Intelligent Bio Solutions — Fiscal 2026 Earnings Summary

Financial Performance

• Total revenue reached $4,215,175, a 38% year-over-year increase from $3,052,532 in fiscal 2025.
• Gross profit grew 64% year-over-year to $2,049,994, up from $1,246,859.
• Gross profit margin expanded 778 basis points to 48.63%, compared to 40.85% in the prior year.
• Net loss attributable to Intelligent Bio Solutions Inc. was $12,430,975, an increase from $10,568,733 in fiscal 2025.
• Cash and cash equivalents increased to $3,992,312 as of June 30, 2026, from $1,019,909 in the prior year.
• Total assets rose to $11,941,836 from $8,249,786, while total liabilities increased to $6,651,010 from $5,435,962.
• Notes payable were eliminated in fiscal 2026, down from $197,146 in fiscal 2025.
• Selling, general and administrative expenses increased to $10,502,161 from $8,918,468.
• Development and regulatory approval expenses rose to $3,371,292 from $2,396,513.
• Government support income decreased to $677,776 from $816,901.

Guidance and Future Outlook

• The FDA 510(k) submission is on track for the second half of calendar 2026.
• Management aims to advance toward planned U.S. market entry, targeting the multi-billion-dollar U.S. drug screening market.
• Fiscal 2027 priorities include sustaining operational improvements driving gross margin expansion, accelerating commercial growth, and advancing the FDA regulatory program.
• The transition to a new manufacturing partner is expected to be transformational for the cost structure and support long-term margin improvement.
• The company anticipates achieving materially stronger unit economics as the installed base and production volumes continue to grow.

Business Segments and Product Lines

• Reader installed base grew 22% year-over-year to 1,886 units as of June 30, 2026, from 1,545 units.
• Total consumable cartridges sold increased 35% to 106,500 units, up from 78,750 units.
• Active customer base reached 502 accounts as of June 30, 2026.
• The company secured a strategic partnership with Bouygues UK for a drug-testing rollout in a high-profile, safety-critical environment.
• Manufacturing transitioned to Syrma Johari, a lower-cost partner, with initial production runs completed and shipments underway.
• A validation study for a rapid drug screening cartridge targeting 70% faster results was initiated.
• The European intellectual property portfolio was strengthened with an eighth patent grant.

Market and Competitive Landscape

• Commercial traction extended across safety-critical sectors including construction, manufacturing, transport and logistics, and mining.
• Growth was observed across international regions including the UK, Europe, APAC, and the Middle East.
• The company currently operates outside the U.S. in Forensic Use Only settings while preparing for broader U.S. market entry.
• The U.S. market is identified as the world's largest drug screening market.

Risks and Challenges

• Forward-looking statements involve risks regarding the ability to successfully develop and commercialize tests, secure regulatory approvals, and enter the U.S. market.
• Actual results may differ materially from expectations due to known and unknown risks, uncertainties, and factors described in SEC filings.
• The company faces the challenge of scaling operations while managing the transition of manufacturing partners and regulatory submissions.

Management Commentary and Tone

• CEO Harry Simeonidis described fiscal 2026 as a year of "clear, compounding progress" and noted the razor-razorblade model is gaining scale.
• CFO Spiro Sakiris stated financial results reflect a business scaling with improving unit economics, driven by the manufacturing transition and optimized product mix.
• Management highlighted that sustained investment in marketing, sales, and customer support directly drove the 38% revenue growth and expanding utilization.

Other Key Points

• A 1-for-10 reverse stock split was effected on December 15, 2025, with financial statements retroactively adjusted.
• The company completed all clinical data collection across its FDA 510(k) clinical study program, with analysis underway.
• Multiple clinical and technical studies were initiated and completed, including cut-off studies, penetration testing, method comparison, interference studies, precision testing, and usability studies.
• Precision testing confirmed reproducibility across more than 1,600 tests, three production runs, and three independent testing sites.
• The company reported a realized foreign exchange gain of $39,820 in fiscal 2026, compared to a loss of $911 in fiscal 2025.
• Accumulated deficit increased to $(74,964,040) from $(62,533,065).