Interim Report H1 2025

Craneware plc

("Craneware" or the "Company" or the "Group")

FY25 Interim Results

Record interim financial results, with a return to double-digit growth rates

11 March 2025 - Craneware (AIM: CRW.L), a leader in healthcare financial performance solutions, is pleased to announce its unaudited results for the six months ended 31 December 2024 (H1 FY25).

• Annual Recurring Revenue includes the annual value of licence and related recurring revenues including transaction revenues as at 31

December 2024 that are subject to underlying contracts and where revenue is being recognised at the reporting date

• Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, share based payments and acquisition and integration

related costs

• Adjusted profit before tax refers to profit before tax, amortisation of acquired intangibles and acquisition and integration related costs
  4 Operating Cash Conversion is cash generated from operations for the rolling 12 month period, adjusted to exclude cash payments for exceptional items and movements in cash held on behalf of customers, divided by adjusted EBITDA for the same 12 month period

Highlights

• Strong financial performance, delivering record interim Group revenue and Adjusted EBITDA, with a return to double-digit growth rates
• 18% growth in adjusted basic EPS and increased operating cash conversion resulted in Group cash reserves growing to $72.2m (H1 FY24: $63.9m) and a reduction in bank debt to $31.6m (H1 FY24: $59.2m), in addition to funding dividends
• Future growth remains underpinned by high levels of ARR and strong customer retention at above 90% across all measures
• Continued expansion and cross-sales to all hospital strata, with Net Revenue Retention ("NRR") greater than 100%
• First major customer contract executed via the Azure Marketplace, as part of the previously announced alliance with Microsoft
• Continued investment in R&D and innovation to capitalise on growing market opportunity
• Development of AI enhancements to existing offerings in conjunction with Microsoft, including the launch post period end of Trisus® Assist, an AI-powered personal assistant providing workflow help, healthcare coding research and persona-based compliance prompt engineering
• Further strengthening of the Board through the appointment of two experienced US healthcare executives as Non-Executive Directors
• Trisus® Chargemaster ranked first in the "2025 Best In KLAS Awards: Software & Services" for the 14th time, underlining Craneware's long-standing position as a healthcare technology industry leader

Current Trading and Outlook

• Positive trading has continued into the second half of the year

• The Board remains confident in its outlook for FY25 and expects to deliver results for the year ending 30 June 2025 in line with current market expectations
• Longer-term,the Board continues to see considerable opportunity, reflecting Craneware's strong market positioning and the significant size of the overall market, providing the potential for further growth acceleration, in line with the Company's ambitions

Keith Neilson, CEO of Craneware plc, commented,

"We are pleased to have delivered record interim financial results, reflecting the successful execution of our growth strategy. Our trusted position at the heart of the US healthcare market is translating into double digit growth rates, as we support our customers in the transformation of their operations and finance through our software and data driven insights.

"Following the US election, hospitals are now expecting a period where they can focus on their fundamentals and make investments to drive strategic growth, which we anticipate will provide a sustained demand environment for our offerings.

"The continued expansion of our Trisus platform, increasing engagement from major players within the US healthcare market and strong financial foundations mean we are well placed to execute on our ambitious growth strategy, as we support our customers in transforming the business of healthcare."

About The Craneware Group

For over 25 years, The Craneware Group (AIM:CRW.L) has been a leader in healthcare financial and operational transformation, delivering cutting-edge technologies that drive measurable impact. Our Trisus® cloud ecosystem unifies data, revenue intelligence, margin intelligence, and advanced analytics, enabling healthcare organizations to optimize performance, improve financial sustainability, and drive strategic growth.

As a trusted Microsoft partner, we provide future-ready solutions-including the Best in KLAS Trisus Chargemaster-that simplify the complexities of healthcare finance and operations. What sets us apart is our unique combination of deep healthcare expertise and engineering excellence, positioning us as a strategic partner rather than just a technology provider.

The Craneware Group empowers healthcare organizations to achieve sustainable financial success while delivering better outcomes for the communities they serve-today and in the future. Together, we are transforming the business of healthcare.

Learn more atwww.thecranewaregroup.com

Business Review: A return to double digit growth

We are pleased with these record interim financial results, reflecting the successful execution of our growth strategy. Our trusted position at the heart of the US healthcare market is translating into double- digit growth rates, as we support our customers in the transformation of their operations and finance through our software and data driven insights.

