DorsaVi’s Half-Year Loss Widens 519% as Revenue Drops 8.3%

Financial Results and Revenue Trends

DorsaVi Limited, a developer of motion analysis technologies, has revealed a significant deterioration in its financial performance for the half-year ended 31 December 2025. The company’s loss after tax ballooned to $3.59 million, a stark increase from the $578,542 loss reported in the prior corresponding period. This widening loss comes despite only a modest 8.3% decline in total revenue, which fell to $764,453 from $834,038.

The revenue drop was primarily driven by lower sales revenue, which decreased to $523,780 from $653,983, reflecting a reduction in once-off contract income. This signals some challenges in maintaining consistent sales momentum, particularly in the clinical and workplace segments that underpin DorsaVi’s business.

Rising Costs and Share-Based Payments

The company’s operating expenditure surged dramatically by $2.94 million to $4.35 million, largely due to increased share-based payment expenses. These non-cash costs reflect the company’s strategy to incentivise employees and executives through equity, but they have a pronounced impact on reported losses. Other operating costs, including employee benefits and professional fees, also contributed to the elevated expense base.

This rise in costs outpaced revenue growth, exacerbating the company’s cash burn and pushing the loss from continuing operations to $3.59 million.

Capital Raising and Cash Position

In response to the financial pressures, DorsaVi successfully raised over $5 million through multiple share placements during the half-year. This capital injection boosted the company’s cash and cash equivalents to $4.95 million as of 31 December 2025, more than doubling the $2.29 million held at the previous financial year-end.

The improved cash position provides some runway for the company to continue investing in product development and its strategic expansion into the lucrative US market, which remains a key growth focus.

Leadership Changes and Strategic Outlook

Notably, DorsaVi appointed Matthew Regan as Group CEO in November 2025, signaling a potential shift in leadership approach as the company navigates its growth challenges. The directors reaffirmed their confidence in the company’s ability to continue as a going concern, citing forecast cash flows, ongoing capital raising capability, and strategic initiatives.

However, the auditor’s review highlighted a material uncertainty regarding the company’s ability to sustain operations without further funding, underscoring the risks inherent in DorsaVi’s current financial trajectory.

Market Risks and Future Prospects

DorsaVi faces several risks including reliance on intellectual property development, competitive pressures, reimbursement uncertainties in the medical sector, and currency fluctuations given its US market exposure. The company’s path to profitability remains uncertain, hinging on successful sales growth and cost management.

Investors will be watching closely how DorsaVi balances its ambitious US expansion and product innovation against the backdrop of rising costs and ongoing losses.