for Q3 and FY2025 for a second consecutive quarter with operating cash flows of AUD 2.6 million, increasing from AUD 900,000. For nine months on 31 March, we were also operating cash flow positive, and we remain on track to achieve this objective at FY2025. Financial position of the company remains strong, no debt, AUD 24.9 million cash on hand for us. As we move on, we think about the outlook for the business and a couple of additional things I'd like to highlight for you.
First, the VA project, NTP, that continues to move forward. We mentioned in the past that they're choosing a new workflow orchestrator. They have completed that selection, and we continue to work closely with the VA and the new vendor to ensure that all the right pieces are in place for the VA. At this stage, though, I'm uncomfortable committing to a timetable because the new vendor is likely to have some development work that needs to be completed, and we do not have insight into that work as of yet. Hopefully, we'll be able to give you a more firm date by the end of Q4. This is work that is dependent on a third party. It's not our timetable. It's not our product roadmap. It's between that vendor and the VA.
We're the beneficiary of that work once it's done, but we need to get some more insight into that to be able to hand it over to you. I'd also like to just make the comment that we continue to have a strong financial position with no debt, growing cash balances, disciplined approach to cost and cash management, as indicated through the AUD 2 million-AUD 3 million in costing out that we did complete in Q3. Lastly, just to highlight the fact that we are reaffirming our FY2025 guidance, and we feel comfortable with that, we will have an excellent Q4 to support that. I think with that, Françoise, I'll hand it back over to you to take questions, and then I'll have a couple of closing comments.
Thanks, Mike. We've received a couple of questions in advance via email from Mike Goodson, so we'll start with those. The first question is, would you please discuss the market reaction to UnityView?
Sure. Yeah, look, UnityView is a great product offering that we introduced around RSNA timeframe. We've had a lot of interest from a marketing and early-stage sales pipeline build. We do have some customers that are moving along pretty quickly along that pipeline, and we continue to get new leads, you know, pretty consistently every week around that product. You know, looking forward to seeing some actual commercial contracts in place for that so that we can all have something to stand on. From a marketing and commercialization perspective, it's been well received by the market.
Thanks, Mike. Our second question from Mike Goodson is as follows. If I understand correctly, the VA phase two gives seven visions the option to use Mach7. Are you aware of any visions that have chosen a different provider?
A slightly difficult question to answer. What I can tell you is that every VISN has an existing PACS solution. Every VISN has a different timeline on when they will either choose to renew or replace their existing technology. They could choose to renew just for a year or just for a short term, or they could choose to do a full contract renewal. For us, we're focused right now on phase one. Phase two deliverables will come after, you know, we've completed phase one. We have had conversations with all the VISNs in regard to this contract avenue, this vehicle for them to use. Again, until the product is out into phase one and until NTP is a success, that's really where we're applying our time.
It would be fairly difficult for us to really know independently what each VISN is choosing to do, or even further, what each VA hospital within the VISN is choosing to do. Unfortunately, I can't give a straight answer to that in regard to what their technology choices have been to date.
Thanks, Mike. I'll now turn to the live chat. We've got a few questions. The first one comes from Andrew Tan. You previously said that Mach7 could achieve three or four net new logos by the end of FY2025. Is this still the case? How many net new logos have you achieved for the year to date?
Yeah, look, we do still believe we can achieve that goal for the end of the fiscal year. To date, I believe we've got just one net new logo in the door. Yeah, we again reiterate my comments around our pipeline. We have a great short-term pipeline, and we have more than enough deals that are late stage right now that can fall into Q4 to give us the results that we're looking for.
Thank you, Mike. Our next question, we've got a few from Wassim at Jefferies. Why did the customer leave? What platform did they go to? What risk do you see for other losses?
Yeah, good questions. Look, and again, sometimes these are difficult questions to answer. The client left to go with a vendor that was more local to their location. Actually, they are both located in the same, within about 10 mi of each other, which I think had a big part of their selection process. Local services and local relationships, I think, were a big part of that. You know, in regard to that vendor, I am not really at liberty to say who that vendor is. I do not know that any announcements have come out around that. I am not really at liberty to say. In reference to the rest of our customers, or, you know, do we ever, do we expect that this could be a growing trend or something? Look, attrition is always something that we have an eye towards.
We have a low attrition rate in our company, and we're very proud of that. We have some significant initiatives, as you all know, within the company around customer intimacy to even further those relationships with the customers. Never take a relationship for granted and never take it lightly. Appreciate all of your customers, appreciate your whole book of business, and do everything you can to maintain that book of business. That's the goal for everyone in the company. You know, I don't, I wouldn't say that I feel that there's any particular risk from any one particular client. You know, we're doing everything we can to make sure we keep a healthy book.
Thanks, Mike. We have another question from Wassim. What other contracts are up for renewal in the next 12 months?
Oh, you know, I don't know that off the top of my head. We always have a selection of renewals every year. You know, last year was a huge renewal year for us. This year was a smaller renewal year for us. Maybe we can provide more insight into that as we start looking about FY2026 ahead. I don't actually know off the top of my head what our 12-month renewals are. There'll probably be, you know, many, many renewals.
Thanks, Mike. A further question from Wassim. What is the outlook for CAR in the fourth quarter?
Yeah, look, again, we expect, just as our guidance suggests, that we'll see growth in CAR. You know, we would have expected, we will expect, we do expect our CAR and our ARR to grow at that 15%-25% mark, just as we've indicated through our guidance.
Thanks, Mike. Now we have a question from Andrew Hewitt. Could you expand on the revenue hit of the lost customer and its location or country?
The customer was in the U.S. Again, I can't really make a lot of comments beyond that. U.S.-based customer, you know, chose to go with another vendor, and that vendor is someone that they had close relationships with.
Thanks, Mike. We do not have any further questions, so I will pause a moment in case anything comes through on the chat. We have a question from Lachlan Rogers. Can you please give more detail on the CAR guidance growth range? Is the upper end of guidance plus 25% CAR growth still possible?
Yes. Yes, we can still reach, you know, again, anywhere from 15-25% growth in CAR, we could still reach this quarter. We absolutely could.
Great. We have another question from Wassim. Do we still have Trinity?
We do, yes.
Thank you, Marc. We have no further questions at this time, so I'll hand back to you for closing remarks.
Yeah, thanks, Françoise. Look, for everybody on the call, I'll end by just saying, you know, this is my last quarterly business update for the business. It's been a pleasure to represent Mach7. Financially, the company is in good standing. Operationally, the company is on the right track, and the business is well positioned to take advantage of the knowledge, experience, and expertise that Terry Thomas is bringing to the table as our next CEO. I'd like to wish all of our shareholders, brokers, analysts good fortune. I think with that, Françoise, I'll hand it back over to you for closing.
Thanks, everybody, for joining today, and have a good day.