Earnings call transcript: Biotricity sees positive EBITDA in Q1 2025

Biotricity Inc. reported its financial results for the first quarter of fiscal year 2026, showcasing a significant improvement in its financial performance. The company achieved its first positive EBITDA, marking a milestone in its operational history. Despite a net loss, Biotricity’s revenue increased by 21% compared to the previous year, driven largely by technology fees. The stock remained stable at $0.54, showing resilience amid a strong year-to-date return of 86%. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.

Key Takeaways

• Biotricity reported a 21% increase in revenue year-over-year for Q1 FY2026.
• The company achieved its first positive EBITDA, amounting to $333,000.
• Strategic partnerships with Amazon AWS and Google TensorFlow were highlighted.
• Net loss significantly decreased from the previous year.
• The stock price remained unchanged at $0.54 post-earnings.

Company Performance

Biotricity’s performance in the first quarter of fiscal 2026 reflects a transformative year for the company. Revenue grew by 21% from the same period last year, reaching $3.9 million, continuing the company’s impressive 58% revenue CAGR over the past five years. The company also reported an impressive gross profit margin of 80.5%, a 6.5 percentage point increase from the previous year. This growth is attributed to the company’s focus on technology fees, which accounted for 87% of total revenue. Despite reporting a net loss of $754,000, this was a substantial improvement from the $6.9 million loss in the prior year. InvestingPro data shows the company maintains a "GOOD" overall financial health score, though its current ratio of 0.22 suggests tight liquidity conditions.

Financial Highlights

• Revenue: $3.9 million, up 21% year-over-year.
• Gross Profit: $3.1 million, up 31.9% from the previous year.
• Gross Profit Margin: 80.5%, up 6.5 percentage points.
• EBITDA: Positive at $333,000.
• Net Loss: $754,000, improved from $6.9 million last year.

Outlook & Guidance

Biotricity is optimistic about achieving profitability in the coming quarters, though InvestingPro analysts do not anticipate profitability this year, with an EPS forecast of -$0.31 for FY2026. The company is pursuing FDA clearance for its AI clinical model and expanding its market footprint internationally. Future revenue projections for FY2026 and FY2027 are set at $15.8 million and $140.22 million, respectively, indicating expected growth and market expansion. For deeper insights into Biotricity’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

Executive Commentary

Dr. Wakas Al Sadiq, CEO, stated, "Fiscal twenty twenty-five has been a transformative year for Biotricity." He emphasized the significance of achieving positive EBITDA, highlighting it as a major milestone. John Aianoglu, CFO, echoed this sentiment, noting, "Moving into positive EBITDA is a huge milestone for the company."

Risks and Challenges

• Regulatory Approvals: Ongoing efforts to secure FDA clearance and international approvals could face delays.
• Market Competition: The cardiac care market is highly competitive, with numerous established players.
• Economic Conditions: Macro-economic pressures could impact healthcare spending and investment in new technologies.
• Technological Integration: Ensuring seamless integration of new technologies with existing systems remains a challenge.

Biotricity’s strategic initiatives and financial milestones position the company for potential growth, though it must navigate regulatory and competitive challenges to maintain its trajectory.

Full transcript - Biotricity Inc (BTCY) Q1 2026:

Conference Call Operator: Good afternoon, and welcome to BioTricity’s First Quarter Fiscal twenty twenty six Financial Results and Business Update Conference Call. Today’s conference is being recorded. As a reminder, this is BioTricity’s First Quarter Fiscal twenty twenty six ended on 06/30/2025, so all figures presented for this period will reflect that end date. Earlier, BioEtricity issued its earnings press release for the period, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of the BioEtricity Web site, and the full financials have been filed with the SEC on Form 10 Q and posted on EDGAR at www.sec.gov.

Before beginning the company’s formal remarks, I’d like to remind listeners that today’s discussion may contain forward looking statements that reflect management’s current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward looking statements. BioTricity does not undertake to update any forward looking statements except as required. At this point, I am pleased to turn the call over to BioTricity’s Founder and CEO, Doctor. Wakas Al Sadiq.

