Q4 2026 Atomo Diagnostics Ltd Earnings Call and Business Update
Cheri Walker: Well, welcome everyone. We are really pleased to start the Atomo Diagnostics webinar, where we are going to talk about the FY26 results and give you an update on the strategy. I am really pleased to see our Chairman, Patrick Cook, is on the line. Also John Kelly and John Keith, our former Chairman. Welcome to everyone and to all the shareholders that are here today. I think most of you know our Financial Controller, Suzy Elhlou. She will be presenting the numbers a little bit later in the presentation. I am going to give an update on the business, as well as the evolving strategic focus for Atomo going forward. In terms of introductions, I have been the Interim CEO for about a month now. I have spent more than 25 years in the diagnostic and life science tools industry and have a science and finance background. I hold a PhD in molecular genetics.
Cheri Walker: Well, welcome everyone. We are really pleased to start the Atomo Diagnostics webinar, where we are going to talk about the FY 2026 results and give you an update on the strategy. I am really pleased to see our Chairman, Patrick Cook, is on the line. Also John Kelly and John Keith, our former Chairman. Welcome to everyone and to all the shareholders that are here today. I think most of you know our Financial Controller, Suzy Elhlou. She will be presenting the numbers a little bit later in the presentation.
Speaker #1: So welcome, everyone. we're really pleased to, start the ATOMO diagnostic webinar, where we're going to talk about the fiscal year 2026 results and give you an update on the strategy.
Speaker #1: I'm really pleased to see our chairman, Patrick Hook, is on the line. Also, John Kelly, and John Keith, our former chairman. welcome to everyone, and to all the shareholders that are here today.
Speaker #1: I think most of you know our financial controller, Susie Elu. She'll be presenting the numbers a little bit later in the presentation. I'm going to give an update on the business, as well as the evolving strategic focus for ATOMO going forward.
Speaker #1: In terms of introductions, I've been the interim CEO for about a month now. I've spent more than 25 years in the diagnostic and lifescience tools industry, and have a science and finance background.
Speaker #1: I hold a PhD in molecular genetics. I began my career as a stock analyst at Deutsche Bank, covering lifescience tools companies on a global basis.
Speaker #1: I spent time in senior executive roles at companies like Invitrogen, which are now part of Life Technology, which are now part of Thermo Fisher, Kyogen, Abcam, Charles River Labs, but my real passion is for mid-market companies.
Speaker #1: Companies like ATOMO that have really game-changing technologies and can make a big impact on the market. So I'm really excited to be here, really happy to be talking to you about ATOMO today.
Speaker #1: And, I think we're ready to jump into the presentation. So if we go back to the first slide, Susie. Thank you. fiscal 2026 at a high level was a really strong transitional year.
Cheri Walker: I am going to give an update on the business, as well as the evolving strategic focus for Atomo going forward. In terms of introductions, I have been the Interim CEO for about a month now. I have spent more than 25 years in the diagnostic and life science tools industry and have a science and finance background. I hold a PhD in molecular genetics. I began my career as a stock analyst at Deutsche Bank, covering life science tools companies on a global basis.
Speaker #1: Where multiple and growing revenue streams provided more than 41% growth, our EBITDA improved by 39%, as revenues started covering the majority of our operating costs.
Speaker #1: There was strong cash generation in the business from both sales and through our fundraising activities. And in terms of the business highlights, which we'll go through throughout the presentation, we're starting to see a really diversified revenue stream from both HIV and OEM.
Cheri Walker: I began my career as a stock analyst at Deutsche Bank, covering life science tools companies on a global basis. I spent time in senior executive roles at companies like Invitrogen, which are now part of Thermo Fisher Scientific, QIAGEN, Abcam, Charles River Laboratories. My real passion is for mid-market companies like Atomo that have really game-changing technologies and can make a big impact on the market. So I am really excited to be here, really happy to be talking to you about Atomo today, and I think we are ready to jump into the presentation. So if we go back to the first slide, Suzy. Thank you. FY26 at a high level was a really strong transitional year, where multiple and growing revenue streams provided more than 41% growth. Our EBITDA improved by 39%, as revenues started covering the majority of our operating costs.
Cheri Walker: I spent time in senior executive roles at companies like Invitrogen, which are now part of Thermo Fisher Scientific, QIAGEN, Abcam, Charles River Laboratories. My real passion is for mid-market companies like Atomo that have really game-changing technologies and can make a big impact on the market. So I am really excited to be here, really happy to be talking to you about Atomo today, and I think we are ready to jump into the presentation. So if we go back to the first slide, Suzy. Thank you.
Speaker #1: And our R&D pipeline is making significant progress. I want to thank John Kelly, for passing the baton. On, in terms of leadership of ATOMO, his vision for an easier point-of-care device was visionary, and really turning this concept into a company into a regulated device that was approved and marketed on a global basis is really had a big impact on patients for the better.
Speaker #1: And as this usability that provided 99% concordance between professional and non-professional users in the Febrex clinical trials really is poised to improve the performance of rapid diagnostics on a decentralized testing basis around the globe.
