Key Highlights

  • Memphasys (ASX: MEM) reported record quarterly revenue of $150,000, up 34% from the March quarter, taking FY26 revenue to $273,000.
  • The company signed its largest Felix™ commercial agreement with Monash IVF Group, covering a potential rollout across 22 Australian clinics.
  • Commercial expansion continued across the UK, Southeast Asia and the Middle East, with contracted sales exceeding the company's FY26 target.
  • Cash reserves increased to $1.179 million following a capital raising, while quarterly operating cash outflows declined by 71% compared with December 2025.

Memphasys Limited (ASX: MEM) entered the final quarter of FY26 with increased commercial activity across multiple international markets, supported by higher revenue, additional supply agreements and progress in the global rollout of its Felix™ sperm separation technology. The healthcare company also reported improved liquidity, lower operating cash outflows and several regulatory milestones expected during the September 2026 quarter that could activate existing commercial agreements.

Although Memphasys remains an emerging medical technology company, the June quarter represented an important period as commercial execution increasingly replaced product development as the primary operational focus. Investors have been closely monitoring whether the company could convert clinical validation into recurring commercial revenue, with the latest quarterly update providing additional visibility into its expanding customer base.

Share Performance Remains Driven by Commercial Milestones

Memphasys shares have historically experienced significant volatility as investors assessed the pace of commercial adoption of the Felix™ System following regulatory approvals in international markets.

The June quarterly report shifts market attention from research and product validation toward commercial execution. Rather than relying on a single geographic market, the company is now building multiple revenue channels across Australia, Europe, Southeast Asia and the Middle East.

The increase in contracted sales to approximately $3 million, compared with the company's previous corporate target of $2 million, provides greater visibility into future revenue generation, although recognition remains dependent on customer onboarding and regulatory approvals in several jurisdictions.

Revenue Reaches a Quarterly Record

The company reported quarterly revenue of $150,000, representing a 34% increase from the March quarter and marking its second consecutive record revenue period. Full-year FY26 revenue reached $273,000, with 96% generated during the second half of the financial year, highlighting the acceleration in commercial activity.

Management attributed revenue growth to two primary factors. Existing IVF clinics already using the Felix™ platform increased cartridge orders as the technology became integrated into routine clinical workflows. At the same time, new commercial agreements signed during previous quarters began contributing initial revenue.

Several agreements remain subject to regulatory approvals before full commercial sales commence. Consequently, future revenue will depend on both regulatory timelines and customer implementation schedules.

Monash IVF Agreement Becomes Largest Commercial Contract

One of the quarter's most significant developments was the execution of a 12-month exclusive national supply agreement with Monash IVF Group (ASX: MVF).

The agreement represents the largest Felix™ commercial arrangement secured by Memphasys to date. It begins with a three-month implementation phase across two Monash IVF clinics, including staff training, installation and clinical monitoring before expanding across Monash IVF's Australian network of 22 clinics.

Monash IVF conducted more than 12,000 stimulated IVF cycles during 2025 and accounts for approximately 21% of Australia's stimulated IVF market, making it an important reference customer for future commercial opportunities.

The appointment of experienced med-tech executive Dr Tony Poulton to oversee implementation further supports the rollout strategy during the commercial trial phase.

International Expansion Broadens Commercial Footprint

International markets continued to represent a major component of Memphasys' commercial strategy during the June quarter.

In the United Kingdom, four IVF groups commenced commercial evaluations of the Felix™ System shortly after initial engagement, with early commercial orders already received. The UK fertility market conducts more than 100,000 fertility treatment and preservation cycles annually, offering a sizeable addressable market should evaluation programs convert into longer-term contracts.

Southeast Asia also became an increasingly important region following the signing of exclusive commercial agreements in Vietnam and, after the quarter ended, Thailand. Combined, these agreements are valued at approximately $961,000.

The company also continued expanding across the Middle East and North Africa through commercial partner ITL. During the quarter, ITL placed an additional order for 1,000 Felix™ cartridges, increasing cumulative orders to 1,800 cartridges within the first two quarters of the contract period.

The latest order included a second console purchase from Hamad Medical Corporation in Qatar, indicating broader institutional adoption beyond initial product evaluation.

Regulatory Approvals Could Unlock Existing Contracts

While commercial agreements have expanded, several remain contingent upon regulatory approvals before revenue can be recognised.

Memphasys expects approvals in Vietnam, Turkey and India during the September quarter. These approvals would activate existing commercial agreements and trigger initial Felix™ orders from customers that have already committed to purchasing the technology.

The company believes these approvals, together with the continued rollout of the Monash IVF agreement and additional repeat orders from existing customers, could contribute to higher sales during the current quarter.

Rather than relying solely on new customer acquisition, management is increasingly focused on expanding utilisation among existing clinics while broadening geographical coverage.

Operational Platform Supports International Growth

Alongside commercial expansion, Memphasys introduced a cloud-based inventory and operations management platform during the quarter.

The system integrates inventory management, manufacturing planning, demand forecasting, order processing and commercial lead tracking into a single platform. As the company's international customer base expands, management expects the system to improve visibility over inventory allocation and manufacturing schedules while supporting order fulfilment across multiple countries.

The operational investment reflects a shift toward managing larger commercial volumes rather than early-stage product development.

Balance Sheet Improves Following Capital Raising

The company completed a $1.2 million placement during June, issuing 240 million new shares at $0.005 each. The capital raising is intended primarily to increase manufacturing capacity and inventory of Felix™ cartridges to meet anticipated demand.

Cash reserves increased to $1.179 million, compared with $420,000 at the end of March. Based on the current operating cash outflow rate, management estimates available funding for approximately 2.8 quarters.

Operating cash management also improved considerably during FY26. Quarterly operating cash outflows declined to $422,000, compared with $831,000 in the March quarter and $1.44 million during the December 2025 quarter.

The company also secured a 12-month extension of its existing $4.2 million convertible note, pushing maturity to June 2027 while maintaining existing financing terms.

Governance Changes Accompany Commercial Transition

The June quarter also included changes to the company's leadership.

David Tasker was appointed Non-Executive Chairman in May, replacing Dr Lindley Edwards. Tasker brings experience in investor relations, communications and listed company advisory services, while also having maintained a long-standing relationship with Memphasys as both adviser and shareholder.

The leadership transition coincides with the company's movement toward larger-scale commercial operations across multiple international markets.

Conclusion

The June 2026 quarter marked an active period for Memphasys (ASX: MEM) as the company expanded commercial agreements across Australia, the UK, Southeast Asia and the Middle East while reporting record quarterly revenue and improved cash reserves. The Monash IVF agreement represents the company's largest commercial arrangement to date, while anticipated regulatory approvals in Vietnam, Turkey and India could activate existing contracts during the September quarter. Alongside commercial progress, reduced operating cash outflows and additional funding have provided greater financial flexibility as Memphasys continues expanding the international rollout of its Felix™ reproductive technology platform.