Biome Australia Ltd (BIO) AI Stock Analysis

• Market Cap: AU$93.50M
• Dividend Yield: N/A
• Average Volume (3M): 278.69K
• Price to Earnings (P/E): 97.7
• Beta (1Y): 1.46
• Revenue Growth: 41.57%
• EPS Growth: N/A
• Country: AU
• Employees: 30
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): <0.01
• Shares Outstanding: 222,609,240
• 10 Day Avg. Volume: 235,222
• 30 Day Avg. Volume: 278,692
• PEG Ratio: -4.12
• Price to Book (P/B): 21.27
• Price to Sales (P/S): 5.40
• P/FCF Ratio: -34.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.00
• Price Target Upside: 150.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: AU$0.50 ▲(24.25% Upside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

The score is driven primarily by decent financial progress (revenue growth and strong gross margin) and improving technical momentum. However, the overall rating is held back by cash flow weakness (negative operating cash flow) and a very stretched valuation (P/E 455).

Positive Factors

Revenue Growth & Gross Margin

Consistent top-line expansion combined with a high gross margin indicates the core product portfolio captures value and controls direct costs. Over a multi-month horizon this supports reinvestment in distribution and R&D, and provides a durable buffer to support profitability if operating expenses are managed.

Manageable Leverage and Capital Structure

Moderate leverage with a strong equity base gives the company financial flexibility to fund growth or absorb shocks without excessive refinancing risk. A positive ROE shows the business is generating shareholder returns, supporting sustainable capital allocation over the coming months.

Improving Free Cash Flow

A very large increase in free cash flow signals improving cash generation capacity relative to prior periods. If maintained, stronger FCF enables internal funding for product development, marketing and working capital, reducing reliance on external financing and improving long-term operational resilience.

Negative Factors

Negative Operating Cash Flow

Persistent negative operating cash flow indicates earnings are not converting into cash, creating reliance on financing or asset sales. Over a 2–6 month horizon this constrains flexibility for inventory, marketing or new product launches and raises refinancing and liquidity risk if trends persist.

Very Thin Net Profitability

A single-digit, near-breakeven net margin leaves little buffer for cost inflation, competitive pricing pressure or adverse sales mix shifts. Structurally low bottom-line profitability limits reinvestment capacity, dividend potential and the ability to build reserves against industry cyclicality over the medium term.

Limited Scale and Concentration

A small headcount and primary focus on the Australian pharmacy/practitioner channels suggest limited geographic and channel diversification. This concentration raises execution and growth risks, and constrains scalability and bargaining power with large retail partners over the next several months.

Biome Australia Ltd Business Overview & Revenue Model

Company Description

Biome Australia Limited develops, commercializes, and markets various live biotherapeutics and complimentary medicines in Australia and internationally. It provides live biotherapeutic products under the Activated Probiotics brand; organic nutraceutical products under the Activated Nutrients brand; and sports performance and recovery products under the Activated X Performance brand. The company markets its products through community pharmacies and independent health practitioners. Biome Australia Limited was incorporated in 2018 and is based in Cremorne, Australia.

How the Company Makes Money

Biome Australia Ltd generates revenue primarily through the development and commercialization of its biopharmaceutical products. The company’s revenue model includes income from product sales, licensing agreements, and partnerships with larger pharmaceutical firms that facilitate the clinical development and distribution of its products. Key revenue streams consist of upfront payments from licensing deals, milestone payments tied to the successful achievement of development stages, and royalties on future sales of partnered products. Additionally, significant collaborations with research institutions and pharmaceutical companies enhance BIO's research capabilities and market reach, contributing to its overall earnings.

Biome Australia Ltd Financial Statement Overview

Summary

Solid revenue growth (16.14%) and a strong gross margin (61.12%) support the outlook, and the balance sheet appears stable with moderate leverage (debt-to-equity 0.66). Offsetting this, profitability is thin (net margin 1.17%) and operating cash flow is negative, indicating weak cash conversion despite improved free cash flow growth.

