Pacific Edge (PEB) H1 2025 earnings summary

Executive summary

• Operating revenue for the six months ended 30 September 2024 was $10.96 million, up 1.4% half-on-half but down 16.3% year-over-year, mainly due to lower test volumes amid Medicare coverage uncertainty.

• Net loss after tax was NZD 14.5 million, steady with the prior half and a 5% improvement year-over-year.

• Cash and short-term deposits stood at $35.9 million as of September 30, 2024, providing sufficient liquidity for at least 12 months under all modelled reimbursement scenarios.

• Strategic focus remains on clinical development, reimbursement certainty, commercial launch of Triage Plus, and expanding non-Medicare revenue streams.

• Medicare reimbursement uncertainty in the US remains a key risk, with 54% of US commercial test volumes and 59% of total operating revenue exposed.

Financial highlights

• Total revenue and other income for the period was $12.16 million, down from $16.58 million year-over-year.

• Commercial test volumes rose 3.2% half-on-half, but global test volumes declined 1.1% and US test volumes fell 27.4% year-over-year.

• Average sales price per test increased to $618, up from $613 in the previous half and 25% higher than two years ago.

• Cash burn for the half was $14.3 million, higher than the previous half due to seasonal cost weighting.

• Operating expenses decreased to $26.66 million from $31.83 million in the prior year period.

Outlook and guidance

• Focus remains on profitable territories, non-Medicare revenue, and cash collections, with no further cost cuts expected.

• Launch of Triage Plus targeted for 2025, with provisional pricing to be determined via gap-fill process.

• Awaiting Medicare coverage certainty, AUA hematuria guideline review, and Triage Plus pricing as key catalysts.

• The Board expects sufficient liquidity to continue operations for at least 12 months, even under adverse reimbursement scenarios.