Hydrix Limited reported $2.3 million in revenue for Q2 FY26 and secured a $2.5 million initial contract with SynCardia Systems to develop a fully implantable artificial heart, setting a positive tone for 2026.
- Q2 revenue of $2.3 million driven by cardiac, medtech, and defence clients
- New $2.5 million contract with SynCardia for artificial heart development
- 15 active clients with $40 million potential future project revenue
- Operating cash loss of $0.71 million supported by working capital and director backing
- Gyder Surgical advancing US market entry with capital raise underway
Quarterly Performance and Revenue Drivers
Hydrix Limited has released its Appendix 4C and trading update for the quarter ended 31 December 2025, reporting revenues of $2.3 million. This income was primarily generated from international cardiac and medtech product clients, alongside Australian defence and industrial sectors. The company’s diversified client base now includes 15 active clients, collectively representing a potential project pipeline exceeding $40 million over the coming years.
Strategic Contract Win with SynCardia Systems
A highlight of the quarter was the announcement of a $2.5 million initial contract stage with SynCardia Systems, Inc. This collaboration focuses on the development of SynCardia’s fully implantable total artificial heart, known as the Emperor. The contract follows SynCardia’s successful listing on the New York Stock Exchange and capital raise in December 2025, underpinning a multi-year, multi-million-dollar partnership that could significantly bolster Hydrix’s revenue and market presence.
Ventures and Medical Segment Progress
Hydrix’s medical division is advancing sales opportunities for its remote cardiac monitoring software, a key growth area given the increasing demand for digital health solutions. Meanwhile, Hydrix’s venture company, Gyder Surgical, is making strides towards first-in-human use cases in the United States and has initiated a capital raise to support its expansion in this critical market.
Financial Position and Cash Flow
The company reported an operating cash loss of $0.71 million for the quarter. This shortfall was primarily funded through positive working capital movements amounting to $0.7 million, with several outstanding debtors settling their accounts. Hydrix ended the quarter with $0.6 million in cash on hand, further supported by a $2.5 million letter of comfort from two directors, reflecting ongoing confidence from management despite liquidity pressures.
Outlook and Market Implications
Executive Chairman Gavin Coote expressed optimism about the company’s prospects, highlighting the SynCardia contract and other sales opportunities as foundations for a stronger revenue and cash flow outlook in calendar year 2026. The board is actively exploring avenues to grow the business and unlock shareholder value, signaling potential strategic moves ahead.
Bottom Line?
Hydrix’s new contract and venture progress set the stage for a pivotal 2026, but cash flow management remains critical.
Questions in the middle?
- How will the SynCardia contract impact Hydrix’s revenue recognition and margins over the coming years?
- What are the prospects and timelines for Gyder Surgical’s US market expansion and capital raise success?
- Can Hydrix convert its $40 million potential project pipeline into firm contracts to sustain growth?