Cheri Walker: FY 2026 at a high level was a really strong transitional year, where multiple and growing revenue streams provided more than 41% growth. Our EBITDA improved by 39%, as revenues started covering the majority of our operating costs. There was strong cash generation in the business from both sales and through our fundraising activities.
Cheri Walker: There was strong cash generation in the business from both sales and through our fundraising activities. In terms of the business highlights, which we will go through throughout the presentation, we are starting to see a really diversified revenue stream from both HIV and OEM, and our R&D pipeline is making significant progress. I want to thank John Kelly for passing the baton in terms of leadership of Atomo. His vision for an easier point-of-care device was visionary, and really turning this concept into a company, into a regulated device that was approved and marketed on a global basis, has really had a big impact on patients for the better. It is this usability that provided 99% concordance between professional and non-professional users in the FebriDx clinical trials, really is poised to improve the performance of rapid diagnostics on a decentralized testing basis around the globe. So thank you, John.
Speaker #1: So thank you, John. In terms of reflections over the last year, ATOMO experienced accelerating revenue growth, improving economics, improving capital management, with its investments in infrastructure, and R&D for new product innovation.
Cheri Walker: In terms of the business highlights, which we will go through throughout the presentation, we are starting to see a really diversified revenue stream from both HIV and OEM, and our R&D pipeline is making significant progress. I want to thank John Kelly for passing the baton in terms of leadership of Atomo. His vision for an easier point-of-care device was visionary, and really turning this concept into a company, into a regulated device that was approved and marketed on a global basis, has really had a big impact on patients for the better.
Speaker #1: We now have more and growing visibility on our revenue growth and our new products, our advancing through the pipeline. And according to you, the shareholders, is that we're building a sustainable basis and new product pipeline that will drive increasing revenue growth as each product is layered upon the previous to compound the enterprise value and the stock price over time.
Cheri Walker: It is this usability that provided 99% concordance between professional and non-professional users in the FebriDx clinical trials, really is poised to improve the performance of rapid diagnostics on a decentralized testing basis around the globe. So thank you, John. In terms of reflections over the last year, Atomo experienced accelerating revenue growth, improving economics, improving capital management with its investments in infrastructure and R&D for new product innovation.
Speaker #1: So who is ATOMO today? You're the company is really evolving and evolving rapidly. We are a commercial stage diagnostic company. And we're starting to realize the financial promise of that platform technology.
Speaker #1: We're growing our pipeline of products, and we're driving current sales and future growth. If we go to the next slide, please. In terms of our diagnostic pipeline, you can see that we do have several products already in the market, and we're rapidly growing our pipeline, our Gen 3 HIV products, our registered and sold on a global basis outside of the United States.
Cheri Walker: In terms of reflections over the last year, Atomo experienced accelerating revenue growth, improving economics, improving capital management with its investments in infrastructure and R&D for new product innovation. We now have more and growing visibility on our revenue growth and our new products are advancing through the pipeline. In accordance to you, the shareholders, is that we are building a sustainable basis and new product pipeline that will drive increasing revenue growth as each product is layered upon the previous to compound the enterprise value and the stock price over time. So who is Atomo today? The company is really evolving and evolving rapidly. We are a commercial stage diagnostic company, and we are starting to realize the financial promise of that platform technology. We are growing our pipeline of products and we are driving current sales and future growth. If we go to the next slide, please.
Cheri Walker: We now have more and growing visibility on our revenue growth and our new products are advancing through the pipeline. In accordance to you, the shareholders, is that we are building a sustainable basis and new product pipeline that will drive increasing revenue growth as each product is layered upon the previous to compound the enterprise value and the stock price over time. So who is Atomo today? The company is really evolving and evolving rapidly. We are a commercial stage diagnostic company, and we are starting to realize the financial promise of that platform technology.
Speaker #1: these are experiencing double-digit growth. We're doing very active feasibility work for a Gen 4 HIV product. We're excited about the possibilities here. To add to our portfolio, we are in the market with a blood pregnancy test for early detection through blood, or if the patient is potentially incapacitated for professional use, and we're continuing to drive those sales.
Speaker #1: Our active syphilis product, which we'll go into in more detail later, is very differentiated from the other syphilis products in the market. It does detect whether you have an active case versus whether you've had a previous infection.
Cheri Walker: We are growing our pipeline of products and we are driving current sales and future growth. If we go to the next slide, please. In terms of our diagnostic pipeline, you can see that we do have several products already in the market and we are rapidly growing our pipeline. Our Gen 3 HIV products are registered and sold on a global basis outside of the United States. These are experiencing double-digit growth. We are doing very active feasibility work for a Gen 4 HIV product. We are excited about the possibilities here to add to our portfolio.
Speaker #1: And that will be a really groundbreaking and important test to get to market. We do anticipate starting on clinical trials for that product on schedule in the beginning of calendar year 2027.