Please go ahead.

Dr. Wakas Al Sadiq, Founder and CEO, BioTricity: I’d like to first thank everybody for joining us today. Fiscal twenty twenty five has been a transformative year for BioEtricity marked by significant advancements and strategic initiatives that positioned us at the doorstep of profitability. Our commitment to innovative strategic partnerships and operational efficiency has allowed us to make remarkable progress across multiple fronts. One of our most significant achievements has been the expansion of our Cardiac AI cloud platform. This initiative powered by strategic partnerships with industry giants such as Amazon AWS and Google’s TensorFlow leverages over 2,000,000,000,000 heartbeats of anonymized data.

Our AI driven platform is designed to enhance diagnostic accuracy, improve patient outcomes and increase clinic profitability. As we pursue FDA clearance for our groundbreaking AI clinical model, we are setting new standards in cardiac care, ensuring every patient receives the highest quality of care. We believe that our strategic alliances with three of the top group purchasing organizations, otherwise known as GPOs in The U. S, will be pivotal in our future growth. These partnerships provide us access to approximately 90% of all hospitals in The United States, significantly expanding our market access.

To that end, are excited about new opportunities for strategic partnerships that we believe will allow for further U. S. Market expansion and allow us to capitalize on market channels and secure advantageous terms for our solutions. This quarter, we continued to pursue regulatory approvals internationally, setting us up for future distribution. We now have regulatory approvals in Canada, Saudi Arabia, Argentina, and some other smaller markets.

These approvals align perfectly with our strategy to promote accessible, high quality care and improve patient outcomes. During this last quarter, we have expanded sales of our BioCore Pro, our next generation cardiac monitoring solution, and continue to penetrate and expand our market footprint. This includes recent initiatives that continue to build up momentum, including the launch of major cardiac monitoring pilot programs with several hospitals and large networks and clinics. These are expected to continue to result in the rapid adoption of our BioCore Pro, both by existing and new customers. To allow for this, we have delivered a best in class clinical solution with award winning technology and industry leading patient compliance.

Additionally, our strategic entry into the pulmonary neurology fields through partnerships with leading home based diagnostic solutions marks a significant diversification of our market access. In summary, our strategic initiatives, technological advancements and operational efficiencies have positioned BioTricity for sustained growth and profitability. We remain focused on delivering innovative, high quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders and improving patient outcomes globally. With that, I will turn the call over to our CFO, John Aianoglu, to provide more detailed financial insights.

John Aianoglu, CFO, BioTricity: Thank you, Rokos. Let’s review the highlights. For our first quarter fiscal twenty twenty six, our recurring revenue generated as a result of strong market adoption of our technology as a service subscription model, as well as our usage based subscriptions remains robust, driven by the popularity of our FDA cleared cardiac monitoring technology, especially the next generation BioQor Pro, which features cellular connectivity. Atrial fibrillation, a primary contributor to strokes, remains a significant focus for our business. Biatricity is already monitored and recorded well over 2,000,000,000,000 heartbeats, providing early intervention opportunities and improving patient outcomes for patients with atrial fibrillation, providing them the opportunity for earlier medical intervention.

This not only improves patient outcomes, it also has the propensity to deliver significant healthcare cost savings for both individuals and the broader healthcare system. For the 2026, ended 06/30/2025, revenue increased by 21% compared to the corresponding period of the prior year to $3,900,000 compared to $3,200,000 in the prior year quarter. This growth is a testament to the efficacy of our strategic initiatives and our technological advancements. We anticipate further revenue growth in coming quarters as a result of the fact that our latest flagship device is a best in class device that is geared towards use in hospitals and large clinics, and we are continuing to penetrate effectively in that space. Technology fees accounted for 87% of the quarter’s total revenue, reflecting our strong customer retention and the quality of our support services.

