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Atomo Diagnostics Ltd. (AU:AT1)
ASX:AT1
Australian Market

Atomo Diagnostics Ltd. (AT1) AI Stock Analysis

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AU:AT1

Atomo Diagnostics Ltd.

(Sydney:AT1)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
AU$0.04
▲(2.50% Upside)
The score is primarily held back by weak financial performance (revenue decline, large losses, and negative operating/free cash flow). Technicals provide partial support with an improving trend versus longer-term moving averages and moderately positive momentum. Valuation contributes negatively due to negative earnings (making P/E less meaningful) and no dividend yield data.
Positive Factors
Low leverage / capital structure
A very low debt-to-equity ratio (0.03) gives the company financial flexibility to fund operations, R&D and manufacturing scale without high interest burden. This durable capital structure reduces solvency risk and supports strategic options during a multi-quarter turnaround.
Proprietary integrated RDT platform
Atomo’s integrated device combines lancet, collection and delivery in one unit, a product-level differentiation that is sticky for diagnostic manufacturers and public health programs. This IP-backed platform supports durable B2B adoption, licensing and volume-driven revenue as tests scale.
Healthy product-level gross margin
A gross margin near 47% indicates strong unit economics for the device itself, meaning product sales can cover direct costs and contribute to fixed-cost absorption. If revenue scale returns, these margins support eventual operating leverage and sustainable profitability.
Negative Factors
Declining revenues
Revenue decline of about 10% undermines the company’s ability to leverage fixed manufacturing and R&D costs. Persistent top-line contraction threatens scale benefits from the Atomo platform, making a multi-quarter recovery necessary to restore unit economics and fund growth.
Deep operating losses and negative margins
Extremely negative EBIT and net margins show the business is operating well below breakeven. Such structural losses imply the company must either materially grow revenue, cut operating costs, or rely on external capital, all of which pose medium-term dilution and execution risks.
Negative operating and free cash flow
Persistently negative operating and free cash flow with sharp FCF deterioration strains liquidity and increases dependency on fundraising. This reduces flexibility to invest in commercialization, manufacturing scale, or new product development over the coming 2–6 months without clear cash infusions.

Atomo Diagnostics Ltd. (AT1) vs. iShares MSCI Australia ETF (EWA)

Atomo Diagnostics Ltd. Business Overview & Revenue Model

Company DescriptionAtomo Diagnostics Limited engages in the development and sale of medical devices worldwide. It offers rapid diagnostic test devices for COVID-19, HIV screening, pregnancy test, and respiratory test. The company was incorporated in 2010 and is headquartered in Leichhardt, Australia.
How the Company Makes MoneyAtomo Diagnostics generates revenue primarily through the sale of its diagnostic devices and test kits to healthcare providers, laboratories, and distributors. The company operates on a B2B model, securing contracts and partnerships with healthcare organizations and governments to supply its products. Additionally, Atomo may engage in collaborations with pharmaceutical companies to develop tailored diagnostic solutions, which can further enhance its revenue streams. Key partnerships and licensing agreements are significant contributors to its earnings, providing Atomo with a stable income from both product sales and potential royalties from its proprietary technology.

Atomo Diagnostics Ltd. Financial Statement Overview

Summary
Financial performance is weak: revenues declined (-10.04%) and profitability is deeply negative (net margin -131.08%, EBIT margin -153.90%). The balance sheet has minimal leverage (debt-to-equity 0.03), but returns are poor (ROE -71.26%) and cash flows are negative with deteriorating free cash flow growth (-44.42%).
Income Statement
35
Negative
Atomo Diagnostics Ltd. has faced declining revenues with a negative revenue growth rate of -10.04% in the most recent year. The company is struggling with profitability, as indicated by negative margins across the board, including a net profit margin of -131.08% and an EBIT margin of -153.90%. Despite a slight improvement in gross profit margin to 47.28%, the overall financial health of the income statement remains weak.
Balance Sheet
50
Neutral
The balance sheet shows a low debt-to-equity ratio of 0.03, indicating minimal leverage, which is a positive aspect. However, the return on equity is significantly negative at -71.26%, reflecting poor profitability and returns for shareholders. The equity ratio stands at a healthy level, suggesting a stable capital structure despite ongoing losses.
Cash Flow
40
Negative
Cash flow analysis reveals challenges with negative operating cash flow and free cash flow, although the free cash flow to net income ratio is slightly above 1, indicating some alignment between cash flow and accounting profits. However, the free cash flow growth rate is negative at -44.42%, highlighting cash flow deterioration.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.79M3.79M4.09M2.54M12.34M6.72M
Gross Profit1.79M1.79M1.44M-6.08M-1.85M-1.71M
EBITDA-4.69M-4.69M-6.12M-9.00M-4.72M-4.70M
Net Income-4.97M-4.97M-6.85M-9.96M-5.71M-6.02M
Balance Sheet
Total Assets9.28M9.28M11.38M16.47M26.62M32.24M
Cash, Cash Equivalents and Short-Term Investments3.22M3.22M3.69M6.47M12.97M17.95M
Total Debt185.10K185.10K84.67K254.88K340.81K67.59K
Total Liabilities2.30M2.30M1.29M1.68M1.81M2.15M
Stockholders Equity6.98M6.98M10.08M14.79M24.81M30.09M
Cash Flow
Free Cash Flow-1.99M-1.99M-4.70M-6.25M-5.11M-10.12M
Operating Cash Flow-1.96M-1.96M-4.69M-5.85M-2.81M-4.23M
Investing Cash Flow-33.89K-33.89K-16.08K-401.28K-2.31M-5.90M
Financing Cash Flow1.46M1.46M1.87M-170.75K17.61K997.37K

