- Record Revenue in Fiscal 2025 Revenue reached $57 million, a 14% increase from $50.2 million in fiscal 2024.
- Research Services Growth Research services revenue was $52.3 million, up 4% year-over-year.
- Improved Profitability Adjusted EBITDA was $7.1 million, a significant improvement from a $3.9 million loss in fiscal 2024.
- Strong Cash Position The company ended the year with $9.8 million in cash, up from $2.6 million, and remains debt-free.
- High-Margin Business Growth The radiopharmaceutical services platform is expected to generate margins of 50% to 60%, driving future growth.
Margin Expansion and Cost Management
The company's gross margin expanded to 50% from 42% last year, driven by a 3% decrease in cost of sales to $28.3 million. Operating expenses declined by $3.4 million year-over-year, contributing to the improvement in adjusted EBITDA. As Ronnie Morris noted, "We're excited about the core business, our data, and drug development efforts," highlighting the company's focus on creating new data and building different types of data sets.
Cash Position and Capital Allocation
The company ended the year with $9.8 million in cash, up from $2.6 million a year ago, and remains debt-free. Operating cash flow for the fourth quarter was $6.4 million. The company expects to remain cash-neutral over the next quarter, with projected cash growth in the second half of the year. Capital allocation will focus on creating new data and building different types of data sets, with R&D dollars invested in revenue-producing activities.
Valuation and Growth Prospects
With a P/S Ratio of 1.97 and an EV/EBITDA of 14.19, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 7.8%. The company's ROE is 194.4%, and ROIC is 54.5%, indicating strong profitability. The Net Debt / EBITDA ratio is -0.89, reflecting the company's debt-free status and healthy cash position.