Cheri Walker: In terms of our diagnostic pipeline, you can see that we do have several products already in the market and we are rapidly growing our pipeline. Our Gen 3 HIV products are registered and sold on a global basis outside of the United States. These are experiencing double-digit growth. We are doing very active feasibility work for a Gen 4 HIV product. We are excited about the possibilities here to add to our portfolio. We are in the market with a blood pregnancy test for early detection through blood, or if the patient is potentially incapacitated, for professional use, and we are continuing to drive those sales. Our Active Syphilis Development Program product, which we will go into in more detail later, is very differentiated from the other syphilis products in the market.
Speaker #1: our liver ALT test is progressing nicely as well. And we're doing early feasibility work on a variety of new targets, some of the ones we're contemplating and looking at are things like HBV and HCV.
Speaker #1: you've heard a lot about our partner, Lumos Diagnostic, in the Febrex product. we're really excited about their progress and pleased to see that they're success is also our success.
Cheri Walker: We are in the market with a blood pregnancy test for early detection through blood, or if the patient is potentially incapacitated, for professional use, and we are continuing to drive those sales. Our Active Syphilis Development Program product, which we will go into in more detail later, is very differentiated from the other syphilis products in the market. It does detect whether you have an active case versus whether you have had a previous infection, and that would be a really groundbreaking and important test to get to market.
Speaker #1: it's really that strong usability, 99% concordance between professional and non-professional that we believe is going to drive a lot of the adoption in that marketplace.
Speaker #1: And we're looking forward to continue to see the results of Slusy's and Kicks Off in the US. We have two products, in the pipeline through other OEM partners, the Ferritin product and another partner that we hope to announce somewhere in the near term, both of those are also pretty exciting and large opportunities for ATOMO.
Cheri Walker: It does detect whether you have an active case versus whether you have had a previous infection, and that would be a really groundbreaking and important test to get to market. We do anticipate starting on clinical trials for that product on schedule in the beginning of calendar year 2027. Our liver ALT test is progressing nicely as well, and we are doing early feasibility work on a variety of new targets. Some of the ones we are contemplating and looking at are things like HPV and HCV. You have heard a lot about our partner, Lumos Diagnostics, and the FebriDx product. We are really excited about their progress and pleased to see that their success is also our success. It is really that strong usability, 99% concordance between professional and non-professional, that we believe is going to drive a lot of the adoption in that marketplace.
Cheri Walker: We do anticipate starting on clinical trials for that product on schedule in the beginning of calendar year 2027. Our liver ALT test is progressing nicely as well, and we are doing early feasibility work on a variety of new targets. Some of the ones we are contemplating and looking at are things like HPV and HCV. You have heard a lot about our partner, Lumos Diagnostics, and the FebriDx product. We are really excited about their progress and pleased to see that their success is also our success.
Speaker #1: Febrex DX, I think I'm not going to spend a lot of time on it. That's really the Lumo Diagnos Lumo Diagnostic story. but. We are really, excited to see how that, that, the fact that they got their clear waiver and how that product's progressing this year.
Speaker #1: We already talked a little bit about the Ferritin and the, the UK customer. When you look at, the company and the HIV portfolio, revenue grew very strongly, 21% year over year, to a total of 2.8 million.
Cheri Walker: It is really that strong usability, 99% concordance between professional and non-professional, that we believe is going to drive a lot of the adoption in that marketplace. We are looking forward to continue to see the results as flu season kicks off in the US. We have two products in the pipeline through other OEM partners, the ferritin product and another partner that we hope to announce more in the near term. Both of those are also pretty exciting and large opportunities for Atomo. FebriDx, I think I am not going to spend a lot of time on it. That is really the Lumos Diagnostics story.
Speaker #1: Our OEM product growth largely driven by Febrex DX grew over 200%, to 2.2 million. So we're very excited at the overall growth of the diversified product lines.
Cheri Walker: We are looking forward to continue to see the results as flu season kicks off in the US. We have two products in the pipeline through other OEM partners, the ferritin product and another partner that we hope to announce more in the near term. Both of those are also pretty exciting and large opportunities for Atomo. FebriDx, I think I am not going to spend a lot of time on it. That is really the Lumos Diagnostics story. But we are really excited to see how the fact that they got their CLIA waiver and how that product is progressing this year. We already talked a little bit about the ferritin and the UK customer. When you look at the company and the HIV portfolio, revenue grew very strongly, 21% year-over-year to a total of AUD 2.8 million.
Speaker #1: We've seen a lot of activity also in our pharmacy side, and we continue to find out new partners, in this phase as well. Our syphilis product, is continuing to advance through the pipeline.
Speaker #1: We are in the process of finalizing all the analytical data and studies. The transfer to manufacturing, and fully on target to start a clinical trials at the beginning of next year.
Cheri Walker: But we are really excited to see how the fact that they got their CLIA waiver and how that product is progressing this year. We already talked a little bit about the ferritin and the UK customer. When you look at the company and the HIV portfolio, revenue grew very strongly, 21% year-over-year to a total of AUD 2.8 million. Our OEM product growth, largely driven by FebriDx, grew over 200% to AUD 2.2 million. So we are very excited at the overall growth of the diversified product line.
Speaker #1: The ALT liver test is in the early stage of development, but again, we believe this is a very large indication and will be continuing to move it through the pipeline aggressively.