Income Statement

Biome Australia Ltd has shown a positive revenue growth rate of 16.14% in the latest year, indicating strong top-line growth. The gross profit margin is healthy at 61.12%, reflecting efficient cost management. However, the net profit margin is low at 1.17%, suggesting limited profitability after expenses. The EBIT and EBITDA margins are also low, indicating room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.66 indicates a moderate level of leverage, which is manageable. The return on equity is positive at 4.59%, showing that the company is generating returns for its shareholders. The equity ratio is strong, suggesting a solid capital structure with a good proportion of equity financing.

Cash Flow

The free cash flow growth rate is significantly high at 314.74%, indicating improved cash generation. However, the operating cash flow is negative, and the operating cash flow to net income ratio is also negative, highlighting challenges in converting profits into cash. The free cash flow to net income ratio is slightly above 1, showing that free cash flow is covering net income.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	21.95M	18.42M	13.01M	7.24M	4.11M	2.32M
Gross Profit	13.28M	11.26M	7.91M	4.06M	2.38M	1.07M
EBITDA	765.13K	143.57K	-1.58M	-3.15M	-4.65M	-5.39M
Net Income	957.91K	214.66K	-1.67M	-3.08M	-4.54M	-5.38M
Balance Sheet
Total Assets	12.31M	11.97M	8.28M	7.56M	8.25M	11.09M
Cash, Cash Equivalents and Short-Term Investments	3.36M	2.75M	2.87M	2.26M	5.49M	634.61K
Total Debt	2.43M	3.07M	1.30M	1.15M	467.05K	81.00K
Total Liabilities	6.25M	7.29M	5.37M	3.97M	1.73M	920.00K
Stockholders Equity	6.06M	4.68M	2.90M	3.59M	6.53M	10.17M
Cash Flow
Free Cash Flow	355.74K	-2.86M	-185.41K	-3.90M	-3.55M	-2.46M
Operating Cash Flow	390.84K	-2.82M	-163.81K	-3.50M	-3.42M	-2.39M
Investing Cash Flow	-140.48K	-200.38K	-21.61K	-400.94K	-99.34K	-28.77K
Financing Cash Flow	518.57K	2.90M	793.17K	665.21K	8.40M	2.58M

Biome Australia Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BIO, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.43, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BIO.

Biome Australia Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BIO	57 Neutral	AU$93.50M	97.67	5.66%	―	41.57%	―
BGT	46 Neutral	AU$10.07M	-3.47	―	―	―	―
AVE	44 Neutral	AU$33.06M	-7.14	-143.71%	―	306.88%	―
ANR	40 Underperform	AU$3.48M	-1.90	-205.70%	―	―	1.03%
HXL	40 Underperform	AU$2.17M	-9.29	-28.49%	―	―	46.43%
1AD	37 Underperform	AU$10.20M	-2.38	-628.72%	―	―	31.87%

Biome Australia Ltd Corporate Events

Biome Australia Posts Record Half-Year Revenue and Profit as Probiotics Brand Leads Pharmacy Growth

Biome Australia has reported record results for the first half of fiscal 2026, highlighting strong operational momentum and market traction for its ACTIVATED PROBIOTICS range. The company posted H1 revenue of $12.4 million, including $6.45 million in second-quarter sales, delivered net profit of $1.18 million, and notched eight consecutive quarters of positive EBITDA, underpinned by 40% revenue growth and the launch of a 240-participant human clinical trial for its BMB18 strain in collaboration with La Trobe University.

Management emphasised that all products in the ACTIVATED PROBIOTICS portfolio are growing while preserving margins without discount-heavy promotions, reinforcing the brand’s premium positioning in Australian pharmacy. This combination of accelerating sales, sustained profitability and advancing clinical IP pipeline suggests a strengthening competitive position in the probiotics segment and offers a constructive signal for stakeholders assessing the company’s growth trajectory and innovation strategy.

The most recent analyst rating on (AU:BIO) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia lifts profit 172% on surging probiotic sales and stronger cash flow

Biome Australia reported a strong first half to 31 December 2025, with revenue up 39.9% to $12.40 million, driven by growth in its Activated Probiotics and Activated Therapeutics ranges across pharmacy and practitioner channels. Net profit after tax surged 171.5% to $1.18 million, marking eight consecutive quarters of positive EBITDA and underscoring the company’s improving scale and earnings profile.