Group revenue exceeded $100m in the first half for the first time, growing 10%, driven mainly by expansion with existing customers, and new customer wins. We have maintained our robust EBITDA margins and strict financial discipline, using our strong cash generation to invest into our expanding product portfolio, reduce debt and interest costs, and increase our dividend whilst retaining healthy total cash reserves.

The opportunity ahead of us is considerable and growing. For over 25 years, The Craneware Group has turned data into actionable insights, to support sustained operational and financial success for our customers. The strong Return on Investment that our solutions deliver has facilitated steady customer growth, and we are proud to count approximately 40% of all US hospitals and associated pharmacies as customers. However, our ambition is to be ubiquitous in all US hospitals, and we will do this through sustained innovation, combining our healthcare expertise, wealth of independent healthcare data and engineering excellence to develop solutions that enhance our customers' business performance.

The first half of the year has seen a considerable step forward in this regard. Our teams are working alongside Microsoft in the area of AI innovation, and joint marketing initiatives around these enhanced offerings have now commenced. Meanwhile we have strengthened our relationship with Oracle, completing the integration of our Oracle and Azure-based technology stacks, providing the ability for greater data flow and analysis, which will in turn support ongoing product innovation.

The strength of our offerings, our deep healthcare specialism and data, breadth of customer base and growing partnerships, provide us with confidence in the continued successful execution of our growth strategy.

A positive sales performance

Following the election, US hospitals are now expecting a period where they can focus on fundamentals and make investments to drive strategic growth, providing a sustained demand environment for our offerings.

The period has seen a particularly strong cross-sale performance, with Business of Pharmacy leading the way and generating significant expansion sales to our existing customers. With record expansion sales of 98% of our total 'new' sales (H1 FY24: 78%), we continue to benefit from the investments made into our cloud platform and the increased upsell ability it provides.

Customer wins and expansions secured in H1 include:

• Southwest Health System - 4 year contract with 6 figure Total Contract Value (TCV) for Trisus Business of Pharmacy Optimization Suite, to improve their 340B benefits program in support for their community focused projects and our pharmacy analytics solutions to optimize their financial management of their medications.
• Midsize Midwest Health System - 5 year contract for a 7-figure TCV, opting to convert their 340B Program from a competitor to The Craneware Group to overcome the current obstacles faced with pharmaceutical manufacturer restrictions and the negative impact on their 340B Benefit threatening their ability to appropriately support their patient population.
• A number of Trisus Pricing Integrity Optimization Suite expansion sales, outside of the customers' renewal times, due to increasing pressures to manage their pricing strategy and ensure that they have strategic and defensible pricing to support the CMS pricing transparency mandates.

• A large 100+ Health System in the West expanded our Trisus Chargemaster Solution to a recently merged smaller Health System and extended their agreement for 5 additional years, resulting in a 7 figure TCV.

Customer retention remained high at over 90% across all metrics (hospital numbers, customer numbers and number of products), which we continue to believe represents market leading levels which drove an NRR of greater than 100%.

This positive sales performance and ongoing high customer retention provides a strong basis to build momentum as we enter the second half of the year.

A considerable opportunity ahead and positive market backdrop

With over $177m in ARR, derived from approximately 2,000 hospitals and associated pharmacies, we have a strong platform for future growth. We will continue to expand the offerings on our Trisus platform, both through in-house innovation and partnership opportunities, aiming to grow our addressable market and increase share of customer wallet.

We see three categories of potential growth catalysts:

• In the near term, we expect to see continued expansion with existing customers as they adopt an increasing number of solutions from within our Optimization Suites. This represents a significant revenue opportunity of approximately 7.5x current revenue run rate;
• In the medium term, we believe our Microsoft Alliance has the ability to increase our rate of penetration into the wider market, accelerating our rate of new customer acquisitions through further endorsing the quality of our solutions and providing access to a wider range of CIOs; and
• In the longer term, we see the Trisus platform evolving into the ubiquitous 4th pillar of software within a hospital, consisting of an ecosystem of solutions powered by Trisus data, providing healthcare providers with the insight required to maintain outstanding financial and operational performance.

