Sign in

You're signed outSign in or to get full access.

IB

INTELLIGENT BIO SOLUTIONS INC. (INBS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY2025 (three months ended Dec 31, 2024) revenue declined 20.5% YoY to $0.61M and 30.3% QoQ vs Q1, but gross profit rose YoY and gross margin expanded 10.6 pts YoY to 36.7% on a richer cartridge mix; net loss widened YoY to $2.25M while EPS improved to $(0.50) given share count changes .
  • Mix shift toward higher‑margin consumables and production efficiencies were the drivers; management reported H1 gross margin up ~11 pts to 38.5% (vs 27.7% LY) on cartridge-led recurring revenue .
  • Regulatory catalyst: FDA 510(k) was submitted Dec 18, 2024; company reiterates plan to enter the U.S. market in 2025, with added distribution momentum in the UK/EU and Middle East during the quarter .
  • Liquidity remains the key risk: cash fell to $2.24M at quarter-end with a working capital deficit and going‑concern warning; company raised ~$1.46M net via ATM through Feb 11, 2025 and flags potential partial refund of Australian grant if milestones aren’t met by Mar 28, 2025 .
  • No Wall Street consensus estimates from S&P Global were available for Q2; estimate comparison not possible (we attempted to retrieve but were unable due to SPGI limit) [GetEstimates error].

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin expanded (36.7% vs 26.1% YoY) as cartridges outpaced readers; management cites deal size focus and enhanced production lowering unit costs .
    • Regulatory progress: FDA 510(k) package submitted in December; method comparison study (~94% accuracy) and PK study showed strong findings supporting U.S. entry in 2025 .
    • Commercial momentum: 19 accounts secured in the quarter, maintaining 400+ active accounts across 19 countries; new partnerships in UK and EMEA broaden distribution .

  • What Went Wrong

    • Revenue fell YoY and QoQ (readers particularly weak), with management pointing to construction sector instability; readers down sharply YoY while cartridges grew .
    • Operating expenses elevated from R&D and commercialization build‑out, widening operating loss; development and regulatory costs rose to $0.51M in Q2 from $0.35M YoY .
    • Liquidity/going concern: cash down to $2.24M, working capital deficit, need to raise capital, and risk of refunding part of Australian grant by Mar 28, 2025 .

Management quotes:

  • “Our business model is excelling, with higher‑margin cartridge sales steadily increasing, contributing to our gross profit and margin growth… We remain on track to enter the multi‑billion dollar U.S. market this year.” — Harry Simeonidis, CEO .
  • “Gross profit grew 32.6% while gross profit margins increased to 38.5% for the six months… We expect cartridge sales to continue outpacing reader sales, maximizing our recurring revenue.” — Spiro Sakiris, CFO .

Financial Results

Year-over-year (Q2 FY2025 vs Q2 FY2024)

MetricQ2 2024Q2 2025
Revenue ($USD)$764,063 $607,494
Gross Profit ($USD)$199,248 $223,113
Gross Margin %26.08% 36.73%
Net Loss ($USD)$(1,969,641) $(2,249,470)
Diluted EPS ($)$(2.07) $(0.50)

Sequential (Q1 FY2025 → Q2 FY2025)

MetricQ1 2025Q2 2025
Revenue ($USD)$872,287 $607,494
Gross Profit ($USD)$346,801 $223,113
Gross Margin %39.76% 36.73%
Net Loss ($USD)$(2,685,633) $(2,249,470)
Diluted EPS ($)$(0.70) $(0.50)

Product mix (Q2 FY2025 vs Q2 FY2024)

Revenue Mix ($USD)Q2 2024Q2 2025
Cartridges$330,949 $388,297
Readers$285,889 $120,787
Other (accessories)$147,225 $98,410
Total$764,063 $607,494

Geography (Q2 FY2025 vs Q2 FY2024)

Revenue by Region ($USD)Q2 2024Q2 2025
United Kingdom$655,448 $569,775
Australia$16,805 $5,966
Other$91,810 $31,753
Total$764,063 $607,494

KPIs and balance sheet highlights

KPI / MetricValue
Accounts secured in Q219
Active customer accounts400+ in 19 countries
Q2 Government support income$133,640
Q2 Contribution margin % (non-GAAP)71.12%
H1 Gross Margin % vs LY38.51% vs 27.66%
Cash & equivalents (Dec 31, 2024)$2,242,209
ATM net raised through Feb 11, 2025~$1,464,454

Note: INBS has two reportable segments (IFPG and BPT); IFPG accounted for 100% of revenue in Q2 FY2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent UpdateChange
U.S. market entryCalendar 2025Planned H1 2025 entry (stated in Q1 PR) On track for 2025 following Dec 2024 510(k) submission Maintained (timing refined)
FDA 510(k) submission2024Submit by year‑end 2024 Submitted Dec 18, 2024 Achieved
Gross margin trajectoryFY2025Margin to improve on cartridge mix (qualitative) H1 GM up ~11 pts to 38.5% YoY Improved
Revenue/EPS/OpExFY2025No formal quantitative guidanceNo formal quantitative guidance N/A
DividendsN/ANoneNone disclosed Unchanged

Earnings Call Themes & Trends

No Q2 FY2025 earnings call transcript was available; themes below are synthesized from the 8‑K, 10‑Q, and press releases.

