Pacific Edge Limited Analysis

Overview

Pacific Edge Limited (NZX: PEB) is a New Zealand publicly listed, cancer diagnostic company specialising in the discovery and

commercialisation of diagnostic and prognostic tests for better detection and management of cancer. Its Cxbladder suite of

non-invasive, simple to use and accurate diagnostic tests provide actionable results, and better detection and management of

urothelial cancer. The company is developing and commercialising its range of Cxbladder bladder cancer tests globally through

its wholly owned central laboratories in New Zealand and the USA. The company’s products have been tested and validated in

international multi-centre clinical studies.

Performance

The following information was extracted from Pacific Edge Limited's half year results, released on 25 November 2025

1H 26 FINANCIAL AND PERFORMANCE PROGRESS

• Operating revenue was down to $5.9 million from $10.9 million in 2H 25 following Medicare coverage loss. Total revenue was down to $7.1 million from $12.5 million in 2H 25.

• With the loss of Medicare Coverage, Medicare revenue cannot be recognized until successfully appealed, a process expected to delay revenue recognition by 6-9 months.

• Total laboratory throughput (TLT) of Cxbladder tests of 13,191; down 10.1% on 2H 25; commercial tests down 15.9% on 2H 25 to 10,371 tests

• US test sales/FTE of 403 for Q2 26, up 5.8% on 1Q 26 following sales force reduction and a focus on the most profitable territories

• Net loss after tax of $19.1 million, higher than the $15.4 million net loss in 2H 25 following lower revenue and strategy to position the company for a Medicare-led recovery; net operating costs decreased 5.9% on 2H 25.

• Net cash flow to operating activities at $19.0 million is more than the $12.3 million in 2H 25, following lower revenue, and the costs associated with the strategic positioning of the company for a Medicare led recovery

• Cash and cash equivalents and short-term deposits at $22.1 million; supported by successful $20.7 million capital raise in August 2025; canvasing strategic options given an extended Medicare re-coverage timeline and appeals delays

FINANCIAL RESULTS

Operating revenue is down to $5.9 million from $10.9 million in 2H 25, with the fall largely reflecting the loss of Medicare coverage at the start of the period and the reduction in commercial test volumes.

Pacific Edge expects revenue to lift for 2H 26 after taking claims through the Medicare Appeals Process, but that revenue recognition can only come after success in front of an Administrative Law Judge (ALJ). Normal timeframes associated with appeals to the ALJ are 6-9 months, delaying recognition of any success until, at best, in 2H 26 and there could be unknown delays to the scheduling of ALJs on account of the 43-day government shutdown in the US.

Total operating expenses were down 5.9% on 2H 25 as we focused on managing costs.

Pacific Edge’s operating cost base continues to reflect our determination to maintain our market presence, positioning the company for a faster recovery following an expected affirmation of Medicare coverage in calendar year 2026. Because of this decision the net loss after tax increased to $19.1 million, from the $15.4 million net loss in 2H 25.