Speaker #1: Febrex DX, continues to move forward on target, and, we're actively waiting to see what Slusy's and Brings this year, but, let's move to the next one.
Cheri Walker: Our OEM product growth, largely driven by FebriDx, grew over 200% to AUD 2.2 million. So we are very excited at the overall growth of the diversified product line. We have seen a lot of activity also in our pharmacy side, and we continue to sign up new partners in this space as well. Our syphilis product is continuing to advance through the pipeline. We are in the process of finalizing all the analytical data and study, the transfer to manufacturing, and fully on target to start our clinical trials at the beginning of next year. The ALT liver test is in the early stage of development, but again, we believe this is a very large indication and we will be continuing to move it through the pipeline aggressively.
Speaker #1: In terms of, the Ferritin opportunity, this product, is also moving forward with our Canadian partner, ChromaCare, is a rapid test that measures the level of Ferritin.
Cheri Walker: We have seen a lot of activity also in our pharmacy side, and we continue to sign up new partners in this space as well. Our syphilis product is continuing to advance through the pipeline. We are in the process of finalizing all the analytical data and study, the transfer to manufacturing, and fully on target to start our clinical trials at the beginning of next year. The ALT liver test is in the early stage of development, but again, we believe this is a very large indication and we will be continuing to move it through the pipeline aggressively.
Speaker #1: from the patient's blood sample. And the UK product, is also moving forward. We're, looking forward to hopefully announcing more information on this one in the near term.
Speaker #1: In terms of operational updates, we've been very focused on making the right capital improvements, to increase our capacity and then also to, bring our blister machine, here to Sydney.
Cheri Walker: FebriDx continues to move forward on target, and we are actively waiting to see what flu season brings this year. We move to the next scene. In terms of the ferritin opportunity, this product is also moving forward with our Canadian partner, ChromaCare. It is a rapid test that measures the level of ferritin from the patient's blood sample. The UK product is also moving forward. We are looking forward to hopefully announcing more information on this one in the near term. In terms of operational updates, we have been very focused on making the right capital improvements to increase our capacity and also to bring our blister machine here to Sydney. That has been completed. The validations are completed.
Cheri Walker: FebriDx continues to move forward on target, and we are actively waiting to see what flu season brings this year. We move to the next scene. In terms of the ferritin opportunity, this product is also moving forward with our Canadian partner, ChromaCare. It is a rapid test that measures the level of ferritin from the patient's blood sample. The UK product is also moving forward. We are looking forward to hopefully announcing more information on this one in the near term.
Speaker #1: That's been completed. The validations are completed. We're also in the process of working on new tooling that will allow us to do, smaller blister packages that will give us more flexibility for multi-analyte testing and increased sensitivity going forward.
Speaker #1: And when we think about where are we going in the future, where are we heading? First, we're trying to, unlock aggressive new product development.
Speaker #1: And this is one of the keys to our future success for unlocking more value for shareholders. We're focused on more partnerships, so OEM development projects, partners for new products to help us take to the US and other markets, we're focused on operational efficiency, increasing capacity and reducing our cost of goods, as well as increasing our capabilities and our flexibility that will allow new assay formats going forward.
Cheri Walker: In terms of operational updates, we have been very focused on making the right capital improvements to increase our capacity and also to bring our blister machine here to Sydney. That has been completed. The validations are completed. We are also in the process of working on new tooling that will allow us to do smaller blister packages that will give us more flexibility for multi-analyte testing and increased sensitivity going forward.
Speaker #1: We're working on commercial execution, so continuing to build out the team and the capabilities there. And this is to support our current products as well as to lay the groundwork for our future product launches.
Cheri Walker: We are also in the process of working on new tooling that will allow us to do smaller blister packages that will give us more flexibility for multi-analyte testing and increased sensitivity going forward. When we think about where are we going in the future, where are we heading? First, we are trying to unlock aggressive new product development, and this is one of the keys to our future success for unlocking more value for shareholders. We are focused on more partnerships, so OEM development projects, partners for new products to help us take to the US and other markets. We are focused on operational efficiency, increasing capacity, and reducing our cost of goods, as well as increasing our capabilities and our flexibility that will allow new assay formats going forward. We are working on commercial execution, so continuing to build out the team and the capabilities there.
Speaker #1: We're focused on long-term value creation, increasing shareholder support and dialogue, and then more investor relations activity. And now I will hand it over to Susie to talk about the financials.
Cheri Walker: When we think about where are we going in the future, where are we heading? First, we are trying to unlock aggressive new product development, and this is one of the keys to our future success for unlocking more value for shareholders. We are focused on more partnerships, so OEM development projects, partners for new products to help us take to the US and other markets. We are focused on operational efficiency, increasing capacity, and reducing our cost of goods, as well as increasing our capabilities and our flexibility that will allow new assay formats going forward.
Speaker #2: Thanks, Sherri. Well, hi all, and thank you again for joining us. It's a pleasure to present our financial results. The FY26 was a pivotal year for ATOMO, delivering strong revenue growth, discipline cost control, and a substantial improvement in EBITDA as we move closer to break even.
