Atomo Diagnostics Grows Revenue 41% While Narrowing Losses Amid Leadership Shift

• 41% revenue increase to AUD 5.33 million
• Loss after tax down 29% to AUD 3.51 million
• Strong growth in HIV self-testing and point-of-care technology
• Leadership change with founder John Kelly stepping down
• Capital raise of AUD 4.06 million supports expansion

Revenue Surge and Margin Pressure

Atomo Diagnostics Limited (ASX:AT1) reported a 41% jump in revenue to AUD 5.33 million for the year ended 30 June 2026, driven primarily by robust sales of HIV self-testing kits and point-of-care (POC) technologies. Despite this top-line growth, gross margins contracted sharply from 51% to 35%, reflecting the absence of one-off licence fees that buoyed the prior year.

The company’s HIV-related POC test sales rose 21% year-on-year, supported by expanding government-funded self-testing programs across Europe and low- and middle-income countries. Meanwhile, orders for POC technology more than doubled, largely due to a strategic partnership with Lumos Diagnostics Limited (ASX:LDX), which secured a six-year US distribution deal for the FebriDx test. This contract, valued at up to US$316 million, hinges on Atomo’s patented Pascal cassette, resulting in a nine-fold increase in orders from Lumos during the year.

Improved Cost Management and Capital Raising

Atomo trimmed operating expenses by 9% year-on-year, saving AUD 781,233 through sustained overhead reductions and efficiency measures. This leaner cost base contributed to a 29% reduction in the company’s loss after tax, which narrowed to AUD 3.51 million. The company ended the period with AUD 3.71 million in cash and no debt.

Capital raising was a highlight, with Atomo netting AUD 4.06 million after transaction costs through placements and share purchase plans. These funds are earmarked for broadening the product portfolio, boosting commercial activities, and reducing cost of goods sold to improve margins further.

Leadership Transition Reflects Strategic Shift

The period saw a significant leadership change with founder and Managing Director John Kelly stepping down in August 2026 after 15 years at the helm. The board appointed US-based Executive Director Cheri Walker as Interim CEO, signalling a pivot towards commercial growth in key markets including the US and Europe. Walker brings over 25 years of life sciences and diagnostics experience, positioning Atomo to capitalise on its expanding international footprint.

Outlook Focused on Global Expansion and Margin Improvement

Looking ahead, Atomo plans to continue scaling HIV self-testing sales in developed markets and expand its POC cassette supply business, particularly in the US where regulatory approvals open new channels. The company is also growing its development services division, delivering custom solutions to partners leveraging Atomo’s technology.

Efforts to improve margins include bringing proprietary blister manufacturing in-house and qualifying new tooling to reduce production costs. The board remains vigilant on regulatory compliance, supply chain integrity, and operational risks across its global operations.

With a solid cash position and no debt, Atomo is well placed to pursue its growth strategy while maintaining capital discipline. However, the company’s future financial performance will depend on successful execution of its commercial plans and navigating regulatory landscapes in multiple jurisdictions.

Bottom Line?

Atomo Diagnostics is navigating a pivotal growth phase with stronger revenues, leaner costs, and a leadership refresh, but margin recovery and execution risk remain key to turning losses into profits.

Questions in the middle?

• How will Atomo leverage the Lumos partnership to sustain US market growth beyond initial contract volumes?
• Can the company successfully improve margins while expanding its product and technology portfolio?
• What is the timeline and criteria for appointing a permanent CEO following the interim leadership phase?