TruScreen Group Limited forecasts a 28% revenue increase for FY2026 driven by product sales growth, yet expects to sustain a net loss amid strategic market expansion investments.
- FY2026 revenue expected to reach NZ$2.7 million, up 28% from FY2025
- Product sales forecast at NZ$2.4 million, a 41% increase but below market expectations
- Net loss anticipated to remain around NZ$2.2 million due to higher market development costs
- Delays in payment from Uzbekistan and Zimbabwe validation program impact revenue timing
- Expansion into Uzbekistan, India, Indonesia, and African markets underway to build future profitability
Revenue Growth Amid Operational Challenges
TruScreen Group Limited, a medical device company specialising in AI-enabled cervical screening technology, has provided updated guidance for its financial year ending March 2026. The company expects total revenue of approximately NZ$2.7 million, marking a 28% increase over the previous year. This growth is primarily driven by product sales, which are forecast to rise 41% to NZ$2.4 million. However, this figure falls short of the market's earlier expectations of NZ$2.8 million.
The shortfall is attributed to two key factors: a delay in payment receipt from a signed sales contract in Uzbekistan, which has postponed shipment, and a deferred validation programme in Zimbabwe that has pushed a significant second order into the next financial year.
Sustained Losses Reflect Strategic Investment Phase
Despite revenue growth, TruScreen anticipates reporting a net loss similar to FY2025, around NZ$2.2 million. This ongoing loss reflects increased expenditure on market access development, including expanding the distributor network and presence in emerging markets such as Uzbekistan, India, Indonesia, and select African countries. The company also expects a reduction of approximately NZ$200,000 in its Australian R&D tax refund due to lower research spending.
These investments are part of a deliberate strategy to build critical mass for product adoption and establish sustainable profitability over the medium term. TruScreen’s AI-enabled cervical screening device, TruScreen Ultra, has gained regulatory approvals and clinical recognition in multiple countries, bolstered recently by a large-scale clinical study published by the Chinese Obstetricians and Gynaecologists Association (COGA).
Market Expansion and Clinical Validation
TruScreen’s technology addresses significant challenges in cervical cancer screening by providing real-time detection without the need for biological tissue sampling or specialised laboratory infrastructure. The device is registered and approved for clinical use across numerous markets, including China, Vietnam, Mexico, Russia, and Saudi Arabia, with over 200 devices installed globally.
The company’s ongoing efforts to expand its footprint in emerging markets are critical to its long-term growth prospects. However, the timing of revenue recognition remains sensitive to external factors such as payment delays and regulatory validation processes, as seen with the Uzbekistan contract and Zimbabwe programme.
Overall, TruScreen’s FY2026 guidance reflects a company in transition; growing revenues and market presence while investing heavily to secure future profitability in a competitive and regulated healthcare environment.
Bottom Line?
TruScreen’s FY2026 outlook underscores a pivotal growth phase, balancing promising revenue gains with continued investment-driven losses.
Questions in the middle?
- When will TruScreen receive payment from the Uzbekistan contract to confirm revenue recognition?
- How will the delayed Zimbabwe validation programme affect sales momentum in FY2027?
- What impact will the reduced R&D tax refund have on the company’s cash flow and investment capacity?