Speaker #2: So starting off with the profit and loss, FY26 delivered strong results, with revenue increasing 41% to 5.3 million. And that's reflecting our continued momentum that we have seen across our commercial channels and growing demand for our products for both HIV, tests and OEM technologies.
Speaker #2: In saying that, however, gross margin did reduce from 51% to 35%. There are two key factors underpinning this movement that I do want to highlight, to you all.
Cheri Walker: We are working on commercial execution, so continuing to build out the team and the capabilities there. This is to support our current products as well as to lay the groundwork for our future product launches. We are focused on long-term value creation, increasing shareholder support and dialogue, and then more investor relations activity. Now I will hand it over to Suzy to talk about the financials.
Speaker #2: Firstly, the prior year included approximately 340,000 of high margin one-off licensees and development fee revenue. It's through these ad hoc items, the year-on-year margin decline was considerably less pronounced on that front.
Cheri Walker: This is to support our current products as well as to lay the groundwork for our future product launches. We are focused on long-term value creation, increasing shareholder support and dialogue, and then more investor relations activity. Now I will hand it over to Suzy to talk about the financials.
Speaker #2: And secondly, the sales mix was skewed towards more of our HIV global health and LMIC market. revenue during FY26, whilst these remained strategically important growth segments for ATOMO, they do, however, naturally carry, lower margins in some of our other revenue streams.
Suzy Elhlou: Thanks, Cheri. Well, hi all, and thank you again for joining us. It is a pleasure to present our financial results. FY2026 was a pivotal year for Atomo, delivering strong revenue growth, disciplined cost control, and a substantial improvement in EBITDA as we move closer to breakeven. Starting off with the profit and loss, FY2026 delivered strong results, with revenue increasing 41% to AUD 5.3 million. That is reflecting our continued momentum that we are seeing across our commercial channels and growing demand for our products for both HIV tests and OEM technologies. In saying that, however, gross margin did reduce from 51% to 35%. There are two key factors underpinning this movement that I do want to highlight to you all. Firstly, the prior year included approximately AUD 340,000 of high-margin one-off license fees and development fee revenue.
Suzy Elhlou: Thanks, Cheri. Well, hi all, and thank you again for joining us. It is a pleasure to present our financial results. FY2026 was a pivotal year for Atomo, delivering strong revenue growth, disciplined cost control, and a substantial improvement in EBITDA as we move closer to breakeven. Starting off with the profit and loss, FY2026 delivered strong results, with revenue increasing 41% to AUD 5.3 million. That is reflecting our continued momentum that we are seeing across our commercial channels and growing demand for our products for both HIV tests and OEM technologies.
Speaker #2: So which, as a result, contributed to the overall margin softness that we observed during the period. So looking further down the P&L, other inqui other income income increased 47% to more than 2.2 million.
Speaker #2: So this reflects a combination of our non-diluted R&D tax rebate and government grant funding that we received during the period under the active syphilis development program.
Speaker #2: So together, these funding sources supported our R&D activities and helped offset our development costs as we continue to invest in our future product pipelines and offerings.
Suzy Elhlou: In saying that, however, gross margin did reduce from 51% to 35%. There are two key factors underpinning this movement that I do want to highlight to you all. Firstly, the prior year included approximately AUD 340,000 of high-margin one-off license fees and development fee revenue. Excluding these ad hoc items, the year-on-year margin decline was considerably less pronounced on that front.
Speaker #2: So pleasingly, we're also maintaining a strong cost focus, a strong focus on cost discipline throughout the year. Employee costs and professional fees reduced by a combined amount of 840,000, so roughly 20% year-on-year.
Speaker #2: And that's reflective of our continued commitment to improving operating leverage while still investing in, in our growth opportunities. So as a result, as mentioned, underlying EBITDA improved 39%, to a loss of just over 2 million.
Suzy Elhlou: Excluding these ad hoc items, the year-on-year margin decline was considerably less pronounced on that front. Secondly, the sales mix was skewed towards more of our HIV global health and LMIC market revenue during FY26. Whilst these remain strategically important growth segments for Atomo, they do, however, naturally carry lower margins than some of our other revenue streams, which, as a result, contributed to the overall margin softness that we observed during the period. Looking further down the P&L, other incomes increased 47% to more than AUD 2.2 million. This reflects a combination of our non-dilutive R&D tax rebate and government grant funding that we received during the period under the Active Syphilis Development Program. Together, these funding sources supported our R&D activities and helped offset our development costs as we continue to invest in our future product pipelines and offerings.
Suzy Elhlou: Secondly, the sales mix was skewed towards more of our HIV global health and LMIC market revenue during FY 2026. Whilst these remain strategically important growth segments for Atomo, they do, however, naturally carry lower margins than some of our other revenue streams, which, as a result, contributed to the overall margin softness that we observed during the period. Looking further down the P&L, other incomes increased 47% to more than AUD 2.2 million.
Speaker #2: So this is yet another meaningful step towards profitability that we're taking. Overall, the FY26 results demonstrate the business that is growing revenue, we're investing in future products, and we're controlling our costs.
