Resonance Health Ltd (RHT) AI Stock Analysis

• Market Cap: AU$19.47M
• Dividend Yield: N/A
• Average Volume (3M): 274.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 28.91%
• EPS Growth: -1050.00%
• Country: AU
• Employees: 18
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): >-0.01
• Shares Outstanding: 474,792,630
• 10 Day Avg. Volume: 456,299
• 30 Day Avg. Volume: 274,246
• PEG Ratio: <0.01
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 22.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.05 ▼(-6.00% Downside)

The score is held back primarily by weak financial performance—persistent losses and a steep free-cash-flow decline—despite moderate leverage. Technicals show only modest strength with mixed momentum signals, while valuation is constrained by a loss-making negative P/E and no dividend support.

Positive Factors

Proprietary diagnostic software and AI

Specialized proprietary MRI analysis software and AI create a durable competitive moat in iron-overload diagnostics. Embedded clinical workflows and algorithmic IP raise switching costs, support recurring service revenues, and enable long-term partnerships with hospitals and pharma for product adoption.

Sustained revenue growth trajectory

Positive top-line growth, even modest, indicates increasing clinical adoption of software and services. For a niche medical-imaging firm, steady revenue expansion supports scaling of recurring service models and long sales cycles, improving the likelihood of reaching profitable scale over several quarters.

Moderate leverage and solid equity ratio

A debt-to-equity near 0.40 and a >50% equity ratio indicate conservative financial structure, providing flexibility to fund R&D, regulatory processes, or commercial expansion without excessive insolvency risk. This balance supports multi-quarter investments needed in healthcare markets.

Negative Factors

Negative operating and net margins

Persistent negative EBIT and net margins show the company cannot yet convert gross profit into sustainable operating profitability. This structural profitability gap requires either meaningful revenue scale, higher pricing, or structural cost reductions to achieve durable positive returns.

Sharp decline in free cash flow

A ~66.5% drop in free cash flow materially weakens the firm's ability to self-fund operations, invest in commercialization, or absorb longer sales cycles. Even with operating cash positive, poor FCF conversion raises the risk of external financing or dilution over the medium term.

Very small operating scale (headcount)

An 18-person team limits bandwidth for sales, regulatory work, product development, and clinical support in a specialized healthcare market. Scaling commercialization, global partnerships, and regulatory work typically require more resources, making growth and execution riskier over 2-6 months.

Resonance Health Ltd Business Overview & Revenue Model

Company Description

Resonance Health Limited, a healthcare technology and services company, designs, develops, and manufactures software-as-medical devices in the Asia Pacific, North America, South America, Europe, the Middle East, and Africa. It offers FerriScan, a non-invasive MRI based system for quantifying liver iron concentration (LIC); FerriSmart, an artificial intelligence (AI) assisted device for the automated real-time assessment of LIC; HepaFat-AI, an AI-assisted device for the automated real-time multi-metric measurement of liver-fat; CardiacT2, a dual analysis service with FerriScan for assessing heart iron loading; HepaFat-Scan, a non-invasive MRI-based solution for the assessment of liver-fat in liver tissue; and LiverSmart, a non-invasive MRI-based multi-parametric device combining FerriSmart and HepaFat-AI into a consolidated report. It also offers quantitative imaging measurements and CRO, such as quality-assured image analysis, imaging charter development, project and data management, issue resolution, site tracker and clinical trial progress report, and coordination of data flow services; biomarkers, blood, urine, and protein analytes, as well as RNA, DNA, and genotyping services; and protocol development, assessment of subject inclusion or exclusion, decisions on dose modifications, and evaluating the safety profile of a new therapy, as well as supporting primary and secondary end-points demonstrating drug efficacy services for multinational and multicenter clinical trials; and phantoms for the calibration of MRI machines. The company serves clinicians for the management of human diseases; and pharmaceutical and therapeutic companies for their clinical trials. Resonance Health Limited was incorporated in 1987 and is headquartered in Burswood, Australia.

How the Company Makes Money

Resonance Health generates revenue primarily through the sale of its software products and diagnostic services to healthcare providers and institutions. The company charges fees for its advanced imaging analysis services, which are often integrated into clinical workflows, allowing healthcare professionals to make informed decisions regarding patient care. Additionally, RHT may enter into partnerships with hospitals, research institutions, and pharmaceutical companies to enhance its product offerings and expand its market reach. These collaborations can lead to shared revenues from joint research initiatives or co-marketing agreements, further contributing to the company's earnings.

Resonance Health Ltd Financial Statement Overview

Summary

Resonance Health Ltd is experiencing moderate revenue growth but faces significant challenges in profitability and cash flow generation. The balance sheet remains stable with moderate leverage, but the negative return on equity and declining free cash flow are areas of concern. The company needs to focus on improving its profitability and cash flow conversion to enhance its financial health.

