Pacific Edge Limited

Pacific Edge reported operating revenue of $5.9 million in 1H26, down from $10.9 million in 2H25. The company reported a net loss of $19.1 million and ended the half with $22.1 million of cash; it also completed a $20.7 million capital raise in August 2025. Global commercial test volumes were 13,191, down 10% versus the prior half, and APAC contributed 15% of revenue versus 8% in 2H25. Management said full U.S. Medicare revenue went to basically zero after 24 April due to non-coverage, with denied tests awaiting ALJ appeals that could take 6 to 9 months. Looking ahead, management did not give a formal numeric revenue or EPS guide, but said it expects second-half burn to be lower than the first half, does not expect costs to be halved, and continues to consider capital initiatives and/or expense reduction while awaiting re-coverage.

Peter Meintjes struck a defiant but cautious tone, saying the quarter was below expectations but that Pacific Edge is in its strongest strategic position. He emphasized the February 2026 Novitas CAC as a major catalyst, arguing that guideline support, new evidence, and the narrow scope of the committee make a positive policy change more likely. He also framed Triage Plus and Surveillance Plus as longer-term value drivers, with Triage Plus’s $1,328 price and broader validated use case improving the economics meaningfully versus the prior $760 test.

Grant Gibson focused on the financial impact of U.S. Medicare non-coverage, saying operating revenue fell to $5.9 million from $10.9 million in the prior half because tests after 24 April were not accrued. He noted operating cash outflow was $19 million versus $12.3 million in the second half of FY25, cash ended at $22.1 million, and the company raised $20.7 million in August 2025. On costs, he said the cost base was reduced by 5.9%, lab costs fell about 10%, research costs fell 4.5%, sales and marketing fell 9%, and G&A rose 3.4% due to late legal fees tied to the Medicare appeal effort.

Analysts pressed management on how much burn had been reduced and whether the second-half cost base could be cut sharply; management said reductions have been modest, the second half should have a lower burn rate, and they do not expect costs to be cut in half because the company wants to preserve a U.S. presence for re-coverage. Questions also focused on the CAC and the timing of possible re-coverage, with management saying Novitas controls the process, a draft policy could come about three months after the CAC in a favorable scenario, and a final decision could still take longer. Analysts additionally asked about the apparent collapse in U.S. reimbursement; management clarified Medicare reimbursement went to basically zero after 24 April, while other reimbursement remained reasonably strong and is shifting more toward commercial payers.