MindWalk (HYFT) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of CAD 24.5 million and record Q4 revenue of CAD 7 million, with significant margin improvements and progress toward profitability.

• Gross margin expanded to 64% in Q4 (up from 48% YoY) and 55% for the year (up from 49% YoY), driven by operational efficiency and BioStrand growth.

• Adjusted EBITDA loss narrowed to CAD 316,000 in Q4, a significant improvement from CAD 1.7 million loss YoY.

• Canadian business saw rapid growth, with Q4 sales orders up 83% QoQ and new client orders up 93% YoY.

• Nearing completion of Dutch subsidiary divestiture, with plans to rebrand and focus on AI-driven platform business.

Financial highlights

• Q4 revenue of CAD 7 million, up 8.1% YoY and 13.5% sequentially; full-year revenue of CAD 24.5 million, a slight increase YoY.

• Q4 gross profit reached CAD 4.5 million, with gross margin at 64% (up from 48% YoY and 54% sequentially).

• BioStrand segment grew over 180% YoY, now representing over 5% of total revenue, with margins near 90%.

• R&D expenses in Q4 were CAD 1.1 million (down 14% YoY); G&A expenses were CAD 3.7 million (down 10% YoY).

• Operating expenses (excluding amortization and one-time charges) declined 7% YoY and 2% sequentially to CAD 5.8 million.

• Cash position at year-end was CAD 10.8 million, up from CAD 3.5 million YoY.

Outlook and guidance

• BioStrand expected to remain a strong contributor to top-line growth and margin expansion.

• Anticipates continued growth in AI-driven and in silico services, with increasing client demand following regulatory shifts.

• Canadian facility expansion to support ongoing growth and integration of LENSai applications.

• Revenue from major oncology partnership expected to be recognized starting in Q2 of fiscal 2026.

• Plans to complete divestiture of Dutch subsidiary and refocus on AI-based product development using the LENSai platform.