Speaker #2: While product mix remains a near-term influence on our gross margin, the underlying business fundamentals continue to grow and strengthen, and this positions ATOMO well for the sustainable growth in the future.
Suzy Elhlou: This reflects a combination of our non-dilutive R&D tax rebate and government grant funding that we received during the period under the Active Syphilis Development Program. Together, these funding sources supported our R&D activities and helped offset our development costs as we continue to invest in our future product pipelines and offerings. Pleasingly, we also maintained a strong focus on cost discipline throughout the year. Employee costs and professional fees reduced by a combined amount of AUD 840,000, roughly 20% year-on-year.
Speaker #2: So now, moving on to the balance sheet, we ended the period, with 3.7 million in the bank with no debt. Our balance, sheet asset base remains relatively clear, and consistent with prior period.
Speaker #2: This brings me to the cash flow activities for the period. Excluding the capital funding, monthly cash burn averaged around 290K per month. This was up from prior period of roughly 170, and that's reflective of our resources directed to in building pipeline opportunities and short and medium-term revenue streams there.
Suzy Elhlou: Pleasingly, we also maintained a strong focus on cost discipline throughout the year. Employee costs and professional fees reduced by a combined amount of AUD 840,000, roughly 20% year on year. That is reflective of our continued commitment to improving operating leverage while still investing in our growth opportunities. As a result, as mentioned, underlying EBITDA improved 39%, to a loss of just over AUD 2 million. This is yet another meaningful step towards profitability that we are taking. Overall, the FY26 results demonstrate the business that is growing revenue, we are investing in future products, and we are controlling our costs. While product mix remains a near-term influence on our gross margin, the underlying business fundamentals continues to grow and strengthen, and this positions Atomo well for sustainable growth in the future. Now moving on to the balance sheet.
Speaker #2: So overall, receipts for the period totaled 10.2 million, and that was made up of 4.6 million from customer receipts, 875 from the R&D tax rebate, a further 660 from our non-diluted CRCP funding, and 4 million in net of capital raised, net of costs raised during the period there.
Suzy Elhlou: That is reflective of our continued commitment to improving operating leverage while still investing in our growth opportunities. As a result, as mentioned, underlying EBITDA improved 39%, to a loss of just over AUD 2 million. This is yet another meaningful step towards profitability that we are taking. Overall, the FY 2026 results demonstrate the business that is growing revenue, we are investing in future products, and we are controlling our costs.
Speaker #2: On the outflow side, total cash payments was 9.7 million, of which 4.1 million was for inventory, to support revenue growth and demand. That we had coming through the business, and 5.6 million of operating expend operating expenditure.
Suzy Elhlou: While product mix remains a near-term influence on our gross margin, the underlying business fundamentals continues to grow and strengthen, and this positions Atomo well for sustainable growth in the future. Now moving on to the balance sheet. We ended the period with AUD 3.7 million in the bank with no debt. Our balance sheet asset base remains relatively clean and consistent with prior periods. This brings me to the cash flow activities for the period. Excluding the capital funding, monthly cash burn averaged around AUD 290k per month.
Speaker #2: And that was directed towards continued investment in our product development, regulatory activities, and commercial expansion. So in taking a step back and looking at what '26 FY26 was for us, FY26 was a transformational year for ATOMO, delivering over 40% revenue growth while significantly improving EBITDA and maintaining a debt-free balance sheet.
Suzy Elhlou: We ended the period with AUD 3.7 million in the bank with no debt. Our balance sheet asset base remains relatively clean and consistent with prior periods. This brings me to the cash flow activities for the period. Excluding the capital funding, monthly cash burn averaged around AUD 290k per month. This was up from prior period of roughly AUD 170k, and that is reflective of our resources directed to in building pipeline opportunities and shorten the interim revenue streams there. Overall, receipts for the period total AUD 10.2 million, and that was made up of AUD 4.6 million from customer fees, AUD 875,000 from the R&D tax rebate, a further AUD 660,000 from our non-dilutive CRC-P funding, and AUD 4 million in net of capital raise, net of costs raised during the period there.
Speaker #2: As shown on the EBITDA graph in the bottom right corner, EBITDA in has substantially improved year-on-year with over 50% improvement over the last 24 months alone.
Suzy Elhlou: This was up from prior period of roughly AUD 170k, and that is reflective of our resources directed to in building pipeline opportunities and shorten the interim revenue streams there. Overall, receipts for the period total AUD 10.2 million, and that was made up of AUD 4.6 million from customer fees, AUD 875,000 from the R&D tax rebate, a further AUD 660,000 from our non-dilutive CRC-P funding, and AUD 4 million in net of capital raise, net of costs raised during the period there.
Speaker #2: We are seeing strong momentum across the established HIV and OEM revenue streams, while simultaneously investing in next-generation of growth through our syphilis and liver monitoring programs.
Speaker #2: So as we move into FY27, our priorities are clear. We will continue to drive revenue growth, restore margin strength, and maintain rigorous cost oversight.
