Executive Summary

Q3 FY2025 delivered record gross margins (76.4%), revenue ($3.60M, +21.7% YoY, +11% QoQ), and improved operating cash flow, marking the second consecutive quarter of positive operating cash flow before interest, dividends, and amortization .
SG&A fell to $2.38M (−20.5% YoY) while total operating expenses were $2.9M; net loss narrowed to $1.32M (−56.7% YoY) and diluted EPS improved to −$0.054 .
Technology Fees rose 21.8% YoY to $3.39M and comprised 94% of revenue; flat-fee SaaS represented 67% of Tech Fees as the model mix continued shifting toward higher-quality recurring revenue .
Wall Street consensus estimates from S&P Global were unavailable at time of request; relative performance versus estimates cannot be assessed in this report. Estimates will be updated when accessible.
Catalysts: continued margin expansion from AI-enabled workflow efficiencies, recurring revenue mix shift, GPO channel pilots, and sustained operating cash flow momentum toward EBITDA breakeven and profitability .

What Went Well and What Went Wrong

What Went Well

Record gross margin of 76.4% (+350 bps YoY) driven by improved Technology Fee margins and AI-enabled workflow optimization; management expects continued strong blended gross margins going forward .
Recurring revenue strength: Technology Fees grew 21.8% YoY to ~$3.39M and comprised 94% of total revenue; flat-fee SaaS reached 67% of Tech Fees, enhancing revenue predictability .
Operating discipline: SG&A fell to $2.38M (−20.5% YoY), total OpEx $2.9M, with positive operating cash flow (−$89K net cash used in ops; +115% QoQ FCF improvement), and adjusted EBITDA improved to −$110K, the closest to breakeven in company history .

Quote: “Our margins are second to none in the space… we expect our growth and margins to stay… and grow in line with top line revenue in a way that maximizes cash flows and profitability.” — CEO Waqaas Al‑Siddiq .

What Went Wrong

Profitability not yet achieved at the bottom line: net loss of $1.32M and EPS −$0.054, though improved materially YoY .
Flat-fee share within Tech Fees dipped sequentially to 67% (from 73% in Q2), reflecting ongoing transition dynamics as larger pilots ramp through GPO and hospital networks .
Estimates comparison unavailable: SPGI consensus was not retrievable at time of request; inability to benchmark potential beat/miss versus Street limits near-term narrative clarity for traders.

Financial Results

Metric	Q3 FY2024	Q2 FY2025	Q3 FY2025
Revenue ($USD Millions)	$2.97	$3.30	$3.60
Gross Profit ($USD Millions)	$2.2	$2.5	$2.8
Gross Margin (%)	72.9%	75.3%	76.4%
Net Loss ($USD Millions)	$(3.05)	$(1.65)	$(1.32)
Diluted EPS ($USD)	−$0.339	−$0.073	−$0.054

Segment and mix

Segment / KPI	Q3 FY2024	Q2 FY2025	Q3 FY2025
Technology Fees ($USD Millions)	$2.78	$3.06	$3.39
Tech Fees as % of Revenue (%)	93%	94%	94%
Pure SaaS as % of Tech Fees (%)	N/D	73%	67%
Device Sales ($USD Millions)	$0.193	N/D	N/D (positive margin commentary)

Operating metrics and cash flow

KPI	Q3 FY2024	Q2 FY2025	Q3 FY2025
SG&A ($USD Millions)	N/D (−31% YoY commentary)	$2.25	$2.38
Total Operating Expenses ($USD Millions)	N/D	$2.8	$2.9
Net Cash Used in Operating Activities ($USD Millions)	N/D	$(0.397)	$(0.089)
Adjusted EBITDA ($USD Millions)	N/D	$(0.249)	$(0.110)
Coverage: Centers / States	Hundreds / 35	Hundreds / 35	Hundreds / 35

Notes: Minor rounding difference in prior-year gross margin (72.9% vs 73.0%) between press release and transcript; numbers here reflect the 8‑K exhibit .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (Directional)	Q3 FY2025	Pre-announced $3.6M (+22% YoY; +11% QoQ)	Reported $3.6M (+21.7% YoY)	Met pre-announcement
Operating Cash Flow (basis before interest/dividends/amortization)	Q3 FY2025 and near term	Positive at end of Q2; continued improvement expected	Positive for second consecutive quarter; improvements expected to continue	Maintained/improving
Gross Margins (Directional)	Near term	Continued improvement anticipated	Record 76.4%; strong blended margins anticipated	Raised qualitatively
Strategic Initiatives (AI, GPO, verticals)	2025–2026	Continue pilots, enter larger accounts	Expand verticals (platform tech, partnerships), file FDA for AI clinical model by mid‑next year; opportunistic international expansion	Expanded scope

