Microba Reports 92% Growth in Core Testing Revenue and $7m Cost Savings Target

Strong Core Testing Growth Drives Momentum

Microba Life Sciences (ASX:MAP) closed FY26 with a surge in its core microbiome testing business, reporting a 92% increase in core testing revenue and a 78% rise in test volumes year-on-year. The company’s Q4 core test volumes alone jumped 54% compared to the prior corresponding period, pushing its annualised run rate beyond 25,000 tests. This momentum is underpinned by the Microbiome Explorer test, which sold over 5,300 units in Australia during Q4, a 54% lift versus the prior year.

In the UK, adoption continues to build with test sales up 92% year-on-year, reaching 825 tests in Q4. The number of ordering clinicians in Australia and the UK also grew substantially, reflecting deeper engagement and maturation of key enterprise accounts.

Enterprise Contracts Fuel Australian Growth

Since November 2025, Microba has signed 43 key enterprise accounts across Australian healthcare clinics, which have collectively sold over 5,600 tests, an 87% increase quarter-on-quarter. These accounts represent an ordering potential exceeding 24,000 tests annually. The pipeline is robust, with more than 175 target accounts in Australia, potentially driving over 80,000 tests per year once fully activated.

GI Navigator Launch Set for September 2026

The company is on track to release its new category-defining GI Navigator test in September 2026. This product, developed over several years, leverages Microba’s proprietary Clinical Logic Engine and aims to broaden its addressable market by appealing to a wider segment of medical doctors. Early access sales have already begun, with 35 units sold to leading clinicians in Australia and the UK, delivering positive clinical feedback.

Cost Reduction Program Progressing

Microba is executing a significant cost reduction initiative targeting over $7 million in annualised cash savings, expected to be fully realised in the first half of FY27. The streamlining focuses on functions beyond the core growth engine, utilising AI-driven efficiencies in customer support, finance, marketing, and human resources. This structural cost base reduction supports the company’s goal of achieving whole company cashflow break-even in calendar 2027.

Therapeutics Pipeline and Partnering

On the therapeutics front, Microba continues to leverage its live biotherapeutic product (LBP) assets, including MAP-315, which is nearing Phase 2 readiness. The company’s Boston-based advisors are facilitating an active partnering process, bolstered by a series of positive microbiome therapeutics trial readouts across the sector since late 2025. Notably, a Phase 1 trial manuscript for MAP-315 in ulcerative colitis has been provisionally accepted for publication in Nature Communications, highlighting its potential clinical impact.

Financial Position and Capital Raising

Microba ended the quarter with $7.95 million in cash. It completed a $5 million placement at $0.05 per share during the quarter, with a Share Purchase Plan (SPP) open to raise up to an additional $1 million on the same terms, subject to shareholder approval in late July. The capital raise aims to fund the company’s path to cashflow break-even and support the GI Navigator launch and therapeutics partnering activities.

Total FY26 revenue was $14.78 million, down 6% year-on-year due to the phase-out of discontinued legacy products, but continuing product revenue grew 53% to $12.73 million. Deferred revenue for core testing increased 66% to $1.79 million, providing visibility into FY27 revenue streams. Net cash used in operating activities fell 38% year-on-year, reflecting disciplined cost control alongside revenue growth.