Pacific Edge (PEB) H1 2026 earnings summary

Executive summary

• Operating revenue for 1H 2026 fell to $5.94m, down 45.4%–46% year-over-year, due to the loss of Medicare coverage and lower US test volumes, resulting in a net loss of $19.12m and cash reserves of $22.1m at period end.

• The company is maintaining a strong US market presence, investing in evidence generation, product innovation, and international expansion, while implementing cost-saving measures.

• Strategic milestones include a price increase for Triage Plus and progress toward Medicare policy change, with a Contractor Advisory Committee (CAC) scheduled for February 2026.

• Material uncertainty exists regarding going concern without additional funding or cash burn reduction.

Financial highlights

• Operating revenue fell to $5.94m from $10.96m in the prior year period, with the decline entirely from the US market.

• Net loss after tax increased to $19.12m from $14.50m year-over-year.

• Cash and cash equivalents plus short-term deposits at period end were $22.1m, bolstered by a $20.7m capital raise in August 2025.

• Operating expenses decreased 5.9%, with lab costs down 10%, research costs down 4.5%, and sales/marketing down 9%.

• Net cash outflows from operating activities were $19.03m, up from $12.47m in the prior year period.

Outlook and guidance

• Medicare revenue is expected to resume only after successful appeals or policy change, with management estimating recovery between Q3 and Q4 2026, depending on CAC outcomes.

• Management is actively pursuing additional funding and/or cash burn reduction to support ongoing operations.

• Modest further reductions in cash burn are expected in the second half, but not a dramatic cut, as maintaining US presence is critical for long-term value.

• Ongoing capital initiatives or further cost reductions may be required if Medicare recovery is delayed.

• Triage Plus, priced at $1,328 per test, is in early access and awaits Medicare coverage for broader adoption.