Ongoing platform and product enhancements support expansion opportunity

The continual improvement of our existing offerings is an ongoing process. Combinations of new technology and their novel applications give speed, productivity and efficiency gains that benefit the ease of use of our offerings by our customers.

We were pleased to once again rank number one in the highly renowned "Best in KLAS" awards in February for our flagship Trisus Chargemaster solution, demonstrating our continued leadership within revenue cycle management.

As part of our Data Foundations programme of work, we are utilising the advances in AI and ML data processing to increase the interoperability and connectivity of our applications, while making the platform's back-end processes more efficient and effective. This work has now enabled the full integration of our Revenue Integrity and 340B related software technology stacks, via the Oracle Database@Azure, which centralises data in Trisus whilst leveraging the processing power of Oracle, reducing latency and improving data integration across products and services, thereby making our offerings even more attractive to customers as the speed and depth of insights available is increased.

The depth of our product offering continues to expand through mining of the proprietary and regulatory data that we collect, identifying new ways that data can illuminate and support decision making within the hospital provider environment. We now have data sets covering more than 200 million patient encounters, providing incredibly valuable insights for our customers.

Microsoft Alliance provides product innovation opportunities and expanded market reach

We are seeing increased engagement from other industry participants, such as Microsoft and Oracle, as part of their strategic focus on the healthcare market. The first half of the year has seen exciting innovation in conjunction with both parties across our Trisus platform and its applications, and we look forward to benefitting from these collaborations in future periods in the form of increased marketing activities, accelerated product development and streamlined new customer acquisitions.

As part of the alliance with Microsoft announced in July 2024, the first three Trisus solutions are now live on the Microsoft Azure Marketplace. We were delighted to execute the first major customer contract via the Marketplace in H1, with additional opportunities in progress and the first joint go-to-market initiatives now commencing.

Launch of Trisus® Assist

The Alliance will also see the delivery of differentiated offerings and increased value to customers through the application of industry leading data analytics, AI, and modern platform technology within Trisus to provide improved predictive analysis and the ability to uncover greater actionable insights for our customers. We attended the leading industry event, HIMSS, earlier this month, in conjunction with Microsoft, where we had the opportunity to jointly showcase the innovation taking place across our offerings, including the launch of Trisus® Assist, a groundbreaking AI-powered personal assistant, initially available within Trisus® Chargemaster - designed to revolutionise how healthcare finance, administration and operational teams research and navigate complex healthcare operational issues and generate greater efficiencies.

Our AI-driven solution eliminates inefficiency by:

• Providing persona-based workflow help and compliance prompt engineering
• Combining the latest large language model generative AI technology with the Group's extensive and unique 200 million patient journeys, creating proprietary customised GPTs
• Instantly analysing thousands of pages of Centers for Medicare & Medicaid Services (CMS) guidance, which explains how federal laws are implemented for healthcare programs, including regulations, rulings, and other policy statements, to provide accurate, succinct responses in fractions of a second
• Delivering authoritative answers with source citations, ensuring confidence in compliance decisions
• Reducing research time from hours to seconds, freeing up teams to focus on strategic priorities

Platform continues to deliver

Our growing Partner and Platform programme further enables us to leverage the strength of our data and platform to generate additional, highly scalable, revenue streams, aiming to bring additional benefits to our customers. These programmes will include our ability to leverage third parties, including through hosting third party applications on the Trisus platform.

Initially, we consider these to be non-recurring revenue, but over time we expect much of this revenue to become recurring. In the period, we have been able to transition the early adopters into a recurring revenue model, adding to our ARR, and there is a building pipeline of additional programme opportunities, which are being rigorously assessed prior to launch.

M&A provides potential for strategy acceleration

While organic growth across our portfolio remains the priority, we continue to evaluate the market for suitable M&A opportunities and strategically aligned companies that will accelerate our growth strategy. We maintain the same four key acquisition criteria of which target companies must fit into at least one, being: the addition of relevant data sets; the extension of the customer base; the expansion of expertise; and the addition of applications suitable for the US hospital market. We view our platform partnering

programme as a potential source of future M&A activity, provided this would deliver mutual benefits to all parties.

