Stock Markets February 16, 2026

Physiomics posts 51% H1 revenue rise as it debuts Biometrics service

Record half-year income of £498,000 met with wider operating loss as investment in staff and contractors weighs on results

By Derek Hwang
Physiomics posts 51% H1 revenue rise as it debuts Biometrics service

UK data science firm Physiomics reported a 51% year-on-year increase in first-half revenue to £498,000, its strongest six-month intake to date. Despite the revenue milestone, the company recorded a wider operating loss driven by onboarding and contractor costs. The firm launched a new Biometrics service line during the period, securing four initial contracts, and projects a 27% rise in total income for the full fiscal year alongside lower operating expenses in the second half.

Key Points

  • Physiomics recorded 51% year-over-year revenue growth in H1, reaching £498,000 - highest half-year income on record. - Affects data science and analytics sector
  • Operating loss widened to £327,000 due to costs for new staff and external contractors; operating expenses were £855,000 and net income was -£301,000. - Impacts company profitability metrics and investor returns
  • Launched a Biometrics service line which has secured four initial contracts; company forecasts 27% increase in total income for the full fiscal year and expects lower H2 operating expenses as consultant dependency decreases. - Relevant to technology services and healthcare analytics demand

Financial performance

Physiomics said revenue for the first half of its fiscal year rose by 51% compared with the same period a year earlier, reaching £498,000. The company described this as its highest half-year income on record.

Despite the top-line increase, operating losses widened. The company reported an operating loss of £327,000 for the half-year, larger than the prior-year figure. Management attributed the deterioration in operating profit primarily to costs associated with onboarding new staff and the engagement of external contractors during the period.

Operating expenses for the six months totaled £855,000. On a net basis, the company recorded negative net income of -£301,000.


New service line and contracts

During the period Physiomics launched a Biometrics service line. The company said the new division has already won its first four contracts, a development that contributed to overall revenue growth in the half-year.


Outlook

Looking ahead, Physiomics expects total income for the full fiscal year to increase by 27% compared with the previous year. The company also anticipates that operating expenses will be lower in the second half as it reduces reliance on external consultants.

Management highlighted further growth potential from the new Biometrics business and pointed to a strong pipeline of potential contracts that could support future performance.


Context and closing

The results present a mixed picture: a record half-year top line and an early commercial validation of a newly launched service line, set against higher operating costs and a widened operating loss driven by specific staffing and contractor investments. The company has issued forward guidance that anticipates both higher total income for the fiscal year and a reduction in operating expenditure in the second half.

Risks

  • Higher operating costs tied to onboarding staff and use of external contractors increased losses - risk to near-term profitability and cash flow management in the data services sector
  • Future performance depends on converting the pipeline of potential Biometrics contracts into signed business - risk to revenue forecasts if contract wins do not materialize, affecting revenue growth in technology and analytics markets
  • Reliance on reducing consultant use to lower H2 operating expenses introduces execution risk - if consultant reliance remains, anticipated cost reductions and margin improvements may not occur, impacting operating expense forecasts

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