CONNEQT Health Limited reported a strong quarter with over 200% sales growth for its CONNEQT Pulse product and completed a $3.1 million institutional placement, while operational cost reductions support a leaner business model.
- Over 200% sales growth in CONNEQT Pulse product
- Completed $3.1 million institutional placement in December 2025
- Operational restructuring cut costs by approximately 30% year-on-year
- Net cash position of A$2.43 million with 1.28 quarters of funding available
- Unsecured loans of $4.245 million including convertible notes pending shareholder approval
Quarterly Performance Highlights
CONNEQT Health Limited, formerly known as Cardiex Limited, has released its quarterly cash flow report for the period ending 31 December 2025, revealing encouraging signs of growth and financial discipline. The company’s flagship product, the CONNEQT Pulse, delivered a remarkable sales increase exceeding 200% compared to the previous quarter. This surge in sales was accompanied by a more than 100% rise in cash receipts, reflecting the success of a new sales model combining device sales with subscription services.
Despite these gains, the company reported a net operating cash outflow of A$1.894 million for the quarter. This was partly due to ongoing repayments of historical trade creditors, which have yet to fully reflect the benefits of recent cost-cutting measures.
Operational Restructuring and Cost Management
Earlier in 2025, CONNEQT Health undertook a significant operational restructuring, centralising its engineering and development teams from the United States and other offshore locations to Sydney. This move has successfully reduced the company’s cost base by approximately 30% compared to the prior year. While the full impact of these savings is expected to materialise in future quarters, the current quarter’s cash flows still bear the weight of legacy liabilities.
Capital Raising and Financing Activities
In December 2025, CONNEQT Health completed an institutional placement raising $3.1 million before costs, including a $1.2 million participation from C2 Ventures Pty Ltd, a company owned by directors Niall Cairns and Craig Cooper. This capital injection, alongside a $1.63 million R&D tax incentive refund received during the quarter, has bolstered the company’s liquidity position.
The company’s cash and cash equivalents stood at A$2.43 million at quarter end, with no unused financing facilities available. The total available funding covers approximately 1.28 quarters of operating cash outflows at the current burn rate. Additionally, CONNEQT Health holds unsecured loans totaling $4.245 million, including convertible notes subject to shareholder approval at an upcoming extraordinary general meeting.
Outlook and Strategic Considerations
Management remains confident in the company’s ability to continue operations and meet business objectives. The ongoing growth of the CONNEQT Pulse product and the new sales model are expected to drive further revenue and gross margin improvements. The company is also actively pursuing additional R&D and inventory financing facilities in the range of $1.5 to $2.5 million, anticipated to be secured in the March 2026 quarter.
While the current funding runway is relatively short, the board believes it has the capacity to raise additional capital if necessary, supported by a track record of successful capital raises. Investors will be watching closely for the outcome of the shareholder vote on the convertible notes and the company’s ability to sustain its positive sales momentum.
Bottom Line?
CONNEQT Health’s recent sales surge and cost cuts are promising, but the clock is ticking on its funding runway.
Questions in the middle?
- Will shareholder approval for the convertible notes be secured without delay?
- How quickly will the operational cost savings translate into positive cash flow?
- Can CONNEQT Health secure additional financing facilities as planned in the March quarter?