BTC Health reports a slight statutory loss in HY26 amid a 7% revenue dip, offset by strong growth in its cardio segment driven by key hospital contracts.
- Statutory loss of $0.1m in HY26 versus $4.9m profit in HY25
- Consolidated revenue down 7% to $5.0m
- Cardio business now 53% of total revenue, up from 39%
- Adjusted EBITDA breaks even despite operational delays
- New ECMO equipment installed at Adelaide WC Hospital
Financial Snapshot and Operational Challenges
BTC Health Ltd (ASX: BTC) has released its half-year results for the six months ending December 2025, revealing a statutory loss of $0.1 million compared to a $4.9 million profit in the prior corresponding period. Consolidated revenue declined by 7% to $5.0 million, reflecting ongoing challenges in the rollout of key medical equipment across public hospitals.
Despite these setbacks, the company maintained gross margins at a steady 42%, and operating expenses were tightly controlled at $2.2 million. Adjusted EBITDA reached breakeven, a notable outcome given the delays in purchase orders from state public health hospitals that slowed the installation of BTC’s ECMO (extracorporeal membrane oxygenation) equipment.
Cardio Segment Drives Growth Amid Delays
The standout performer was BTC’s cardio business, which now accounts for approximately 53% of total revenue, up sharply from 39% in the previous half-year. This growth was largely fuelled by a five-year contract initiated in September 2024 to supply ECMO consumables and services to the Royal Children’s Hospital in Melbourne, alongside additional orders from Adelaide’s WC Hospital.
Incremental revenue also came from Corcym’s heart valve business, acquired in December 2024, further diversifying BTC’s cardio portfolio. Meanwhile, infusion pump revenues declined as the company transitioned customers from discontinued products to newer models, and other product lines such as neurospinal and pharmaceutical offerings remained stable contributors.
Management’s Outlook and Strategic Focus
Executive Chairman and Managing Director Dr Richard Treagus acknowledged the period’s performance fell short of full expectations due to external delays but expressed confidence in the company’s pipeline and long-term prospects. Management is prioritising operational execution and exploring growth opportunities to enhance scale and profitability.
BTC’s cash reserves of $2.4 million provide a buffer as the company navigates the current challenges. The successful installation of new ECMO equipment at Adelaide WC Hospital in July 2025 signals progress, with evaluations underway at other major public hospitals, potentially unlocking further revenue streams.
Looking ahead, BTC remains committed to disciplined growth and delivering sustainable shareholder value, positioning itself to capitalise on the expanding demand for specialised medical devices in Australia and New Zealand.
Bottom Line?
BTC’s resilience amid hospital delays sets the stage for a pivotal second half as ECMO rollouts gain momentum.
Questions in the middle?
- When will delayed public hospital purchase orders resume to support revenue growth?
- How quickly can BTC scale ECMO installations across other major hospitals?
- What new growth opportunities is management evaluating to boost profitability?