FY26 Results Snapshot Charts Valuation Analysis
Equity Research · ASX Micro-cap

Resonance Health (ASX:RHT)

Independent Investment Review, August 2026

By Daniel Gouvignon · Director of Product · Existing shareholder

Current Price $0.059
Fair Value Estimate $0.075–0.083 +27–41% implied upside
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01 · FY26 SCORECARD

The year Resonance turned the corner

FY26 marked the transition from perennial cash-burner to profitable, cash-generative operator. Every line of the P&L and cash flow statement improved.

Revenue
$0.0M
+42% YoY
Net Profit
$0.0M
vs −$1.7M loss
EBITDA
$0.0M
+83%
Operating Cash Flow
$0.0M
+131%
Free Cash Flow
$0.0M
+148%
Net Cash
$0.0M
from $0.1M
02 · VISUAL SNAPSHOT

The company at a glance

A Simply Wall St-style read of the stock: five-factor snapshot, fair value dial, who owns the register, balance-sheet strength, and the path into profit.

Company Snapshot
Five factors scored 0–5 · author's assessment
Value 4/5: trading below DCF fair value $0.075 and comps base case $0.083 vs price $0.059 Future 3/5: FY27 guidance +8–39% revenue growth, but wide range and CRO contract rolloff Past 3/5: first profitable year FY26, 42% revenue growth, but only 1 year of profit track record Health 5/5: net cash $2.3M, OCF positive every quarter, cash conversion >100%, no dilution Dividend 0/5: no dividend paid or planned Value · 4/5 Future 3/5 Past · 3/5 Health · 5/5 Dividend 0/5
ValueBelow DCF $0.075 & comps $0.083 4/5
FutureFY27 +8–39% guided, wide range 3/5
PastOne year of profit on the board 3/5
HealthNet cash, OCF+ every quarter 5/5
DividendNone paid or planned 0/5
Auto-verdict: Flawless balance sheet, undervalued with a proven year of execution. No dividend.
Fair Value Dial
Share price vs discounted cash flow value
Undervalued About right Overvalued 21% Undervalued
Price $0.059 · DCF fair value $0.075 · Comps base case $0.083
Financial Health
Cash vs debt at 30 June 2026
Net cash position
Cash $4.85M Debt $2.53M cash covers debt 1.9×
OCF positive 4/4 quarters Zero dilution FY26 Debt reduced $0.3M during FY26
Earnings & Revenue : History and Forecast
Revenue bars with net profit overlaid · the FY26 crossover into profit
■ Revenue  ■/■ NPAT · A$M
24 18 12 6 0 −3 FY26: NPAT crosses from loss into profit crosses into profit 3.8 4.5 8.8 11.1 15.8 17–22 −1.2 −2.1 −1.7 +1.5 FY22 FY23 FY24 FY25 FY26 FY27E
Losses shrank for two years, then FY26 delivered the first full-year profit of +$1.5M. The FY27 guidance band of $17–22M revenue implies the growth engine keeps running. NPAT for FY24–25 approximate.
Who Owns the Register
Shareholder composition, FY26 Annual Report
Institutions & substantialSoutham 15.7% · HSBC Nom. 8.4% · SG Hiscock ~7.5% · BNP 3.7% ~30%
InsidersCEO 1.7% · CFO 1.5% · other directors ~5.5%
General publicRetail & other holders ~64.5%
Top 20 holders control 49.5% of the register (FY26 Annual Report, 26 Aug 2026). SG Hiscock holding per last substantial-holder notice.
Rewards & Risks
What the bulls and bears each get right

Rewards

Trading 21% below DCF fair value
Revenue grew 42% in FY26
First full-year profit, cash-backed (OCF $2.9M > NPAT $1.5M)
Fibrosis device catalyst: EPoC data due ~1 month

Risks

48% of revenue from one CRO contract rolling off mid-FY27
No analyst coverage; illiquid microcap
Fibrosis device unproven : EPoC readout is binary
Competitors (FibroScan, MRE) already in FDA process
03 · GROWTH & QUALITY

Four years of compounding, in pictures

Revenue has grown 3.5× since FY23 while margins expanded and earnings converted to cash at better than 100%.

Revenue Growth
FY23–FY26 actual · FY27E guidance scenarios
A$ millions
0 6 12 18 24 4.5 8.8 11.1 15.8 17.0 19.5 22.0 FY23 FY24 FY25 FY26 FY27E FY27E FY27E low mid high
+42% in FY26 against a guided FY27 range of $17.0–22.0M. Even the low end implies continued double-digit growth.
EBITDA Margin Progression
FY24–FY26 actual · FY27E range band
0% 5% 10% 15% 20% 25% ~5% ~12% 16.5% 22% 16% FY24 FY25 FY26 FY27E
Operating leverage is real: margin has tripled in two years, with management guiding 16–22% for FY27.
FY26 Revenue Mix
Segment revenue, pre-elimination
$15.8M group revenue
SaMDRegulated imaging analysis $7.0M44%
Resonance ClinicalCRO services $7.5M48%
TrialsWestClinical trial sites $4.1M26%
Segment totals exceed group revenue of $15.8M because they are reported before inter-segment eliminations.
Cash Flow Quality
FY26: cash generation exceeds reported profit
A$ millions
0 1 2 3 reported profit 1.5 2.6 2.9 2.8 NPAT EBITDA Op. Cash Flow Free Cash Flow
OCF of $2.9M against NPAT of $1.5M, earnings are backed by cash, not accruals. FCF conversion of EBITDA is ~108%.
04 · VALUATION

What is it worth?

