Lumos Diagnostics Boosts Revenue but Faces Going Concern Warning
Lumos Diagnostics reported an 11.4% revenue increase to US$12.4 million for FY2025, yet still posted a significant net loss amid auditor concerns over its future viability.
- Revenue rose 11.4% to US$12.4 million
- Net loss narrowed 16.4% to US$7.18 million
- Net tangible assets per share improved but remain negative
- No dividends declared or paid for second consecutive year
- Auditor flagged material uncertainty over going concern status
Revenue Growth Amidst Losses
Lumos Diagnostics Holdings Limited has released its preliminary final report for the year ended 30 June 2025, revealing a modest but notable increase in revenues. The company’s top line grew by 11.4% to US$12.4 million, signaling some traction in its healthcare diagnostics operations. However, despite this revenue growth, Lumos remains unprofitable, reporting a net loss after tax of US$7.18 million. While this represents a 16.4% improvement compared to the prior year’s loss of US$8.59 million, the company is still operating deep in the red.
Balance Sheet and Dividend Status
On the balance sheet front, Lumos Diagnostics showed some progress with net tangible assets per ordinary share improving from negative US$0.37 to negative US$0.14. This suggests a reduction in the company’s net liabilities relative to its shares on issue, though it remains in a net deficit position. Consistent with prior years, no dividends were declared or paid, reflecting the company’s ongoing need to conserve cash and reinvest in its business.
Going Concern Uncertainty
Perhaps the most significant cautionary note in the report comes from the auditor’s statement. While the financial statements received an unmodified audit opinion, the auditor included a paragraph highlighting material uncertainty regarding Lumos Diagnostics’ ability to continue as a going concern. This signals that the company faces risks related to its financial sustainability and may require additional funding or strategic measures to maintain operations beyond the near term.
Looking Ahead
Chairman Samuel Lanyon signed off on the report on 28 August 2025, underscoring the company’s commitment to transparency. Investors and stakeholders will be keen to see how Lumos plans to address its ongoing losses and the going concern risk. The upcoming full annual report may provide further insights into management’s strategy, cash flow outlook, and potential capital raising initiatives.
Bottom Line?
Lumos Diagnostics’ revenue gains offer hope, but the going concern warning keeps investors cautious.
Questions in the middle?
- What specific plans does Lumos have to resolve its going concern uncertainty?
- How will the company fund operations if losses continue?
- Are there any upcoming product launches or partnerships that could drive future growth?
