How Did Biome Achieve a Record $5.94m Q1 Revenue and Seven Quarters of Profit?
Biome Australia Limited has reported a record quarterly revenue of $5.94 million for Q1 FY26, marking a 40% increase year-over-year and its seventh consecutive quarter of positive EBITDA. The company’s strong cash flow and sustained margins underscore its growth momentum.
- Record Q1 sales revenue of $5.94 million, up 40% year-over-year
- Seventh consecutive quarter of positive EBITDA at $462k
- Rolling 12-month sales revenue surpasses $20 million
- Gross margin maintained above 61%
- Cash receipts up 84% to $7.14 million, cash balance increased to $2.94 million
Strong Revenue Growth and Profitability
Biome Australia Limited (ASX – BIO), a leader in microbiome health and live biotherapeutics, has kicked off FY26 with a record-breaking first quarter. The company posted sales revenue of $5.94 million, a robust 40% increase compared to the same quarter last year and a 19% rise from the previous quarter. This surge reflects growing demand for Biome’s evidence-based probiotic and complementary medicine products, which are gaining traction both domestically and internationally.
Importantly, Biome has sustained its profitability streak, reporting positive EBITDA of $462,000 for the seventh consecutive quarter. This consistent operational profitability signals effective cost management and a scalable business model amid expanding sales.
Healthy Margins and Cash Flow Strength
Biome maintained a strong gross margin above 61%, underscoring the company’s ability to preserve pricing power and product value despite competitive pressures. Cash receipts soared 84% year-over-year to $7.14 million, driving a net operating cash inflow of $918,000. The company prudently repaid $711,000 of its working capital facilities during the quarter, reflecting a commitment to strengthening its balance sheet while fueling growth.
At quarter-end, Biome held $2.94 million in cash, up $190,000 from the previous quarter, and managed inventory levels effectively with a wholesale value of $8.5 million. These financial metrics provide a solid foundation for the company’s planned expansion.
Strategic Focus on Growth and International Expansion
Managing Director Blair Vega Norfolk highlighted the importance of practitioner and pharmacy partnerships in driving Biome’s growth, emphasizing the role of clinical research-backed products in delivering superior patient outcomes. Looking ahead, Biome aims to scale its international operations while continuing to grow its domestic market share, all while maintaining positive EBITDA.
The company’s $5 million secured debt facility with NAB, including invoice finance and trade refinance components, supports its working capital needs and future growth initiatives. With no immediate expiry on the invoice finance facility and plans to extend the trade finance facility, Biome is well-positioned to capitalize on emerging opportunities.
Outlook and Market Positioning
Biome’s strong start to FY26 reflects both the growing consumer interest in microbiome health and the company’s strategic execution. Its unique live biotherapeutic products, backed by rigorous clinical trials, differentiate it in a competitive healthcare segment. However, the success of its international expansion efforts and continued margin management will be key to sustaining this momentum.
Bottom Line?
Biome’s record quarter and sustained profitability set the stage for ambitious growth, but international scaling will be the next critical test.
Questions in the middle?
- How will Biome’s international expansion impact revenue and margins in the coming quarters?
- What strategies will Biome employ to maintain gross margins amid increasing scale and competition?
- Will Biome extend or restructure its NAB trade finance facility beyond February 2026?
