Pacific Edge Limited

Pacific Edge reported operating revenue of $5.9 million in the first half, down from $10.9 million in the second half of FY25. The company reported a net loss of $19.1 million and ending cash of $22.1 million, and Grant Gibson said operating cash flows were $19 million versus $12.3 million in the second half of FY25. Global commercial test volumes were 13,191, down 10%, and APAC contributed 15% of revenue, up from 8% in the prior half. Management said Medicare coverage was lost on April 24, so tests performed after that date were not accrued as revenue; they expect some revenue recognition to resume only if ALJ appeals succeed, which they said can take 6 to 9 months for Medicare and longer for commercial payers. For the forward view, management pointed to a CAC on February 19, 2026, said it expects a draft policy roughly 3 months after that if the scope stays narrow, and framed re-coverage timing as management-estimated and potentially stretching into Q3-Q4 2026, with some scenarios as late as Q2-Q3 2027.

Peter Meintjes struck a strongly optimistic tone despite the weak numbers, repeatedly calling Pacific Edge’s position its strongest strategic point to date. He said the key near-term catalyst is the Novitas CAC, which he believes could lead from a non-coverage determination to clearer coverage language for Triage and Triage Plus. He also emphasized the clinical evidence base, including STRATA, DRIVE, Kaiser, and guideline inclusion, as the foundation for policy change and future growth.

Grant Gibson focused on the financial impact of Medicare non-coverage and the company’s efforts to preserve cash. He said revenue fell to $5.9 million from $10.9 million in 2H FY25, operating expenses were down 5.9%, lab costs fell about 10%, research costs were down 4.5%, sales and marketing fell 9%, and G&A rose 3.4% due to late legal fees. He also noted cash of $22.1 million at the end of the half and a $20.7 million capital raise in August 2025, while saying the company is considering capital initiatives and/or further burn reduction.

Analysts pressed management on whether burn reduction had already started, the assumptions behind management’s re-coverage timing, and how confident it is that the CAC will lead to Medicare re-coverage. Management said it has made modest burn reductions but does not expect to halve the cost base, and that it must keep a meaningful U.S. presence for re-coverage. On the CAC, Peter said optimism comes from the guideline support, clinical evidence, and the fact that Novitas is moving from a non-coverage position toward a policy decision; he also acknowledged there is still a non-zero chance no policy change results. Questions also covered Triage Plus pricing under PAMA, where Peter said the current $1,328 Medicare price is likely to remain in place for a number of years before any PAMA reset, and that future pricing could even rise depending on private payer averages.