Atomo Diagnostics (AT1) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 FY26 reached $1.5 million, up 121% from the previous quarter, driven by strong HIV and OEM Pascal sales, with significant orders for FebriDx Pascal and HIV Self-Test in Africa, and new international customers in the UK and Canada.

• OEM Pascal business saw strong growth, mainly from Lumos orders for FebriDx, with operational expansion underway to meet anticipated demand and direct control over manufacturing.

• Signed exclusive global licensing for a novel ALT liver function test, with evaluation underway by a major pharmaceutical company and initial use in drug trials.

• HIV self-test product demand remained robust in Africa, with expansion efforts ongoing in Australia, New Zealand, Eastern Europe, Southeast Asia, and new commercial hires supporting growth.

• Strategic partnership with Burnet expanded, focusing on rapid test assays and new product development.

Financial highlights

• Quarterly revenue reached $1.5 million, more than doubling the previous quarter, with cash receipts totaling $2.2 million, including $1.2 million from customers and $1.04 million from grants and tax incentives.

• Cash on hand at 31 December 2025 was $3.51 million, with the company remaining debt-free.

• Operating expenses for the quarter were $1.5 million, tightly controlled to focus on growth.

• Gross margin held steady at 40% for the quarter.

• Net cash from operating activities was $171k for the quarter, with net cash burn from operating activities less than $1 million for the first half of the year.

Outlook and guidance

• Continued growth expected in both HIV and OEM Pascal business segments, with new products anticipated to come to market and ongoing expansion in Australia, Europe, and Asia.

• Decision on FebriDx CLIA waiver expected in early 2026, supporting further operational expansion.

• Clinical trials for the syphilis test are planned to start in Q4 FY26, with regulatory engagement ongoing.

• Regulatory submission for the liver test will follow review of clinical data from ongoing drug-induced liver injury trials.

• Revenue growth is expected to continue without a corresponding rise in operating expenses.