Genetic Signatures (GSS) investor relations material

Executive summary

• Revenue increased to $8.7 million for 1H FY26, up from $8.5 million year-over-year, driven by steady Australian sales and growth in the U.S. and EMEA.

• Gross profit declined to $4.8 million, with gross margin down to 55.7% from 58.8% due to higher consumables and raw material costs, especially for respiratory kits.

• Underlying operating loss improved to $6.4 million from $8.4 million, aided by R&D tax incentive income, cost reductions, and improved other income.

• Cash and cash equivalents stood at $29.9 million at 31 December 2025, with cash burn of approximately $7 million in the half and improved working capital.

• Leadership changes included a new CEO, interim Managing Director, and CTO, with a focus on U.S. market expansion, cost discipline, and leveraging proprietary 3base technology.

Financial highlights

• Revenue of $8.7 million, up from $8.5 million in 1H FY25, with growth in the U.S., U.K., and EMEA, driven by higher gastroenteric and respiratory testing.

• Gross profit margin declined to 55.7% from 58.8% due to increased consumables costs.

• Underlying operating loss improved to $6.4 million from $8.4 million, with prior period impacted by a $6.8 million non-recurring impairment.

• Cash used in operations was $5.2 million, offset by a $4.4 million R&D incentive grant.

• Net assets declined to $44.1 million at 31 December 2025.

Outlook and guidance

• Australian sales expected to remain steady; focus on U.S. and EMEA expansion and customer base growth.

• Emphasis on cost discipline, revenue acceleration, and AI as a core enabler.

• New CEO to deliver a 90-day plan to reset performance and drive growth.

• Ongoing development of next-generation instruments and automation to meet U.S. lab needs.

• Advisors appointed to review capital management and deliver shareholder value.