Micro-X Faces Cashflow Challenge Despite Major US Healthcare Contracts

Financial Performance Amid Strategic Growth

Micro-X Limited (ASX, MX1) has released its financial results for the fiscal year ended June 30, 2025, reporting total revenue of $13.1 million. While product sales declined due to the absence of government orders, the company offset this with a robust increase in project revenue, which reached $10.5 million. This revenue was largely driven by milestone achievements under key contracts with US government agencies and strategic partners.

Operating EBITDA remained positive at 5.8%, reflecting disciplined cost management despite a statutory net loss after tax of $13.9 million. The loss was influenced by non-cash charges including depreciation, amortisation, and impairment related to discontinued Argus IED x-ray camera assets.

Breakthroughs in Medical Imaging Technology

Micro-X’s proprietary Nano Electronic X-ray (NEX) technology continues to redefine portable medical imaging. The company announced a world-first achievement with its new NEX product delivering 3D head CT images, a critical advancement for stroke diagnosis. Clinical trials involving three Australian hospitals and ambulance fitment are slated to commence in the second half of 2025, paving the way for regulatory submissions and a planned 2027 product launch.

This innovation aligns with Micro-X’s strategic focus on medical imaging, narrowing its portfolio to leverage core technology strengths. The Head CT product recently won a gold award at the Australian Good Design Awards, underscoring its potential impact on healthcare diagnostics.

Expanding Commercial Footprint and Partnerships

Commercial momentum is building, highlighted by a major supply agreement with a US healthcare group operating over 700 hospitals and healthcare facilities. This deal is expected to drive Rover Plus sales, Micro-X’s ultra-mobile digital radiography system, into FY26 and beyond.

On the security front, Micro-X secured a $5.6 million strategic partnership with Billion Prima to develop and commercialise baggage and parcel scanning technology in Southeast Asia. Additionally, a $6.0 million contract extension with the US Department of Homeland Security supports ongoing checkpoint technology development, with live testing underway.

Robust Funding and Path to Cashflow Breakeven

Partnership funding surged to $36.6 million in FY25, a 50% increase over the prior year, substantially reducing unfunded development costs by 46%. Key contracts with ARPA-H, DHS, Billion Prima, and others underpin the company’s development pipeline, including a $25 million ARPA-H funded Full Body CT program.

Micro-X’s balance sheet shows $3.2 million in cash as of June 30, 2025, with contracted payments totaling $17.9 million for FY26 onwards. The company aims to achieve cashflow breakeven in FY26 by growing Rover Plus sales and monetising its security technology assets.

Experienced Leadership and ESG Commitment

Micro-X’s leadership team combines deep operational and technical expertise, with CEO Kingsley Hall and COO Anthony Skeats steering the company’s commercial acceleration. The board includes seasoned executives from healthcare, defense, and imaging sectors.

The company also maintains strong environmental, social, and governance (ESG) credentials, including ISO certifications, waste reduction initiatives, diversity policies, and community engagement programs, reflecting a commitment to sustainable and ethical growth.