Pacific Edge Limited ((PFGTF)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Pacific Edge Limited’s recent earnings call presented a mixed sentiment, highlighting both strategic achievements and significant challenges. While the company has made notable strides in its strategic positioning and future prospects, it faces financial strains due to reduced revenue and test volumes, largely impacted by Medicare non-coverage.
Strategic Positioning and Market Presence
Despite reporting a net loss, Pacific Edge has maintained a strong strategic position by achieving significant milestones and sustaining its presence in the U.S. market. The company is actively appealing Medicare and commercial tests, positioning itself as a leader in driving Medicare policy change.
Contractor Advisory Committee and Evidence Portfolio
A significant development is the convening of a Contractor Advisory Committee by Novitas in February 2026. This move acknowledges the evidence supporting urine-based biomarkers for hematuria evaluation, largely driven by Pacific Edge’s Cxbladder evidence portfolio.
Triage Plus Economic Uplift
Pacific Edge achieved a critical milestone with Triage Plus, securing a price of $1,328 per test, a substantial increase from the previous $760 per test. This economic uplift is a positive development for the company’s financial outlook.
APAC Revenue Growth
The APAC region showed promising growth, contributing 15% of the company’s revenue for the half, up from 8% in the second half of FY ’25. This indicates a successful expansion into international markets.
Decline in Operating Revenue
Operating revenue saw a decline to $5.9 million from $10.9 million in the previous half, primarily due to the loss of Medicare coverage. This reduction poses a significant challenge for the company’s financial health.
Reduced Test Volumes and Sales Force
Global commercial test volumes decreased by 10%, and the sales force was reduced from over 30 to an average of 12 in Q2 ’26. These measures reflect the company’s efforts to manage costs amidst financial challenges.
Challenges Due to Medicare Non-Coverage
The loss of Medicare coverage has significantly impacted testing volumes and revenue recognition. The company is currently appealing over 2,000 denied tests, with hopes for revenue recognition in the latter half of the year.
Cash Flow and Capital Concerns
Operating cash flows were reported at $19 million, higher than the previous half, yet cash outflows remain a concern. The company is exploring capital initiatives to address the extended timeline for Medicare re-coverage.
Forward-Looking Guidance
Looking ahead, Pacific Edge reported a net loss of $19.1 million and operating revenue of $5.9 million. Despite these challenges, the company is optimistic about Medicare re-coverage following the upcoming Contractor Advisory Committee meeting. Additionally, Pacific Edge is focusing on international market expansion and product innovation, such as Triage Plus and Surveillance Plus, for sustained growth.
In conclusion, Pacific Edge Limited’s earnings call reflects a mixed sentiment with both strategic achievements and ongoing challenges. The company is navigating financial strains due to Medicare non-coverage but remains optimistic about future prospects, particularly with the upcoming Contractor Advisory Committee meeting and international market expansion.