4DMedical Limited (ASX:4DX) Reports 103% Revenue Growth and Strategic Milestones
Financial Performance
4DMedical Limited reported a year-to-date operating revenue of $4.5 million for FY2025, marking a 103% increase compared to the prior corresponding period. Gross margins stood at 91.4%. For Q3 FY2025, operating revenue reached $1.6 million, an 8% rise from the previous quarter, with underlying quarterly SaaS revenue up 42% after adjustments. The company’s cash balance as of 31 March 2025 was $16.8 million.
Strategic Partnerships
The sales pipeline expanded with the signing of key reference sites in the U.S. and Australia. Notably, a 3-year SaaS renewal with Cleveland Clinic was secured with a minimum contract value of A$227,000. Additionally, pilot programs with Integral Diagnostics and Qscan were converted into commercial contracts. In Australia, contracts with Qscan Radiology Clinics and Lake Imaging were announced, enhancing access to 4DMedical’s SaaS technology.
Cost Reduction Initiatives
The company implemented a cost reduction program, achieving annualised savings of $6.5 million through a reduction in global headcount from 142 to 117 FTE. Operating expenses for Q3 FY2025 were $1.4 million lower than Q2 FY2025, driven by tight controls on corporate costs and R&D expense reductions.
Regulatory Progress
4DMedical is nearing the submission of CT:VQ™ to the FDA for 510(k) clearance. The product has garnered significant interest from academic medical centres and industry collaborators, including Brooke Army Medical Center. Additionally, CT LVAS™ received regulatory approval in Canada, adding to existing product approvals in the region.
Executive Comments
Andreas Fouras, MD/CEO and Founder of 4DMedical, stated: “Contract wins and renewals in the past quarter highlight our continued disruption of the industry, most importantly ensuring key providers have access to our world-class product offerings, driving better outcomes for patients. While January is always a low sales month, we closed out March with our highest ever monthly sales. Combined with sales and renewals still flowing through our books we are well positioned for strong organic growth through the rest of calendar 2025… As we power through the finishing touches of our FDA 510(k) submission for CT:VQ™, I have been overwhelmed by the excellent clinical results from our research efforts. CT:VQ™ is set to disrupt a billion dollar segment of respiratory diagnostics by displacing Nuclear VQ imaging with a technology that is faster, safer, cheaper, more convenient and more accessible.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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