CurveBeam AI Reports 28% Revenue Drop and $18.8 Million Loss in FY2026

Financial Performance and Capital Position

CurveBeam AI Limited (ASX:CVB) reported a revenue decline of 28% to $8.67 million for the year ended 30 June 2026, down from $12.1 million in FY2025. This drop was accompanied by a 12% increase in net loss after tax, which widened to $18.83 million from $16.84 million the previous year. The company’s operating loss before interest, tax, depreciation and amortisation also increased by $2.36 million to $13.5 million.

Cash outflows from operations grew to $13 million, reflecting ongoing investment in strategic initiatives and operational costs. Meanwhile, net tangible assets per share declined to a negative 1.62 cents, from negative 0.84 cents in the prior year. CurveBeam ended FY2026 with net assets of $27.78 million, down from $35.11 million at June 2025.

Subsequent to year-end, CurveBeam announced a placement and share purchase plan (SPP) targeting $6 to $7 million before costs. The institutional placement portion of $5 million at 2 cents per share received shareholder approval in August 2026, with $2.4 million already raised through the issue of 120 million shares. The remaining SPP results are pending.

Strategic Partnership and Commercial Progress in China

A key highlight for CurveBeam in FY2026 was the advancement of its strategic partnership with Shandong WeiYing Intelligent Medical Technology Co. (WEGO Orthopaedics) in China. This alliance covers sales, marketing, distribution, manufacturing, regulatory approvals, and intellectual property rights for CurveBeam’s weight-bearing CT (WBCT) and AI technologies in the Chinese market.

During the year, the company received the first milestone payment of A$4 million from WEGO following regulatory and investment approvals. The partnership foresees up to A$4 million in milestone payments linked to regulatory and commercial achievements, plus potential purchases of HiRiseTM systems valued at approximately A$22 million for the Chinese market.

CurveBeam is progressing product localisation, manufacturing capability, and regulatory submissions, targeting clearance from China’s National Medical Products Administration (NMPA) in the first half of FY2027. This clearance would trigger an additional A$1 million milestone payment and is expected to lead to initial orders for U.S.-manufactured HiRiseTM systems for distribution in China.

HiRiseTM Technology Milestones and Robotic Surgery Integration

The company marked a significant technical milestone with HiRiseTM, its advanced weight-bearing CT platform. For the first time, HiRiseTM met the stringent movement, landmarking, and segmentation requirements necessary for robotic cut guide processing in orthopaedic surgery. Approximately six patients have been successfully processed through initial robotic-assisted total knee replacement workflows, with a broader study of 25 patients underway. A subsequent study focusing on total hip replacement is planned.

HiRiseTM’s validation with multiple leading robotic surgery platforms; including one outside its existing Stryker relationship; demonstrates its potential to expand clinical applications and embed advanced imaging deeper into orthopaedic workflows. CurveBeam is also exploring Device-as-a-Service (DaaS) commercial models to reduce upfront capital costs for customers and create recurring revenue streams.

Operational Challenges and Executive Remuneration

FY2026 was a challenging year operationally, with gross margins squeezed by a $3.43 million revenue decline and increased warranty and obsolescence provisions. Consulting fees and product registration costs rose, largely driven by WEGO partnership activities and new market entries. These factors contributed to the widened operating loss despite cost reductions in human resources following prior restructuring.

Executive remuneration reflected these challenges. No short-term incentive (STI) awards were granted to the CEO or COO despite partial achievement of KPIs, reflecting the Board’s cautious approach amid ongoing financial pressures. The CFO received a 55% STI award settled in equity. Base salaries for key management remained frozen at pre-IPO levels, with the President US voluntarily forfeiting 50% of his salary during FY2026 and continuing this into FY2027 pending improved company performance.

Going Concern and Outlook

The company’s financial statements were prepared on a going concern basis, but with material uncertainty disclosed. CurveBeam’s ability to continue operating depends heavily on achieving regulatory clearance for HiRiseTM in China, successfully commercialising through the WEGO partnership, and completing its robotic surgery validation studies. The company also needs to manage costs prudently and secure additional funding as required.

Management and the Board remain confident that regulatory milestones will be met and that the ongoing capital raise will provide sufficient runway. However, the timing and realisation of milestone payments and commercial orders remain uncertain. The company’s strategic focus on China and robotic surgery integration could unlock significant growth opportunities if executed successfully.

Investors will be watching progress on the NMPA clearance, milestone payments from WEGO, the rollout of HiRiseTM in robotic workflows, and the completion of the capital raise announced post-year-end. These catalysts will be critical in determining CurveBeam’s path toward sustainable revenue growth and improved financial performance.