Gross profit for the quarter totaled $3,100,000 up 31.9 percent from the $2,400,000 of the prior year period. Our gross profit percentage improved six sixty five basis points to 80.5% for this quarter, up from 73.8% in the corresponding prior year quarter. This increase is attributable to the expansion of our recurring technology fee revenue base, efficiencies gained through our proprietary AI, and improvements in our monitoring and cloud cost structure. As part of our sales initiatives, we continue to search for opportunities to expand our geographic footprint. We serve thousands of cardiologists across hundreds of centers.

Our insourcing business model allows these cardiac professionals to have direct control over our services, enhancing efficiencies and enabling broader market penetration. Our business development initiatives include expansion into other verticals that are ancillary but fit naturally with our core business. Operating expenses for the first quarter were $2,800,000 compared to $3,500,000 in the same period last year, which is an 18.5% decrease. Our SG and A expenses decreased by 27.9%, a comparable savings of over $827,000 for this quarter that we added to our R and D expenses, increasing those by 182,000 As previously discussed, we have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles and larger accounts, including independent hospitals and GPO networks.

We are contracted under three of the largest GPO networks, which as we’ve said before, us coveted access to sell into more than 90% of hospitals in The US. All of these positive improvements in revenue growth and operating efficiencies through the use of AI and other automation as well as proactive cost management has allowed us to continue to achieve positive free cash flows, defined as the cash from operations that is available to pay interest and dividends. And we’ve done this for the last four consecutive quarters and have been selling a path towards achieving profitability in the next few quarters. In fact, we’re pleased to announce that this quarter, the 2026 is the first quarter in the history of BioEntricity in which it has achieved a positive EBITDA. This is an important milestone and indicator that we are nearing full profitability.

The company achieved EBITDA of $333,000 this quarter, which corresponds to 1.3¢ on a per share basis. A reconciliation of our EBITDA can be found in our 10 Q, which is filed on EDGAR. We are pleased with the progress made in building our technology and obtaining FDA registrations, as well as developing effective sales strategies and implementing cost cutting measures. The result has been an improvement in operating results of nearly $1,400,000 to achieve our first ever profit from operations, which was $282,000 for this quarter. Net loss attributable to common stockholders for the first three month period ended 06/30/2025 was $754,000 compared to a net loss to common shareholders of 6,900,000.0 during the corresponding prior year period.

On a per share basis, we reported a loss per share of 2.9¢ compared to 49¢ for the corresponding funding prior year period. Even after removing the effects of a $3,000,000 deemed dividend, which was a one time item in the prior year period, we’ve made significant comparative improvement. This was an additional $3,100,000 improvement year over year, despite the expenses associated with growth and rising variable interest rates. Looking ahead, we remain committed to advancing our business through the commercialization of our BioCore, BioFlux, and BioCare products. Our tech is truly useful globally.

Cardiac is the number one chronic care condition in the entire world. The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position. Importantly, our focus on innovation and development continues to yield significant advancements in remote monitoring solutions for both diagnostic and post diagnostic products, bringing us ever closer to profitability. We’re excited about the future and continue to be confident about our ability to deliver sustained growth and profitability for BioTricity. And that concludes our prepared remarks.

Operator, please open the line for questions.

Conference Call Operator: We will now begin the question and answer session. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Seeing no questions, gentlemen, we’ll turn the conference back over to you for any additional or closing remarks.

Dr. Wakas Al Sadiq, Founder and CEO, BioTricity: Thank you everybody for joining us on our call today. We are incredibly excited about the next fiscal year. Moving into positive EBITDA is a huge milestone for the company and us showing that we can maintain margins, increase growth and turn to an EBITDA positive company puts us on a pathway to profitability and continued expansion. We look forward to hearing and talking to you on our next quarterly call. Thank you.

Conference Call Operator: Thank you, sir. That does conclude today’s conference call. We thank you for your participation. You may now disconnect.

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