Thank you, Françoise. All right, next slide. For those of you who don't know who we are, Mach7 is an imaging-focused vendor. We provide advanced data management and diagnostic viewing solutions to healthcare organizations all over the world. We quite love that we do something that improves healthcare. Next slide. Here's our agenda. I'm going to give a business overview. We're going to go into our Fiscal Year 2025 Results. We'll talk a little bit about outlook, and then we'll have some time for Q&A. Next slide. All right, diving right into our business overview. First of all, the foundation of this slide is we have a strong financial position and we have no debt. That was important to me even when I took this job. As I look at assessing the business, long-term profitable growth is a big driver for me.
This slide gives you four of the areas where we've actioned already in the business. First of all, leadership renewal, me coming into this space as the CEO, but I'm also making changes in our leadership teams in terms of individual people, but also how we engage with each other, bringing some fresh skills in, some fresh perspectives, new expectations. A big part of that is a very customer-centric approach to the entire business. We've overhauled our customer-designated team, so how we assign our staff and how our staff engage with customers, and I'll go into that a little bit more in a minute.
We're also leveraging one of our biggest strengths, which is a really sticky and strong customer base as really a foundation for us to be able to innovate not just upon them, at them, or around them, but with them, and to engage them directly with our product leaders, our engineers, our executive team. Everything we do will be considering compelling customer value as part of our go-forward plans. Finally, we're a global company. Our headquarters are in the United States. We've got a secondary headquarters in Canada where our cost base is a little bit lower, and we've got some amazingly talented and experienced engineers and developers that are contributing to our innovation.
The other area, we've got a team of people in Malaysia, and I flew out there, I met with them, and I was really impressed by the depth of knowledge and the willingness and even hunger to engage more collaboratively with the rest of our company. We will be leveraging that global footprint to be able to optimize our resources, provide more innovation, and a better experience for our customers, regardless of where our customers sit. Next slide. All right, key strategic priorities. Value-centric growth. That's what, you know, the words that you hear within the halls of, or the virtual halls of Mach7 is, where's the value? How does this fit with what our customers need and how are we going to grow?
First of all, one of the very first questions I dug into and an area that is ongoing focus for us is defining our ideal customer. Who are we serving? I want to ensure that our roadmap, our marketing, our positioning is aligned in such a way that people can look at it and see themselves if they're a buyer in everything about Mach7 . We need to make sure that we really lean in and understand who is currently and who is the best buyer for us in the future, in terms of acquiring our technology and paying good money for it. Transforming our customer-facing operations was one of the very first things instituted when I came in as CEO. We've completely dissolved the difference between services and support.
We've taken away silos and we've created a new flight crew engagement model in which each customer has a designated team, and will deliver measurable improvements in customer satisfaction, which I'm happy to address later. The last thing, compelling customer value. Our innovation should not just be something that is different or something driven by one customer, but we need to know that it's aligned with what our buyers need, that we're solving real pain points, that we're doing our innovation based on a deep understanding of our customer's world. Bringing a new Chief Innovation Officer in is to help drive that. We can not just deliver strong innovation overall, but innovation that is compelling enough to drive sales and a referral base that continues to grow and expand. Last thing I'm mentioning, by the way, leveraging AI tools.
I am delighted to say accessing GitHub Copilot, getting our developers using AI tools, quick, quick quote, how did we ever live without this? We are leveraging AI, but we're doing it in a way that is controlled and safe and should accelerate our development. Next slide. All right, I mentioned this twice already, transforming our customer engagement. We have created a whole different structure in a completely revolutionary way in how we engage with our customer. Each customer will not have to tell their story. Who am I? What version am I on? What level of knowledge do I have about the software? What are my priorities? What are my interfaces? Instead, they will work with a team who knows them. Each customer has their team, and it's a multidisciplinary team.
Some technical people, some less technical people, some very experienced people, some people who are less experienced but have more time on their hands to invest in understanding everything about that customer. All of this is led by our Advocate for Customer Experience or ACE execs. The beautiful thing about this is it helps our customers be more efficient and gives them a consistent experience. The other thing is our staff get to know the customers. Our staff get to care about our customers. I've told our staff I want them to know not just our customers' names, but our customers' kids' names and kids' pets' names. Stronger relationships will provide more continuity for our customers, more efficiency for our customers, and it will drive the Mach7 Loop. You might wonder what in the world is the Mach7 Loop. Next slide, and I'll tell you.
