Creo Medical’s FY25 results have a bit of both about them. On one hand, the business is clearly moving forward commercially, with revenue up 50% to £6.0m, losses narrowing and management sounding more confident about 2026. On the other, this is still a loss-making medtech company that needs more funding, and the RNS says that plainly.
So, if you strip away the corporate polish, the message is simple enough: Creo is selling more, spending less and getting better traction with hospitals and clinicians – but it has not yet reached self-sustaining territory. That makes this a meaningful step forward, not the finished job.
Creo Medical FY25 results: the key numbers retail investors should focus on
| Metric | FY25 | FY24 |
|---|---|---|
| Revenue | £6.0m | £4.0m |
| H2 revenue | £3.8m | £2.4m |
| Gross profit | £2.4m | £1.9m |
| Gross margin | 40.0% | 47.5% |
| Underlying administrative expenses | £18.6m | £23.8m |
| Underlying operating loss | £13.7m | £22.3m |
| Cash and cash equivalents | £12.4m | £8.7m |
| Net cash used in operating activities | £19.1m | £22.2m |
| Profit on disposal of CME stake | £26.2m | Not applicable |
| Profit/(loss) for the year | £5.3m | (£28.7m) |
The headline profit of £5.3m looks good at first glance, but it was driven by the disposal of a 51% stake in Creo Medical Europe, or CME. The underlying picture is still one of losses, just much smaller ones than before.
Creo Medical revenue growth and cost cutting are both pointing the right way
The best part of this update is that growth is no longer theoretical. Revenue rose 50% in FY25 to £6.0m, and the second half was even stronger, with H2 revenue up 58% to £3.8m. That matters because it suggests adoption is improving as the year goes on, rather than stalling after early launches.
Just as important, management is not trying to buy growth at any cost. Underlying administrative expenses fell by about 22% to £18.6m, and the underlying operating loss narrowed by 38.5% to £13.7m. For a business like this, that is the sort of operational discipline investors want to see.
There is a slight fly in the ointment on margins. Gross margin from continuing operations fell to 40.0% from 47.5%, which is not ideal. The company says that reflects its shift to a distribution-led model in EMEA after the CME transaction, and it expects margin improvement as volumes grow.
The CME disposal gave Creo Medical cash, but it did not remove the funding risk
This is the biggest point in the whole RNS. Creo sold 51% of CME in February 2025, generating £24.7m of net cash consideration and a £26.2m profit on disposal. That was a major balance sheet boost and helped lift year-end cash to £12.4m from £8.7m.
It also left Creo with a 49% stake in CME, now carried as an investment in associate at £30.9m. Post period end, that stake delivered £1.6m of cash in dividends received, including £0.3m relating to tax losses. So far, so good.
But here is the part investors cannot ignore: the company says that, without additional funding, it would be unable to meet its liabilities as they fall due within the next 12 months. That is why the auditor included a material uncertainty related to going concern. In plain English, Creo needs more money unless the planned funding actions land.
What funding actions has Creo announced?
- A conditional £2.0m subscription for secured convertible loan notes from the Development Bank of Wales
- Plans to raise additional equity funding
- A non-binding agreement regarding the potential sale of the remaining 49% interest in CME
A convertible loan note is debt that can convert into shares. In this case, the £2.0m notes carry a 10% coupon, are secured, and come with personal guarantees from Chairman Kevin Crofton and CFO Richard Rees. That tells you management is committed, but it also tells you this funding is not cheap and the situation is not casual.
Speedboat, SpydrBlade and MicroBlate: why Creo’s product launches matter
Commercially, Creo seems to be getting more traction across its product range. Speedboat Notch, launched in April 2025, is already contributing to growth, especially in POEM procedures. POEM stands for per oral endoscopic myotomy, a minimally invasive procedure used in the upper gastrointestinal tract.
SpydrBlade Flex also had a commercial launch across the US, UK and EU in 2025 and has seen strong early clinical reception, according to the company. Post period end, it was also used in BEAM, or Bariatric Endoscopic Antral Myotomy, which broadens the use case again.
Then there is MicroBlate. MicroBlate Flex is being used in lung tumour studies and has been used in the first robotic guided microwave ablation of cancerous lung tissue at a leading UK hospital. MicroBlate Fine has started limited market release at selected research sites in Europe, APAC and the USA for pancreatic and liver lesions.
The important point here is not that these products have transformed revenue yet – they have not. The important point is that Creo is becoming less of a one-product story, which is a healthier place for any medtech business to be.
US reimbursement progress could be a meaningful long-term tailwind for Creo Medical
One line that should not get lost is the confirmation of new Category I CPT reimbursement codes for endoscopic submucosal dissection procedures in the US. Reimbursement codes matter because they influence whether hospitals and clinicians get paid properly for doing a procedure.
These codes are expected to come into effect in 2027, so this is not an immediate revenue event. Still, it is a potentially significant future milestone for advanced endoscopy, and that could support broader uptake of Creo’s tools over time.
Creo Medical FY26 outlook: upgraded revenue guidance, but cash remains king
The trading update for 2026 is encouraging. Revenue grew by about 60% in the first quarter year-on-year, and the board now expects FY26 revenue growth of 50% to 60% on FY25, up from previous guidance of 40% to 60%.
On top of that, the post-period-end disposal and outsourcing of manufacturing is expected to cut underlying operating costs by a further about 15% versus FY25. Strategically, that makes sense. Outsourcing manufacturing can reduce capital intensity and help a medtech firm focus on design, clinical adoption and sales rather than running expensive production capacity in-house.
Still, none of this removes the central near-term issue: funding. Even with stronger trading and lower costs, the company is telling the market it needs extra capital to keep executing its plan.
What Creo Medical shareholders should take away from these FY25 final results
My view is that this is a genuinely improved set of numbers, but not a low-risk one. The positives are real: strong revenue growth, better H2 momentum, meaningful cost reduction, upgraded FY26 guidance, and clear product progress. That is a much better place to be than a year ago.
The negative is just as real. Creo is still burning cash, still loss-making in continuing operations, and still dependent on further funding or asset sales to bridge the gap to sustainable cash generation. The going concern warning is not boilerplate investors should wave away.
So the investment case looks like this: better commercial proof, better cost control, but financing risk still front and centre. If management delivers the funding package and keeps revenue growing at anything like this rate, the story gets more credible. If funding slips, that will matter more than any product launch headline.
No dividend has been proposed for FY25.