Suzy Elhlou: On the outflow side, total cash payments was AUD 1.7 million, of which AUD 4.1 million was for inventory, to support revenue growth and demand that we had coming through the business, and AUD 5.6 million of operating expense upfront. That was directed towards continued investment in our product development, regulatory activities, and commercial expansion. Taking a step back and looking at what FY26 was for us, FY26 was a transformational year for Atomo, delivering over 40% revenue growth while significantly improving EBITDA and maintaining a debt-free balance sheet. As shown on the EBITDA graph in the bottom right corner, EBITDA has substantially improved year on year, with over 50% improvement over the last 24 months alone.
Suzy Elhlou: On the outflow side, total cash payments was AUD 1.7 million, of which AUD 4.1 million was for inventory, to support revenue growth and demand that we had coming through the business, and AUD 5.6 million of operating expense upfront. That was directed towards continued investment in our product development, regulatory activities, and commercial expansion. Taking a step back and looking at what FY 2026 was for us, FY 2026 was a transformational year for Atomo, delivering over 40% revenue growth while significantly improving EBITDA and maintaining a debt-free balance sheet.
Speaker #2: So on that note, I'll hand back to Sherri, and we can run through some questions at the end.
Speaker #1: Yeah. And just to wrap up, thank you, Susie. what we're really focused on is building a platform and a company that will provide sustainable growth.
Speaker #1: along with that is strong revenue growth and momentum that we saw in this year, and, and we have good visibility for as we move forward.
Speaker #1: We're improving the operating leverage in the business. So we're making smart decisions about how we invest our dollars into new product innovation and capacity and other operating improvements.
Suzy Elhlou: As shown on the EBITDA graph in the bottom right corner, EBITDA has substantially improved year-on-year, with over 50% improvement over the last 24 months alone. We are seeing strong momentum across the established HIV and OEM revenue streams, while simultaneously investing in the next generation of growth through our syphilis and liver monitoring programs. As we move into FY 2026, our priorities are clear. We will continue to drive revenue growth, restore margin strength, and maintain rigorous cost oversight.
Speaker #1: we're really building a business that's positioned for scale. We, we need to be able to grow and grow rapidly for our own products and for our customers' products.
Suzy Elhlou: We are seeing strong momentum across the established HIV and OEM revenue streams, while simultaneously investing in the next generation of growth through our syphilis and liver monitoring programs. As we move into FY26, our priorities are clear. We will continue to drive revenue growth, restore margin strength, and maintain rigorous cost oversight. On that note, I will hand back to Cheri, and we can run through some questions at the end.
Speaker #1: we do have confidence in the sustainable growth that we're experiencing. We are reinvesting that growth into innovation, which we talked quite a bit about.
Speaker #1: we are expanding the new product pipeline as one of our most critical initiatives. And what we're really focused on is increasing the value within the company.
Suzy Elhlou: On that note, I will hand back to Cheri, and we can run through some questions at the end.
Speaker #1: And, you know, and with that, the enterprise value and then with that, the stock price as the company grows over the next many years.
Cheri Walker: Yeah. Just to wrap up quickly, Suzy, what we are really focused on is building a platform and a company that will provide sustainable growth. Along with that is strong revenue growth and momentum that we saw in this year and we have good visibility for as we move forward. We are improving the operating leverage in the business, so we are making smart decisions about how we invest our AUD into new product innovation and capacity and other operating improvements. We are really building a business that is positioned for scale. We need to be able to grow and grow rapidly for our own products and for our customers' products. We do have confidence in the sustainable growth that we are experiencing. We are reinvesting that growth into innovation, which we have talked quite a bit about. We are expanding the new product pipeline as one of our most critical initiatives.
Cheri Walker: Yeah. Just to wrap up quickly, Suzy, what we are really focused on is building a platform and a company that will provide sustainable growth. Along with that is strong revenue growth and momentum that we saw in this year and we have good visibility for as we move forward. We are improving the operating leverage in the business, so we are making smart decisions about how we invest our AUD into new product innovation and capacity and other operating improvements. We are really building a business that is positioned for scale.
Speaker #1: So we just want to thank all of you for attending. We're happy to take a few questions. and, we had a few that came in before, the webinar started, so maybe we'll start there.
Speaker #2: Yeah. So we've got some free, suggested webinar questions. just reading through the list. The first one was, I noticed that BG has a major problem with HIV infections.
Speaker #2: Is this a country target for sales?
Speaker #1: Yeah. And I would say, it's been in the news, of course, and there's a very large price of, it's a very high prevalence now of HIV in, in BG.
Cheri Walker: We need to be able to grow and grow rapidly for our own products and for our customers' products. We do have confidence in the sustainable growth that we are experiencing. We are reinvesting that growth into innovation, which we have talked quite a bit about. We are expanding the new product pipeline as one of our most critical initiatives. What we are really focused on is increasing the value within the company and, with that, the enterprise value, and then with that, the stock price as the company grows over the next many years.
Speaker #1: and we are focused on accessing that through our networks and it is definitely a, a target of ours for sales. And, and also to see if we can help make a difference.
Speaker #2: The next question that we have would ATOMO be open for an intimate mergers and acquisitions offer? Is that something the board might be planning for?