The Mach7 Loop is the concept of how you compound growth by leveraging that reoriented and completely overhauled customer success infrastructure. The fun and knowledgeable and engaged and connected flight crew, when executed well, which I'm confident that we are doing, will create stronger customer value. It will create positive stories for marketing. It will create more referrals. It will enhance our reputation in the industry, and this will all support the growth of our sales. I look at that. We're leaning in on Mach7 speed and the flight theme to be able to take off and really invigorate our company and create space for us to be able to continue to innovate.
Take that Chief Innovation Officer at the team of developers, quality assurance people, product leaders, really reinvest in the business to be able to unlock additional revenue growth, which then opens up the ability to sell to more customers, do a great job providing customer success, enhance the size and scope of our flight crew, and continue on building more and more momentum over time. That is the Mach7 Loop. Next slide. That's a little bit about what we're doing right now, but I'm going to go back and look at fiscal year 2025 results. We have a very strong foundation in place for driving to our future growth. We've delivered good performance across our key metrics. This is in line with our guidance, including the fact that the revenue growth of 16% exceeded our OpEx growth of 9% on the prior corresponding period.
We demonstrated good cost discipline across the year, especially in the second half, with OpEx only up 3% on PCP. We delivered some significant profit improvement, which drove operating leverage and made further progress towards recurring revenue covering OpEx. We met our objective of being operating cash flow positive in fiscal year 2025, and we implemented a share buyback program in H2. Fiscal year 2025, 6.3 million shares acquired for $2.2 million since March of 2025. Next slide. All right. A summary of key financial metrics. All of these are in Australian dollars. I want to highlight the strong growth in recurring revenue, which was up 20% to represent 75% of total revenue and 80% of OpEx compared to 72% in fiscal year 2024. Contracted annual recurring revenue was up 8% in line with our updated guidance, and ARR increased by 7% on PCP.
Adjusted EBITDA recorded a solid improvement on the prior year, and we were profitable on a net profit after tax before amortization. We had closing cash of AUD 23.1 million. I love no debt. Next slide. All right. We've covered most of this already. However, this tells the story about how we've transitioned well to a high-quality recurring revenue model. The product split has remained consistent year on year. Next slide. All right. Foundational book of business. Here's a bit more detail on sales orders for fiscal year 2025. It illustrates the value and the importance of our existing customer base, one of Mach7 's strengths. Our ARR-type sales accounted for the majority of our sales orders again, and we're doing well in our shift to a primarily subscription model. Next slide. All right. Strong revenue growth and cost discipline drive our EBITDA improvement.
This is a summary of our P&L, and it shows solid performance during the year. You can see we've got a good foundation for future growth, strong revenue base, good financial position. We're trending in the right direction related to profitability when you look at our EBITDA and net profit improvements. Great progress in recurring revenue covering OpEx, and I find it super positive to see this improvement in profitability, which I believe to be our end goal. Now, slide 16, outlook. All right. As demand for imaging continues to grow, we are well positioned to take advantage of that growth. It's quite interesting when you look at not just in the United States, but across the world, there's a shortage of radiologists, and there's a need for technology to support the importance of imaging and diagnostics throughout the world.
Our new customer engagement model, I think, will really provide good dividends. It's an approach that should drive more and more momentum for our company overall and drive more sales. As I mentioned in the very beginning, we're going to leverage our team's strengths across our different markets, enhance our ability to engage with our customers in our biggest market, North America, but also opportunities in Asia-Pac and other parts of the world, and leverage the fact that we are a global company. Now, we are engaging in a comprehensive strategic review, and we will release details of that new strategy in a few months. It is very important to me that we don't attempt to boil the ocean. I don't like a peanut butter approach where we try to do everything.
Focusing on that ideal customer, focusing on our key differentiators, and making sure we have very strong alignment between what we're doing in terms of our roadmap. We're deliberate about charting our future. Our engagements with our customers, our sales priorities, and our marketing priorities will be aligned behind a strategy, and we've got several different directions that we are in deep exploration on, and we'll provide more information about that to you in the future. As I mentioned, our buyback, while it remains on foot, we are pausing activity in that on-market share buyback program pending completion of that strategic review, and we will provide guidance when our new strategy is released in a few months. All right. Our standard disclaimer, and I think we're ready to open up for questions.
Thanks, Teri. I'm going to start with a couple of questions we received via email from Michael Hayes. The first is, what has been the customer response to the new customer-facing model and ACE teams?
