Executive Summary
Biotricity reported a Q2 2025 revenue level of $3.27 million, up 13% year over year, with gross profit of $2.46 million and a gross margin of 75.3%, indicating favorable product mix and operating leverage from its recurring technology fee revenue base. Despite margin expansion and efficiency gains, the quarter delivered a net loss of $1.56 million and negative EBITDA of $0.47 million, underscoring ongoing fixed-cost absorption during a period of revenue growth. Management framed the quarter as transformative, highlighting advances in Cardiac AI Cloud capabilities, a Nature-published study on postoperative complications, and a shift toward a flat-fee subscription model and larger, longer-cycle deals through major GPOs. The company also announced its largest inventory order to date, signaling confidence in near-term profitability and scalable growth. The commentary points to multiple near-term catalysts, including FDA/AI model filings by mid-2025, expansion into Canada, and new partnerships in neurology and pulmonology, all aimed at broadening the addressable market beyond cardiology. However, the business remains small in absolute scale with liquidity and solvency risks reflected in a highly levered balance sheet, negative equity, and negative operating cash flow. Investors should weigh the potential for meaningful top-line expansion and higher-margin recurring revenue against the cash burn and balance-sheet risks amid a still-narrow revenue base.
Key Performance Indicators
Key Insights
Revenue: $3.2669m, +13% YoY; Gross Profit: $2.459m, +23% YoY; Gross Margin: 75.28% (0.7528); Operating Income: -$0.3077m; EBITDA: -$0.4683m, EBITDA margin -14.33%; Net Income: -$1.5618m, Net Margin -47.80%; EPS: -$0.0735; Weighted Avg Shares: 22.4936m; Operating Cash Flow: -$0.3971m; Free Cash Flow: -$0.3971m; Cash: $0.173m; Total Debt: $23.0065m; Long-Term Debt: $11.0343m; Cash Burn: CFO negative; Current Ratio: 0.189; Quick Ratio: 0.105; Cash Ratio: 0.008; DSO: 57.13 days; DIO: 202.53 days; DP...
Financial Highlights
Revenue: $3.2669m, +13% YoY; Gross Profit: $2.459m, +23% YoY; Gross Margin: 75.28% (0.7528); Operating Income: -$0.3077m; EBITDA: -$0.4683m, EBITDA margin -14.33%; Net Income: -$1.5618m, Net Margin -47.80%; EPS: -$0.0735; Weighted Avg Shares: 22.4936m; Operating Cash Flow: -$0.3971m; Free Cash Flow: -$0.3971m; Cash: $0.173m; Total Debt: $23.0065m; Long-Term Debt: $11.0343m; Cash Burn: CFO negative; Current Ratio: 0.189; Quick Ratio: 0.105; Cash Ratio: 0.008; DSO: 57.13 days; DIO: 202.53 days; DPO: 534.88 days; CCC: -275.21 days; Gross Margin Trend: +1,468 bps YoY; SG&A and R&D reductions: SG&A down ~35.5% YoY; R&D down ~26% YoY; Revenue mix includes recurring technology fees and flat-fee subscriptions with flat fee revenue up ~34% YoY; Pipeline and pilots with GPOs covering >90% of US hospitals.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.27M |
12.99% |
2.03% |
| Gross Profit |
2.46M |
23.00% |
4.06% |
| Operating Income |
-307.67K |
86.75% |
72.45% |
| Net Income |
-1.56M |
57.69% |
57.73% |
| EPS |
-0.07 |
82.50% |
71.73% |
Key Financial Ratios
operatingProfitMargin
-9.42%
operatingCashFlowPerShare
$-0.02
freeCashFlowPerShare
$-0.02
dividendPayoutRatio
-0.39%
Management Commentary
- Strategy and growth trajectory: Management notes a transformative quarter with progress toward EBITDA breakeven and a broadened market reach beyond cardiology via GPOs and partnerships in neurology and pulmonology. Quote: "Second quarter 2025 has been a transformative quarter... achieving positive EBITDA for the first time in September and continue our path to profitability." (Dr. Waqaas Al-Siddiq)
- AI and product roadmap: Emphasis on Cardiac AI Cloud, predictive capabilities, and a Nature-published study; FDA AI model filing anticipated by mid-2025; continued expansion of Biocore and Biocore Pro. Quote: "we are continuing to expand our Cardiac AI Cloud capabilities harnessing our data to explore predictive capabilities with our platform" (Dr. Waqaas Al-Siddiq).
- Operating efficiency and cost management: SG&A and R&D reductions coupled with a shift to longer sales cycles and larger accounts; emphasis on insourcing and better margin mix. Quote: "Operating expenses... down 34% year over year... we have strategically transformed our sales force to focus on longer sales cycles and larger accounts" (John Ayanoglou).
- Inventory and profitability path: Management highlights the largest inventory order to support profitability and offset ramp in new product adoption (Bio Core Pro) with on-hand inventory to service transition of existing customers; Canada and international expansion are flagged. Quote: "the inventory on hand now for a clear path to profitability... if we sell all those units, we'll be well into the profit category." (Dr. Waqaas Al-Siddiq).
"Second quarter 2025 has been a transformative quarter for Biotricity marked by significant advancements... achieving positive EBITDA for the first time in September and continue our path to profitability."
— Dr. Waqaas Al-Siddiq
"Revenue increased by 13% year-over-year to $3.3 million. This growth is a testament to the quality of our technology and efficacy of our strategic initiatives."
— John Ayanoglou
Forward Guidance
Management guidance centers on advancing Biocore/Biocare commercialization, expanding AI-driven predictive analytics, and securing additional payer- and hospital-level partnerships. Near-term catalysts include: (1) FDA AI clinical model filing by mid-2025, (2) continued progress with Canada approvals and distribution agreements, (3) ongoing pilots with GPOs and neurology/pulmonology partners expected to generate larger, multi-site contracts, and (4) inventory alignment aimed at achieving breakeven profitability. Our assessment: The company has begun to pivot toward a recurring-revenue SaaS model with higher visibility via flat-fee arrangements, which should improve revenue predictability. However, the path to profitability remains contingent on achieving meaningful top-line scale and sustaining margin improvement while stabilizing cash burn. Key factors to monitor include: quarterly EBITDA trajectory toward breakeven, progression of higher-margin SaaS and device revenue mix, working capital development (receivables, payables, and inventory dynamics), and the success rate of GPO-led deployments across large hospital networks. Potential risks include regulatory delays, reimbursement shifts, competitive pressure in remote monitoring, and the challenge of converting pilots into high-commitment, long-duration contracts.