ImpediMed’s Growing Losses Highlight Funding Reliance Despite Revenue Gains
ImpediMed Limited reported a 25% rise in revenue to $7.5 million for H1 2026, driven by increased SOZO usage fees, yet recorded a net loss of $12.3 million. The company secured an additional US$5 million tranche under its capital growth facility, extending its runway amid ongoing operating losses.
- Revenue increased 25% to $7.5 million, led by SOZO usage fees
- Net loss widened slightly to $12.3 million from $11.1 million
- Operating expenses and finance costs contributed to loss
- Secured additional US$5 million funding tranche from SWK Funding LLC
- Cash reserves decreased to $18.8 million, with ongoing cash outflows
Revenue Growth Driven by SOZO Usage
ImpediMed Limited (ASX: IPD), a medical technology company specialising in bioimpedance spectroscopy (BIS) devices, reported a 25% increase in revenue for the half-year ended 31 December 2025. Total revenue rose to $7.5 million, up from $6.0 million in the prior corresponding period, primarily due to higher SOZO usage fees which climbed from $5.7 million to $7.2 million. SOZO, the company’s flagship FDA-cleared system, continues to be the core driver of commercial growth, particularly in oncology and related medical indications.
Losses Persist Despite Revenue Gains
Despite the revenue uplift, ImpediMed recorded a net loss of $12.3 million for the half-year, slightly higher than the $11.1 million loss reported in the previous period. The widening loss reflects increased operating expenses, which rose to $18.1 million from $17.3 million, and higher finance costs linked to borrowings. Gross margin remained strong at 87%, indicating efficient cost management on product sales, but the company’s investment in clinical trials, research and development, and administrative costs continue to weigh on profitability.
Funding and Cash Flow Position
Cash and cash equivalents decreased to $18.8 million from $22.2 million at the end of the previous financial year. Operating cash outflows increased to $8.5 million, reflecting ongoing investment in growth and operations. To bolster its financial position, ImpediMed drew an additional US$5 million tranche under its capital growth facility with SWK Funding LLC after meeting FY25 sales targets. This funding extended the interest-only period on the loan to February 2028, providing the company with more runway to execute its commercial strategy.
Strategic Focus and Outlook
The company remains focused on expanding the commercial footprint of its SOZO product line, which addresses early detection and management of lymphoedema, heart failure, and body composition analysis. With no impairment indicators on goodwill or intangible assets, ImpediMed’s balance sheet reflects confidence in its core technology and market potential. However, the Directors acknowledge the need for additional capital raising to sustain operations beyond the next 12 months, highlighting the importance of managing cash flow and meeting loan covenants.
Governance and Compliance
The half-year financial report was prepared in accordance with Australian accounting standards and reviewed by Ernst & Young without qualification. The Board, led by Chair Christine Emmanuel Donnelly and CEO Parmjot Bains, affirmed the going concern basis for the company, citing cash flow forecasts and funding arrangements that support ongoing business activities.
Bottom Line?
ImpediMed’s revenue momentum is encouraging, but sustained losses and reliance on external funding underscore the challenges ahead.
Questions in the middle?
- How will ImpediMed manage cash flow and capital needs beyond the extended loan period?
- What are the company’s plans to improve profitability while scaling SOZO adoption?
- Are there risks to meeting loan covenants if operating losses persist?
