Pacific Edge (PEB) H1 2025 earnings summary

Executive summary

• Operating revenue for the six months to September 2024 rose 1.4% sequentially to $11.0 million, but declined 16.3% year-over-year due to Medicare uncertainty and lower test volumes.

• Net loss after tax was $14.5 million, steady compared to the previous half and a 4.9%–5% improvement year-over-year.

• Cash and short-term deposits stood at $35.9 million at September 2024, supporting ongoing operations and reimbursement efforts.

• Strategic focus remains on clinical development, securing Medicare coverage, commercializing 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.

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

• US average sales price per test increased to $618, up from $613 in the previous half and $562 a year ago.

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

• Total laboratory throughput was 14,233 tests, down 22% year-over-year.

Outlook and guidance

• Focus remains on profitable territories, non-Medicare revenue, and cash collections.

• No further cost cuts expected; expense base to remain consistent barring major changes.

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

• Awaiting key Medicare and CMS decisions, AUA guideline updates, and Triage Plus pricing as catalysts for growth.

• Liquidity is expected to be sufficient for at least 12 months under all modelled reimbursement scenarios.