Atomo Diagnostics Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.04
Price Trends
50DMA
0.04
Positive
100DMA
0.03
Positive
200DMA
0.03
Positive
Market Momentum
MACD
<0.01
Positive
RSI
56.32
Neutral
STOCH
58.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AT1, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 58.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AT1.

Atomo Diagnostics Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
AU$25.54M-2.66-103.74%14.84%39.64%
48
Neutral
AU$30.79M-4.94-58.27%-7.20%28.70%
43
Neutral
AU$46.02M-8.27-513.22%-34.06%75.47%
42
Neutral
AU$6.16M-4.03-55.00%
39
Underperform
AU$3.12M-0.91-218.52%-30.80%-38.95%
37
Underperform
AU$18.55M-0.64-1476.79%-2.82%32.47%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AT1
Atomo Diagnostics Ltd.
0.04
0.02
90.00%
AU:UCM
Uscom Limited
0.01
-0.01
-52.00%
AU:HMD
HeraMED Ltd.
0.04
0.03
152.94%
AU:ADR
Adherium Ltd.
0.01
0.00
0.00%
AU:IRX
InhaleRx Limited
0.03
<0.01
31.58%
AU:CBL
Control Bionics Ltd.
0.06
<0.01
16.98%

Atomo Diagnostics Ltd. Corporate Events

Atomo Diagnostics Sets Date for Q2 FY26 Results and Investor Webinar
Jan 22, 2026

Atomo Diagnostics has scheduled the release of its Q2 FY26 financial results for Wednesday, 28 January 2026, and will host an investor and analyst webinar briefing on the same day at 2:00 pm AEDT, led by Managing Director and CEO John Kelly. The company is directing investors to pre-register online and use its Investor Hub to submit questions and comments in advance, underlining a continued focus on proactive engagement with the market and transparency around its financial and operational performance.

The most recent analyst rating on (AU:AT1) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Atomo Diagnostics Ltd. stock, see the AU:AT1 Stock Forecast page.

Atomo Diagnostics Wins Exclusive Global Licence for Rapid Liver Function Test on Pascal Platform
Jan 19, 2026

Atomo Diagnostics has secured an exclusive global licence from the Burnet Diagnostics Initiative for a novel liver function test that detects liver injury via alanine aminotransferase (ALT) using Atomo’s Pascal point-of-care cassette. The test, which is already substantively developed and undergoing evaluation by a large multinational pharmaceutical company in a US drug trial for drug-induced liver injury monitoring, positions Atomo to tap into a significant global market for rapid liver function screening and monitoring, including chronic liver diseases such as viral hepatitis, fatty liver and alcoholic liver disease. The agreement, which runs to the expiry of the underlying patents expected in 2044, builds on Atomo’s existing collaboration with Burnet and includes a $150,000 upfront licensing milestone payment plus performance-based regulatory milestone payments, while standard industry royalties will only commence once regulatory approvals are secured in key markets, lowering development risk and providing a clearer path to commercialisation.

The most recent analyst rating on (AU:AT1) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Atomo Diagnostics Ltd. stock, see the AU:AT1 Stock Forecast page.

Atomo Wins $502,000 HIV Self-Test Order Backed by Global Fund
Jan 14, 2026

Atomo Diagnostics Limited has secured a material purchase order worth $502,000 to supply its HIV self-test kits, manufactured under the Mylan brand, to an African country with funding from the Global Fund, with delivery planned for March. The deal underscores ongoing demand for Atomo’s HIV self-testing solutions in African markets and reinforces the company’s role in providing reliable, discreet diagnostic options in regions with significant HIV risk, supporting both its revenue base and its positioning in global rapid diagnostics.

