Renalytix (RENX) Q2 2025 earnings summary

Executive summary

• Transitioned from R&D to commercial sales growth, achieving over 20% quarter-over-quarter revenue growth post-funding, with a scalable direct-to-doctor sales strategy and expanded patient access.

• Only FDA-approved, Medicare-reimbursed prognostic test for diabetic kidney disease, addressing a $90B US dialysis market and recommended in KDIGO guidelines.

• Unique, uncontested market position with no direct competition and strong IP portfolio.

• Major customer launches and expanded partnerships, including ACPNY and new hospital systems, increased ordering doctors to over 850.

• Significant cost reductions achieved, with administrative expenses down over 50% and strengthened management team.

Financial highlights

• H1 FY25 revenue reached $1.3M, up from $1.2M in H1 FY24; gross profit increased to $0.5M from $0.2M.

• Revenue forecast for FY2025 is $3.2M, with targets of $8.5M in FY2026 and $17.5M in FY2027.

• Administrative expenses reduced to $8.0M (H1 FY24: $18.4M); cost of sales decreased to $0.8M.

• Cash and cash equivalents at $9.2M as of December 31, 2024, following a $14.8M equity raise.

• Net operating loss narrowed to $7.2M from $16.2M year-over-year.

Outlook and guidance

• On track to meet or exceed FY25 revenue target of $3.2M, with guidance of $8.5M for FY26 and $17.5M for FY27, supported by a strong sales pipeline.

• Expectation of continued 20%+ quarterly revenue growth as more doctors and hospital systems adopt the test.

• Program in place to achieve 1% US market penetration (150,000 patients) in 3–4 years, requiring further investment and partnerships.

• Additional hospital system and care network rollouts expected throughout 2025.

• Further cost reductions anticipated through FY25.