Resonance Health Ltd (RHT) AI Stock Analysis

• Market Cap: AU$18.13M
• Dividend Yield: N/A
• Average Volume (3M): 274.25K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.37
• 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: 477,120,240
• 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: 47 Neutral
• Price Target: AU$0.04 ▼(-26.00% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is primarily held back by weak financial performance—ongoing losses and a sharp decline in free cash flow—despite a relatively stable balance sheet. Technicals also lean negative with the stock trading below major moving averages. Valuation is only moderately supportive given a P/E of 23.75 and no dividend yield.

Positive Factors

Niche clinical imaging software business

Resonance Health’s core offering is quantitative MRI analysis and clinical decision support, a specialized software niche with durable demand from clinicians, researchers and trials. This product-led, non‑commodity model supports recurring service and software revenue and sticky customer relationships over time.

Moderate leverage, solid equity base

The balance sheet shows moderate leverage and a >50% equity ratio, providing financial flexibility while operating at a loss. That capital structure reduces near‑term solvency risk, supports continued product development and trial services, and lengthens runway compared with highly leveraged peers.

Consistent gross profit margin

A stable gross margin implies the business controls direct costs and benefits from software scalability. As revenue expands, fixed-cost leverage should improve operating margins, making profitability recovery more feasible if top-line growth accelerates or adoption in trials and clinics increases.

Negative Factors

Negative profitability

Persistent negative EBIT and net margins show the company is not yet translating revenue into operating profits. Over several months this limits internal funding for R&D and commercialization, raises the need for external capital, and makes long‑term sustainability contingent on reversing margin trends.

Sharp free cash flow decline

A two‑thirds decline in free cash flow materially reduces liquidity and operational flexibility. Even with positive operating cash to net income ratio, deteriorating FCF constrains reinvestment into product development and clinical partnerships and increases likelihood of dilutive financing or austerity measures.

Negative return on equity

Negative ROE signals that invested capital has failed to produce returns, undermining shareholder value creation. Over the medium term this impedes the company’s ability to attract non‑dilutive capital and suggests structural issues in converting clinical software capabilities into profitable growth.

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

Modest revenue growth (5.12%) is outweighed by weak profitability (negative EBIT and net income margins) and deteriorating cash generation (free cash flow down 66.54%). Balance sheet leverage is moderate (debt-to-equity 0.40) and equity ratio is solid (52.5%), but negative ROE remains a key concern.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	13.84M	11.07M	8.59M	4.40M	3.83M	3.78M
Gross Profit	5.86M	11.07M	8.59M	4.40M	3.83M	3.78M
EBITDA	1.38M	-1.41M	-382.00K	-827.69K	-1.34M	707.69K
Net Income	769.30K	-1.73M	169.30K	-780.00K	-1.14M	585.86K
Balance Sheet
Total Assets	17.96M	17.89M	20.28M	10.98M	11.69M	12.44M
Cash, Cash Equivalents and Short-Term Investments	2.69M	2.98M	6.85M	6.36M	6.78M	8.86M
Total Debt	5.20M	3.80M	3.70M	272.94K	268.22K	60.10K
Total Liabilities	7.02M	8.50M	9.35M	1.05M	995.58K	611.74K
Stockholders Equity	10.94M	9.39M	10.93M	9.94M	10.69M	11.83M
Cash Flow
Free Cash Flow	46.91K	805.39K	1.01M	-624.93K	-1.42M	772.72K
Operating Cash Flow	420.56K	1.25M	1.39M	-157.03K	-712.67K	1.17M
Investing Cash Flow	-551.51K	-4.52M	-3.94M	-467.90K	-704.00K	-395.79K
Financing Cash Flow	-624.12K	-649.26K	3.01M	-81.97K	-107.11K	1.20M

Resonance Health Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	58 Neutral	AU$24.32M	-7.55	-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$41.13M	-6.22	-81.30%	―	-36.68%	79.41%
RHT	47 Neutral	AU$18.13M	23.75	-17.05%	―	28.91%	-1050.00%
PCK	45 Neutral	AU$34.49M	-3.47	-8647.54%	―	25.98%	22.10%
SHG	43 Neutral	AU$78.92M	-10.25	―	―	―	―
HIQ	40 Underperform	AU$8.19M	-0.90	―	―	-40.05%	-49.57%

Resonance Health Ltd Corporate Events

Resonance Health Seeks ASX Quotation for New Employee Incentive Shares

Resonance Health Ltd has applied to the ASX for quotation of 2,327,586 new ordinary fully paid shares issued on 27 February 2026. The new shares were issued under an employee incentive scheme and will be quoted on the market, indicating continued use of equity-based compensation and a modest expansion of the company’s share capital base.

The move underscores the company’s reliance on share-based incentives to attract and retain staff, which may slightly dilute existing holders but aligns employee interests with shareholders. The additional quoted securities could enhance trading liquidity in RHT shares and signal ongoing operational activity and investment in human capital.

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 Swings to Profit on Strong Revenue Growth and Pipeline Gains

Resonance Health reported a strong first half of FY26, with revenue rising 53% to $8.0 million and normalised EBITDA reaching $1.6 million at a 20% operating margin, turning a prior-year loss into a $1.5 million profit after tax and delivering positive operating cash flow. Operationally, the company is advancing major global pharma clinical trials, expanding its TrialsWest clinic network ahead of expectations, building a SaMD order and bid pipeline exceeding $10 million, and progressing new technologies including a non-invasive liver fibrosis device and an automated “Bridge” customer interface platform, all of which support its growth and market positioning.

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 posts record half-year revenue and returns to profit

Resonance Health reported a 53% jump in half-year revenue to $8 million and returned to profitability with a $1.5 million net profit after tax, supported by positive operating cash flow and a 20% normalised EBITDA margin. Growth was driven across its clinical trial management services, the outperforming TrialsWest clinic network and increased SaMD usage, including new modalities like MRE and VAT & SAT measurements.

The company advanced major global pharmaceutical clinical trial contracts, expanded its forward SaMD order and bid pipeline to more than $10 million and completed key development milestones, including an extended proof-of-concept trial for a non-invasive MRI liver fibrosis device and testing of its Bridge automation technology. It is also pushing into large international markets, progressing discussions with healthcare providers in China and strengthening its presence in India with a dedicated business development manager to capture rising demand from global pharma customers.

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 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.