Atomo Diagnostics (ASX: AT1) reported fiscal year 2026 total revenue of AUD 5.3 million, a 41% increase from the prior year, according to its earnings call released Wednesday.
HIV product revenue rose 21% to AUD 2.8 million, while OEM product revenue climbed more than 200% to AUD 2.2 million. The OEM jump was driven largely by sales of Lumos Diagnostics' FebriDx product. Other income, comprising non-dilutive R&D tax rebates and government grants for the Active Syphilis Development Program, reached AUD 2.2 million, up 47%.
The company posted an underlying EBITDA loss of just over AUD 2 million, representing a 39% improvement year-over-year. Gross margin came in at 35%, down from 51% in the prior year. The margin decline reflected both approximately AUD 340,000 in one-off high-margin license and development fees included in the prior period and a heavier sales mix toward lower-margin HIV global health products and low- and middle-income country markets.
Operating costs fell by approximately AUD 840,000, or 20%, as combined employee costs and professional fees decreased. Financial Controller Suzy Elhlou called FY2026 "a pivotal year for Atomo, delivering strong revenue growth, disciplined cost control, and a substantial improvement in EBITDA as we move closer to break even."
Cash and debt position remained solid, with an ending balance of AUD 3.7 million and no debt. Monthly cash burn excluding capital funding averaged approximately AUD 290,000 per month, up from roughly AUD 170,000 in the prior period. Total receipts reached AUD 10.2 million, including AUD 4.6 million from customers, AUD 875,000 from R&D tax rebates, AUD 660,000 from CRC-P funding, and AUD 4 million net from capital raising. Cash payments totaled AUD 9.7 million, with AUD 4.1 million for inventory and AUD 5.6 million for operating expenditure.
Interim CEO Cheri described FY2026 as "a really strong transitional year," noting the company is "building a platform and a company that will provide sustainable growth."
The Active Syphilis product, which detects active infection rather than previous exposure, is set for clinical trials in early 2027 through a partnership with the Burnet Institute. The ALT liver test and hepatitis B and C feasibility work are also in early development with the same partner.
In the U.S., FebriDx secured a CLIA waiver, with clinical trials showing 99% concordance between professional and non-professional users. The Ferritin Rapid Test is advancing with Canadian partner Chromacare and a U.K. customer.
Shares of Atomo were unchanged at $0.018 immediately following the release and later traded at $0.02, up about 11.1% from the post-release level. The stock has declined 23% over the past six months and 44% over the past year, trading within a 52-week range of $0.02 to $0.05.
