Sirona Medical raises $40m Series D led by Avidity as contracted radiology ARR grows 2.7x

Sirona Medical, a San Francisco maker of cloud radiology software, said on 15 October 2026 that it had closed a $40 million Series D led by Avidity Partners, with 8VC, GreatPoint Ventures and KLT Holdings among the other investors¹. The company says the money covers its operating plan indefinitely, and it puts its total venture backing at roughly $150 million¹.

What the company disclosed

Sirona sells RadOS, a single cloud system that brings together the PACS archive, the diagnostic viewer, reporting, the worklist and workflow AI¹. It launched publicly in November 2023 and now reports dozens of contracted customers across hundreds of connected sites, with more than 12 million primary imaging exams a year under contract¹.

The growth figures, all measured at 30 September 2026 against a year earlier, are these¹:

• revenue up 2.5x
• contracted annual recurring revenue up 2.7x
• PACS archive usage up 2.5x, and diagnostic reports filed through the platform up 2x¹.

Mean contracted ARR from a new customer reached $1.07 million over the trailing twelve months, and mean total contract value reached $5.10 million¹. Sirona says it is contracted to bring more than 1,000 further radiologists onto the platform over the next twelve months¹.

The proceeds go to four areas: a bigger client services team led by Anders Osterholm, who joins after 25 years at Sectra, with new offices in Burlington, Vermont and Cincinnati, Ohio, the commercial launch of Cortex, which Sirona calls an agentic AI orchestration layer, tooling for the network of practices already on its platform, and an international programme, Sirona Global¹.

What it means for the market

The round is a bet that radiology groups and hospitals will replace separately bought imaging systems with one cloud platform that also carries AI. Avidity's Jacob Garfield described Sirona as "the category-defining company in cloud-native radiology"¹. Chief executive Ken Kaufman tied the demand to staffing, saying the sector "confronts a radiology staffing crisis"¹.

For incumbent PACS and reporting vendors, the notable detail is the hire from Sectra and the plan to sell outside the US. Sirona says Sirona Global will launch before the end of 2026 and target markets including the UK, the EU, South Africa, New Zealand and Australia¹. That would put a US cloud entrant in front of NHS and European imaging buyers, though the release names no customer, price or procurement route outside the US.

For investors, the notable claim is that a $40 million Series D funds the plan indefinitely. The release lists cash-flow positivity among the uses of the money but gives no profit or cash figures¹.

Caveats

Every figure comes from the company's own announcement, and Sirona gives growth multiples rather than absolute revenue, so its size cannot be judged from the release¹. The valuation is not disclosed. Customer numbers are described only as dozens, and the AI products, including Cortex, are described without any evidence of clinical or productivity effect¹.

The next step Sirona names is the launch of Sirona Global before the end of 2026¹.