Pacific Edge (PEB) H1 2026 earnings summary

Executive summary

• Operating revenue for 1H 2026 fell to $5.9 million, down 45.4% year-over-year, driven by the loss of Medicare coverage and lower commercial test volumes, resulting in a net loss after tax of $19.1 million and cash reserves of $22.1 million at period end.

• The company is maintaining a strong US market presence, advancing clinical evidence, and investing in product innovation and international expansion despite reimbursement headwinds.

• Strategic milestones include a price increase for Triage Plus to $1,328 per test and progress toward Medicare policy change, with a Contractor Advisory Committee (CAC) meeting scheduled for February 2026.

• Material uncertainty exists regarding going concern due to ongoing operating losses and cash burn, with management seeking additional funding or cash burn reduction.

• Significant progress in clinical validation and recognition of Cxbladder products, including new peer-reviewed publications and guideline inclusion.

Financial highlights

• Operating revenue dropped to $5.9 million from $10.9 million in the previous half, with total revenue at $7.1 million, a 42.8% decrease from 2H 25.

• Net loss after tax increased to $19.1 million from $15.4 million in 2H 25.

• Cash and short-term deposits at period end were $22.1 million, supported by a $20.7 million capital raise in August 2025.

• Operating expenses decreased 5.9% compared to 2H 25, with reductions in lab, research, and sales/marketing costs.

• Net cash outflows from operating activities were $19.0 million, up from $12.3 million in 2H 25.

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.

• Modest further reductions in cash burn are expected in the second half, but 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 is in early access at $1,328 per test, with Surveillance Plus in development targeting $1,800.

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