Atomo Diagnostics has reported a significant narrowing of its half-year loss, driven by a 6% increase in revenue and a 35% reduction in operating expenses. The company’s strategic focus on cost management and expanding its diagnostic platforms underpins a cautiously optimistic outlook.
- 36% reduction in half-year loss to AUD 1.76 million
- 6% revenue growth to AUD 2.18 million led by HIV tests and OEM technology
- 35% cut in operating expenses through sustained cost optimisation
- Successful capital raise of AUD 3.13 million bolsters cash reserves to AUD 3.5 million
- Focus on commercialising new tests on Pascal platform and expanding OEM customer base
Financial Performance Highlights
Atomo Diagnostics Limited has reported a marked improvement in its financial results for the half-year ended 31 December 2025. The company narrowed its loss after tax by 36%, from AUD 2.76 million in the prior corresponding period to AUD 1.76 million. This progress was underpinned by a 6% increase in revenue to AUD 2.18 million, reflecting steady demand for its HIV point-of-care tests and OEM diagnostic technology.
Gross profit remained positive at AUD 852,614, supported by a more favourable revenue mix and improving margins. Notably, the company’s operating expenses fell by approximately 35%, a reduction of around AUD 700,000 compared to the previous half-year. This was achieved through ongoing initiatives focused on lean operations and resource management, demonstrating Atomo’s commitment to sustainable cost control.
Capital and Cash Position
During the period, Atomo successfully completed a capital raise totalling AUD 3.13 million, which included placements to institutional and sophisticated investors as well as a share purchase plan. This capital injection has strengthened the company’s balance sheet, with cash and cash equivalents rising to AUD 3.5 million as at 31 December 2025, up from AUD 3.2 million at the previous financial year-end. Importantly, Atomo remains debt-free, providing a solid financial foundation to support its growth initiatives.
Strategic Business Development
Atomo’s business development efforts continue to focus on expanding its OEM customer base for the Pascal diagnostic cassette platform and commercialising new finished tests. The company is advancing several promising products, including an Active Syphilis test and an ALT Liver function test targeting significant markets such as drug-induced liver injury and hepatitis management.
Additionally, Atomo is benefiting from positive developments with Lumos Diagnostics, whose FebriDx test; commercialised on Atomo’s Pascal cassette; is progressing through the US FDA approval process. A successful CLIA waiver for FebriDx could unlock substantial contracted volumes for Atomo’s supply business in the US, further enhancing its commercial outlook.
Risk Management and Outlook
While Atomo has made tangible progress, it continues to navigate a complex regulatory environment across multiple jurisdictions, including Australia, the US, Europe, and emerging markets. The company acknowledges risks related to regulatory approvals, product quality, supply chain stability, and operational challenges inherent in its international footprint.
Nevertheless, the board affirms that adequate systems are in place to manage these risks. With a strengthened financial position and a clear strategic focus on product innovation and market expansion, Atomo is positioned to build on its momentum in the coming periods.
Bottom Line?
Atomo’s improved financial footing and strategic initiatives set the stage for potential growth, but regulatory milestones will be critical to watch.
Questions in the middle?
- When will the FDA decide on the CLIA waiver for Lumos Diagnostics’ FebriDx test, and how will this impact Atomo’s US sales?
- How quickly can Atomo commercialise its new Active Syphilis and ALT Liver function tests on the Pascal platform?
- Will Atomo be able to sustain its cost reductions while scaling operations and expanding its product portfolio?