Gross margin remained steady at 61.1%, even as sales and marketing spend increased to $4.70 million to build sales capability and support wholesale partnerships in domestic and international markets. Operating cash flow swung to a $2.09 million inflow from a $1.12 million outflow, borrowings were cut to $1.50 million and cash rose to $3.36 million, highlighting stronger balance sheet metrics as the company exits the half with an annualised revenue run rate of about $25.92 million.

The most recent analyst rating on (AU:BIO) stock is a Hold with a A$0.42 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia Secures Ethics Approval for First Human Trial of Proprietary Probiotic BMB18

Biome Australia has received ethics approval from La Trobe University’s Human Research Ethics Committee to commence its first human clinical trial of its proprietary probiotic strain Lactobacillus plantarum BMB18 in February 2026. The 12‑month, randomised, double-blind, placebo-controlled study will enroll 240 adults to assess BMB18’s efficacy on digestive symptoms, sleep, mood and quality of life at two active dosage levels versus placebo, with the work to be delivered within the company’s existing R&D budget. As a wholly owned and DSMZ-registered strain, BMB18 represents protectable intellectual property, and successful clinical validation is expected to underpin new product development and licensing opportunities across Biome’s Activated Probiotics and Activated Therapeutics ranges, bolster its competitive advantage, and support growth in its core gut health category while advancing its Vision 27 strategic plan.

The most recent analyst rating on (AU:BIO) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia Delivers Record Quarter With Strong Revenue Growth and Cash Generation

Biome Australia reported its strongest quarter on record for the three months to 31 December 2025, with sales revenue of $6.5 million, up 41% on the prior corresponding period, and rolling 12‑month revenue of about $22 million. The company delivered EBITDA of approximately $1.0 million for the quarter and $1.48 million for the first half of FY26, marking its eighth consecutive quarter of positive EBITDA, while maintaining gross margins above 61%. Cash receipts rose 43% to $6.2 million, and together with an R&D rebate, generated about $1.24 million in net operating cash inflow, enabling Biome to repay $722,000 of working capital facilities and lift its cash balance by $421,000 to $3.36 million, underscoring stronger cash generation and an improving balance sheet.

The most recent analyst rating on (AU:BIO) stock is a Hold with a A$0.46 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia Posts Record Q2 and Half-Year Sales on Strong Probiotic Demand

Biome Australia reported record sales for the second quarter and first half of FY26, with Q2 revenue reaching $6.48 million, up 40.9% on the prior corresponding period and 9.1% sequentially, despite Q2 typically being seasonally softer due to fewer December trading days and a pharmacy sector focus on gifting. Half-year FY26 revenue rose 40.2% to $12.42 million, underpinned by strong demand for the company’s clinically proven probiotic products, reinforcing its growth trajectory and indicating strengthening market adoption in its core complementary medicines and live biotherapeutics segments.

The most recent analyst rating on (AU:BIO) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia Appoints New CFO to Drive International Expansion

Biome Australia Limited has appointed Lauren Dwyer as the new Chief Financial Officer, effective February 2026. Dwyer brings extensive experience from various sectors, including SaaS and healthcare, and has a proven track record in international expansion and financial leadership. Her appointment is expected to support Biome’s international growth and strategic objectives, particularly Vision 27. The outgoing CFO, Douglas Loh, will retire after a comprehensive handover, maintaining an advisory role.

The most recent analyst rating on (AU:BIO) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia Director Increases Stake, Signaling Growth Confidence

Biome Australia Limited announced a change in the director’s interest, with Geoffrey Sam acquiring 2,000,000 fully paid ordinary shares under the company’s Loan Funded Share Plan, valued at approximately $803,640. This acquisition, approved at the Annual General Meeting, reflects strategic alignment and potential growth in shareholder value, indicating confidence in the company’s future prospects.

The most recent analyst rating on (AU:BIO) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.

Biome Australia Facilitates Share Trading with New Issuance

Biome Australia Ltd has issued 2,000,000 fully paid ordinary shares under its Loan Funded Share Plan, a move approved at its recent Annual General Meeting. This issuance, compliant with the Corporations Act 2001, allows the shares to be traded without disclosure, potentially enhancing liquidity and investor engagement.

The most recent analyst rating on (AU:BIO) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Biome Australia Ltd stock, see the AU:BIO Stock Forecast page.