No numerical guidance provided for revenue ranges, margins, OpEx, OI&E, tax rate, or dividends beyond directional commentary .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 FY2024, Q2 FY2025)	Current Period (Q3 FY2025)	Trend
AI/Technology initiatives	Launched Cardiac AI cloud; aiming for FDA filing later in year; focus on early detection and operational scalability	Expanded Cardiac AI cloud; published research; plan FDA filing by mid‑next year; expect margin gains post-clearance	Accelerating, nearer regulatory milestone
Recurring revenue/flat-fee mix	Tech Fees 93% of revenue; device sales feeding subscription growth	Tech Fees 94% of revenue; flat-fee 67% of Tech Fees (vs 73% prior quarter)	Recurring strong; flat-fee % moderated QoQ
Margins and efficiency	Gross margin 73% (record); retooling COGS; automation	Record 76.4% margin; AI workflow efficiencies; device margins turned positive	Improving structurally
GPO/hospital channels	Building relationships; expect traction late 2024+	Pilots with top GPOs; access >90% of hospitals; pursuing larger accounts	Gaining momentum
Cash flow/EBITDA	Q2: adjusted EBITDA −$249K; positive adjusted EBITDA in Sept; positive FCF milestone	Adjusted EBITDA −$110K; operating cash flow improved; FCF +115% QoQ	Approaching breakeven
International	Approvals (e.g., Canada); early distribution	Opportunistic expansion; focus US; target Germany/other if partners	Opportunistic, US‑first

Management Commentary

Strategic focus: “Our strategic initiatives, technological advancements and operational efficiencies have positioned Biotricity for sustained growth and profitability.” — CEO Waqaas Al‑Siddiq .
Revenue mix and margin drivers: “Gross profit percentage improved to 76.4%… tied to expansion of recurring Technology Fee revenue, efficiencies gained through our proprietary AI, and improvements in our monitoring cost structure.” — CFO John Ayanoglou .
Cash flow trajectory: “Net cash used in operating activities was −$89,000… Free cash flow grew by 115% QoQ… bringing us closer to positive bottom line profitability.” — CFO John Ayanoglou .
Device economics: “Device sales… historically a loss leader… are now enjoying positive margins. That makes for record gross margins this quarter.” — CFO John Ayanoglou .
Competitive posture: “In the cardiac monitoring landscape… we’re on the cusp of profitability… positioned… with the most efficient solution that can help drive and change the market.” — CEO Waqaas Al‑Siddiq .

Q&A Highlights

Sustainability of cash flow: Management believes operating cash flow improvements can be maintained while investing prudently to pursue larger, strategic opportunities; margin expansion supports this view .
Vertical expansion: Not “new areas,” but initiatives (remote monitoring, implantable management, platform tech) now coming to fruition, plus partnerships targeting comorbidities in pulmonology/neurology channels .
International strategy: US-first focus; international expansion is opportunistic via partners, with Canada already cleared and Germany among priority markets if aligned opportunities arise .
Tone: Confident, emphasizing momentum in margins, cash flows, and commercial pipeline into hospital networks via GPOs .

Estimates Context

S&P Global Wall Street consensus for revenue and EPS was unavailable at time of request due to data access constraints; we could not compute beat/miss versus Street for Q3 FY2025. We will update when SPGI data becomes accessible.

Metric	Q3 FY2025 Consensus	Q2 FY2025 Consensus
Revenue ($USD Millions)	N/A	N/A
Primary EPS ($USD)	N/A	N/A

Key Takeaways for Investors

Recurring revenue engine and AI-enabled efficiencies are driving structurally higher margins (76.4%) and improving cash flow, advancing toward EBITDA breakeven and profitability .
The mix continues to tilt toward subscription/flat-fee SaaS within Technology Fees, strengthening revenue quality despite near-term fluctuations in the flat-fee share .
Device margins have turned positive, supporting blended margin expansion while seeding future Technology Fee growth, a key lever for sustainable profitability .
GPO and hospital network pilots position Biotricity for larger, longer-cycle contracts; commercial execution here is the medium-term growth swing factor .
Operating discipline remains intact (SG&A down, OpEx managed), with two consecutive quarters of positive operating cash flow before financing costs—an actionable signal for de‑risking the path to profitability .
Regulatory/AI milestones (planned FDA filing by mid‑next year) are potential catalysts for further margin gains and product differentiation .
Near-term trading implication: Without Street estimates, the narrative hinges on margin prints and cash flow continuity; watch for confirmations on SaaS mix, GPO conversions, and adjusted EBITDA trend in subsequent quarters.

References: 8‑K and press release for Q3 FY2025 ; Q3 FY2025 earnings call transcript ; Q2 FY2025 press release/8‑K/transcript and FCF release ; Q3 FY2024 transcript .

BIOTRICITY INC. (BTCY)·Q3 2025 Earnings Summary