Australian virtual care technology firm Visionflex Group Ltd (ASX:VFX) has revealed that cornerstone investors will convert $3.25 million in debt into equity at a 100% premium ($0.004 compared to last close price of $0.002), resulting in a debt-free balance sheet. The move follows CEO Joshua Mundey’s three-year turnaround, which has driven a 34% increase in recurring revenue to $2 million.
The company’s two cornerstone backers — John Plummer and Adcock Private Equity — have agreed to flip their loans (plus interest) into equity: roughly $2.69 million from Plummer and $0.56 million from Adcock.
Notably, there’s still $1 million available on Adcock’s facility if needed.
“I want to sincerely thank John and Brook for their continued support and belief in Visionflex. Their decision to convert at a premium demonstrates strong confidence in our strategy and future success. By eliminating debt and simplifying our capital structure, we have created a stronger foundation to pursue growth opportunities in the fast-growing virtual care economy, and to deliver value to all shareholders,” Visionflex CEO and managing director, Joshua Mundey said.
“Visionflex is now advancing our next phase of transformation to scale a software and services platform that underpins the connected care economy.
“ARR remains our core performance metric, and its continued growth reflects the strength and stickiness of our customer base. The launch of our Enablement Services and Vision Home is part of our growth strategy to deepen industry engagement and accelerate adoption into sustained recurring revenue. With monetised enablement services for onboarding new customers and the roll-out of Vision Home, we expect ARR to increase as activation speeds up and utilisation broadens.”
Strong numbers on customer growth
The company’s Q1 FY26 unaudited revenue came in at around $900,000, with about 49% recurring, and ARR(annual recurring revenue) hit around $2 million — up 34% year on year. Customer cash receipts were around $1million, while operating cash outflow improved to around $1 million (from $1.6 million a year ago). Cash at September 30, 2025, was about $1.4 million, giving the company some breathing room as it leans harder into software and services.
On the customer front, the team locked in an ARR uplift of around $85,000 from renewing 21 BlueCare Queensland residential aged care facilities. In the US, partner OnMed ordered 30 more GEIS cameras, expanding hardware placement and the pipeline for software usage.
Visionflex also rolled out Enablement Services & Training — a practical add-on that helps customers get value faster — and launched Vision Home, aimed at making proper, in-home clinical consults a reality (not just a video call).
Why the investor conversion matters
It takes interest costs off the table, tidies up the cap stack, and sends a clear message that the two most committed funders are backing the plan at a premium price. That’s not just window dressing — it gives management the freedom to focus on growing ARR, improving margins, and scaling usage across aged care, hospitals, regional providers, and the at-home care market.
What to watch next
- Continued ARR growth (the mix shift toward software and services should help).
- Execution in aged care, hospital, and in-home channels — the company’s already added two biz-dev hires to push these.
- More partner activity with clinical service providers and adjacent tech, which can shorten sales cycles and lift adoption.
With Plummer and Adcock converting at a premium, Visionflex is exchanging debt for demonstrated investor conviction. Coupled with expanding annual recurring revenue (A$2.0 million, +34% year over year), solid first-quarter revenue (approximately A$0.9 million), and an increasingly sticky product portfolio, the company is positioned on a cleaner platform to pursue growth through FY26.