Microba Doubles Core Test Sales, Eyes FY26 Break-Even Amid Strategic Shift

Strong Growth in Core Testing

Microba Life Sciences has delivered a standout first half for FY26, more than doubling its core microbiome test sales globally to 10,258 units, representing a 113% increase over the prior corresponding period. This surge is primarily driven by the Microbiome Explorer test, which now accounts for 55% of the company's revenue, up from just 20% a year earlier. The annualised run rate has surpassed 21,300 tests, positioning Microba on track to exceed 24,000 tests for the full financial year.

In Australia, the Microbiome Explorer test saw an 87% increase in sales, supported by a 19% rise in ordering clinicians and the signing of 12 enterprise clinic contracts since November 2025. Meanwhile, the UK market, accessed fully for the first half of FY26, is outperforming Australia by 33% at an equivalent post-launch stage, reflecting the strategic advantage gained through the Invivo Healthcare acquisition.

Strategic Transition and Operational Efficiencies

Microba has completed the strategic discontinuation of all legacy testing products, allowing the company to focus exclusively on its core growth products. This transition has resulted in a 9% decline in overall revenue to $7.32 million, reflecting the planned roll-off of legacy revenues, but core testing revenue surged 123% year-on-year.

Operationally, the company has implemented significant efficiency measures, including a global laboratory consolidation expected to save over $1 million across two years and the deployment of AI technologies that have improved customer support, engineering productivity, and scientific operations. Staff costs have been reduced by $2 million annually through restructuring initiatives, contributing to a leaner cost base as Microba scales.

Therapeutic Assets and Partnering Momentum

On the therapeutics front, Microba has transitioned from research and development to an active partnering phase, ceasing further R&D expenditure. The company holds promising live biotherapeutic intellectual property, including the MAP315 asset nearing Phase 2 readiness. Multiple positive clinical trial readouts from peer companies have validated the live biotherapeutic modality, creating a favourable environment for deal-making. Microba is actively engaged in partnering discussions, with sector deal precedents ranging from $1.5 billion to $11 billion.

Financial Position and Outlook

Despite a statutory loss of $10.56 million for the half-year, which includes one-off and non-cash items related to the legacy product wind-down and foreign exchange movements, the underlying loss improved by 5.8% compared to the prior year. The company ended December 2025 with $11.27 million in cash and equivalents and is confident in achieving regional break-even in Australia and the UK by the end of FY26.

Looking ahead, Microba plans to launch additional Microbiome Explorer variants in the UK, continue AI-driven operational improvements, and accelerate clinical adoption. The company’s focus remains on capturing the significant opportunity in the emerging clinical microbiome diagnostics market, estimated to exceed US$100 billion globally.

Governance and Board Renewal

Microba has strengthened its governance with the appointment of Stéphane Chatonsky as an Independent Non-Executive Director, bringing over 25 years of experience in healthcare investment and corporate strategy. This board renewal aligns with the company’s next phase of growth and commercial execution.