Key Highlights

  • Epsilon Healthcare (ASX:EPN) shares were down 13.04% at $0.02 during the Trading session on 22 October 2026.
  • Half-year Revenue rose 123% to $7,585,957, while the net loss narrowed to $725,972 from $2,068,860.
  • Operating cash flow was $1,029,149 and cash stood at $1,285,937, with net current liabilities of $1,046,019 at 30 June 2026.

Epsilon Healthcare Limited (ASX:EPN) shares were down 13.04% at $0.02 during the trading session on 22 October 2026, at the time of the data. By comparison, the The S&P/ASX 200 stood at 8,792.20, down 0.44%, and the All Ordinaries stood at 8,916.20, down 0.45%. Epsilon Healthcare is an Australian healthcare group spanning pharmaceutical contract manufacturing, clinics and pharmacy services. Its latest update is the half-year report for the six months ended 30 June 2026, dated 31 August 2026, which showed revenue of $7,585,957 and a reduced net loss.

About the Company

Epsilon Healthcare Limited is an Australian-based, globally active healthcare organisation listed on the ASX under the code EPN. Its registered office and principal place of Business is at 5 Goodyear Street, Southport, Queensland. The board comprises Alan Beasley as Chairman, Peter Giannopoulos as Executive Director and Zoe Hutchings as Non-Executive Director. The company's auditor is RSM Australia Partners.

The report refers to the period since the company exited administration, noting that the prior-year comparatives included costs for external accounting, voluntary administration and legal expenses totalling approximately $1.159 million that did not recur in the latest half.

Business Overview

Epsilon Healthcare describes a diversified and vertically integrated portfolio covering clinics, pharmaceutical contract development and manufacturing, pharmacy services and biotechnology research and development. It offers solutions from product development and Manufacturing through to patient care.

The largest revenue segment is its onshore Contract Development and Manufacturing Organisation, known as CDMO, in Southport, Queensland, which serves domestic and international clients. The group also operates Epsilon Clinics and the newly established Epsilon Pharmacy segment.

Half-Year Results

In its half-year report dated 31 August 2026, Epsilon Healthcare reported revenue from continuing operations of $7,585,957 for the six months to 30 June 2026, up 123% from $3,401,788 a year earlier. CDMO revenue rose 120% year on year. EBITDA was a profit of $254,869, and the net loss after tax narrowed to $725,972 from $2,068,860. The loss per share was 0.19 cents, compared with 0.60 cents.

Other income was $1,018,519, against $29,306 in the prior period, and share-based payments of $768,000 were recorded as an expense. Net tangible Assets per security rose to 0.98 cents from 0.50 cents at 31 December 2025. No Dividend was proposed.

Cash Flow, Funding and Balance Sheet

The half-year report dated 31 August 2026 shows net cash inflow from Operating Activities of $1,029,149, compared with an outflow of $2,841,542 in the prior corresponding period. Cash and cash equivalents rose to $1,285,937 from $242,862 at 31 December 2025. Net assets were $3,877,157.

On 26 June 2026, the company completed a small holding share sale Facility that generated gross proceeds of about $489,753 and reduced the number of shareholders from approximately 7,063 to some 1,688. It also terminated a $2.0 million Promissory Note facility and established a new unsecured facility of up to $1.72 million, maturing on 31 December 2027, with Lekarna Pty Ltd, a related party of Managing Director Peter Giannopoulos. No amount had been drawn at the report date.

Related Sector Context

Epsilon Healthcare operates across contract pharmaceutical manufacturing, clinical services and pharmacy, parts of the healthcare sector that depend on client demand, regulatory licensing and the ability to maintain manufacturing capacity. CDMO revenue is tied to client activity and project timing.

During the 22 October 2026 session, the S&P/ASX 200 was down 0.44% and the All Ordinaries down 0.45%. Epsilon Healthcare's decline of 13.04% was larger than the benchmark moves, and at a share price of $0.02 a one-cent change represents a large percentage movement.

Risks to Weigh In

The report discloses that at 30 June 2026 the group had net current liabilities of $1,046,019. The directors adopted the Going Concern basis, citing operating cash inflows, a letter of support deferring settlement of amounts owed to directors totalling $1,076,301, the new Loan facility and cash flow forecasts.

The group continues to report accumulated losses of $51,615,175. Its results also depend on continued client activity in the CDMO business, and the report states that information on likely developments was not included because directors considered it could cause unreasonable prejudice to the group.

Catalysts on Watch

The half-year report does not set out specific dated milestones. Items that could be tracked include any drawdown of the $1.72 million unsecured facility, further revenue contributions from Epsilon Pharmacy and Epsilon Clinics, and CDMO client activity. Management also noted that it continues to consider revenue-accretive acquisitions or service expansions as they arise, which would be disclosed to the market if they proceed.

Putting It Together

Epsilon Healthcare shares fell 13.04% to $0.02 during the 22 October 2026 session, while the main benchmarks were lower by less than half a percent. The company's latest report, dated 31 August 2026, recorded higher revenue, a profit at EBITDA level and a smaller net loss, alongside net current liabilities and reliance on director support.