Biotricity Q3 FY2026 Earnings Call - High‑Margin Recurring Revenue Puts Small Company on a Near‑Term Path to Profitability

Conference Moderator, Biotricity: Good afternoon, and welcome to Biotricity’s third quarter fiscal 2026 financial results and business update conference call. Today’s conference is being recorded. As a reminder, this is Biotricity’s third quarter fiscal 2026, ended on December 31, 2025. So all figures presented for this period will reflect that end date. Earlier, Biotricity issued its earnings press release for the period, which highlighted financial and operational results. A copy of the press release is available on the investor relations section of the Biotricity’s website, and the full financials have been filed with the SEC on Form 10-Q and posted on EDGAR at www.sec.gov. Before beginning the company’s formal... I’d like to remind listeners that today’s discussion may contain forward-looking statements that reflect management’s current views with respect to future events.

Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Biotricity does not undertake to update any forward-looking statements except as required. At this point, I’m pleased to turn the call over to Biotricity’s founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead, sir.

Dr. Waqaas Al-Siddiq, Founder and CEO, Biotricity: I would like to first thank everybody for joining us today. This quarter marks another important step for Biotricity as we continue executing our proven strategy, evidenced by 3 consecutive quarters of positive net operating income and EBITDA. As we continue scaling revenue and improving margins, we are strengthening our leadership position in chronic care markets, starting with the number 1 global cause of death, cardiovascular disease. This quarter continues our historic trend of expanding our trailing 12-month top line while setting up for another growth year, as we have always done year after year. We are building a company designed for durable, recurring growth, and our results this quarter reflect that discipline. Demand for remote patient management solutions continue to accelerate with the growing aging population and persistent resource and staffing shortages.

Biotricity is uniquely positioned to lead the transition from reactive care to proactive management with clinically superior technology, favorable reimbursement economics, strategic partnerships, and a highly scalable, efficient operating model, which has allowed us to make remarkable progress across multiple fronts. The cardiovascular and chronic disease management landscape is evolving rapidly, and long-term winners will be companies that combine clinical-grade accuracy, reimbursement alignment, and scalable infrastructure. Biotricity brings all three together. Unlike others that rely on high-cost service models or divert reimbursement away from providers, our platform is designed to expand patient access while simplifying clinical workflows. This allows providers to serve more patients using existing resources while increasing revenue for services physicians are already providing. That differentiated value proposition continues to drive strong customer retention and expansion within our existing and new accounts. One of our most significant achievements has been the expansion of our Cardiac AI Cloud platform.

Our AI-driven platform is designed to enhance diagnostic accuracy, improve patient outcomes, and increase clinical profitability. As we pursue FDA clearance for our groundbreaking AI clinical model, we are setting new standards in cardiac care, ensuring every patient receives the highest quality of care. We expect to see additional improvements in our operational expenses and margins with our next clearance. This quarter, we continue to pursue regulatory approvals internationally, preparing for future distribution. These approvals are in addition to the regulatory approvals we already have in the U.S., Canada, Saudi Arabia, Argentina, and some other smaller markets. These approvals underpin our strategy to promote accessible, high-quality care to improve patient outcomes. Our primary focus remains on the U.S. market expansion, but we are opportunistically expanding outside of the U.S. through distribution partnerships.

We are also extending care beyond the clinic by putting clinical quality tools directly in the hands of consumers through BioHeart. Built with the same underlying technology trusted by providers, BioHeart enables users to identify meaningful changes earlier and make lifestyle adjustments sooner, supporting their long-term outcomes. Through a multichannel distribution approach, through experienced partners to optimize these routes, we are making monitoring more continuous and integrated across the care journey. During the quarter, we continued to expand sales of BioCore Pro, our next-generation cardiac monitoring device, deepening penetration within current customers and extending our market footprint. Our momentum continues to build across the business. We launched multiple large-scale cardiac monitoring pilot programs within hospital networks and clinic groups, initiatives that are already contributing to improved utilization and accelerating our path towards breakeven.

Based on the current demand and pipeline visibility, we expect continued strong adoption of Biocore Pro across existing and new customers. This expansion supports our broader commitment to deliver innovative healthcare technology solutions. In summary, our strategic initiatives, technological advancements, and operational efficiencies have positioned Biotricity for sustained growth and profitability for calendar 2026. We expect to continue to increase top-line revenue this year, shift to profitability, and post another growth year. We remain focused on delivering innovative, high-quality cardiac care solutions and are confident in our ability to continue driving value for our shareholders and improving patient outcomes globally. With that, I will turn the call over to our CFO, John Ayanoglou, to provide more detailed financial insights.

Conference Moderator, Biotricity: Thank you, Waqaas. Let’s review the highlights of our third quarter fiscal 2026. Our recurring revenue reflects strong market adoption of our primary subscription model, which is a technology-as-a-service subscription model. Recurring revenues through our secondary usage-based subscription model also remain robust. Both are driven by the popularity of our FDA-cleared cardiac monitor devices, especially the next-generation Biocore Pro, which features cellular connectivity.

