Major UK Win Highlights Alcidion’s Potential

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This story features ALCIDION GROUP LIMITED, and other companies.
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Alcidion is accelerating growth through UK contract wins, recurring revenue expansion and the acquisition of Kyra Patient Flow in A&NZ.

• Alcidion validates its growth strategy with third UK contract win
• Kyra Patient Flow acquisition boosts recurring revenue and domestic exposure
• Analysts emerge with greater confidence in management's strategy of upselling and operating leverage

By Danielle Ecuyer

A trifecta of good news

Alcidion ((ALC)) is an emerging health technology company that provides software designed to improve how hospitals manage patient information, clinical workflows and operational decision-making.

It offers a cloud-native, modular software platform designed to improve hospital efficiencies and provide smarter software solutions for clinicians.

With a market cap of just under $150m, the company, which was established in 2000, remains in the micro-cap segment of the market but has caught the attention of analysts.

The company’s core product is the Miya Precision platform, which integrates data from multiple hospital systems such as patient administration systems, pathology, radiology and medical devices.

This allows clinicians to access real-time patient information and receive alerts or insights within their workflows, unlike traditional health IT systems, which are largely passive.

The platform sits on top of existing hospital IT infrastructure rather than replacing it, enabling hospitals to improve interoperability and adopt new technologies such as AI-driven clinical decision support without undertaking large-scale system replacements.

Many legacy electronic health record systems were originally designed for record keeping rather than real-time clinical decision-making, further supporting demand for interoperable platforms.

The company recently provided a March quarter update, with management also announcing a positive add-on acquisition to boost domestic exposure on top of the company securing a major UK deal.

As of 2025, revenue generated from the UK represented 63% of total sales, with A&NZ contributing 37%.

Moelis noted 3Q26 total contract revenue secured was $11.7m over the period, with varying durations from one to five years, which the broker viewed as underpinning revenue from FY27 onwards.

Renewals over the period represented around 50% of total contract value, while the balance was generated from upsells and new customers, including a Silverlink Patient Administration/Patient Care System renewal.

Management’s FY26 guidance outlook stood at revenue of more than $50m and earnings (EBITDA) of $5m. Guidance assumed finalisation of a seven-year agreement with University Hospitals Sussex worth more than $35m in total contract value.

March quarter guidance validated with UK contract win

Less than a week later, management announced the win, with Canaccord Genuity noting the agreement is to deploy the Miya Precision EPR (electronic patient record) platform and could be extended to $49m over 10 years.

Miya is to be installed immediately over an approximately 18-month timeframe, with phase one expected to go live in June 2027.

As explained by Bell Potter, University Hospitals Sussex is the third UK customer to adopt Alcidion’s EPR product. This broker sees the agreement as further validation and “referenceability” in the UK for winning future tenders in a competitive market.

Contracted revenue for FY26 is expected to increase to $52.3m as $8.5m of upfront implementation revenue comes on stream. Bell Potter believes the project adds further confidence management can achieve FY26 earnings (EBITDA) guidance of $5m.

For Canaccord Genuity, the deal is regarded as a “high-quality de-risking” event, with the broker concurring with Bell Potter that Alcidion can secure large-scale EPR tenders.

The agreement also aligns with management’s “land-and-expand” model, whereby additional modules can be deployed over time. This should support longer-term contract growth and improve visibility across annual recurring revenue.

Like Canaccord, Bell Potter flags the likelihood of additional modules being added, as has been the case for prior wins with North Cumbria Integrated Care NHS Foundation Trust (NCIC) and South Tees Hospitals NHS Foundation Trust.

The University Hospitals Sussex rollout should add incremental annual recurring revenue of around $3.5m-$4m, Bell Potter estimates, while Alcidion’s annual recurring revenue base has now expanded to more than $38m, including the Kyra acquisition.

Kyra acquisition

As outlined by RBC Capital, Alcidion recently announced the proposed acquisition of Kyra Patient Flow from Telstra Health ((TLS)) for $3m upfront, with a further $1m cash-based earnout subject to the business meeting a 12-month recurring revenue target.

Kyra will increase the company’s A&NZ exposure, expanding the suite of digital solutions designed to meet hospital requirements for patient flow and data access in Australia, while remaining compatible with Alcidion’s existing products.

Additional revenue generated is flagged at $3.7m, 90% of which is recurring, with underlying earnings (EBITDA) for FY26 of $1.1m, RBC notes. Moelis observes Kyra has low expected churn among its 33 Australian customers.

The acquisition is due to be completed by the end of June and should be earnings accretive from completion. RBC forecasts FY27 EPS will increase by 0.042c per share.

With an attractive acquisition multiple of 3.6x, RBC views the purchase positively. Additional upside could come from possible conversion of Kyra Patient Flow customers to Miya Precision and potential cost synergies.

What are the brokers thinking?

Following the recent win, Canaccord upgraded FY26 revenue forecasts to $52.1m from $50.3m and earnings (EBITDA) forecasts to $6.9m from $6.7m. The estimated gross margin was downgraded to 78% from 83% due to the implementation mix within the Sussex rollout and a third-party module.

Canaccord expects the gross margin to normalise over the next half (1H27) and highlights potential upside earnings risk from additional wins during the remainder of the June quarter.

Canaccord has an unchanged Buy rating with a 14c target.

Moelis underscores the importance of Alcidion’s long-term relationships in a defensive sector. Strategically, this broker sees ongoing potential to scale through module upselling alongside new customer wins.

Moelis believes earnings forecasts and the Buy rating are underpinned by “operating leverage” from the continued expansion of the growth strategy. Target price 16c.

Bell Potter estimates the annual recurring revenue base is more than $38m following the Kyra acquisition. There is no change to the Buy rating or 16c target price.

Cash on hand at the end of March stood at $15.1m, with Bell Potter noting large projects can be volatile and the financial risk of requiring additional capital cannot be dismissed if deals are deferred or cancelled.

RBC has a Sector Perform rating (Speculative Risk) with an upgraded target price of 13c from 11c.

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