Control Bionics’ Cost Savings and Market Expansion Push Toward Profitability

Strong Revenue Growth in Core Markets

Control Bionics (ASX: CBL) has delivered a robust quarterly performance for the period ending 31 March 2025, highlighted by its strongest US revenue in years and Australia’s best quarter since 2022. The company’s US business saw revenue climb to approximately A$700,000 over the last six months, a 20% increase driven by the October 2024 HCPCS code approval and a leaner cost base that has yielded annualised savings of A$700,000. This margin expansion is pushing the US operations toward breakeven, a critical milestone for the company’s path to profitability.

Meanwhile, in Australia, Control Bionics benefited from significantly improved National Disability Insurance Scheme (NDIS) approval times and a strong sales pipeline, resulting in the highest quarterly revenue since 2022. The backlog of applications is steadily clearing, with a substantial pipeline of around $1 million in new applications awaiting approval, underscoring sustained demand for the company’s assistive technologies.

Product Innovation and Market Expansion

The quarter also marked the launch of the NeuroStrip software, a cloud-deployed platform that complements the company’s hardware offerings and opens a new SaaS revenue stream. Early trials and deployments are underway in the US, Australia, and Japan, with commercial revenue expected to commence in Q4 FY25. This diversification into software-as-a-service signals Control Bionics’ strategic shift to broaden its market reach beyond hardware sales alone.

Control Bionics further advanced its sports science ambitions through its completed investment in Neuro Elite Athletics. The Utah Prep Academy, the launch customer for the NeuroBounce program, has delivered outstanding results with its athletes, validating the potential of Control Bionics’ technology in enhancing athletic performance. The Australian launch partner, SEDA College, is set to go live in early May, expanding the footprint of this innovative program.

Global Partnerships and Clinical Progress

Internationally, the company’s partnership with StrokeLab in Japan is progressing well, with NeuroStrip now deployed across all clinicians and a new facility planned in Osaka. StrokeLab has initiated a 100-patient clinical study on NeuroStrip’s rehabilitation benefits, including applications in Parkinson’s disease, with a peer-reviewed paper forthcoming. In the UK, Control Bionics continues its rollout with SmartBox devices in key NHS hubs, supported by an upcoming roadshow to raise awareness and adoption.

Financial Position and Strategic Outlook

Control Bionics ended the quarter with cash reserves of approximately A$1.7 million, bolstered by a $2 million private placement in February 2025 and ongoing cost containment measures. Quarterly cash receipts exceeded $1.6 million, reflecting improved sales momentum in both the US and Australia. The company’s management remains confident in its ability to sustain operations and fund growth initiatives through diversified revenue streams, including licensing and software sales.

Looking ahead, Control Bionics has outlined six strategic priorities for FY25: achieving profitability in core markets, scaling NeuroNode-only sales, driving commercialisation of the DROVE autonomous wheelchair with an FDA submission targeted by mid-2025, expanding NeuroStrip diagnostics, accelerating growth through partnerships and acquisitions, and building a high-performance organisation to support sustainable expansion.

CEO Jeremy Steele emphasised the company’s progress, stating, "We are delivering strong sales, cash collection and meaningful progress on our growth initiatives. The commercial appetite for our core IP, the NeuroNode, is strong across multiple geographies, and our investment in Neuro Elite Athletics is already producing extraordinary results."