Microba Reports 90% Test Volume Growth, Targets Regional Break-Even in FY26

Strong Growth Momentum in Core Diagnostics

Microba Life Sciences Limited (ASX – MAP) has delivered a compelling update in its Q2 FY26 investor presentation, showcasing a 90% year-on-year increase in core microbiome test volumes. The company’s flagship product, Microbiome Explorer, now accounts for 55% of total revenue, reflecting strong clinical adoption in Australia and the United Kingdom. With an annualised run rate exceeding 21,300 tests, Microba is on track to surpass its regional break-even target of over 24,000 tests, a critical milestone for its financial sustainability.

The company’s strategic focus on expanding clinician engagement is evident, with 878 ordering clinicians in Australia and 268 in the UK actively referring tests. This growth is supported by ongoing product enhancements, including the recent launch of the Oral Species biomarker and operational improvements such as Sunday sample collection and simplified patient instructions, which have reduced costs and improved user experience.

AI and Brand Consolidation Driving Operational Efficiency

Microba is leveraging artificial intelligence across its business functions to drive efficiency gains and enhance customer service. The AI customer service agent has resolved over 70% of enquiries with a satisfaction score nearing 95%, while AI-assisted code generation and research tools are delivering significant productivity improvements. Additionally, the consolidation of global brands under the Microba banner has streamlined marketing efforts, reducing the time from practitioner signup to first referral dramatically; from 12.4 days in November 2025 to just 1.7 days in January 2026.

Therapeutics Pipeline and Partnering Prospects

Beyond diagnostics, Microba continues to advance its live biotherapeutic product pipeline, built on over five years of R&D and a proprietary microbiome databank. The company is actively engaging with pharmaceutical partners, with multiple clinical trial readouts expected in early 2026 that could validate its therapeutic modalities and catalyse deal-making. Notably, recent Phase 1b/2 trials for allergic disease and Phase 2a trials for irritable bowel syndrome have met their endpoints, while a pivotal Phase 3 trial for gastrointestinal acute Graft-versus-Host Disease reported positive results and is under regulatory review.

Microba’s partnering strategy is supported by collaborations with industry leaders such as Sonic Healthcare and The Doctors Laboratory, enabling scalable laboratory services and market expansion into the UK, United States, and Europe. The company’s disciplined approach to market adoption follows a structured clinician engagement curve, progressing from innovators to early adopters and eventually broader clinical acceptance.

Financial Outlook and Strategic Assumptions

Microba’s FY26 outlook is underpinned by assumptions of doubling core test volumes year-on-year, stable pricing and gross margins, and operational efficiencies that will support regional EBITDA break-even. The company maintains a strong cash position of $11.27 million as of December 2025, providing runway for commercial execution and product development. However, the achievement of these targets depends on continued clinician adoption, regulatory stability, and sufficient capital allocation.

The company has fully discontinued legacy product lines, replacing over $1.6 million in legacy revenue with growth in core testing and supplement sales, notably its Invivo-branded supplements which saw a 110% volume increase in the UK. This transition clarifies Microba’s revenue growth trajectory and positions it well for future expansion.