Hydrix Posts 7% Revenue Growth and $3.35M Sales in Q1 FY25
Hydrix Limited reports a robust quarter with $3.35 million in sales, a 7% revenue increase, and a strong international client base, while advancing US market ventures.
- Second consecutive quarter of revenue growth
- Sales of $3.35 million, 80% from international clients
- $35 million potential future project revenue pipeline
- Operating loss improved by 25% to $0.57 million
- Gyder Surgical nears first US surgical cases, raising capital
Strong Sales Momentum
Hydrix Limited (ASX, HYD) has delivered a solid trading update for the September 2025 quarter, marking its second consecutive quarter of revenue growth. The company reported sales of $3.35 million, with a significant 80% derived from international markets, including new clients in the USA and Europe. This performance reflects Hydrix Services’ expanding footprint in cardiac and medtech sectors, alongside Australian defence and industrial clients.
Revenues rose 7% from the prior quarter to $2.52 million, underscoring the company’s ability to convert market activities into tangible sales. With 15 active clients currently engaged, Hydrix boasts a substantial pipeline exceeding $35 million in potential future project revenue, predominantly from international sources. This backlog provides a promising runway for sustained growth over the coming years.
Operational Efficiency and Financial Position
Despite reporting an operating loss of $0.57 million for the quarter, Hydrix improved its loss by 25% compared to the previous quarter’s $0.76 million. This improvement signals better cost management and operational leverage as revenues increase. Cash on hand stood at $0.3 million at quarter-end, bolstered by a $2.5 million Letter of Comfort from two major shareholders, providing a financial buffer amid tight liquidity conditions.
The company’s financing facilities include a mix of unsecured loans and convertible notes from related parties, with a total drawn amount of approximately $5.3 million. While Hydrix currently has just over one and a half quarters of funding available, management is confident in incremental cash flow improvements driven by new project commencements and working capital optimisation.
Strategic Ventures and Market Expansion
Hydrix’s Ventures arm is advancing its portfolio, with Gyder Surgical nearing first-in-human surgical cases in the USA. This milestone is critical for the company’s US market expansion strategy. Gyder Surgical has previously conducted cases in Australia and India and is now undertaking a capital raise to support its growth ambitions in the lucrative American medtech market.
Meanwhile, Hydrix Medical is progressing sales opportunities for its remote cardiac monitoring software, a product aligned with the growing demand for telehealth and digital health solutions. These developments highlight Hydrix’s multi-pronged approach to innovation and market penetration across its Services, Ventures, and Medical segments.
Outlook and Board Confidence
Executive Chairman Gavin Coote expressed optimism about the company’s trajectory, noting the healthy revenue pipeline and multiple growth opportunities. The Board remains focused on unlocking shareholder value through expanding client engagements and strategic investments. However, the company acknowledges the need to carefully manage its cash position and capital structure as it scales operations.
Bottom Line?
Hydrix’s growth momentum and strategic US ventures set the stage for a pivotal year ahead, but cash flow management remains critical.
Questions in the middle?
- How will Hydrix convert its $35 million pipeline into sustained revenue?
- What impact will Gyder Surgical’s US market entry have on overall group performance?
- Will Hydrix pursue further capital raises to strengthen its liquidity position?
