CONNEQT Health Posts 40% Revenue Growth, Narrows Loss by 14% in H1 FY26
CONNEQT Health reported a 40% revenue increase to $2.28 million for the half-year ending December 2025, driven by strong sales of its CONNEQT Pulse device and early subscription uptake. Despite narrowing its net loss by 14%, the company continues to navigate operational restructuring and funding challenges as it pivots towards a recurring revenue model.
- 40% revenue growth to $2.28 million driven by CONNEQT Pulse sales
- Net loss narrowed 14% to $5.99 million despite higher marketing costs
- Transition to subscription and usage-based enterprise revenue models
- $3.1 million institutional placement and $3 million related party loans raised
- Investment in inHealth Medical Services increased to 28.05%
Strong Sales Momentum and Revenue Growth
CONNEQT Health Limited (ASX: CQT) has delivered a notable 40% increase in revenue to $2.28 million for the half-year ended 31 December 2025, propelled primarily by accelerating sales of its flagship CONNEQT Pulse device. The company reported more than 200% quarter-on-quarter growth in Pulse sales during the December quarter, surpassing expectations set at its November AGM. This surge reflects strong consumer demand and effective marketing strategies, including a shift towards conversion-focused campaigns and enhanced customer engagement.
Narrowing Losses Amid Operational Restructuring
Despite the revenue uplift, CONNEQT Health recorded a net loss of $5.99 million, a 14% improvement from the previous corresponding period's $6.97 million loss. The reduction in losses was supported by operational efficiencies, including centralising engineering and development teams in Sydney and cutting product development costs post-commercialisation. However, marketing and sales expenses surged by 444%, reflecting significant investment in customer acquisition for the Pulse device.
Strategic Pivot to Recurring Revenue Models
The company is actively transitioning from one-off device sales to a recurring revenue framework. Early adoption of the Care+ subscription service within the CONNEQT App has shown promising attachment and retention rates, underpinning this strategic shift. Concurrently, CONNEQT converted 100% of its initial clinical pilots into multi-year, consumption-based enterprise contracts, marking a structural move away from upfront capital equipment sales toward usage-based pricing aligned with clinical utilisation.
Capital Raising and Balance Sheet Developments
To support its growth trajectory, CONNEQT completed a $3.1 million institutional placement during the period, with cornerstone shareholder C2 Ventures Pty Ltd contributing $1.2 million subject to shareholder approval. Additionally, the company secured $3 million in unsecured loans from C2 Ventures, structured as convertible notes pending shareholder consent at an upcoming Extraordinary General Meeting. These capital injections have bolstered the balance sheet, although the group remains in a net liability position of $2.46 million as at 31 December 2025.
Investment in inHealth Medical Services and Market Position
CONNEQT increased its stake in inHealth Medical Services from 7.64% to 28.05%, recognising this as an investment in associate. This move aligns with CONNEQT’s broader strategy to expand its footprint in vascular health technology and clinical research markets. The company continues to support clinical trials and pharmaceutical sector engagements, reinforcing its position as a trusted partner in decentralised cardiovascular endpoints.
Looking Ahead
While CONNEQT Health faces material uncertainty regarding its going concern status due to ongoing losses and net liabilities, management remains confident in the company’s ability to execute its commercial strategy. The focus will remain on scaling recurring revenue streams, improving unit economics, and maintaining disciplined cost management as the company builds a scalable, data-driven vascular health platform.
Bottom Line?
CONNEQT’s pivot to recurring revenue models and strengthened capital position set the stage for potential profitability, but execution risks remain.
Questions in the middle?
- Will the upcoming shareholder approval for convertible note conversion secure long-term funding stability?
- How quickly can subscription and enterprise usage-based revenues scale to offset ongoing losses?
- What impact will competitive pressures and healthcare market consolidation have on CONNEQT’s pricing power and adoption?
