What are the expected profit margins and cost structure for delivering the blockchain EHR platform? | FAGI (Aug 11, 2025) | Candlesense

What are the expected profit margins and cost structure for delivering the blockchain EHR platform?

Profit‑margin outlook & cost structure

Full‑Alliance’s Qubitera platform is positioned as a PQC‑enabled, SaaS‑style blockchain EHR/EMR solution that will be sold on a subscription‑plus‑implementation model. In comparable B2B SaaS health‑tech businesses, gross margins typically settle in the 65‑85 % range once the platform moves beyond the initial development phase. The primary cost drivers for Qubitera are:

Cost component Typical share of revenue Drivers for Qubitera
R&D & software engineering 15‑25 % Ongoing PQC algorithm upgrades, interoperability APIs, and regulatory‑compliance updates (HIPAA, GDPR).
Cloud & blockchain infrastructure 10‑15 % Distributed ledger node hosting, data‑encryption services, and redundancy for global roll‑out.
Compliance & security audits 5‑10 % Continuous third‑party penetration testing, certifications (ISO‑27001, HITRUST).
Implementation & professional services 10‑12 % Integration with legacy hospital IT, data‑migration, and training.
Sales & marketing 8‑12 % Enterprise sales cycles, channel partners, and global market expansion.
General & administrative 5‑8 % Corporate overhead, legal, and corporate development.

Assuming the platform reaches a mid‑range subscription price of $150‑$200 k per enterprise per year (typical for enterprise EHR SaaS), a 10‑12‑month sales cycle yields an annual recurring revenue (ARR) run‑rate of $30‑$50 M for a modest 300‑client pipeline. After subtracting the above cost structure, net profit margins of 15‑20 % (≈ $4.5‑$10 M) are realistic, with higher upside once the fixed R&D and infrastructure costs amortize across a larger installed base.

Trading implications

The 5‑phase roadmap signals a long‑run growth catalyst—each phase unlocks new geography or functional module, which should drive ARR growth of 30‑40 % YoY if adoption follows the 10‑15 % market penetration rate typical for emerging blockchain health‑tech. Look for contract announcements, especially with large health‑system partners, as these will serve as “price catalysts” for FAGI. A break‑out above $1.15 (the 200‑day SMA) on volume‑weighted up days would suggest the market is pricing in early‑stage revenue, while a break‑down below $0.85 could signal concerns over high upfront R&D spend and regulatory risk. In the short‑term, keep an eye on R&D spend trends in the 10‑Q filings: a spike relative to revenue could pressure margins and trigger a pull‑back, whereas a steady or declining R&D/Revenue ratio will reinforce the projected 15‑20 % net margin and justify a buy‑on‑dip position for the next 12‑month horizon.