Cyclopharm’s Technegas model starts to show its recurring US revenue

Recurring US sales reach a new quarterly record

Cyclopharm Limited (ASX:CYC) is beginning to show the part of its US strategy that matters most after installation: repeat orders. US Technegas revenue reached A$1.62 million in the September quarter, up 124% from the same period last year and 45% from the June quarter, with 76% of sales coming from consumables ordered by existing sites.

The result lifted US revenue for the first nine months of 2026 to A$3.8 million, already 40% above the A$2.7 million recorded across all of 2025. It also marks a shift in mix. Installation revenue was A$0.32 million in the quarter, while patient consumables contributed A$1.30 million. Cyclopharm says those consumables carry margins of about 95%, although the figures are management estimates and the quarterly revenue data is unaudited. The momentum follows the company’s record half-year revenue, which was driven by a 74% increase in US Technegas sales.

Installed systems and hospital reviews expand

The US revenue-generating installed base rose to 84 systems at 30 September, up from 46 six months earlier. Cyclopharm installed 44 systems in the first nine months of the year, more than the combined total installed in 2024 and 2025. The company also says 110 systems are already built, paid for and held in US inventory, ready for deployment.

Its sales funnel grew after the 29 July update to joint lung-imaging guidance, which described Technegas as “generally preferred when available” and directed a move towards 3D SPECT and SPECT/CT imaging. Cyclopharm’s presentation says the first post-summer US selling period began after Labor Day, with 186 primary sites in committee review at 30 September, up from 109 on 12 August. A further 71 primary sites were in contract review, compared with 44 previously. The earlier US lung imaging guideline endorsement provided the clinical backdrop for that adoption push, but the filing does not establish that the guidelines caused any particular contract or installation.

Revenue grows while cash burn declines

Group revenue for the nine months rose 13.7% to A$25.9 million, from A$22.8 million a year earlier. Cyclopharm held A$9.6 million in cash at 30 September, while average monthly net cash burn fell to A$0.9 million in the September quarter, compared with A$1.3 million in the first half and A$1.8 million in the second half of 2025.

The company attributes the lower burn to rising US revenue, the established Technegas business across other markets and the growing share of high-margin consumables. Group gross margin rose to 56.3% from 53.5% in the first half, according to the presentation. These figures show improving operating indicators, but they do not amount to a profitability forecast: Cyclopharm explicitly provides no earnings or installation guidance, and its market sizes, unit economics and pipeline conversion assumptions remain company estimates.

The conversion test now moves from pipeline to deployment

Cyclopharm counts 1,877 engaged US locations across 1,006 primary sites and affiliated facilities, representing about 36.5% of the 5,139-site market identified by the company. Of those locations, 324 were in committee review, 169 in contract review and 194 covered by signed contracts or installations. The company says primary sites historically convert once they reach contract review, but that assertion is not the same as a guaranteed outcome for the current pipeline.

The immediate test is whether the enlarged funnel turns into installed systems and sustained consumable reorders without absorbing more working capital than the rollout can support. Cyclopharm’s presentation points to further potential in replacing US Xenon-133 systems and in applications beyond pulmonary embolism, including COPD, asthma, surgery and transplant imaging. Those opportunities sit ahead of the reported revenue and remain dependent on hospital procurement, reimbursement and clinical adoption.