Genetic Signatures has emerged from a year of restructuring with smaller losses, lower cash burn, and a clearer plan to rebuild growth, despite a decline in revenue amid challenging conditions in its core Australian market.
The molecular diagnostics company reported revenue of $14.8 million for the year to 30 June 2026, down 7 per cent from $15.9 million in the previous year. The result reflected intense price competition, higher input costs and a delayed, subdued respiratory testing season in Australia.
Even so, the company reduced its net loss by 30 per cent to $14 million, compared with a $20.1 million loss in the previous year. Net operating cash outflow also improved, falling 37 per cent to $7.8 million from $12.3 million a year earlier.
At year-end, Genetic Signatures held $22.1 million in cash and term deposits and remained debt-free. Available cash and equivalents had declined slightly to $21.3 million as of the announcement date.
The improved financial outcome came as new chief executive Maria Halasz completed a broad strategic review after joining the company in March. The review has repositioned Genetic Signatures around stabilising the business, improving execution and concentrating investment on commercially attractive opportunities.
A restructuring program completed in the fourth quarter resulted in 30 redundancies across five divisions and the outsourcing of selected product-development work to specialist contract research organisations. The company expects the changes to generate annualised savings of up to $5 million.
The restructuring carried $0.8 million in one-off redundancy costs during financial year 2026, although the company said the net profit-and-loss impact for the year was only $210,000 after accounting for leave and bonus provisions.
The company also recognised a $2.1 million impairment charge, largely relating to equipment and other property, plant and equipment no longer expected to be used. This followed a review of its asset base, including instruments intended for customer placements and equipment associated with a paused automation-development program.
Gross margin on materials fell to 43 per cent from 55 per cent in the previous year. The company attributed the decline to $2 million in inventory write-downs and obsolescence provisions, as well as pricing adjustments, higher raw-material costs, recipe changes and a reassessment of production overhead capitalisation.
Australia remains the company’s principal market, generating $13.2 million in revenue, down from $14.4 million in the prior year. Genetic Signatures said its EasyScreen assays remain embedded in laboratory workflows and are supported by long-term supply agreements, which provide recurring revenue and include annual growth provisions.
The more significant expansion opportunity may lie offshore, particularly in Europe. EMEA revenue was broadly stable at $1.4 million, compared with $1.5 million a year earlier, while the company secured a 10-year supply agreement with Hvidovre Hospital in Denmark.
The hospital installed the equipment in May, received its first reagent order in August, and began commercial testing after validation and verification studies. Genetic Signatures sees the arrangement as an important reference point for its pan-enteric testing strategy in Europe, where it is seeking additional distributor relationships and hospital-based opportunities.
The US business remains at an earlier stage. Genetic Signatures recorded $200,000 in US sales in 2026, compared with no sales in the previous year, but does not expect material growth until it completes a reset of its market-access strategy. The company is exploring alternative pathways, including offering products as laboratory-developed tests.
A central part of the new strategy is to broaden the EasyScreen pathogen-detection portfolio while limiting capital-intensive internal development. The company has paused its program to develop a customised liquid-handling instrument and is instead pursuing an alternative automation solution with established manufacturers.
It is also outsourcing the development of a new enteric pathogen-detection product, aiming to extend the commercial reach of its proprietary 3base technology and generate additional product revenue.
