Photocure (PHO) Q4 2025 earnings summary

Executive summary

• Strategy centers on strengthening the core business, advancing blue light cystoscopy (BLC) as standard of care, and expanding into uro-oncology and precision diagnostics, with key growth drivers including BLC mobile solutions, OEM partnerships, and AI-enabled diagnostics.

• Achieved 9% year-over-year Q4 product revenue growth (10% ex-FX), driven by strong U.S. and European performance and execution on strategic initiatives.

• U.S. rigid kit sales grew 19%, offsetting declines in flex kits; ForTec mobile tower rollout gained momentum, and active U.S. accounts rose 22%.

• Collaborations with Richard Wolf, ForTec, Claritas ISC, and Intelligent Scopes Corporation are advancing new technologies and expanding market reach, including AI for BLC.

• Ended Q4 with NOK 238.9 million in cash, completed a 500,000 share buy-back, and maintained no term debt.

Financial highlights

• Q4 Hexvix/Cysview product revenue: NOK 135.1 million (+9% YoY ex-FX); full-year product revenue: NOK 530.1 million (+10% ex-FX).

• Q4 total revenue: NOK 136.7 million (-4% YoY, due to lower milestone/other revenue); full-year total revenue: NOK 532.6 million (+1% YoY).

• Q4 gross profit: NOK 125.7 million, gross margin 92%; full-year gross profit: NOK 490.6 million, gross margin 92%.

• Q4 EBITDA: NOK 1.9 million (NOK 5.9 million ex-BD ex-Milestones); full-year EBITDA: NOK 28.7 million; commercial EBITDA for Q4: NOK 8.4 million, full-year: NOK 55.9 million.

• Q4 net loss: NOK 8 million; full-year net loss: NOK 1.5 million.

Outlook and guidance

• 2026 guidance: 7–11% product revenue growth (constant currency), continued operating leverage, and high-teens growth in North America, mid-single digit in Europe.

• Focus on increasing kit throughput, tower upgrades, and mobile tower rollout in the U.S.; growth markets and new equipment launches in Europe.

• Flex system development on track, with market readiness expected in 2027.

• Anticipated catalysts include improved CMS reimbursement, FDA reclassification, and new OEM entries.