Oh, that's probably been my favorite question you could possibly have asked. Thank you. One thing I love as a CEO is I do not believe in hanging out in the ivory tower. I love to talk to customers. Even this morning, I just asked our ACE team, "Hey, what customers are you talking with? Can I bop into a call or two?" I joined for 30 minutes here and 30 minutes there to get their perspectives. We have been rolling this out. We have been talking with our customers about the flight crew. We have been talking with them about the roles, the designated team, the engagement strategy, and the feedback has been absolutely 100% nothing but positive. I've gotten the most fantastic comments from customers. Things that they say to me include, "This is exactly what we needed." "Wow, we love you. We're cheering you on.
We are so thankful." We no longer have that challenge of feeling like a number or a ticket. That's really important. Customers want to be seen and heard. Customers want those relationships every bit as much as our staff members do. Our staff members, a lot of them, they came up with this flight crew engagement with my help, but it was a collaborative effort. Our team wanted to do the right thing by customers and wants to be able to connect with the customers in this way, and the customers absolutely love it.
Thank you, Teri. We have a follow-up question from Michael. It reads as follows: Have you seen improvement in your KLAS scores as a result?
Now, in general, KLAS scores are a lagging indicator. It takes a while to get this through the machine. The customers we've engaged with, we've been engaging with for about a month on this change. However, that said, I actually checked today because KLAS scores are one of our metrics that we're paying a lot of attention to. We have seen a reduction in negative comments from nine in May to four in July, most of them related to the way that we engage and support training and issue resolution. Several comments have come up saying that the people are really strong, that we're a good partner overall. In general, we've seen a 60% reduction in negative commentary in the last couple of months. That's with the Vendor Neutral Archive side.
On the universal viewer side, we've had 12 positive comments and only one negative in the last couple of months. Customers seem to be overall pretty happy with the product, ease of use, stability, service, and support. Very little negativity overall. I've been texting with the CEO of KLAS. I've known him since KLAS began. He promised that he would call and tell me directly if we got anything to the contrary. So far, I validated that he's still going to do that. He said yes. In general, the feedback is good thus far, but I do want to say it does take a while for us to know for sure. I'm very confident that this will impact our KLAS scores in a positive way. The other thing that's interesting is I've called and spoken with as many prospective customers as I can get my hands and video on.
Whether they're people that are actively looking at us now, or I called some that had been actively looking at us but went in a different direction. One thing that I did hear is that they pay attention to KLAS results. It's difficult. You know, you don't lose your job for buying best in class. That's one of the kinds of comments that I've gotten. The KLAS results and how our customers engage with our staff, I believe, will have a direct impact on our sales in the future.
Thank you, Teri. I'm now going to turn to the live chat. Our first question, we've got a couple of questions from Iain Wilkie. You have actually very well answered the first one, but I'm going to read it out just so we acknowledge it. Can you give some color around the existing customer base in terms of satisfaction levels? Is there anything else you'd like to add, given we've just made a lot of comments?
Yeah, I mean, customers love that. One of the KLAS results that was squarely in my personal target was executives interested in you. They love that I'm bopping into calls and talking with them and have shared positive feedback about that. Even more importantly, they've shared with me that they love the new engagement strategy, and they do believe that we've got some really strong people with deep knowledge that really care. That's part of what drew me to this job to begin with. To me, the job is to now unleash them and empower them to do the right thing by our customers. I think our customers are finding that this is a great, more personal, stronger engagement approach than they've ever seen in the past. Overall, even when I was calling customers before I took the job, customers shared solid technology.
The biggest improvement area that they suggested was, can we engage with you in a better way, in a more proactive way? Another area that you will see more coming out of our strategy sessions, if I can give you a little preview, is a more proactive engagement strategy in which we work with our customers not just to respond to their needs, but to also help massage their success by assessing how well are they doing and giving them proactive suggestions on how to be even better. Those are some of the things the customers shared. My goal is to not just meet their needs, but to meet their needs better than anyone else and actually delight them.
Okay, Teri, there's a second part to that question from Iain. Looking forward, are there particular segments of customer types which you see as a better fit to target more aggressively to win new logos?
Yeah, that's a great question. That's actually a really important strategic question for our review. I think we've broken it down at this point into about 12 different customer types that we have in our existing customer base, and each of them has pros and cons. As part of our strategic review, expect that we will share what kind of customers are the ones that we're planning to double down on or focus more on, because I do believe that differential focus will be a key to our success. It doesn't mean that we don't love all of our customers, but in terms of driving our roadmap, I want to make sure that the customers that will benefit most from what we do now and what we will do in the future are in the center of our bullseye.
The answer is yes, there are different kinds of customers that we should focus on that will drive growth more than other customers. I think it's premature for me to tell you at this point which ones.
