Cardiex Faces Rising Losses and Revenue Drop Despite Cost Cuts and Capital Raises
Cardiex Limited’s FY2025 results reveal a sharp 67% revenue decline driven by the prior year’s one-off clinical trial payment, while net losses nearly doubled despite ongoing cost reduction efforts and significant capital raises.
- 67% decline in revenue to $3.55 million, excluding one-off trial revenue revenue up 10%
- Net loss nearly doubled to $13.23 million due to lower revenue
- Cost-cutting initiatives reduced expenses in second half of FY2025
- Raised over $14.7 million through placements, entitlements, and debt conversion
- Ongoing negotiations over convertible note with inHealth Medical Services
Revenue Decline Driven by One-Off Clinical Trial Payment
Cardiex Limited’s financial results for the year ended 30 June 2025 highlight a significant 67% drop in revenue to $3.55 million, compared to $10.9 million in the previous year. This steep decline largely reflects the absence of a one-off $7.67 million payment received in FY2024 upon early completion of the multi-year Clinichain clinical trial. Excluding this exceptional item, the company actually saw a 10% increase in revenue, signaling some underlying growth in its core business.
Net Loss Nearly Doubles Despite Cost Reduction Efforts
Despite efforts to streamline operations, Cardiex’s net loss attributable to members widened sharply by 95% to $13.23 million. The company’s total expenses for the year were $19.5 million, with a notable reduction in the second half reflecting cost-cutting initiatives targeting staff and product development. Marketing and sales expenses rose by 79%, driven primarily by the launch and promotion of the new Pulse device, while product development costs fell by 11%, with further reductions expected in FY2026.
Balance Sheet Strengthened Through Capital Raises and Debt Conversions
Cardiex improved its financial position during FY2025, increasing current assets by 17% and reducing current liabilities. Cash and cash equivalents surged by 405% to $2.43 million, supported by capital raises totaling over $14.7 million through placements, an entitlement offer, and conversion of debt from a funding commitment agreement with C2 Ventures. The company also partially repaid a promissory note with Wilson Sonsini Goodrich & Rosati and renegotiated repayment terms extending into 2026.
Ongoing Negotiations and Operational Highlights
Cardiex continues to negotiate the conversion terms of a significant convertible note held with inHealth Medical Services, with no formal agreement yet signed. The note’s valuation remains subject to adjustment pending final terms. Operationally, the company secured a RADx prize award, boosting other income by 25%, and launched the Pulse device, which contributed to increased marketing expenses. Inventory provisions were recognized for slow-moving stock related to the Xcel device, although demand for its updated version is anticipated.
Cash Flow and Outlook
Operating cash outflows increased to nearly $11 million, reflecting lower customer receipts and ongoing investment in the business. Investing cash outflows decreased, while financing activities provided $12.9 million in cash inflows. No dividends were declared during the year. Looking ahead, Cardiex expects further expense reductions in FY2026 as cost-cutting measures take fuller effect, while the commercial performance of the Pulse device and resolution of the inHealth convertible note remain key factors to watch.
Bottom Line?
Cardiex’s FY2025 results underscore the challenges of transitioning from one-off clinical trial revenues to sustainable growth, with cost discipline and capital management now critical to its path forward.
Questions in the middle?
- How will the Pulse device perform commercially in FY2026 and beyond?
- What are the final terms and timing for the inHealth Medical Services convertible note conversion?
- Can Cardiex sustain revenue growth while continuing to reduce operating expenses?
