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Highlights

  • Craneware reported a 12% YoY increase in adjusted EBITDA to over $65 million in FY25, with revenue rising 9% to $205.7 million, surpassing market expectations.

  • The company’s Annual Recurring Revenue (ARR) grew by approximately 7% to $184 million, while Net Revenue Retention (NRR) improved significantly from 98% to 107%.

  • Analysts maintain a ‘Buy’ rating on Craneware, with a mean target price of AUD 61.11, suggesting a 19.16% upside from the current share price.

Craneware plc (LSE:CRW.L), a leading provider of software solutions that enhance financial performance for the US healthcare sector, has delivered a positive trading update for FY25. The company reported a 12% increase in adjusted EBITDA to over $65 million, supported by a 9% rise in revenue to $205.7 million. This robust performance surpassed consensus expectations and was driven by a 7% increase in Annual Recurring Revenue (ARR) to $184 million and an impressive rise in Net Revenue Retention (NRR) to 107% (up from 98% in FY24).

The company has made significant strides in product innovation and platform monetisation, particularly through its AI-powered Trisus Platform Partner solutions. These include recurring revenue contributions from the 340B “Shelter” offering and other third-party partnerships. Operating cash conversion remains high, enabling Craneware to reduce total bank debt to $27.7 million while boosting cash reserves to $55.9 million.

Analysts Maintain 'Buy' Rating as Upside Potential Reaches 19%

Craneware continues to receive high confidence from analysts, with a current consensus recommendation of 1.4 (Strong Buy). The latest mean target price stands at AUD 61.11, equating to GBp 2955.25, representing a 19.16% upside from the current share price of 2480 GBp. Analysts from firms including Berenberg, Panmure Liberum, and Investec Bank maintain bullish ratings, with the highest target of AUD 68.24 implying a 33.06% potential gain.

As the partnership with Microsoft deepens and new third-party solutions are integrated into the Trisus platform, the outlook for FY26 remains optimistic. Management anticipates an accelerated revenue growth trajectory driven by demand for value-based care solutions in the US healthcare market. The company's positive balance sheet and consistent profitability provide a sturdy base to execute on its long-term growth strategy.