Beamtree Holdings (ASX: BMT) has secured a $2 million contract with Saudi Arabia’s Fakeeh Care Group as it continues a strategic review aimed at improving product focus, cost discipline, and revenue conversion.
The 12-month contract covers coding, coding assurance, and coding analytics support for Dr Soliman Fakeeh Hospitals.
Fakeeh Care Group operates four hospitals and five medical centres, giving Beamtree a new commercial engagement with a leading listed healthcare provider in Saudi Arabia.
The agreement also supports Beamtree’s broader Middle East growth strategy as Saudi Arabia implements substantial clinical coding and funding reimbursement reforms across public and private hospitals.
Saudi Contract Builds Regional Presence
Beamtree will deliver services both remotely and on-site as Dr Soliman Fakeeh Hospitals prepare for changes in clinical coding practices and healthcare funding reimbursement.
The contract builds on the company’s four-year presence in Saudi Arabia, where it has worked on projects for the Center for National Health Insurance and the country’s health information strategy.
Past work in the market includes a nationwide public hospital data quality audit for the Center for National Health Insurance and the later implementation of Beamtree’s PICQ clinical coding data quality platform.
Beamtree also established an October 2023 commercial partnership with Lean Business Services to deliver an integrated coding solution initially in Saudi Arabia and then globally.
While the Fakeeh contract is not classified as annual recurring revenue (ARR), Beamtree sees the work as a pathway toward future software-as-a-service (SaaS) ARR sales, consistent with its experience in other markets.
Cost Base Reset Underway
Beamtree’s board has taken action to reset the company’s cost base as part of the strategic review announced in February.
The company expects its 1 July 2026 exit run-rate to align total cash operating costs with its revenue trajectory.
That reset is designed to position the business toward cash operating profit break-even after product development costs in FY27.
The review has also sharpened the company’s focus on margin contribution, product growth potential and revenue predictability.
Product Investment Narrows
Beamtree has three established product groups across data platforms, coding, and diagnostics.
Its data platforms business includes Health Roundtable and Evolve, which serve more than 150 hospitals across Australia, New Zealand, and the UK.
The coding suite covers clinical coding quality, audit, and risk-scoring, while diagnostics includes RippleDown, a rule-based diagnostic decision support system built on 25 years of clinical intellectual property.
The board has determined that investment will be concentrated behind the highest-growth product lines, while products without a path to meaningful contribution in a reasonable timeframe will receive reduced investment or be ceased.
FY26 ARR Guidance Withdrawn
Beamtree has also tightened its sales pipeline discipline to improve the quality and predictability of revenue conversion.
Several active opportunities are now unlikely to close before the full-year results announcement, despite the company’s confidence in the medium-term pipeline.
The board has therefore withdrawn FY26 guidance for double-digit ARR growth.
The next phase of the strategic review will complete decisions on product prioritisation and define Beamtree’s product and market development roadmap, with specific actions to be outlined in the FY26 full-year results.