Six scenarios, from a conservative trailing multiple to full success of the fibrosis program. The current price sits below all but the most pessimistic case.

Fair Value Scenarios
Per-share value under different methodologies
A$ / share
$0.00 $0.04 $0.08 $0.12 $0.16 Conservative · 8× EBITDA $0.048 FY26 sales · 2× revenue $0.071 Base case · 12× FY27 EBITDA $0.083 Growth · 2.5× FY27 revenue $0.107 Upper · 16× FY27 EBITDA $0.126 If fibrosis succeeds $0.146 current $0.059
Blended fair value of $0.075–0.083 weights the base case most heavily and ascribes no value to the fibrosis program. That outcome is pure optionality at today's price.
05 · THE THESIS

Analysis

A. The Business

Resonance Health operates three complementary divisions. SaMD (Software as a Medical Device) is the original franchise, regulator-cleared MRI analysis tools, anchored by FerriScan, the gold-standard for non-invasive liver iron quantification, sold globally to clinicians and pharma. Resonance Clinical is a contract research organisation providing imaging core-lab and trial services to drug developers, and has quietly grown into the largest revenue segment at $7.5M. TrialsWest runs physical clinical trial sites in Western Australia, adding $4.1M of revenue and feeding volume into the other two divisions.

The strategic logic is vertical integration across the clinical-trial imaging value chain: the same customer can source trial sites, trial management and regulated image analysis from one vendor. In FY26 that model produced its first genuinely clean result, profitable, cash-generative, and growing 42%.

B. The Opportunity

The free option in the stock is the liver fibrosis device. Liver fibrosis staging today largely means biopsy, invasive, expensive, sampling-error-prone, or imperfect proxies. Resonance is developing an AI-driven, MRI-based fibrosis assessment tool intended to slot into the same regulatory and distribution rails already built for FerriScan.

The near-term milestone is the EPoC trial, designed to validate the technology against biopsy-confirmed ground truth. Success would open the door to regulatory clearance in a market being rapidly expanded by MASH (fatty liver disease) therapeutics. Every new drug approval increases demand for non-invasive monitoring of treatment response. A cleared fibrosis product would be sold through existing pharma relationships at software margins.

Crucially, at $0.059 the market is paying roughly fair value for the existing profitable business alone, and the fibrosis program comes for free.

C. The Competition

The non-invasive fibrosis field is contested, and honesty about that matters:

  • FibroScan (Echosens): the incumbent point-of-care elastography device. Cheap, fast and ubiquitous, but operator-dependent and less reliable in obese patients, precisely the MASH population.
  • MRE (Magnetic Resonance Elastography): the accuracy benchmark among imaging methods, but it requires dedicated hardware bolted onto the scanner, limiting availability and adding cost per site.
  • cT1 (Perspectum): the closest analogue, an MRI software biomarker with strong pharma traction and a head start in MASH trials. Perspectum has raised far more capital and is the competitor to watch.

Resonance's angle is a software-only product on standard MRI sequences, leveraging a 20-year regulatory track record and an existing installed base of pharma and clinical customers. It doesn't need to beat FibroScan at screening. It needs to win a share of trial-monitoring and confirmatory workflows where accuracy and auditability command a premium.

D. What To Watch

  1. EPoC trial readout. The binary event for the fibrosis thesis. Positive data validates the pipeline; a miss removes the option value but leaves the profitable core intact.
  2. FY27 guidance delivery. Management has guided $17–22M revenue at 16–22% EBITDA margin. H1 results will show whether the mid-point is credible.
  3. CRO contract wins. Resonance Clinical is now the largest segment. New pharma master-service agreements or major trial awards move the needle most.
  4. Margin trajectory. Watch whether operating leverage continues as revenue scales, or whether TrialsWest's lower-margin site work dilutes the mix.
  5. Capital allocation. Net cash of $2.3M and positive FCF create choices: fibrosis investment, bolt-on site acquisitions, or (eventually) shareholder returns. How the board spends the first surplus dollar tells you a lot.

E. Disclaimer

This report is general information only and is not financial advice. It does not consider your objectives, financial situation or needs. The author, Daniel Gouvignon, holds shares in Resonance Health (ASX:RHT) and is therefore not independent in the regulatory sense; this analysis reflects a shareholder's perspective and may be biased accordingly.

Figures are drawn from company filings and announcements believed to be reliable, but accuracy is not guaranteed. Forward-looking figures (FY27E) are estimates, not predictions. Micro-cap securities are illiquid and volatile. You can lose your entire investment. Do your own research and consider seeking advice from a licensed adviser before making any investment decision.