Microba’s Growth Product Revenue Jumps 151% Despite Legacy Decline

Strong Growth in Core Testing Products

Microba Life Sciences Limited (ASX – MAP) has delivered a robust start to FY26, reporting a 145% increase in core microbiome test volumes compared to the prior corresponding period. The company’s flagship MetaXplore and MetaPanel tests have driven this surge, pushing the annualised run rate beyond 20,000 tests globally. This momentum is a key step towards Microba’s goal of achieving regional break-even by the end of FY26.

In Australia, MetaXplore test sales hit a record 3,884 in Q1, up 112% year-on-year, while the UK market saw MetaXplore sales nearly double quarter-on-quarter, now representing 100% of gastrointestinal tests sold after discontinuing legacy products. These figures underscore growing clinician adoption and increased usage per clinician, supported by recent product enhancements and streamlined ordering features.

Financial Performance Reflects Strategic Transition

While total revenue for Q1 FY26 was slightly down 1% year-on-year at $3.6 million, this masks a significant shift in revenue composition. Growth product revenue soared 151% to $1.9 million, compensating for a 73% decline in legacy product revenue, which is being phased out by the end of Q2 FY26. Base product revenue, including supplements, declined 15%, reflecting a strategic pivot towards higher-margin own-label products.

Microba’s disciplined cost management is evident in a 26% reduction in operating expenses compared to the prior quarter, excluding one-off restructuring costs. Operating cash outflows fell 16% quarter-on-quarter, aided by the cessation of therapeutic research and development and the streamlining of legacy operations. The company ended the quarter with a strong cash position of $13.89 million, bolstered by a recent $14.5 million capital raise and expected R&D tax incentives.

Therapeutics R&D Ceased, Focus on Partnerships

Microba has ceased further investment in therapeutics R&D, choosing instead to leverage its competitive advantage in microbiome data and live biotherapeutic intellectual property through partnerships. The company is closely watching upcoming clinical trial results from peer companies, which could serve as catalysts for deal activity in this emerging field. Notably, a recent Phase 2a trial by Vedanta Biosciences did not meet endpoints, but Microba’s CEO emphasized that this does not reflect on Microba’s own pipeline due to differing mechanisms.

Brand Consolidation and Operational Efficiencies Ahead

Looking forward, Microba plans a major brand update and consolidation in Q2 FY26. This initiative aims to unify global brands, enhance marketing effectiveness, and drive further operational efficiencies. The company expects this to accelerate sales growth while reducing costs, reinforcing its path to profitability.

Overall, Microba’s Q1 results highlight a company in transition, shifting away from legacy products and therapeutics R&D towards scalable, high-growth microbiome diagnostics. The strong test volume growth and financial discipline position Microba well to capitalize on the expanding microbiome health market.