Microba Q4 FY25 slides reveal 88% growth in core tests amid strategic pivot

Executive Summary

Microba Life Sciences Ltd (ASX:MAP) released its Q4 FY25 results presentation on July 22, 2025, highlighting strong growth in its core diagnostic tests despite an overall revenue decline as the company executes a strategic shift away from legacy products. The microbiome diagnostics and therapeutics company reported FY25 revenue of $15.67 million, up 30% compared to the prior comparable period (PCP), while signaling a clear path toward regional break-even in Australia and the United Kingdom (TADAWUL:4280) in FY26.

The company’s stock closed at $0.10 on July 21, 2025, down 9.52% ahead of the results announcement, reflecting investor caution. Microba’s shares have traded between $0.08 and $0.33 over the past 52 weeks.

Quarterly Performance Highlights

Microba’s Q4 revenue increased by 23% quarter-on-quarter but decreased by 13.5% compared to the prior year due to the discontinuation of legacy products and services. However, the company’s core diagnostic tests showed robust growth, with MetaXplore test sales in Australia reaching 3,451 units in Q4, up 88% versus PCP.

As shown in the following chart of quarterly revenue growth, the company’s strategic shift toward higher-value diagnostic products is clearly visible:

The underlying Personal Testing & Supplements business increased by 23% QoQ and 3.7% versus PCP, despite being in a transitionary phase. Microba achieved a record quarter for core products (MetaXplore and MetaPanel) across Australia and the United Kingdom.

Clinical adoption continues to accelerate, with 790 ordering clinicians in Australia, representing an 89% increase versus PCP. The company’s annualized run-rate reached 13,800 tests sold, up 88% versus PCP.

The following chart illustrates the growing trend of MetaXplore sales and clinical adoption in Australia:

International Expansion

Microba’s expansion into the United Kingdom is showing promising results, with MetaXplore test sales reaching 429 units in Q4, up 74% quarter-on-quarter. The company achieved full market access in the UK at the end of May, with June delivering strong growth underpinned by successful onboarding and adoption by new ordering clinicians.

The following chart shows the growth trajectory of MetaXplore sales in the United Kingdom:

In the UK supplement business, total sales reached $1.1 million, down 11% versus PCP, reflecting the transition to greater focus on Invivo branded and owned supplements. However, Invivo branded and owned supplements sales reached $0.68 million, up 12% versus PCP, with the leading SKU recording multiple record sales months.

Clinical Validation

Microba released results from three major clinical studies during the quarter, providing strong validation for its diagnostic tests. The studies demonstrated that the company’s tests can identify actionable results in a significant percentage of patients with gastrointestinal disorders.

As illustrated in the following clinical study results, Microba’s tests are proving effective in identifying pathogens and providing actionable insights:

The Inflammatory Bowel Disease study showed that the MetaPanel test identifies gastrointestinal pathogens in over 35% of IBD patients experiencing flare, with more than 60% of these pathogens missed by current routine testing methods. Additionally, analysis of 4,616 patients with chronic GI symptoms found that 71.4% of reports identified actionable results.

Strategic Initiatives

Microba introduced several new product features during the quarter, including Marker Cards for improved clarity in the MetaXplore report and an enhanced Report Share feature that gives patients secure control over who can access their reports while enabling practitioners to share results directly with peers.

The company’s strategic focus is on growing its core diagnostic tests and clinical software, which it believes represents a $25 billion diagnostic category opportunity. Microba’s total addressable market includes 82 million tests annually, with a serviceable available market of 18 million tests.

The following chart illustrates the market opportunity:

Therapeutics Pivot

In a significant strategic shift, Microba has stopped all research and development investment in its therapeutics business, focusing exclusively on partnering opportunities. The company is maintaining its therapeutic core asset intellectual property and expects two upcoming sector deal catalysts in late CY2025.

The following slide outlines Microba’s pipeline of therapeutic assets:

The company has developed a rich pipeline of live biotherapeutic assets and data over more than five years of investment, leveraging its world-leading databank generated from the testing business. Microba believes that upcoming clinical trial readouts from peer companies by the end of 2025 could validate this new live-biotherapeutic modality, potentially leading to competitive deal activity.

Forward-Looking Statements

Microba provided guidance for FY26, targeting regional break-even in Australia and the United Kingdom and projecting core test volume to exceed 24,000 units. The company’s three-year strategic objectives include expanding clinical adoption, achieving break-even in Australia and the United Kingdom with over 100% year-on-year core test growth, and reaching group EBITDA break-even.

For the United States and Europe, Microba aims to build momentum in the first state/country, setting the stage for further international expansion. The company’s cost structure is designed to scale efficiently, leveraging third-party partners for testing capabilities and other services to optimize costs.

Microba’s clear vision is to establish microbiome testing as a broadly accepted diagnostic tool for chronic diseases, with regular testing becoming standard practice and approved treatments derived from microbiome research helping millions of patients live healthier lives.

Full presentation:

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