Our next question comes from Rodney Studyberg. Has the pipeline for new business slash logos expanded or contracted compared to PCP?
Since I wasn't here at PCP, I can't tell you for sure. I will just simply say I don't think our pipeline is where it needs to be, and we need to invest more in it.
We have another question from Iain Wilkie. Do you think part of the strategic review, there will be changes to how Mach7 deliver guidance in terms of what metrics will be guided to?
Highly likely, yes. I can't comment exactly what and how. I will share I've asked investors what you think about what we've shared, and I've gotten some suggestions from investors on changes that we could make. Fundamentally, what I want to do is make a commitment to you investors in our market of what our strategy is and then provide metrics that give you clarity about our ability to execute according to that strategy. Makes sense?
Our next question is from Darren Ling. What's the focus for the next financial year? A reduction in costs or reinvesting in the company to grow revenue?
Yeah, again, it's a strategy question. Hard for me to give that answer, you know, quite clearly at the level that you would like. Fundamentally, whatever we do, I calculate ROI. Growth definitely is in under, you know, this is what we want to do as a company. We need to grow. We want to grow. We see several opportunities to grow. I always want to ensure that any way that we invest in the business, we know we're going to get a solid return. As I've shared, my bias overall in terms of how I grew up in business is to try to not spend more money than you have coming in. I also want to ensure that we don't sacrifice significant growth opportunities if that means we are staying limited to the cash that we have coming in.
I can't answer the question with definitive certainty until we've done our strategic review. I can tell you that cost discipline is very important to me. Growth is also very important to me. In the shorter term, our focus is on reallocation of our resources to try to make sure that we can unlock short-term growth within the envelope that we have. However, as I said, ideal customer focus differentiators, we're looking at everything going into the market, our competition, and we will come back with a more definitive answer to that question after we've finished our review.
We have another question from Iain Wilkie. With a strong cash position, how are you thinking about capital allocation in FY 2026, particularly between R&D, sales expansion, and support services? Any potential for M&A or will this be a more future consideration?
Again, I'll be able to provide more clarity on that after we've done our strategic review. My focus right now is operating this business as positively and strongly as possible with that deep customer engagement approach as the undercurrent to drive our growth. I won't rule out M&A, but again, only if I see this as highly accretive. I definitely don't believe in acquiring a company in order to show growth that isn't going to be stronger than each company could do separately. However, it's not my focus at this point in time. Beyond that, I probably can't share allocation of resources between sales, marketing, and product will be another element of our strategy that we'll release in a few months.
Our next question comes from Andrew Tan. What is the status of the VA contract? Have you met with the key stakeholders who read the VA contract? What are your initial thoughts about the opportunity?
Yep, it's a massive opportunity for our company. We have a dedicated team that's deeply engaged with the VA as well as the Prime and the other vendors that are involved in this fairly complex implementation. I'm optimistic about our progress. I'm directly engaged, by the way. Didn't want to sidestep the question, have I met with them? In fact, I'm in calls with them at least once per week myself. Of course, engaging with our core team that's engaged with them on a day-to-day basis. Several other members of my leadership team also rotate engagement with them to ensure that all of us are aligned in terms of any development resources, any product-related things.
Even our VP of IT has been involved in ensuring that we're doing the very best job we can for them because this is an area that I think has significant potential to drive revenue growth for our company.
We now have a question from Max, who asks, how much annual recurring revenue (ARR) is at risk in fiscal year 2026? That is, how much is coming up for renewal this year?
That's not something I know off the top of my head, Dyan. Is that something that you can help us with?
Our renewal ARR for fiscal 2026 is in line with what it was for fiscal 2025.
We have no further questions on the online chat, so I'll just pause a moment in case any come through. We have no further questions, so I'll hand back to you. Actually, no, one's just come in. Max asks, what's the amount? What amount is in line in terms of the renewals?
All right, Dyan, do you have that handy?
Yeah, renewal ARR for fiscal 2025 was $11.2 million.
Right.
Thank you, Dyan. I'll now hand back to Teri for closing remarks.
All right. First of all, this will be Dyan's last presentation to you, so I just want to finish by thanking Dyan for her nine years of service and hard work with Mach7 . She's been a key figure in our company, and her contributions have significantly impacted our success. We wish Dyan all the best in her future endeavors. I'm delighted to engage with you all and with the company Mach7 . It's shown a strong fiscal year 2025 and has great potential for growth in fiscal year 2026 and beyond. I really look forward to sharing the results of our strategic review with you all in a couple of months. I want to thank Françoise for running this session, and I wish you all have a great day.