Diaceutics (DXRX) H1 2025 earnings summary

Executive summary

• Revenue grew 22% on a constant currency basis to £14.6m in H1 2025, with a 3-year CAGR of 25%.

• Adjusted EBITDA reached £0.1m, rebounding from a loss of £0.9m in H1 2024, signaling a shift toward profitability.

• Order book stands at £31.7m, with £9.0m contracted for H2 2025 delivery.

• Annual Recurring Revenue (ARR) increased 16% to £16.4m, now representing 61% of total H1 revenues.

• Strong commercial momentum, US expansion, and significant technical upgrades to the DXRX platform, including advanced AI integration.

Financial highlights

• Revenue for H1 2025 was £14.6m, up 22% on a constant currency basis and 18% year-over-year.

• Gross profit rose 13% to £12.1m, with gross margin at 83% (down from 87% in H1 2024, stable at 86% constant currency).

• Adjusted EBITDA improved to £0.1m from a loss of £0.9m in H1 2024.

• Cash and equivalents at £10.4m, with no debt, supporting organic growth.

• Order book value increased to £31.7m from £27.9m at June 2024.

Outlook and guidance

• On track to deliver full-year profitability in FY 2025, with continued focus on recurring revenue and operational leverage.

• Board reaffirms confidence in meeting 2025 profitability targets and trading in line with expectations.

• H2 expected to be stronger due to industry spending patterns, with a similar revenue split as 2024 (38:62 H1:H2).

• Preparing to launch new market reach initiatives in 2025, targeting broader diagnostic-enabled therapies.

• Targeting a 25% CAGR for revenue and ARR.