Biome Australia Limited has delivered its strongest quarterly financial performance to date, with sales revenue surging 41% year-on-year to $6.5 million and maintaining eight consecutive quarters of positive EBITDA.
- Q2 sales revenue up 41% to $6.5 million
- Eighth consecutive quarter of positive EBITDA, reaching ~$1.0 million
- Rolling 12-month sales revenue approximately $22 million
- Gross margin sustained above 61%
- Cash balance increased to $3.36 million with strong operating cash inflow
Strongest Quarter Yet for Biome Australia
Biome Australia Limited (ASX – BIO), a leader in microbiome health products, has reported its best quarterly financial results to date for the three months ending December 2025. The company posted sales revenue of $6.5 million, marking a robust 41% increase compared to the same period last year. This performance underscores Biome's successful execution of its growth strategy across both domestic and international markets.
Alongside revenue growth, Biome achieved approximately $1.0 million in EBITDA for the quarter, representing its eighth consecutive quarter of positive earnings before interest, tax, depreciation, and amortisation. For the first half of fiscal 2026, EBITDA reached around $1.48 million, signalling sustained profitability momentum.
Healthy Margins and Cash Flow Discipline
The company maintained a gross margin above 61%, a notable achievement in the competitive probiotics sector. Cash receipts from customers rose 43% year-on-year to $6.2 million, contributing to a net operating cash inflow of approximately $1.24 million, which included a $657,000 R&D tax rebate. Biome's cash balance increased by $421,000 during the quarter to $3.36 million, reflecting strong operational cash generation.
Importantly, Biome repaid $722,000 of its working capital facilities, demonstrating financial discipline while still growing its cash reserves. The company holds a $5 million secured debt facility with the National Australia Bank, comprising invoice finance and trade refinance components, to support ongoing growth initiatives.
Strategic Focus on International Expansion
Managing Director and Founder Blair Vega Norfolk highlighted the company’s scalable platform and growth prospects – "With rolling 12-month revenue now at approximately $22 million and consistent gross margins above 61%, Biome is well positioned to convert increasing revenue into earnings and cash flow. Our focus remains on expanding our international footprint and strengthening our position as Australia's leading practitioner-only probiotic company."
Biome’s flagship product range, Activated Probiotics, is supported by clinical research and distributed exclusively through health practitioners. The company also markets Activated Nutrients, a scientifically formulated organic nutraceutical line. These product lines underpin Biome’s commitment to evidence-based natural health solutions.
Outlook and Considerations
While Biome’s financial results reflect strong operational execution, the upcoming expiry of the $1.5 million NAB Trade Refinance Facility in February 2026 introduces a variable to monitor. The company intends to extend this facility, but investors will be watching closely for updates. Additionally, ongoing investments in marketing and staff costs suggest Biome is balancing growth with prudent expense management.
Overall, Biome Australia’s December quarter report signals a company gaining traction in a growing health sector, with solid financial footing and a clear strategic direction. The next quarters will be critical to see if this momentum can be sustained and translated into longer-term shareholder value.
Bottom Line?
Biome’s record quarter sets a strong foundation, but upcoming financing decisions and international expansion execution will be key to watch.
Questions in the middle?
- Will Biome secure an extension or replacement for its NAB Trade Refinance Facility post-February 2026?
- How will Biome’s international expansion efforts impact revenue growth and margins in the coming quarters?
- What is the company’s strategy to manage rising staff and marketing expenses while maintaining profitability?