Epsilon Healthcare Limited has reported a robust recovery in 2025, with revenue climbing 68% to $9.39 million and net losses shrinking by 63%, driven by growth in contract manufacturing and a new pharmacy division.
- Revenue up 68% to $9.39 million in 2025
- Net loss reduced by 63% to $2.05 million
- Strong growth in Contract Development and Manufacturing segment
- Successful launch of Pharmacy services division with $1 million annualised revenue
- Significant cost reductions following voluntary administration exit
Recovery and Revenue Growth
Epsilon Healthcare Limited’s preliminary results for the year ended 31 December 2025 reveal a company on a clear recovery path. Revenue surged 68% to $9.39 million, reflecting a strong rebound in its core Contract Development and Manufacturing (CDMO) operations and the successful launch of a new Pharmacy services division. This growth marks a significant turnaround from the prior year’s challenges and underscores the effectiveness of management’s strategic refocus.
Loss Reduction and Cost Discipline
Despite still reporting a net loss of $2.05 million, this represents a 63% improvement compared to 2024. The company attributes this to improved cost discipline, including the elimination of one-off expenses related to its previous voluntary administration period. Operating expenses fell by over $1.1 million, highlighting a leaner, more sustainable cost base that supports ongoing recovery and future profitability.
Segment Performance and Strategic Diversification
The CDMO segment remains the cornerstone of Epsilon’s operations, with increased utilisation of its Southport manufacturing facility driving revenue growth. Meanwhile, the newly established Pharmacy services division has quickly gained traction, generating annualised revenues exceeding $1 million in its first year. The Telehealth medical practice segment, while stable, saw a slight revenue decline as resources were reallocated to higher-return areas, reflecting a strategic prioritisation of growth opportunities.
Balance Sheet and Cash Flow Improvements
Epsilon’s balance sheet strengthened notably, with total assets rising by $7.4 million, partly due to the recognition of a right-of-use asset from the Southport facility lease and a $2 million promissory note from the Managing Director. Cash flow from operations improved, though the company still reported a net cash outflow, reflecting ongoing investment in growth and operational stabilisation. The improved capital structure and reduced liabilities position Epsilon well for the next phase of expansion.
Outlook and Strategic Positioning
Having emerged from voluntary administration, Epsilon Healthcare is focused on rebuilding client confidence, stabilising operations, and executing its turnaround strategy. The integration of contract manufacturing, telehealth, and pharmacy services creates a diversified healthcare ecosystem with multiple revenue streams. Management’s disciplined approach and renewed commercial momentum suggest the company is poised for sustainable growth and enhanced shareholder value in the years ahead.
Bottom Line?
Epsilon Healthcare’s 2025 results mark a pivotal step in its turnaround, but investors will watch closely as it scales new divisions and sustains cost discipline.
Questions in the middle?
- Can the Pharmacy division maintain its early revenue momentum and contribute to profitability?
- How will Epsilon manage operational risks as it increases utilisation of the Southport manufacturing facility?
- What impact will the ongoing audit process have on the final reported results and investor confidence?