Alcidion Group's Record Contracts Meet a Market That Hasn't Noticed
A string of major healthcare software wins across the UK and Australia culminated in record operating cash flow, yet the stock remains one of the ASX's cheapest scalable software businesses.
30 Sep 2026 · 3 min read
In short
Alcidion Group won a series of major healthcare software contracts, including a $12.3 million Leidos Australia expansion and a roughly $35 million, seven-year Electronic Patient Record deal with University Hospitals Sussex NHS Foundation Trust in the UK.
A record fourth-quarter FY26 result showed operating cash flow of $7.7 million and new total contract value sales and renewals of $43.2 million, with full-year EBITDA forecast to exceed $5 million.
Cyan Investment Management calls Alcidion one of the cheapest commercially successful and scalable software businesses on the ASX, still trading at an enterprise value close to $100 million despite the growth.
Alcidion Group has quietly built one of the ASX's most compelling small-cap healthcare software stories, stringing together record contracts across the UK and Australia including a $35 million NHS deal, before a record fourth-quarter result showing genuine operating cash flow generation left fund managers frustrated the market still hasn't caught on.
A Leidos contract expansion sets up a promising year
Cyan Investment Management said the stock rose 12.9 percent after Alcidion announced a material $12.3 million contract expansion with Leidos Australia to provide electronic health records to the Commonwealth of Australia, arriving shortly after the company posted record first-quarter FY26 revenue of $12.0 million, setting the business up for a promising year. Tamim Funds Management detailed the extension, delivering additional clinical and emergency-care modules on the myPrecision platform for government hospitals, with the initial multi-year deal signed in December 2021 having grown from around $23.3 million to $31.7 million, and the new expansion adding $12.3 million over 2.7 years, bringing the six-year contract value to roughly $44 million with potential 15-year value exceeding that considerably.
A landmark NHS contract win
Cyan Investment Management said the stock rose a further 14 percent after Alcidion was selected as preferred supplier for a new Electronic Patient Record system at University Hospitals Sussex NHS Foundation Trust in the UK, with the total contract value still to be negotiated but expected to exceed A$35 million over a minimum seven-year term, one of the company's largest deals. Tamim Funds Management said Alcidion had a busy month, winning that huge contract while also releasing a pleasing second-quarter FY26 update showing new total contract value sales of $15.4 million.
Selected as preferred supplier by University Hospitals Sussex NHS Foundation Trust for EPR solution, with TCV expected to be at least $35 million and potential for higher value as more modules are taken by the client.
— Tamim Funds Management, Monthly Report, January 2026
Record results, and a stock the market still hasn't valued properly
Cyan Investment Management said the stock fell 16 percent despite releasing a fourth-quarter FY26 result detailing record quarterly cash receipts of $24.6 million, record operating cash flow of $7.7 million, and a record forecast full-year EBITDA result in excess of $5 million, noting it had been harping on about this company for a while, but with Alcidion trading at an enterprise value close to $100 million, this remains one of the cheapest commercially successful and scalable software businesses on the ASX. Tamim Funds Management said the fourth quarter delivered record results, with positive operating cash flow of $7.7 million lifting full-year cash flow to $6.8 million, up 19 percent on FY25, and new total contract value sales and renewals totalling $43.2 million, led by the roughly $35 million, seven-year EPR contract with University Hospitals Sussex and a multi-year extension with Western Health, alongside completion of an acquisition.
We feel like we've been harping on for a while about this company, but with ALC trading at an enterprise value close to $100 million, this is one the cheapest commercially successful and scalable software businesses on the ASX.
— Cyan Investment Management, Monthly Report, July 2026
What fund managers say they are watching next is continued conversion of the $43.2 million in new total contract value sales and renewals into recognised revenue, integration of the recently completed acquisition, delivery on the record full-year EBITDA forecast above $5 million, and whether the market's valuation of the stock finally catches up given its still-modest $100 million enterprise value.
Questions
What is Alcidion Group's business?
Alcidion Group provides electronic health record and patient management software to hospitals across Australia and the UK, including its myPrecision platform used by government hospitals.
What was Alcidion Group's major NHS contract win?
Alcidion Group was selected as preferred supplier for a new Electronic Patient Record system at University Hospitals Sussex NHS Foundation Trust in the UK, with total contract value expected to exceed A$35 million over a minimum seven-year term.
Why does Cyan Investment Management see Alcidion Group as undervalued?
Cyan Investment Management notes Alcidion Group delivered record operating cash flow and EBITDA in its FY26 fourth quarter, yet still trades at an enterprise value close to $100 million, making it one of the cheapest commercially successful and scalable software businesses on the ASX.
4 managers, 36 comments, with each manager's latest recorded position.
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