Strengthening of the Board of Directors

We were pleased to appoint Tamra Minnier in November 2024 and Susan Nelson in January 2025 as Non-Executive Directors. Both bring a wealth of experience in the US healthcare market, holding leadership roles within major US integrated healthcare systems, and will provide invaluable guidance, alongside existing Board Directors, on the continued evolution of our product offerings.

Financial Review

In our January trading statement, we confirmed the Group's return to double digit growth for the six months ended 31 December 2024, for both revenue and EBITDA. This pleasing result coincided with a milestone for the Group, reporting $100m of Revenue in an individual six-month period for the first time. With revenue growing to $100.0m (H1 FY24: $91.2m) and a corresponding 10% increase in Adjusted EBITDA to $30.3m (H1 FY24: $27.5m), the Group is now focused on sustaining these growth rates for the full year and using them as a "springboard" to further success. These results are a combination of the Group's strategic investments in the Trisus platform, and the considerable efforts of our employees, combined with the improving US Healthcare market landscape, as US hospitals plan for their future and look for the right strategic partners to help them achieve their aims.

We have explained in our prior year's report that a big focus of our capital allocation decisions would be de-leveraging the balance sheet because of the macro interest rate environment and the impact this was having on our results, primarily to Adjusted EPS. Whilst retaining access to the overall Revolving Credit Facility (RCF) of up to $100m, we have actively reduced our RCF draw to $20m. This, combined with ongoing payments of $2m per quarter against our term loan, has resulted in a reduction in overall bank debt to $31.6m (H1 FY24: $59.2m). Equally significantly, the reduced net interest charge has contributed to an Adjusted EPS increase of 18%, over the corresponding period in the prior year, to

50.6 cents per share (H1 FY24: 42.8 cents per share), and an increase on an unadjusted basis of 78% from 11.6 cents per share to 20.7 cents per share.

Whilst it is clear that macroeconomic challenges remain, it is pleasing to report that the strength of the Group's balance sheet, levels of cash conversion combined with our end market continuing to improve, means we are well positioned and financially able to navigate these.

Investment in R&D

We continue to believe the digitalisation of healthcare and the improvement of processes using data insights will provide the foundation for value-based care and enable the transformation of the business of healthcare. Our enlarged portfolio of products means we can do even more to support our customers in their strategic needs. This, combined with our independent position in the market, means we are uniquely placed to support all US healthcare providers. The real financial returns our solutions deliver and the certainty for our customers that the Group acts solely for their benefit allow us to be a true strategic partner to US Hospitals. It is therefore essential we continue to build on this position and make the right investments in our future as we develop further ways of supporting our customers.

We have continued to invest in R&D, increasing spend in the period by 5% to $26.3m (H1 FY24: $25.0m). The amount of this investment capitalised in the period, being $7.1m (H1 FY24: $7.9m), has reduced in percentage terms to approximately 27% of the total investment, this is reflective of the strong controls over the amounts we invest and capitalise in relation R&D spend. The mix of "stages" of R&D projects has seen a number of prior year projects being completed with a corresponding end of capitalisation for their costs. This, combined with new Proof of Concepts (including those with Microsoft under our strategic alliance) being at a "pre-capitalisation" stage, has lowered the levels of capitalised R&D expenditure in the period. The balance of the R&D spend of $19.2m (H1 FY24: $17.1m) has been expensed as incurred. We continue to ensure that any costs that have been capitalised will bring future economic benefit to the Group, by monitoring the value of contracts sold for these new products once launched, comparing these against the costs that have been invested.

Cash Reserves

As a group, we continue to deliver excellent operating cash conversion. This increased our cash reserves, which at the period end were $72.2m (H1 FY24: $63.9m) and reduced our bank debt to $31.6m (H1 FY24: $59.2m). We maintain an undrawn RCF of $80m.

From these cash reserves, we have returned $7.1m to our shareholders through dividends as well as the $26.3m investment we have made in R&D in the period. Our business model is highly cash generative, and we continue to deliver significant levels of operating cash conversion, in the last 12 months we achieved over 100% cash conversion.

Underlying Business Model and Professional Services

The software contracts we sign with our hospital customers provide a licence for the customer to access specified products throughout their licence period. At the end of an existing licence period, or at a mutually agreed earlier date, we look to renew these contracts with our customers.

