Highlights

  • Cyclopharm (ASX:CYC) delivered its fifth consecutive record half, with 1H26 Revenue rising 14% to $17.5 million.
  • US Technegas revenue increased 74% year-on-year as revenue-generating US sites expanded to 70 by 30 June 2026 and 83 by August.
  • Gross Margin improved to 56.3%, supported by a higher contribution from Technegas consumables and Recurring Revenue streams.
  • Updated international guidelines naming Technegas as “generally preferred when available” are supporting the company’s US growth opportunity.

Cyclopharm (ASX:CYC) is entering a new phase of commercial expansion after delivering record first-half results and accelerating adoption of its Technegas lung imaging technology across the United States.

The company’s first-half FY26 results, released on 24 August 2026, highlighted continued revenue growth, improving gross margins and significant progress in its US commercial rollout. While Cyclopharm continues investing in expansion, particularly in the US market, the growing installed base and recurring consumables model are providing increasing visibility over future revenue opportunities.

1H26 Performance

Cyclopharm reported revenue of $17.5 million for the six months ended 30 June 2026, representing growth of 14% compared with the prior corresponding period.

The result marked the company’s fifth consecutive record half, extending a period of consistent revenue growth across its global operations.

Gross margin improved to 56.3%, compared with 53.5% in the previous corresponding period, supported by a richer mix of Technegas revenue.

The company recorded a net loss after tax of $8.8 million for 1H26, compared with a $7.7 million loss in 1H25. The loss reflected continued Investment into US commercial expansion, Research and Development programs and the absence of prior-period Earnings contribution following the Cyclotek divestment.

Cyclopharm ended the period with cash of $12.2 million at 30 June 2026, following net proceeds of $13.5 million raised through a Capital raising to support US growth initiatives.

US Expansion

The United States remains the primary growth opportunity for Cyclopharm.

US Technegas revenue increased 74% year-on-year during 1H26, rising from $1.2 million to $2.1 million.

The company expanded its US revenue-generating site base to 70 locations by 30 June 2026, compared with 35 sites a year earlier. By 12 August 2026, this had increased further to 83 revenue-generating sites.

Cyclopharm reported that approximately 54% of US revenue-generating sites were expansion units within existing customer networks, highlighting increasing adoption among healthcare groups already using the technology.

The company’s US pipeline reached 1,684 actively engaged sites as of August 2026, representing a significant opportunity across a broader US lung imaging market.

Technegas Adoption

Technegas continues to benefit from increasing clinical recognition and expanding applications within respiratory imaging.

Updated international guidelines released in July 2026 identified Technegas as “generally preferred when available” for ventilation imaging, providing additional support for adoption across established and emerging markets.

The company believes this creates a stronger foundation for US expansion, particularly as hospitals evaluate advanced nuclear medicine imaging technologies.

Cyclopharm’s technology has already been used in more than five million patient procedures globally and is available across 67 countries.

The company’s Business model combines system installations with recurring consumable revenue, creating an annuity-style structure as installed systems generate ongoing usage-based demand.

Recurring Revenue Model

A key strength of Cyclopharm’s model is the recurring revenue contribution from consumables.

Each Technegas installation creates ongoing revenue opportunities through patient consumables, annual access fees and service requirements.

The company highlighted that consumable sales generate approximately 95% gross margins, supporting potential earnings expansion as the installed base increases.

Outside the US, Technegas revenue remained stable across established markets, with Rest-of-World revenue increasing 13% to $7.3 million.

Third-party distribution revenue also increased, reaching $8.1 million during the half.

Beyond Pulmonary Embolism

Cyclopharm is also exploring opportunities beyond its traditional pulmonary embolism application.

The company is investigating additional respiratory applications, including chronic obstructive pulmonary disease, asthma assessment, surgery and transplant-related lung function analysis.

These opportunities could significantly expand the addressable market for Technegas if clinical adoption progresses.

The company has highlighted a potential additional addressable market exceeding US$1 billion through these broader respiratory applications.

These opportunities remain development-stage but could provide additional Long-term Growth avenues.

Growth Outlook

Cyclopharm is focused on accelerating US commercial adoption while continuing to strengthen its global business.

The company’s installed base, expanding pipeline and updated clinical guidelines provide support for further market penetration.

The US opportunity remains at an early stage, with only a small portion of the potential market currently converted into revenue-generating sites.

Management is focused on increasing installations, expanding customer networks and converting the growing pipeline into long-term revenue streams.

The company’s ability to scale its US operations while managing investment requirements will remain important for future profitability.

Key Focus Areas

Investors will continue monitoring the pace of US site growth and whether the expanding installed base translates into stronger recurring revenue.

The conversion rate of the 1,684-site engaged pipeline will also be important in assessing future growth potential.

Progress across Beyond Pulmonary Embolism applications, particularly respiratory disease opportunities, will provide insight into the longer-term market opportunity.

Maintaining gross margins while expanding commercial operations will also remain a key measure of execution.

Risks

Cyclopharm remains exposed to the challenges associated with commercialising medical technology in large healthcare markets.

US hospital adoption can involve lengthy procurement processes, reimbursement considerations and significant sales execution requirements.

The company continues to operate at a loss while investing in expansion, meaning Cash Management and future funding requirements remain important considerations.

Clinical expansion opportunities beyond existing Technegas applications require further development and validation.

Competition from alternative lung imaging approaches may also influence adoption rates.

Future Outlook

Cyclopharm enters the next phase of growth with stronger commercial momentum, expanding US adoption and a larger recurring revenue base.

The 1H26 result demonstrates progress in converting Technegas from an established international technology into a growing US healthcare platform.

With improving margins, increasing site adoption and a significant pipeline of potential customers, the company is focused on scaling its commercial opportunity.

The key challenge ahead will be translating US expansion into sustainable profitability while continuing to develop new clinical applications for its technology.