TopicPrevious Mentions (Q4 FY2024, Q1 FY2025)Current Period (Q2 FY2025)Trend
Regulatory/FDA 510(k)Q4: on track to submit in Q4 CY2024 ; Q1: completed in‑clinic testing; PK data aligned to blood/oral fluid 510(k) submitted Dec 18, 2024 Positive; milestone achieved
Product mix/marginsQ4: readers installed >1,000; cartridge growth driving recurring revenue ; Q1: cartridges surpassed readers; margins improving Cartridges outpaced readers; GM 36.7% (Q2) and H1 GM 38.5% vs 27.7% LY Positive mix; margin expansion
Demand/verticalsQ4: 400+ accounts; APAC additions ; Q1: 22 new accounts, expansion in KSA 19 new accounts; UK logistics wins (Avon, Quantum TM) Steady account adds; UK transport/logistics adoption
Technology upgrades—Multilingual reader upgrade to widen global usability Positive feature expansion
Macro exposure—Construction sector instability impacted reader sales Headwind to readers
Partnerships/DistributionQ4: patent/IP; customer adds EMEA distributor IVY Diagnostics; UK wins; APAC partnership earlier in Q2 Broader channel reach
Liquidity/capitalQ4 cash $6.30M Cash $2.24M; ATM raised ~$1.46M net through Feb 11; going‑concern warning Deteriorated liquidity; active capital raise
Grants/regulatory risk—Risk of partial Australian grant refund by Mar 28, 2025 if milestones unmet Elevated compliance risk

Management Commentary

  • Strategic focus on margin mix and U.S. entry: “Our business model is excelling, with higher‑margin cartridge sales steadily increasing… We remain on track to enter the multi‑billion dollar U.S. market this year” — CEO, Harry Simeonidis .
  • Profitability focus via cartridges: “Gross profit grew 32.6% while gross profit margins increased to 38.5% for the six months… We expect cartridge sales to continue outpacing reader sales, maximizing our recurring revenue” — CFO, Spiro Sakiris .
  • Preliminary commentary pre‑report: “Despite quarterly fluctuations, our total calendar year revenue grew 23%… 11‑point expansion in gross profit margin” — CEO, preliminary Q2 release .

Q&A Highlights

No Q2 FY2025 earnings call transcript was located; the company furnished a press release and filed its 10‑Q. No Q&A clarifications were available beyond disclosures on mix, macro pressure on readers, liquidity, and regulatory milestones .

Estimates Context

  • S&P Global consensus estimates for Q2 FY2025 revenue/EPS were unavailable to us at time of analysis (attempt to retrieve failed due to SPGI request limit). As a result, we cannot quantify beats/misses versus Wall Street consensus for Q2 FY2025 [GetEstimates error].
  • Implication: With revenue down YoY/QoQ but margin mix improving, sell‑side models (if any) may need to emphasize gross margin durability and lower reader contribution, and reassess operating expense trajectory tied to U.S. launch timing .

Key Takeaways for Investors

  • Margin story intact despite softer top‑line: cartridges drove a 10.6‑pt YoY gross margin expansion to 36.7% in Q2 and ~11‑pt H1 uplift to 38.5%; cartridges rose YoY while readers fell .
  • Regulatory catalyst achieved: 510(k) submitted Dec 18, 2024; management reiterates 2025 U.S. market entry—key stock catalyst path .
  • Demand validation in UK/EMEA: new UK logistics wins and EMEA distributor IVY Diagnostics extend reach ahead of U.S. launch .
  • Liquidity is the swing factor: $2.24M cash at Q2‑end, going‑concern warning, ATM usage (~$1.46M net raised by Feb 11, 2025); financing and potential grant refund by Mar 28, 2025 are near‑term overhangs .
  • Macro sensitivity: construction sector instability weighed on reader sales; monitor sector exposure and sales mix to consumables .
  • Operating leverage deferred: Operating losses persist on R&D and commercial build‑out; path to profitability hinges on U.S. clearance/adoption and sustained cartridge pull‑through .
  • Trading setup: Stock likely reacts to FDA process updates, U.S. pilot/adoption signals, financing developments, and evidence that cartridge‑led margins persist as volumes scale .

Appendix: Additional Q2 FY2025 Context

  • H1 FY2025 revenue $1.48M vs $1.56M LY; H1 gross profit $0.57M vs $0.43M LY; net loss $4.95M vs $4.39M LY .
  • Cash & equivalents declined from $6.30M at 6/30/24 to $2.24M at 12/31/24 .
  • Deferred grant income current liability stood at $2.30M; failure to meet new milestones by Mar 28, 2025 may require a refund of certain amounts .
  • Segment reporting confirms 100% of recognized revenue from Intelligent Fingerprinting Products (IFPG) segment in Q2 .