Legacy Product Phase-Out Tests Microba’s Path to Profitability in FY26

Strong Momentum in Core Microbiome Diagnostics

Microba Life Sciences Limited (ASX – MAP) closed FY25 with a robust quarter, reporting record sales of its core microbiome diagnostic tests in both Australia and the United Kingdom. The company’s flagship MetaXplore gastrointestinal disorder test saw an 88% year-on-year increase in quarterly sales in Australia, reaching 3,451 tests in Q4. This growth was supported by an expanding base of ordering clinicians and landmark clinical study results involving over 4,600 patients, which demonstrated the test’s ability to identify actionable gut health issues in more than 70% of cases.

In the UK, MetaXplore gained full market access at the end of May 2025, fueling a 74% quarter-on-quarter sales jump to 429 tests in Q4. MetaXplore now accounts for 66% of all gastrointestinal tests sold by Microba in the UK, signaling strong clinical adoption and successful onboarding efforts.

Clinical Validation and Market Development

Supporting this commercial momentum, Microba released breakthrough clinical data for both MetaXplore and its MetaPanel pathogen detection test. MetaPanel, which targets gastrointestinal pathogens often missed by routine pathology, showed a 20% positivity rate in a cohort of 889 patients with chronic symptoms, with 78% of detected pathogens previously undiagnosed. These findings underscore the tests’ potential to reshape clinical management of gastrointestinal disorders and improve patient outcomes.

Key opinion leaders in gastroenterology have endorsed the tests’ utility, highlighting their role in guiding targeted treatment strategies and reducing unnecessary invasive procedures. This clinical validation is critical as Microba continues to educate clinicians and build market confidence during this development phase.

Financial Performance and Strategic Capital Raise

Microba reported unaudited FY25 revenue of $15.67 million, a 30% increase over the prior year and consistent with prior guidance. While Q4 revenue rose 22% quarter-on-quarter to $4.2 million, it was down 13.5% year-on-year due to the phased discontinuation of legacy products. Personal testing and supplements revenue grew steadily, driven by core product sales, while research testing revenue declined sharply following business segment transfers.

The company completed a $14.5 million capital raise through a $12.5 million strategic placement and a $2 million fully underwritten share purchase plan. This funding, combined with a solid cash position of $11.74 million at quarter-end, provides Microba with the resources to execute its growth strategy and target regional break-even points in FY26.

Transitioning Focus and Future Outlook

Microba is actively transitioning away from legacy products such as the EcologiX test range, which is being phased out in the UK. The company is concentrating efforts on high-value core diagnostics and its Invivo branded supplements, which showed 12% growth despite an overall supplement revenue dip. Meanwhile, the therapeutics division has ceased R&D investment, preserving intellectual property while seeking partnerships aligned with upcoming clinical data catalysts expected later this year.

Looking ahead, Microba is optimistic about sustained revenue growth in FY26, driven by increasing clinician adoption, product enhancements, and expanding market access. The company’s strategic focus on precision microbiome diagnostics positions it well to capture a significant share of the emerging $25 billion global market opportunity.