CONNEQT Faces Regulatory and Shareholder Hurdles Amid Rapid Growth and Cost Cuts
CONNEQT Health reports robust 50% quarter-on-quarter growth in Pulse device sales and launches a new pricing strategy to boost recurring revenue. The company also secures a significant US clinical trial contract and advances cost-cutting efforts.
- Pulse device sales grow ~50% quarter-on-quarter, annualised revenue run-rate exceeds US$3.5 million
- New pricing model reduces Pulse device price to US$249, introduces in-app purchases and Care+ membership
- Secured A$1.1 million Phase 2b US clinical trial contract for vascular assessment across 30 sites
- Operational restructuring cuts annualised cost base by ~30%, closing cash at A$2.7 million
- Enterprise pilots launched for subscription-based clinical software pricing ahead of commercial rollout
Strong Consumer Momentum
CONNEQT Health has marked a pivotal shift in its growth trajectory during the September 2025 quarter, driven primarily by impressive consumer demand for its Pulse arterial health monitoring device. The company reported approximately 50% quarter-on-quarter sales growth since launch, pushing its annualised Pulse revenue run-rate beyond US$3.5 million (A$5.4 million). This surge reflects expanding consumer traction, particularly among adults aged 45 to 75, who are increasingly prioritizing preventive cardiovascular health.
Marketing efforts have been sharpened with enhanced digital campaigns and influencer partnerships, reaching over two million followers across platforms like YouTube, Instagram, and TikTok. Notably, Pulse was named “Best Advanced Blood Pressure Monitor of 2025” by Yahoo! Health, reinforcing its category leadership and broadening brand visibility.
Innovative Pricing and Monetization Strategy
Operationally, the company has integrated fulfillment, support, and marketing systems to support this growth, managing a 253% increase in customer inquiries without compromising response times or satisfaction. The addition of AI-driven support and new customer service staff has bolstered scalability and service quality.
Enterprise Business Expansion and Clinical Validation
On the enterprise front, CONNEQT Health is transitioning its clinical software offerings to a subscription-based pricing model, piloting this with sports medicine and primary care partners. This approach addresses previous cost barriers associated with the SphygmoCor XCEL device, priced at US$25,000, by enabling smaller clinics to access advanced vascular assessment tools through usage-based fees.
Post-quarter, the company secured a significant Phase 2b clinical trial contract in the US valued at approximately A$1.1 million (US$716,000). This contract involves providing turnkey vascular assessment services across 30 sites, strengthening CONNEQT’s position as a trusted partner in cardiovascular research and highlighting the versatility of its non-invasive hemodynamic technology.
Financial Discipline and Outlook
CONNEQT Health’s operational restructuring has yielded a roughly 30% reduction in its annualised cost base, now estimated at A$10-12 million excluding cost of goods sold and marketing. This has contributed to a net cash outflow of A$2.62 million for the quarter, with closing cash at A$2.7 million. The company also received a A$2 million convertible note loan from C2 Ventures, subject to shareholder approval.
Looking ahead, CONNEQT plans to leverage the holiday season to scale consumer engagement further, optimize in-app monetization, and prepare for the commercial rollout of its enterprise subscription model. Regulatory efforts continue with an eye toward over-the-counter clearance in the US, following a pathway similar to other successful medical device transitions.
Overall, CONNEQT Health is navigating a critical growth phase, balancing innovation in consumer health technology with strategic enterprise partnerships and financial prudence.
Bottom Line?
CONNEQT’s evolving pricing and clinical partnerships set the stage for scalable growth, but regulatory milestones and shareholder approvals remain key near-term catalysts.
Questions in the middle?
- How will the new pricing model impact long-term revenue and customer retention?
- What are the timelines and prospects for FDA over-the-counter clearance of the Pulse device?
- How will feedback from enterprise pilot programs shape the commercial rollout and subscription pricing?