John Ayanoglou, CFO, Biotricity: ... Our rapidly expanding digital ecosystem reflects this growth, with users of our digital health app growing from 4,500 to more than 44,000 in just two years, and an expanding network of over 2,500 providers supporting 400,000 patients annually. Atrial fibrillation, a primary contributor to strokes, remains a significant focus of our business. Biotricity is providing early intervention opportunities and improving patient outcomes for patients with atrial fibrillation, providing them the opportunity for earlier medical intervention. This not only improves patient outcomes, it also has the propensity to deliver significant healthcare cost savings for both individuals and the broader healthcare system. For the third quarter of fiscal 2026, ended December 31, 2025, revenue increased by 10.2% compared to the corresponding prior year period, to $4 million from $3.6 million in the prior year quarter.

This growth is a testament to the efficacy of our strategic initiatives and our technological advancements. We anticipate further revenue growth in coming quarters as a result of the fact that our latest flagship device is a best-in-class device that is geared towards use in hospitals and large clinics, and we are continuing to penetrate effectively in that space. Technology fees accounted for 91.2% of the quarter’s total revenue, reflecting our strong customer retention and the quality of our support services. Gross profit for the quarter totaled $3.2 million, up 17.6% from $2.8 million for the prior year period. Our gross profit percentage improved 516 basis points to 81.5% for this quarter, up from 76.4% in the corresponding prior year quarter.

This increase is attributable to the expansion of our recurring technology fee revenue base, as well as efficiencies gained through our proprietary AI and improvements in our monitoring and cloud cost structures. As part of our sales initiatives, we continue to search for opportunities to expand our geographic footprint. We serve thousands of cardiologists across hundreds of centers. Our insourcing business model allows these cardiac medical professionals to have direct control over our services, thus enhancing efficiencies and enabling broader market penetration. Our business development initiatives include expansion into other verticals that are ancillary, but fit naturally with our core business. Operating expenses for the third quarter were $2.8 million compared to $2.93 million in the same period last year, a 4.2% decrease.

Our selling, general, and admin expenses decreased by 8.2%, a comparative reduction in spending of over $195,000 for this quarter, though we added to our R&D expenses, increasing those by $72,000. As previously discussed, we have strategically transformed our sales force to increase efficiency. Our external sales team is focused on longer sales cycles and larger accounts, and these include independent hospitals and GPO networks. We continue to be contracted under three of the largest GPO networks, which give us coveted access to sell into more than 90% of hospitals in the U.S.

All of these positive improvements in revenue growth and operating efficiencies through the use of AI and other automation, as well as proactive cost management, have allowed us to continue to achieve positive free cash flows, defined as the cash from operations that is available to pay interest and dividends for the last six consecutive quarters. That has set us up on a path toward achieving profitability in the next quarter. In fact, we are pleased that this quarter, the third quarter of fiscal 2026, is the third consecutive quarter for Biotricity in which it has achieved a positive EBITDA. This is an important milestone and indicator that we’re nearing full profitability. The company achieved EBITDA of $280,000 this quarter, which corresponds to $0.01 on a per-share basis. A reconciliation of our EBITDA and adjusted EBITDA numbers is available in our 10-Q.

We’re pleased with the progress made in building our technology, obtaining FDA registrations, and developing effective sales strategies, as well as implementing cost-cutting measures. The result has been an improvement in operating results of nearly $1 million to achieve our third consecutive profitable quarter from operations, which was $441,000 for this quarter. Net loss attributable to common stockholders for the fiscal three-month period, ended December 31, 2025, was $1.1 million, compared to $1.3 million during the corresponding prior year period. On a per-share basis, we reported a loss per share of $0.042, compared to $0.054 for the corresponding prior year period. Looking ahead, we remain committed to advancing our business through the commercialization of our Biocore, Bioflux, and Biocare products.

Our tech is truly useful globally, and cardiac is the number one chronic care condition in the entire world. The growing market interest and demand for our suite of products dedicated to chronic cardiac disease prevention and management reinforce our confidence in our market position. Importantly, our focus on innovation and development continues to yield significant advancements in our remote monitoring solutions for both diagnostic and post-diagnostic products, bringing us ever closer to profitability. We are excited about the future and confident in our ability to deliver sustained growth and profitability for Biotricity. That concludes our prepared remarks for today. Operator, please open the line for questions.

Conference Moderator, Biotricity: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that analysts limit themselves to one question and a follow-up so that others may have an opportunity to do so as well. One moment, please, while we poll for questions. Thank you. There are no questions at this time. Gentlemen, we’ll turn the conference back over to you for any additional or closing remarks.

Dr. Waqaas Al-Siddiq, Founder and CEO, Biotricity: Thank you, and thank you, everybody, for joining us. We’re very excited about this, about the prospects of 2026. We think that the top line of the company is going to continue to grow, and we expect to turn into net income positive this year. And we are looking forward to talking to all of you in our next, quarterly call. Thank you.

Conference Moderator, Biotricity: Thank you, sir. That does conclude today’s conference. We thank you for your participation. You may now disconnect.