The most recent analyst rating on (AU:AT1) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Atomo Diagnostics Ltd. stock, see the AU:AT1 Stock Forecast page.

Atomo Diagnostics Grants Options to Director Following Shareholder Approval
Dec 17, 2025

Atomo Diagnostics Ltd. announced a change in the director’s interest, confirming the issuance of 1,000,000 unlisted options exercisable at $0.0115, expiring on June 30, 2028, to director Cheri Walker following shareholder approval. This grant highlights the company’s strategy to align leadership incentives with long-term stakeholder value creation.

The most recent analyst rating on (AU:AT1) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Atomo Diagnostics Ltd. stock, see the AU:AT1 Stock Forecast page.

Atomo Diagnostics Issues New Equity Securities Under Employee Incentive Scheme
Dec 12, 2025

Atomo Diagnostics Ltd. has announced the issuance of 3,100,000 unquoted equity securities in the form of options expiring on June 30, 2028, with an exercise price of $0.0115. This issuance is part of an employee incentive scheme and is not intended to be quoted on the ASX. The move is likely aimed at motivating and retaining key personnel, potentially impacting the company’s operational efficiency and market competitiveness.

The most recent analyst rating on (AU:AT1) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Atomo Diagnostics Ltd. stock, see the AU:AT1 Stock Forecast page.

Atomo Diagnostics Addresses ASX Query on Unusual Trading Activity
Dec 3, 2025

Atomo Diagnostics Ltd. has responded to an ASX query regarding unusual trading activity in its securities, confirming it is unaware of any undisclosed price-sensitive information that could explain the recent changes in price and volume. The company asserts its compliance with ASX Listing Rules, specifically Rule 3.1, and states that its board has authorized the response.

The most recent analyst rating on (AU:AT1) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Atomo Diagnostics Ltd. stock, see the AU:AT1 Stock Forecast page.

Atomo Diagnostics Adopts Amended Constitution
Oct 31, 2025

Atomo Diagnostics Ltd. announced the adoption of an amended constitution, as approved by its shareholders at the recent Annual General Meeting. This change reflects the company’s ongoing commitment to aligning its governance framework with its operational and strategic objectives, potentially impacting its market positioning and stakeholder engagement.

Atomo Diagnostics Reports Successful 2025 AGM Results
Oct 31, 2025

Atomo Diagnostics Limited announced the results of its 2025 Annual General Meeting, where all resolutions were passed by a poll. This announcement indicates a smooth decision-making process and reflects the company’s adherence to regulatory requirements, potentially strengthening stakeholder confidence.

Atomo Diagnostics Highlights Strategic Focus at 2025 AGM
Oct 31, 2025

Atomo Diagnostics Ltd. has released the MD & CEO’s address for their 2025 Annual General Meeting, highlighting the company’s ongoing commitment to innovation in the rapid diagnostic testing sector. This announcement underscores Atomo’s strategic focus on enhancing its market position by delivering cutting-edge diagnostic solutions, which is expected to positively impact its operations and stakeholder engagement.

Atomo Diagnostics Advances in Rapid Testing Amid Industry Challenges
Oct 31, 2025

Atomo Diagnostics Ltd. has made significant strides in the past year despite challenges in the global diagnostics sector. The company has advanced commercial partnerships, expanded international regulatory approvals, streamlined operations, and focused on high-value opportunities in infectious disease and rapid test applications. These efforts align with the growing trend towards decentralised, at-point-of-care, and self-testing solutions, reinforcing Atomo’s position in the market.

Atomo Diagnostics Reports Significant Progress and Expansion in Q1 FY26
Oct 29, 2025

Atomo Diagnostics Ltd. has made significant commercial progress in Q1 FY26, highlighted by the submission of the FebriDx test for a CLIA waiver with the US FDA, following successful validation of the Pascal platform in clinical trials. The company has received substantial purchase orders from Lumos, totaling approximately $1 million, as part of their FebriDx agreement. Atomo’s HIV self-test has expanded its distribution channels, launching on Chemist Warehouse’s ecommerce site in Australia and receiving orders from USAID for Ukraine. Additionally, Atomo has secured $1.3 million in new capital to support ongoing business objectives, with a reported revenue of $680k for the quarter.

Atomo Diagnostics to Release Q1 FY26 Results and Host Investor Webinar
Oct 27, 2025

Atomo Diagnostics Limited announced it will release its Q1 FY26 results on October 29, 2025, followed by a webinar hosted by Managing Director & CEO, John Kelly. This announcement highlights Atomo’s ongoing commitment to transparency and engagement with analysts and investors, potentially impacting its market positioning and stakeholder relations positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 06, 2026