Ryman Healthcare Ltd Reports First Positive Free Cash Flow in a Decade
Ryman Healthcare Limited (ASX: RYM) announced that for the six months ended 30 September 2025 it has achieved a NZ$56.2 million free‑cash‑flow figure, the first positive result in more than ten years. The milestone comes amid a 13 % rise in total revenue, driven by higher pricing and improved utilisation across its retirement villages and aged‑care facilities.
Financial Highlights
| Metric | 1H24 (NZ$ m) | 1H25 (NZ$ m) | Change |
|---|---|---|---|
| Total revenue | 413.8 | 366.3 | –11.8 % |
| Operating expenses | (376.9) | (373.4) | –1.2 % |
| Net loss after tax | –45.2 | –45.2* | unchanged |
| Free cash flow | –52.5 | 56.2 | +108.1 % |
*Net loss remains negative due to lower fair‑value movements, but the company’s CFO confirmed that the loss is largely non‑cash in nature and that the balance‑sheet reset is positioning Ryman for sustained profitability.
The company attributes the shift to a refreshed pricing model that has lifted average deferred management fees and to a steady increase in unit sales—704 units were sold in the first half of FY26, a sequential lift from the previous quarter. CEO Naomi James described the results as “a major milestone in Ryman’s transformation,” noting that the balance‑sheet reset provides a robust foundation for sustainable performance and that “momentum is returning.”
Operational Momentum
- Sequential sales growth over two quarters, with a 704‑unit sale in 1H26.
- Higher pricing and utilisation rates across all segments.
- Full embedding of the new pricing model, increasing average deferred management fees.
- Stable operating costs, with only a modest 1.2 % decline in operating expenses.
These operational gains have translated into a return to positive free‑cash‑flow, a key liquidity metric for a company in the capital‑intensive retirement‑home sector.
Market Context
At the close of 24 November 2025, Ryman’s share price settled at AUD 2.43, well below its 52‑week high of AUD 2.61 (10 Oct 2025) and just above its 52‑week low of AUD 2.39 (5 Oct 2025). The market cap sits at AUD 2.62 billion, reflecting the company’s solid asset base of 80+ facilities across New Zealand.
The positive free‑cash‑flow signals a turnaround in the company’s financial health. Investors now see Ryman as a more attractive proposition, with the potential to generate shareholder returns through future dividend distribution once profitability stabilises.
Forward‑Looking Outlook
CEO Naomi James emphasised that the focus moving forward will be on accelerating performance across the portfolio of high‑quality retirement homes and on strengthening the balance sheet further. Ryman is positioned to:
- Leverage its improved cash position to fund capital improvements and potential acquisitions that align with its core service offering.
- Drive higher utilisation rates through targeted marketing and community engagement initiatives.
- Continue refining the pricing model, ensuring that margin expansion is sustainable.
Given the company’s historical resilience and the current trajectory, Ryman Healthcare is poised to deliver a sustainable recovery that could translate into increased investor confidence and a potential upswing in share price.