In addition to the core licences, our 340B hospital customers can add further licences to provide 340B coverage to eligible patients who, rather than return to the hospital for their prescriptions, have these filled at local contract pharmacies or mail order specialised pharmacies. These further licences often include transactional based licence fees and other services. These transactional services, whilst highly dependable, will see some variation month to month dependent on volume of transactions.

Under the Group's business model, we recognise software licence revenue and any minimum payments due from our 'other long term' contracts evenly over the life of the underlying contract term. Transactional services are recognised as we provide the service, and we are contractually able to invoice the customer.

In addition to the licence revenues recognised in any year, we derive revenue from providing services to our customers. Where these services are provided over an extended contract period, usually alongside the multi-year software licence as part of one our Trisus Optimization Suites, or where they relate to a complex implementation integral to the use of the software, the revenue is recognised evenly over the life of the underlying contract or project term.

The combination of these two software revenue models plus our recurring professional services represent the recurring platform revenues of the business, which for the current period have increased to $87.9m (H1 FY24: $81.5m).

Shorter professional or consulting services engagements are also provided, usually taking less than one year to complete. These revenues are usually recognised as we deliver the service to the customer, on a percentage of completion basis.

We continue to look for new and innovative ways to leverage the Trisus platform and the significant data assets within it. Our Platform partnership programme aims to deliver meaningful benefit to our customers and derive new revenue opportunities and additional business models for the Group. These revenues are recognised at the point we are able to invoice our customers. As initially, it is often too early to establish a pattern of what would become recurring, they are shown separately as "Platform Revenues - non-recurring". Over time we expect much of this revenue to become recurring and as such will be reported within Software licence or Transactional revenue, as appropriate.

Annual Recurring Revenue

By renewing our underlying contracts, and ensuring we continue to deliver the transactional services to our customers we sustain a highly visible recurring revenue base, which means sales bookings of new products to existing customers or sales bookings to new hospital customers add to this recurring revenue.

Our ARR metric identifies and demonstrates the Group's continued high levels of contracted revenue visibility. It is defined as the annual value of licence and recurring revenues including transaction revenues as at 31 December 2024 that are subject to underlying contracts and where revenue is being

recognised at the reporting date. We also report our Net Recurring Revenue metric which identifies the contribution from our existing customer base, and in the period was over 100%. The Group's ARR at 31 December 2024 was $177.3m (H1 FY24: $171.4m). We expect further growth in this metric, including as additional revenues generated from our partnership contracts are identified as recurring.

Functional Currency

We continue to report the results (and hold the cash reserves) of the Group in US Dollars, whilst having approximately 20% percent of our costs, mainly in respect of our UK employees and UK purchases, denominated in Sterling. The average exchange rate for the Company during the reporting period was $1.29/£1 which compares to $1.25/£1 in the corresponding period last year. The exchange rate at the Balance Sheet date was $1.25/£1 (H1 FY24: $1.27/£1).

Dividend

The Board has declared an interim dividend of 13.5p (16.87 cents) per ordinary share, payable on 17 April 2025 to those shareholders on the register as at 21 March 2025 (FY24 Interim dividend 13.0p). The ex-dividend date is 20 March 2025.

The interim dividend of 13.5p per share is capable of being paid in US dollars subject to a shareholder having registered to receive their dividend in US dollars under the Company's Dividend Currency Election, or who has registered to do so by the close of business on 21 March 2025. The exact amount to be paid will be calculated by reference to the exchange rate to be announced on 21 March 2025. The interim dividend referred to above in US dollars of 16.87 cents is given as an example only using the Balance Sheet date exchange rate of $1.25/£1 and may differ from that finally announced.

Continued positive trading and outlook

Positive trading has continued into the second half of the year and the Board remains confident in achieving results for the year to 30 June 2025 in line with current market expectations.

Longer-term, the Board continues to see considerable opportunity, reflecting Craneware's strong market positioning, expanding Trisus platform, and the significant size of the overall market, providing the potential for further growth acceleration, in line with the Group's ambitions.

The strength of the Group's balance sheet, high levels of recurring revenue and strong cash generation provide Craneware with the solid financial foundations required to execute on this opportunity, as we support our customers in transforming the business of healthcare.

1See note 15 for explanation of Alternative Performance Measures.

• Exceptional items relate to integration costs associated with the purchase of Sentry Data Systems, Inc