MindWalk (HYFT) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of CAD 7 million (up 8% YoY), with full-year revenue at CAD 24.5 million and gross margin expanding to 64% in Q4 and 55% for the year.

• Adjusted EBITDA loss narrowed to CAD 316,000 in Q4, a significant improvement from CAD 1.7 million loss YoY.

• BioStrand segment grew over 180% YoY, now representing over 5% of annual revenue, with gross margins near 90%.

• Net loss for Q4 narrowed to CAD 2.2 million from CAD 17.6 million in Q4 FY24, which included a CAD 15 million non-cash impairment charge.

• Strategic focus shifted to AI-powered therapeutic pipeline, with key partnerships, leadership appointments, and nearing completion of Dutch subsidiary divestiture.

Financial highlights

• Q4 revenue of CAD 7 million, up 8.1% YoY and 13.5% sequentially; full-year revenue of CAD 24.5 million.

• Q4 gross profit reached CAD 4.5 million, with gross margin at 64% (up from 48% YoY and 54% sequentially).

• Operating loss (excluding amortization and non-recurring charges) improved to CAD 1.4 million in Q4, compared to CAD 3.2 million in Q4 FY24.

• R&D expenses in Q4 were CAD 1.1 million (down 14% YoY); G&A expenses were CAD 3.7 million (down 10% YoY).

• Cash position at year-end was CAD 10.8 million, up from CAD 3.5 million YoY.

Outlook and guidance

• BioStrand expected to remain a strong contributor to top-line growth and margin expansion.

• Anticipates continued growth in AI-driven and in silico services, with increasing client demand following regulatory shifts.

• Near-term completion of Dutch subsidiary divestiture to streamline operations and align resources.

• Plans to refocus business on AI-based product development utilizing the LENS platform and HYFT technology.

• Revenue from major oncology partnership expected to be recognized starting in Q2 of fiscal 2026.