Cryosite Limited delivered robust FY26 results with revenue up 18% to $16.7 million and net profit rising 19%, underpinned by a strategic warehouse acquisition that doubled storage capacity and a cool room expansion.
- Revenue grows 18% to $16.7 million
- Net profit after tax up 19% to $2.235 million
- Acquisition of Auburn warehouse doubles storage footprint
- EBITDA margin expands to 26%, up 2 percentage points
- No dividend declared as cash supports growth investments
Financial Performance Surges on Capacity Expansion
Cryosite Limited (ASX:CTE) has reported a strong set of preliminary final results for the year ended 30 June 2026, with revenue climbing 18% to $16.7 million and net profit after tax increasing 19% to $2.235 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 27% to $4.29 million, lifting the EBITDA margin to 26%, a two percentage point improvement on the prior year.
The company attributes this growth to strengthening trading conditions and operational volume increases of 17%, alongside disciplined cost management. Earnings before interest and tax (EBIT) rose 35% to $3.38 million, despite absorbing higher interest costs linked to new debt facilities.
Strategic Auburn Facility Acquisition Doubles Storage Capacity
FY26 marked a transformative year for Cryosite’s physical footprint. In November 2025, the company completed the acquisition of a freehold warehouse at 100-104 Adderley Street West, Auburn, NSW, doubling its storage capacity to over 4,200 square metres. This site, located just 15 minutes from its South Granville headquarters, provides critical dual-site resilience and unlocks new market opportunities including medical device storage, expanded cryogenic capacity, and pallet storage.
The $10.1 million acquisition was funded through a combination of $3.45 million in cash and a $6.65 million secured loan facility with National Australia Bank (NAB), which was refinanced in May 2026 on competitive terms extending to 2030. Approximately $1 million of principal was repaid during the year, leaving $5.65 million outstanding at balance date.
Expansion of Cool Room Capacity at Headquarters
Complementing the Auburn acquisition, Cryosite completed a $390,000 capital expansion of its primary cool room (2°C to 8°C) at Ferndell Street. This extension more than doubled capacity in the company’s most constrained temperature range, enabling it to meet rising client demand without compromising service quality.
Growth Across All Segments with Focus on Ultra-Frozen and Cryogenic
All four operating segments, Ambient, Cold and Frozen; Ultra-Frozen and Cryogenic; and Cord Blood, posted revenue and EBITDA gains. The Ambient, Cold and Frozen segment saw a 22% revenue increase driven by higher volumes and growing commercial pharmaceutical activity beyond clinical trials. Ultra-Frozen and Cryogenic services experienced strong demand from biotech and R&D clients, reflecting global trends in cell and gene therapies and mRNA-based medicines.
Cord Blood storage continues to generate steady cash flows of approximately $0.8 million annually, with legacy prepaid contracts maturing over the next five years, reshaping the segment’s revenue profile.
Cash Flow and Balance Sheet Strength Amid Capital Investment
Operating cash flows rose 37% to $2.82 million, supporting the company’s capital expenditure and debt repayment strategy. Cash on hand at year-end was $2.24 million, down from $5.06 million the prior year, reflecting the Auburn acquisition and principal repayment. The company carries no other debt beyond the NAB facility.
Governance, ESG, and Leadership Developments
Cryosite continues to uphold rigorous corporate governance standards, with a Board comprising Mark Kerr (Non-Executive Chairman), Andrew Kerr (Executive Director), and Scott Thomas (Non-Executive Director). The company was awarded a Gold Medal by EcoVadis for the second consecutive year, recognising excellence in environmental, social, and governance (ESG) performance.
Leadership capability was bolstered with Paul Cohen joining to lead Regulatory Affairs and Quality Assurance, and the introduction of an Employee Option Plan (EOP) designed to align management incentives with shareholder outcomes.
Outlook Hinges on Utilisation of New Capacity
Entering FY27, Cryosite is well positioned with expanded capacity and an increasing client base. Early client discussions for the Adderley Street facility are progressing positively, targeting new market segments and revenue diversification. The company’s ability to convert its enhanced physical footprint into sustainable growth will be a key focus in the coming year.
Notably, the Board resolved not to declare a dividend for FY26, prioritising reinvestment in growth and balance sheet strength.
Bottom Line?
Cryosite’s FY26 results showcase the payoff from strategic capacity investments, but the challenge now lies in translating expanded facilities into sustained client growth and margin improvement.
Questions in the middle?
- How quickly will Cryosite convert its doubled storage capacity into revenue growth?
- What impact will rising interest costs have on future profitability and cash flow?
- Can Cryosite sustain its market position amid increasing competition and regulatory complexity?