Cheri Walker: What we are really focused on is increasing the value within the company and, with that, the enterprise value, and then with that, the stock price as the company grows over the next many years. We just want to thank all of you for attending. We are happy to take a few questions. We had a few that came in before the webinar started, so maybe we will start there.
Speaker #1: So some of you may have seen my background is that I have bought and sold more than 45 companies, but I've also have extensive operations, leadership, and partnering.
Speaker #1: And so we're going to lead heavily in, my partnering background and really try to, you know, expand the partnerships that we have and support the ones that we also have now.
Cheri Walker: We just want to thank all of you for attending. We are happy to take a few questions. We had a few that came in before the webinar started, so maybe we will start there.
Speaker #1: and M&A is not something that we're pursuing or looking at at this time.
Suzy Elhlou: Yeah. We have got some pre-submitted webinar questions. Just reading through the list. The first one was, "I noticed that Fiji has a major problem with HIV infections. Is this a country target for sales?
Suzy Elhlou: Yeah. We have got some pre-submitted webinar questions. Just reading through the list. The first one was, "I noticed that Fiji has a major problem with HIV infections. Is this a country target for sales?
Speaker #2: Yeah. I think that's all the questions that's come through so far.
Speaker #1: I think there was one more about that came in. I saw about Burnett, there was a question I thought that came in if Burnett still, you know, an important partner to ATOMO.
Cheri Walker: Yeah. I would say it has been in the news, of course, and there is a very large crisis. It is very high prevalence now of HIV in Fiji, and we are focused on accessing that through our networks, and it is definitely a target of ours for sales and also to see if we can help make a difference.
Cheri Walker: Yeah. I would say it has been in the news, of course, and there is a very large crisis. It is very high prevalence now of HIV in Fiji, and we are focused on accessing that through our networks, and it is definitely a target of ours for sales and also to see if we can help make a difference.
Speaker #1: And yes, we work really closely with, with the Burnett Institute. we did license and we partner very closely on the syphilis test. They've been part of our success that's going on there.
Speaker #1: We actually have one of our team members local there that's been quite a bit of time with them working on that project. And of course, the most of you know, I think the ALT liver was also licensed and is a collaborative project.
Suzy Elhlou: The next question that we have, will Atomo be open for a mergers and acquisitions offer? Is that something the board might be planning for?
Suzy Elhlou: The next question that we have, will Atomo be open for a mergers and acquisitions offer? Is that something the board might be planning for?
Cheri Walker: My background is that I have bought and sold more than 45 companies, but I also have extensive operations, leadership, and partnering. We are going to lean heavily in on my partnering background and really try to expand the partnerships that we have and support the ones that we also have now. M&A is not something that we are pursuing or looking at this time.
Cheri Walker: My background is that I have bought and sold more than 45 companies, but I also have extensive operations, leadership, and partnering. We are going to lean heavily in on my partnering background and really try to expand the partnerships that we have and support the ones that we also have now. M&A is not something that we are pursuing or looking at this time.
Speaker #1: we, you know, we love working with them. It's been a great partnership and, you know, if anything, we love to do more work with them.
Speaker #2: Yeah. I think that's all the questions that we had that come through.
Speaker #1: Great. Well, thank you, Susie. Thank you, everyone. and if you have more questions, feel free to reach out to us. you have all the information.
Suzy Elhlou: Yeah. I think that is all the questions that has come through so far.
Suzy Elhlou: Yeah. I think that is all the questions that has come through so far.
Speaker #1: You can email me directly or send them into our investor relations numbers. Thank you.
Cheri Walker: I think there was one more that came in, I saw, about Burnet. There was a question I thought that came in, is Burnet still an important partner to Atomo? Yes, we work really closely with the Burnet Institute. We did license and we partner very closely on the syphilis test. They have been part of our success that is going on there. We actually have one of our team members local there that spends quite a bit of time with them working on that project. Of course, most of you know, I think the ALT liver was also licensed and is a collaborative project. We love working with them. It has been a great partnership, and if anything, we would love to do more work with them.
Cheri Walker: I think there was one more that came in, I saw, about Burnet. There was a question I thought that came in, is Burnet still an important partner to Atomo? Yes, we work really closely with the Burnet Institute. We did license and we partner very closely on the syphilis test. They have been part of our success that is going on there. We actually have one of our team members local there that spends quite a bit of time with them working on that project. Of course, most of you know, I think the ALT liver was also licensed and is a collaborative project.
Cheri Walker: We love working with them. It has been a great partnership, and if anything, we would love to do more work with them.
Suzy Elhlou: Yeah, I think that is all the questions that we have that has come through.
Suzy Elhlou: Yeah, I think that is all the questions that we have that has come through.
Cheri Walker: Great. Well, thank you, Suzy Elhlou. Thank you, everyone. If you have more questions, feel free to reach out to us. You have all the information. You can email me directly or send them into our investor relations numbers. Thank you.
Cheri Walker: Great. Well, thank you, Suzy Elhlou. Thank you, everyone. If you have more questions, feel free to reach out to us. You have all the information. You can email me directly or send them into our investor relations numbers. Thank you.
Suzy Elhlou: Thank you all.
Suzy Elhlou: Thank you all.
