Yesterday, cancer diagnostics company Pacific Edge Ltd (ASX: PEB) reported a net loss after tax of $35.8 million, up 19.5% on FY25, and operating revenue down 47.4% to $11.5 million for the year ended 31 March 2026.
What did Pacific Edge report?
- Operating revenue: $11.5 million, down 47.4% from FY25
- Net loss after tax: $35.8 million, up 19.5% year on year
- Commercial test volumes: 18,783, down 23.8% on FY25
- Cash burn (2H FY26): $2.4 million per month, down 27.7% on 1H FY26
- APAC operations contributed $2.0 million in FY26 and moved closer to profitability on a direct cost basis
- Post-balance date $36.1 million capital raising completed
What else do investors need to know?
Pacific Edge’s FY26 was a year of strategic delivery, with the company advancing key regulatory and commercial milestones despite the impact of Medicare non-coverage in the US market. Notably, in May 2026, Medicare contractor Novitas published a draft Local Coverage Determination proposing coverage for Cxbladder Triage and Triage Plusâmarking a “company-defining milestone”.
In the US, commercial payers covering 10.5 million lives have already adopted medical policy for Pacific Edge’s tests, and operating efficiency improved via reduced cash burn. In the Asia Pacific, the company continues to grow, achieving a 25% lift in average revenue per test after repricing, and APAC operations are now edging toward profitability.
What did Pacific Edge management say?
Chairman Simon Flood said:
Our work is incomplete in this regard, but the draft LCD is a huge step forward and a hard-won recognition for the years of work put in by our Team led by Pete Meintjes. The LCD remains draft, and disciplined execution remains essential as we await confirmation of a final LCD which we hope to receive before the end of this year. The difference that the draft LCD makes is that it gives Pacific Edge a clearer reimbursement pathway and a legitimacy that confirms Cxbladder as the leader in its field, and that’s a great place for us to start rebuilding sales momentum.
What’s next for Pacific Edge?
Management expects the final Medicare coverage decision for Cxbladder Triage and Triage Plus by the end of 2026, which is anticipated to drive higher test volumes and improved unit economics. The company will focus on shifting its US customer base to higher-margin Triage Plus orders, strengthening commercial payer policy, and expanding in APAC and other international markets as regulatory pathways are secured.
Pacific Edge’s ongoing clinical trials and product pipeline are expected to further build clinical evidence and unlock new opportunities. Looking ahead, emphasis remains on disciplined cost control, commercial execution, and innovation to convert its strong position into sustainable profitability and growth.
Pacific Edge share price snapshot
Over the past 12 months, Pacific Edge shares have risen 91%, significantly outperforming the All Ordinaries Index (ASX: XAO).
The post Pacific Edge FY26: Loss widens but Medicare draft boost lifts outlook appeared first on The Motley Fool Australia.
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.