Biome Australia (ASX:BIO) Delivers FY26 Revenue Growth and First Operating EBITDA Profit

Aditi Sarkar

06 November 2026 10:34 PM AEDT

Biome Australia (ASX:BIO) Delivers FY26 Revenue Growth and First Operating EBITDA Profit

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Highlights

Biome Australia increased FY26 Revenue by 30% to AUD 23.9 million, supported by its healthcare practitioner focused probiotic products business.
Biome achieved its first full year underlying operating EBITDA profit of AUD 2.0 million, marking a major milestone during FY26.
Statutory EBITDA reached AUD 1.654 million, while reported net profit included recognition of an AUD 2.42 million deferred tax asset.
Biome finished June 2026 with AUD 3.55 million cash and no bank debt, maintaining Investment in clinical evidence and education.

Biome Australia Limited (ASX:BIO) is an ASX-listed health company focused on evidence-based probiotics and microbiome supplements sold primarily through healthcare practitioners (GPs, naturopaths, pharmacists, and specialists) in Australia and New Zealand. The company's hero Brand is Activated Probiotics, which uses a proprietary delivery system designed to improve probiotic survival through the digestive tract. Biome Australia's FY26 annual results for the year ended 30 June 2026 were released to the ASX in August 2026.

FY26 Revenue and Gross Margin

Biome Australia reported FY26 revenue of $23.9 million, up 30% from $18.4 million in FY25. This marks the company's strongest revenue year on record and continues a consistent growth trajectory, with the practitioner channel in Australia and New Zealand remaining the primary revenue driver. Gross Margin for FY26 was 62.1%, reflecting the premium pricing of Activated Probiotics products and disciplined cost of goods management. The Australian healthcare practitioner market provides strong pricing power, as practitioner-only products are sold through professional channels at premium price points and are less subject to retail shelf pricing pressure.

EBITDA, NPAT and Deferred Tax Recognition

Biome Australia's underlying operating EBITDA for FY26 was $2.0 million, up 115% from approximately $0.93 million in FY25, representing the company's first meaningful full-year positive underlying EBITDA result. Statutory EBITDA was $1.654 million. NPAT for FY26 was $3.608 million, which included a material one-off benefit of $2.42 million from the recognition of a deferred tax asset — a non-cash accounting entry that reflects the company's expectation of future taxable profits sufficient to utilise previously unrecognised deferred tax benefits from prior-year tax losses. Excluding the deferred tax benefit, cash NPAT was approximately $1.19 million. The deferred tax recognition is a positive signal from management and auditors about the company's profitability outlook.

Balance Sheet and Strategic Outlook

Biome Australia had $3.55 million in cash at 30 June 2026 with no bank debt, maintaining a clean Balance Sheet consistent with its capital-light distribution model. NTA per share was 3.92 cents. No Dividend was declared for FY26, with available cash prioritised toward continued investment in clinical evidence programs, product pipeline development, and healthcare practitioner education — the core competitive differentiators for Activated Probiotics. The company's strategic focus is on deepening penetration in the Australian practitioner channel, expanding practitioner relationships in New Zealand, and extending the product range into adjacent microbiome health categories. FY27 represents the first full year in which the company is expected to deliver consistent positive operating EBITDA on an ongoing basis.

Stock Price Information

Shares in Biome Australia Limited (ASX:BIO) were trading in the range of approximately $0.080–$0.100 during mid-2026, with the stock rising on the FY26 results release in August 2026. As of 6 November 2026, BIO shares were trading on the ASX. Investors should refer to ASX announcements at www.asx.com.au and the company's Investor relations at www.biomeaustralia.com.au for the latest information.

FAQs

Q: What is Activated Probiotics and how is it distributed?

A: Activated Probiotics is Biome Australia's flagship brand — a range of evidence-based probiotic and microbiome supplement products formulated for specific health conditions (gut health, immunity, women's health, infant health). The products use a proprietary delivery system designed to protect probiotic bacteria through the stomach acid and deliver them live to the lower digestive tract. Products are sold exclusively through healthcare practitioners — GPs, naturopaths, integrative medicine doctors, pharmacists, and allied health practitioners — rather than through general retail. This practitioner-only channel enables premium pricing, creates a clinical recommendation pipeline, and provides a defensible competitive moat versus mainstream retail supplement brands.

Q: What is a deferred tax asset and why did BIO recognise $2.42 million?

A: A deferred tax asset (DTA) is a balance sheet item that represents the future tax benefit of timing differences — in this case, prior-year tax losses that the company has accumulated but not yet been able to use to offset taxable profits. When a company believes it will generate sufficient future taxable profits to utilise those losses, accounting standards allow it to recognise the DTA as an asset. For Biome Australia, the $2.42 million DTA recognition in FY26 reflects management's and the auditors' view that the company is now profitable enough on a sustainable basis to expect it will utilise prior accumulated tax losses in the future. It is a non-cash item — it does not affect cash flow — but it boosted NPAT from approximately $1.19 million to $3.608 million. It is a signal of confidence in future profitability.

Q: What is Biome Australia's competitive advantage in probiotics?

A: Biome Australia's competitive advantages include: (1) Evidence-based formulation — products are backed by clinical and scientific evidence, which is essential for credibility with healthcare practitioners; (2) Practitioner-only distribution — selling exclusively through healthcare professionals provides pricing power, recurring revenue, and a clinical endorsement for each sale; (3) Proprietary delivery technology — the Activated Probiotics delivery system differentiates products from commodity probiotic brands sold in supermarkets; (4) Clinical education — the company invests in practitioner education programs, building brand loyalty and ongoing recommendation rates; and (5) Brand trust in a high-trust segment — the practitioner-endorsed channel has lower customer acquisition costs through word-of-mouth and professional networks.

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