Control Bionics Faces Cash Constraints Despite Record Sales and US Breakthrough
Control Bionics capped a record FY25 with 15% revenue growth, driven by US market gains and expanding NeuroNode and NeuroStrip technologies. The company also achieved a US profitability milestone and is close to finalizing key distribution partnerships.
- FY25 revenue grew 15% to over $7 million
- US operations reached positive EBITDA for the first time
- NeuroNode-only distribution strategy gaining traction globally
- NeuroStrip software and hardware launched with AI data initiatives
- Short-term R&D loan secured to support working capital
Record Growth and Market Expansion
Control Bionics Limited (ASX, CBL) has reported a landmark year ending June 2025, with unaudited sales revenue climbing 15% to exceed $6 million and total revenue surpassing $7 million. This growth was largely fueled by the US market, where the adoption of the HCPCS reimbursement code since October 2024 has accelerated sales and improved market access.
CEO Jeremy Steele highlighted the significance of this milestone, noting that the US operations delivered a positive operating EBITDA for June, the first profitable month since the company’s entry into the region. This breakthrough underscores the potential for sustained profitability as the company finalizes distribution partnerships in the US, its largest addressable market.
Technology Advances and Strategic Initiatives
Control Bionics continues to build momentum with its NeuroNode-only distribution strategy, which has seen strong uptake in the UK’s NHS and promising discussions underway in Europe and the US. The NeuroNode device, a patented wireless wearable that detects subtle muscle signals to aid communication for patients with conditions like ALS and MND, remains central to the company’s growth plans.
Complementing this is the NeuroStrip, a miniaturized EMG device recently launched in Australia and the US. The company is actively collecting labelled electromyography data from athletes and rehabilitation centers, exploring AI-driven automation to enhance clinical and sports performance applications. Early results from the NeuroBounce program in Australia, aimed at improving athletic performance, have been encouraging, with measurable gains in vertical jump heights.
Financial Position and Outlook
Cash receipts for FY25 rose 8% to $5.7 million, reflecting stronger customer payments across core markets. However, cash on hand at quarter-end was $595,000, supplemented by a short-term $450,000 R&D loan secured post-quarter to support working capital. The company maintains disciplined cost management and is focused on achieving profitability in its key markets of the US, Australia, and Japan.
Looking ahead, Control Bionics has outlined five strategic priorities for FY26, driving profitability, scaling NeuroNode sales, expanding NeuroStrip adoption, accelerating growth through partnerships and acquisitions, and building a high-performance organisation. These initiatives aim to leverage the company’s technological edge and growing market presence to sustain momentum.
While the company’s revenue trajectory and operational improvements are promising, the timing and success of US distribution partnerships remain critical to unlocking further growth. Investors will be watching closely as Control Bionics navigates this pivotal phase.
Bottom Line?
Control Bionics’ record year and US profitability milestone set the stage for a critical phase of partnership deals and technology expansion.
Questions in the middle?
- Which US distribution partners will Control Bionics finalize and when?
- How quickly can NeuroStrip’s AI-driven data analytics translate into commercial growth?
- What impact will cost containment and loan facilities have on the company’s cash runway?
