BIOTRICITY INC. (BTCY)·Q2 2026 Earnings Summary

Executive Summary

• Q2 FY26 revenue was $3.90M, up 19.0% YoY, with gross margin expanding 660 bps to 81.9%; net loss narrowed to $0.77M (-$0.03 EPS), reflecting sustained operational efficiency and AI-driven automation benefits .
• Recurring Technology Fees reached $3.50M, 88.7% of revenue, underscoring the TaaS model’s durability; management highlighted Biocore Pro adoption and large-scale pilots across leading hospital networks .
• The company achieved a second consecutive quarter of positive EBITDA (Q2 FY26: ~$0.373M) and highlighted an expected FDA filing for Biocore Pro 2 by end of Q1 next year, supporting the profitability narrative .
• Stock reaction: shares rose approximately 7.89% post-release, catalyzed by YoY growth, margin expansion, and continued EBITDA positivity .

What Went Well and What Went Wrong

What Went Well

• Strong top-line and margin execution: revenue +19.0% YoY to $3.90M; gross margin 81.9% (+660 bps YoY), driven by expansion of recurring technology fees and AI-enabled operational automation .
• TaaS revenue mix resilience: Recurring Technology Fees were $3.50M (88.7% of revenue), validating the subscription-based model and underpinning scalability .
• Strategic progress: “This quarter demonstrates the scalability and strength of our model as we continue to sharpen operational efficiency through proprietary AI-driven automation to maintain margins and accelerate growth” — Dr. Waqaas Al‑Siddiq (Founder & CEO) .

What Went Wrong

• GAAP profitability not yet achieved: net loss remained ($0.77M), albeit materially improved YoY; EPS held at a loss of ($0.03) .
• Limited estimate transparency: S&P Global Wall Street consensus for Q2 FY26 was unavailable, constraining beat/miss analysis and near-term recalibration of expectations [values retrieved from S&P Global unavailable].
• Slight sequential earnings softness: net loss modestly widened vs Q1 FY26 ($0.75M) despite gross margin improvement, suggesting incremental spending tied to growth initiatives .

Financial Results

Quarterly Financials vs Prior Periods

Note: Q2 FY26 press release text references “three months ended June 30, 2025” for gross margin but context and all other details align to Q2 ended September 30, 2025; margin metric treated as Q2 FY26 .

Year-over-Year Comparison (Q2 FY25 vs Q2 FY26)

Segment/KPI Composition (Q2 FY26)

Guidance Changes

Management did not issue quantitative guidance ranges in Q1 or Q2 FY26 materials reviewed .

Earnings Call Themes & Trends

Management Commentary

• “This quarter demonstrates the scalability and strength of our model as we continue to sharpen operational efficiency through proprietary AI-driven automation to maintain margins and accelerate growth.” — Dr. Waqaas Al‑Siddiq, Founder & CEO .
• Management highlighted rapid adoption of the next‑gen cardiac monitoring device Biocore Pro and large-scale pilots across leading hospital networks, aiming to scale technology and impact internationally .
• Emphasis on diversification into adjacent fields (sleep and pulmonology) to build a comprehensive diagnostic suite and expand connected healthcare leadership .

Q&A Highlights

• Profitability pathway: Management underscored second consecutive positive EBITDA and operational efficiencies driving sustained margin improvements, reinforcing progress toward profitability .
• Regulatory timeline: Indicated an expected FDA submission for Biocore Pro 2 by end of Q1 next year, suggesting near-term catalysts in product portfolio .
• Commercial expansion: Discussion of strategic partnerships (including VA and home care groups) and hospital network pilots to accelerate adoption .
• Tone: Confident on scalability via AI automation and recurring TaaS model, consistent with prior quarters’ emphasis on operational discipline and channel expansion .

Estimates Context

• S&P Global Wall Street consensus estimates for Q2 FY26 were unavailable for BTCY; as such, formal beat/miss analysis versus Street is not feasible (coverage limitations typical for OTC tickers). Values retrieved from S&P Global.
• With absent consensus, investor focus should center on internal trajectory: YoY revenue growth, margin expansion, and continued EBITDA positivity .

Key Takeaways for Investors

• Revenue growth and margin expansion are durable, anchored by recurring TaaS fees (88.7% of Q2 revenue) and AI-enabled operational efficiencies — supports the scalability thesis .
• Two consecutive quarters of positive EBITDA with continued margin gains signal operational inflection, though GAAP net income remains negative — monitor cost discipline vs. growth investments .
• Commercial catalysts: Biocore Pro adoption, hospital pilots, GPO access to ~90% of US hospitals, and expanding consumer/telehealth channels (Bioheart via FSA/HSA) — near/mid-term growth drivers .
• Regulatory milestones: Biocore Pro 2 FDA filing targeted by end of Q1 next year — execution on submission and clearance could be a stock catalyst .
• International expansion gaining momentum (Canada, Saudi Arabia, Argentina approvals progress) — diversifies revenue and strengthens global footprint .
• Trading setup: With Street estimates unavailable, price reactions may hinge on incremental operating metrics (EBITDA trend, margin sustainment) and pipeline/regulatory news flow; earnings releases have elicited positive stock moves (e.g., +7.89%) .
• Medium-term thesis: A defensible TaaS model with high retention, data scale (>2 trillion beats referenced historically), and deepening partnerships positions BTCY to translate margin strength into eventual GAAP profitability — watch for sustained EBITDA build, opex control, and regulatory clearances .