Kromek’s Shares Drop Amid Revenue Shift as Non-Licensed Business Expands

Kromek Group plc, a specialist in cadmium zinc telluride (CZT) detectors for photon-counting CT (PCCT) and single-photon emission computed tomography (SPECT) medical imaging, reported a revenue mix shift in its second-half 2026 earnings call that weighed on its share price. The company’s non-licensed revenue surged 36% year-over-year to £13.9 million in FY 2026, while license revenue declined 40% to £10 million, reflecting a broader industry transition from scintillator-based detectors to CZT-based systems. Analysts forecast non-licensed revenue to nearly triple to £29.5 million by FY 2027, while total revenue guidance for FY 2027 remains at £30.3 million, consistent with market consensus from brokers Cavendish and other analysts. The shift underscores Kromek’s strategic pivot toward high-growth medical imaging applications, though its current manufacturing capacity—limited to 170 furnace units—remains insufficient for its midterm target of £60 million in revenue by 2030/2031. Expanding to 600–1,000 units would require capital expenditure, with management emphasizing that future investments will be funded by customer contracts rather than the company’s balance sheet. Kromek’s cash position stands at £4.2 million, with net debt of £1.5 million as of April 2026, though its market capitalization of $56 million and a trailing P/E ratio of 63.8 suggest it remains sub-scale for the London Stock Exchange’s main market. The company’s shares fell 6.29% pre-market to $6.70 after the call, though they later recovered slightly to $6.30, trading within a 52-week range of $6 to $13. The Siemens agreement, recognized in January 2025, contributed approximately $35 million of revenue by year-end 2026, though receipts totaled $32.5 million, reflecting a typical credit period of 55 days. Kromek’s CEO, Arnab Basu, highlighted the industry’s shift toward CZT detectors as a key driver of growth, noting that end-market demand rather than incumbent technology is determining adoption. The company’s expansion into NATO countries, the Middle East, and Asia for CBRN security applications further supports its long-term outlook, though it remains focused on reaching profitability and scaling production to meet its midterm targets.