Income Statement

Resonance Health Ltd has shown a modest revenue growth rate of 5.12% in the latest period, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative EBIT and net income margins. The consistent gross profit margin suggests efficient cost management, but the negative net profit margin highlights ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a stable equity base with a debt-to-equity ratio of 0.40, indicating moderate leverage. The equity ratio of 52.5% suggests a solid capital structure. However, the negative return on equity indicates that the company is not generating sufficient returns on its equity, which is a concern for investors.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth, down by 66.54%, which is concerning. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations, but the free cash flow to net income ratio indicates inefficiencies in converting earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.07M	11.07M	8.59M	4.40M	3.83M	3.78M
Gross Profit	11.07M	11.07M	8.59M	4.40M	3.83M	3.78M
EBITDA	-1.41M	-1.41M	-382.00K	-827.69K	-1.34M	707.69K
Net Income	-1.73M	-1.73M	169.30K	-780.00K	-1.14M	585.86K
Balance Sheet
Total Assets	17.89M	17.89M	20.28M	10.98M	11.69M	12.44M
Cash, Cash Equivalents and Short-Term Investments	2.98M	2.98M	6.85M	6.36M	6.78M	8.86M
Total Debt	3.80M	3.80M	3.70M	272.94K	268.22K	60.10K
Total Liabilities	8.50M	8.50M	9.35M	1.05M	995.58K	611.74K
Stockholders Equity	9.39M	9.39M	10.93M	9.94M	10.69M	11.83M
Cash Flow
Free Cash Flow	805.39K	805.39K	1.01M	-624.93K	-1.42M	772.72K
Operating Cash Flow	1.25M	1.25M	1.39M	-157.03K	-712.67K	1.17M
Investing Cash Flow	-4.52M	-4.52M	-3.94M	-467.90K	-704.00K	-395.79K
Financing Cash Flow	-649.26K	-649.26K	3.01M	-81.97K	-107.11K	1.20M

Resonance Health Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHT, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RHT.

Resonance Health Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IME	55 Neutral	AU$21.62M	-4.65	-27.84%	―	6.77%	-8.45%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EMD	49 Neutral	AU$47.58M	-8.29	-81.30%	―	-36.68%	79.41%
RHT	48 Neutral	AU$19.47M	-11.32	-17.05%	―	28.91%	-1050.00%
SHG	43 Neutral	AU$78.92M	-10.35	―	―	―	―
PCK	42 Neutral	AU$55.39M	-6.18	-8647.54%	―	25.98%	22.10%
HIQ	40 Underperform	AU$9.03M	-0.97	―	―	-40.05%	-49.57%

Resonance Health Ltd Corporate Events

Resonance Health Delivers Strong Quarter as Trials, SaMD Pipeline and Clinics Expand

Resonance Health reported strong operational and financial momentum for the quarter ended 31 December 2025, with customer receipts of $2.9 million, positive operating cash flow and unaudited first-half FY26 revenue of $8.0 million, supported by higher-than-expected margins. Progress across its business lines included advanced recruitment in a $13.8 million major pharmaceutical clinical trial, completion of a clinical study report for another major trial, robust SaMD contract wins that have lifted forward orders and tendered pipeline above $10 million, and continued expansion of its profitable TrialsWest clinic network. The company also advanced development of its non-invasive liver fibrosis medical device, completed validation of its new “Bridge” automation technology for secure, streamlined customer workflows, and strengthened its international growth prospects with a new business development presence in India and commercial initiatives in China, all while maintaining cash balances that match its bank debt.

The most recent analyst rating on (AU:RHT) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Resonance Health Ltd stock, see the AU:RHT Stock Forecast page.

Resonance Health Director Increases Shareholding

Resonance Health Ltd announced a change in the director’s interest notice, specifically regarding Simon Panton. The announcement detailed that Simon Panton, through entities controlled by him and his wife, acquired additional ordinary fully paid shares, increasing his indirect interest in the company. This change reflects an on-market trade and signifies a potential vote of confidence in the company’s future prospects by a key stakeholder.

The most recent analyst rating on (AU:RHT) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Resonance Health Ltd stock, see the AU:RHT Stock Forecast page.

Resonance Health Director Increases Stake

Resonance Health Ltd has announced a change in the director’s interest in securities. Simon Panton, a director of the company, has increased his indirect holdings through entities controlled by him and his wife, acquiring a total of 423,522 ordinary fully paid shares. This change reflects an increase in the director’s stake in the company, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (AU:RHT) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Resonance Health Ltd stock, see the AU:RHT Stock Forecast page.

Resonance Health Announces Director Departure and Shareholding Details

Resonance Health Ltd has announced the cessation of Dr. Martin Peter Blake as a director, effective November 13, 2025. Dr. Blake held significant interests in the company, with 3,798,590 ordinary fully paid shares directly and an additional 2,666,087 shares through a superannuation fund. This change in directorship may impact the company’s governance and strategic direction, given Dr. Blake’s substantial shareholding and involvement.

Resonance Health Ltd Secures Shareholder Approval at AGM

Resonance Health Ltd announced the results of its Annual General Meeting held on November 13, 2025, where all resolutions were approved by poll. Key resolutions included the re-election of directors and the approval of a 10% placement facility, indicating strong shareholder support and strategic positioning for future growth.

Resonance Health Ltd Advances Business Transformation

Resonance Health Ltd has announced that its business transformation is well underway, as highlighted in their recent Annual General Meeting. The company reported a normalized operating EBITDA, which accounts for various financial adjustments, indicating a strategic shift in operations. This transformation is expected to impact the company’s financial health and market positioning positively, potentially benefiting stakeholders by improving operational efficiency and financial performance.