Diaceutics FY 2025 results: revenue up, profits back, and the order book hits a record
Diaceutics has put in a strong set of FY 2025 results. Revenue rose 20% to £38.4 million, or 24% on a constant currency basis, and the business moved back into the black with a reported profit before tax of £0.3 million versus a £1.9 million loss in FY 2024.
For retail investors, that is the big headline. This is no longer just a growth story built on future promise – it is now showing real operating leverage, which means more of each extra pound of revenue is dropping through to profit.
| Key metric | FY 2025 | FY 2024 | Change |
|---|---|---|---|
| Revenue | £38.4 million | £32.2 million | +20% |
| Revenue growth at constant currency | 24% | 39% | -15 ppts |
| Adjusted EBITDA | £7.6 million | £4.2 million | +80% |
| Profit/(loss) before tax | £0.3 million | (£1.9 million) | n/a |
| Annual recurring revenue | £20.0 million | £16.8 million | +19% |
| Order book | £38.9 million | £24.9 million | +56% |
| Cash and cash equivalents | £7.3 million | £12.7 million | -42% |
Why Diaceutics returning to profitability matters for investors
The most encouraging part of this update is the combination of growth and better margins. Adjusted EBITDA – earnings before interest, tax, depreciation and amortisation, adjusted for items such as share-based payments and one-off costs – jumped 80% to £7.6 million, while the adjusted EBITDA margin improved to 20% from 13%.
That tells you the model is scaling. Diaceutics has spent the past few years investing in its DXRX platform, data assets and AI-enabled automation, and 2025 is the year those investments started showing up properly in the numbers.
There is also a useful nuance in the CFO commentary. The company said 2025 market expectations for revenue were £39.0 million to £40.2 million, while adjusted EBITDA expectations were £6.9 million to £7.3 million. So revenue came in a touch below that range, but profitability beat it. Personally, I would rather see that than the other way round.
Record order book and recurring revenue give Diaceutics stronger 2026 visibility
If you are trying to judge how predictable next year might be, the order book and annual recurring revenue, or ARR, are the numbers to watch. ARR rose 19% to £20.0 million, while the order book surged 56% to a record £38.9 million.
Even better, order book visibility for the next 12 months increased 19% to £21.1 million. In plain English, Diaceutics already has a decent chunk of future revenue contracted, which lowers the risk that growth falls off a cliff.
Net revenue retention, or NRR, was 105% on a constant currency basis. That means existing customers, as a group, still spent more than they did a year earlier. It is down from 109%, so it is not all one-way traffic, but anything above 100% is usually a healthy sign.
PMx partnerships and top pharma wins show the strategy is gaining traction
Commercially, this was a solid year. Diaceutics increased the number of customer therapeutic brands it works with by 12% to 95, and it is now consistently working with 18 of the top 20 global pharma companies.
Two additional top 10 global pharma companies were confirmed as enterprise-wide engagement customers. That matters because enterprise relationships tend to be deeper, stickier and more valuable than one-off project work.
The PMx model looks particularly interesting. This is Diaceutics moving from being a data and services supplier to becoming a more embedded commercialisation partner for pharma and biotech customers.
The first PMx agreement, initially signed in August 2024, was expanded in March 2025 to a total contract value of up to £13.0 million and extended through to September 2028, subject to annual renewals. At 31 December 2025, it contributed £2.6 million of ARR. A second multi-year PMx partnership was signed in Q4 2025, with total contract value secured in 2025 of £5.5 million and ARR contribution of £1.7 million.
That is exactly the sort of progress investors want to see – larger contracts, longer duration and recurring revenue attached. Diaceutics also said it now has a pipeline of 24 potential PMx customers, with eight already beginning to spend. Not all of those will convert, of course, but it gives a sense of what management is trying to build.
Cash fell sharply and gross margin slipped – these are the main weak spots
It is not a flawless set of results. Cash and cash equivalents fell 42% to £7.3 million from £12.7 million, which will catch the eye.
Management says the weaker cash position was mainly due to revenue being weighted to the back end of the year and large pharma customers pushing out payment terms. Trade and other receivables rose to £21.3 million from £16.0 million, and accrued revenue climbed to £9.8 million from £4.2 million, so there is clearly more cash tied up in working capital.
That explanation is plausible, but investors should still keep an eye on it. Growth is nice, profit is better, but cash collection is where the story gets tested.
Gross margin also fell to 82% from 88%. The company says that was due to an extra £2.0 million of expensed data costs tied to expanding into non-precision medicine disease areas. That may be sensible investment for future growth, but it is still margin dilution in the here and now.
What the FY 2025 results say about Diaceutics’ wider growth story
There are a few extra details worth noting. Revenue from North America was £35.8 million, which means the business remains heavily exposed to the US market. One customer accounted for £6.6 million, or 18% of group revenue, so customer concentration is not trivial either.
On the positive side, average revenue per customer rose 17% to £0.73 million, and Diaceutics helped influence diagnostic testing and treatment decisions for 970,000 patients globally in 2025. That last number is not a financial metric, but it does underline why pharma customers may keep leaning into the platform.
Diaceutics outlook for 2026: a strong start, but cash conversion needs watching
The near-term outlook sounds encouraging. Q1 2026 performed in line with board expectations, with constant currency revenue growth of 15% versus Q1 2025, and the board said its 2026 targets remain on track.
There is enough here to justify that confidence. Record order book, growing ARR, improving margins, enterprise customer wins and two meaningful PMx partnerships all point the right way.
My view is that this is a good quality update overall. The positives are pretty obvious: strong growth, a return to profitability, and better visibility into future revenues. The negatives are real too: cash fell hard, gross margin came off, and the business is still exposed to long payment cycles and a concentrated customer base.
Put simply, Diaceutics looks like a company moving from build mode into monetisation mode. If it can keep growing while turning more of that revenue into cash, the investment case gets a lot more compelling from here.
