PharmX Technologies (ASX:PHX) reported higher half-year revenue and maintained positive EBITDA in its FY2026 first-half results briefing, while management emphasized early traction from its new “single platform” rollout and outlined the strategic significance of a newly announced alliance with Sigma and Chemist Warehouse.
Financial performance: revenue growth and positive EBITDA despite elevated investment
CEO Tom Culver and CFO Zoe Hillier said total revenue rose 3% to AUD 3.9 million in the half. Hillier attributed the result to growth in the core Gateway business and Marketplace commissions, partly offset by reductions in other revenue lines tied to a planned pause ahead of the new Marketplace launch.
- Gateway revenue up 5% versus the prior comparable period, driven largely by New Zealand revenue and growth in third-party network user revenue.
- Marketplace commission revenue up 24%, despite a deliberate pause in onboarding and marketing on the legacy PharmXchange platform prior to the new Marketplace going live in November 2025.
- New Zealand revenue up 54%, cited by management as a highlight and an area expected to become a larger focus.
Operating costs rose to AUD 3.4 million, up AUD 0.7 million from the prior period, which the company said was in line with its plan to support the Marketplace launch. Hillier broke out the main cost increases as:
- People costs up AUD 447,000
- Technology costs up AUD 94,000
- Marketing costs up AUD 65,000
- Additional legal and advisory costs connected to the Sigma/Chemist Warehouse strategic alliance
EBITDA for the half was positive at AUD 0.5 million, down from AUD 1.1 million in the prior period, with management attributing the reduction “entirely” to higher growth expenditure. Hillier also highlighted what she called a “normalized” view of the base Gateway business (excluding early-stage Marketplace and data/analytics initiatives), saying that EBITDA on that basis improved 23%.
Amortization and depreciation totaled AUD 0.7 million, up 17% due to ongoing product development investment and capitalization of costs. The company also recorded a higher employee performance rights expense as it rolled out a long-term incentive scheme to a broader group of employees.
Cash flow, R&D incentive, and development spend
Management said the company delivered positive underlying cash flow despite investment tied to the Marketplace rollout, and reported a cash position of AUD 3.2 million.
Hillier noted that the prior corresponding period’s operating cash flow included a AUD 9.9 million payment to Fred IT, made in line with final orders issued by the Supreme Court of Victoria, which affected comparisons.
The company received a net R&D incentive of AUD 368,000, down from AUD 862,000 in the prior period. Hillier said the prior period included a one-off true-up payment of income tax related to the previously reported early termination of the Alchemy revenue share agreement (linked to PharmXchange intellectual property).
Capital expenditure on product development rose to AUD 1.0 million from AUD 654,000 in the prior comparable period. Hillier said Marketplace development, enhancement, and optimization is expected to continue in the second half, with additional features and services to be added to the “single platform” to drive utilization and future revenue.
Platform adoption and Marketplace traction
Culver highlighted growth in adoption of the company’s Pharmacy Portal and StockView feature. As of the end of the reporting period, Pharmacy Portal adoption reached 875 pharmacies, and Culver said it had climbed to more than 1,200 by the time of the call. He added that 57% of registered users were using StockView (launched in September), with StockView usage up 39% month-on-month from September to the end of the period.
On the newly launched Marketplace (live mid-November), Culver said December delivered a record Marketplace gross commissionable value (GCV) up 68% versus the prior peak on the legacy PharmXchange platform, and that GCV increased 79% month-on-month, which he characterized as strong early traction.
Management also discussed broader platform metrics for the half, including:
- Gross transaction value (GTV) up 17% across platforms
- Marketplace orders up 134%
- Gateway orders up 10%
- Total suppliers up 8% (and 14% increase in the half as described on the call)
- Accounts up 4%
- Gateway ARPU up 5% versus the previous half
- Marketplace monthly active users up 99%, average monthly spend up 33%, and early-stage ARPU up 4%
Sigma-Chemist Warehouse alliance: five-year renewal and equity stake
A central focus of the call was a strategic alliance announced earlier in the week with Sigma and Chemist Warehouse. Culver said the multi-year partnership appoints PharmX as the preferred EDI and “growth partner” for Sigma Wholesale and Chemist Warehouse Retail across Australia and New Zealand.
Management described the arrangement as having two parts:
- Part A: optimization of existing services, New Zealand expansion, and analytics solutions.
- Part B: expansion into an international marketplace and bringing online marketplace partnership solutions “both here and globally.”
The company said the alliance includes a five-year renewal of the wholesale agreement, and that Sigma acquired a 10% equity stake in PharmX. Sigma will appoint a board representative, and there is a pathway to increase ownership to 19.9% through revenues generated under the partnership, via a rebate mechanism that can be used as credits to acquire additional equity.
In Q&A, Culver said PharmX had already begun work on one project and expected it to be online before the end of the second half, potentially with a second solution also delivered in that period, though he said details would be confirmed later as scopes of work are agreed.
Industry and network dynamics: supplier shifts and product mix
Management noted a “slight softening” in Gateway revenues due to two suppliers changing their distribution methods. In response to an investor question, Culver explained that the suppliers moved from being direct suppliers to being wholesale fulfilled, which reduced account fee revenue even though volumes did not decline.
The company said it is comfortable that the impact is being offset by a “record supplier integration pipeline,” continued increases in volume-based annual recurring revenue, and revenue diversification. Culver cited 19 new suppliers onboarded in H1 and said the pipeline remained strong into H2.
On platform insights, Culver pointed to continued growth in GLP-1 product volumes (citing brands such as Mounjaro and Ozempic) and said COVID antivirals had dropped out of the company’s top 10 products, which he framed as evidence of shifting industry cycles. He also noted growth in categories including medicinal cannabis and beauty, calling out MCoBeauty, and said the number of SKUs available on the platform increased by just under 10,000 (about 10% of active SKUs) over the past six months.
Management said it had begun reducing engineering headcount following the first stage of the single platform Marketplace release, while noting the business expects to continue running higher costs as part of its growth agenda.
About PharmX Technologies (ASX:PHX)
PharmX Technologies Limited, together with its subsidiaries, operates as a technology and software development company in Australia. It also operates PharmX, an electronic ordering gateway; PharmX Marketplace, an online sales and marketing platform; and PharmX Analytics which provides insights for operations of supplier and pharmacy customers. The company was formerly known as Corum Group Limited and changed its name to PharmX Technologies Limited in October 2023. PharmX Technologies Limited was incorporated in 1950 and is headquartered in Sydney, Australia.
