Biome Australia (ASX: BIO) has reported a robust Q2 FY26, with revenue surging 40.9% year-on-year to $6.48 million, significantly exceeding expectations and reinforcing its trajectory towards its 'Vision 27' targets. This strong performance follows a record FY25 and demonstrates continued demand for its probiotic products.
Q2 FY26 Revenue Surges 40.9%
Biome Australia delivered strong revenue growth in the second quarter of financial year 2026. The company reported revenue of $6.48 million for Q2 FY26, marking a significant increase of 40.9% compared to the same period last year.
Quarter-on-quarter growth was also notable, up 9.1% from Q1 FY26. This strong quarterly performance contributed to a solid first half, with H1 FY26 revenue reaching $12.42 million, an increase of 40.2% year-on-year.
Strong Demand Underpins Growth
The robust growth is primarily attributed to sustained demand for Biome's clinically proven probiotic products. The company's flagship **Activated Probiotics **range continues to drive sales.
This Q2 performance is particularly resilient given that the quarter is typically considered seasonally softer. This is due to fewer trading days in December and a gifting focus in pharmacy channels during the festive period.
The company's forward-looking statements suggest that this strong top-line growth is expected to continue into H2 FY26.
Annual Report Highlights Record FY25
Biome Australia's recent results build on a record financial year 2025. The company achieved $18.42 million in sales revenue for FY25, representing a 41.6% increase year-on-year.
FY25 also marked a significant milestone with Biome reporting its first full-year net profit and its sixth consecutive quarter of positive EBITDA. The company maintained a strong gross margin of 61.1%.
International sales were a key growth driver, increasing by 69% to $1.5 million in FY25. This performance led to an annualised run rate exceeding $20 million as Biome entered FY26.
Vision 27 and Product Development
Biome Australia remains on track to achieve its ambitious 'Vision 27' target, which aims for at least $75 million in cumulative sales for the FY25-27 period.
Strategic initiatives, such as the launch of Activated Therapeutics with its four specialised products and securing ownership of the proprietary probiotic strain Lactobacillus plantarum BMB18, are central to achieving these goals.
Further reinforcing its product pipeline, a human clinical trial for **BMB18 **is scheduled to commence in February 2026. This 12-month randomised, double-blind, placebo-controlled study will enrol 240 participants in partnership with La Trobe University, with an estimated cost of approximately $140,000 funded within the existing R&D budget. Successful validation from this trial is expected to strengthen Biome’s intellectual property and drive new product development in the gut health category.
Outlook and Investor Considerations
Biome Australia's Q2 trading update underscores a strong growth trajectory, building on a record FY25 and demonstrating robust demand for its probiotic offerings. While the company's financial performance and strategic initiatives like the BMB18 trial are positive, investors will monitor execution risks associated with international expansion and new product adoption.
