4DMedical Ltd (ASX: 4DX) shares are trading higher on Friday following two announcements released at the market open. These included the company's quarterly update and a fresh commercial development.
At the time of writing, the 4DMedical share price is up 6.12% to $3.64.
The move comes as investors digested positive signs of commercial progress and steady operational momentum.
Here is what stood out.
CT:VQ commercial rollout gathers pace
The key highlight from today's update is that CT:VQ has moved beyond regulatory approval and into full commercial execution.
4DMedical describes CT:QV as 'non‑contrast post‑processing technology that transforms routine, chest CTs into quantitative, lobar ventilation (V) and perfusion (Q) maps—without injected contrast or radioisotopes. Delivered via software-as-a-service, results are returned directly into the radiology workflow for interpretation alongside the source CT images.'
During the December quarter, CT:VQ continued to gain traction across leading US academic medical centres. The technology is now in use at Stanford, the Cleveland Clinic, UC San Diego Health, the University of Miami, and the University of Chicago Medicine.
In a separate announcement released this morning, 4DMedical confirmed that UChicago Medicine has expanded its partnership to include commercial deployment of CT:VQ. This makes it the 5th top-tier US academic centre to adopt the product within 5 months of FDA clearance.
Management highlighted that these early adopters act as high-value reference sites, supporting broader US commercial rollout and clinician adoption.
Philips partnership strengthens revenue visibility
Another important driver is the expanding distribution agreement with Philips.
Under the revised arrangement, Philips will distribute CT:VQ across healthcare systems in the United States and Canada. The minimum contractual order commitment is roughly $15 million over 2 years.
This provides 4DMedical with improved revenue visibility as CT:VQ scales, while leveraging Philips' established sales network to accelerate market penetration.
Health Canada regulatory approval during the quarter further expands the addressable market and opens the door to commercial sales across Canada.
Operating momentum continues to build
Underlying SaaS revenue grew 31% in H1 FY26, with customer receipts up 16% quarter on quarter to $1.5 million. The company delivered SaaS products across 430 sites globally, up 43% year on year, and processed 77,560 scans in Q2, an increase of 115%.
Net operating cash outflows declined 21% quarter on quarter to $9.8 million, reflecting ongoing cost discipline as revenue scales.
A well-funded balance sheet
4DMedical ended the quarter with $56.8 million in cash, rising to a pro forma balance of $206.2 million following a $150 million institutional placement completed in January.
Management estimates the company has around 5.8 quarters of funding available at current burn rates. This gives it ample runway to execute its US commercial strategy.
Foolish takeaway
Today's share price move reflects growing confidence that CT:VQ is shifting from development toward execution.
Adoption by leading US hospitals and a strengthened partnership with Philips are supporting the rollout.
4DMedical also enters 2026 with a well-funded balance sheet.
