The Healius Ltd (ASX: HLS) share price has continued to fall after the company released its half-year results on Wednesday.
Healius shares are down 2.45% today to 71.7 cents.
That follows a 6.75% fall on results day and a further 3.29% decline in the prior session. The stock is now trading at a record low and is down around 20% since the start of 2026.
While parts of the business showed improvement, investors remain focused on the company's ongoing losses.
Let's take a closer look at what was reported.
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Revenue rises but losses remain
For the 6 months to 31 December 2025, Healius reported revenue of $688.1 million, up 3.8% on the prior corresponding period.
Underlying EBITDA increased 13.1% to $122.2 million. The company also delivered underlying EBIT of $7.9 million, an improvement on the loss recorded a year earlier.
The core pathology division generated revenue of $666.3 million, up 3.5%, with EBIT improving to $5.2 million.
Agillex Biolabs, which provides specialist laboratory services to pharmaceutical and biotechnology companies, was a stronger performer. Revenue increased 16% to $21.8 million, and EBIT rose 145.5% to $2.7 million.
Despite these improvements, Healius reported a statutory net loss after tax of $30.4 million, reflecting restructuring costs, digital program expenses, and finance costs.
The company also confirmed it will not pay an interim dividend.
Balance sheet and cost savings in focus
Healius ended the half with net cash of $11.6 million. It held $51.6 million in cash and had $40 million in drawn debt.
Management said cost reduction initiatives are continuing. The company is targeting $15 million to $20 million in annual support cost savings, with $10.7 million in annualised savings already delivered in the first half.
The group also confirmed its major digital program has been completed, with future technology spend expected to return to more typical levels.
Healius expects full-year earnings to be in line with current market expectations and continues to target high single-digit EBIT margins by June 2027.
Investors remain unconvinced
Although some operating metrics improved, the market is focused on the continued statutory loss and the uncertainty around the pace of recovery.
With the share price now at a record low, investor confidence remains weak. The market is looking for clearer evidence that revenue growth and cost reductions can deliver consistent profits.
Foolish Takeaway
Healius is delivering some improvement at an operational level, particularly in pathology and Agillex. However, the company remains loss-making on a statutory basis and is not returning cash to shareholders.
Until profits stabilise and become consistent, the share price may remain under pressure despite signs of progress.
