IXICO’s FY25: brisk growth, rising margins, and a beefier order book
IXICO has delivered a tidy step forward in FY25. Revenue rose 13% to £6.5 million, gross margin ticked up to 48.7%, and the EBITDA loss narrowed by 20% to £1.3 million. The headline after the year-end is even punchier: the order book jumped 27% in two months to £17.7 million by 30 November 2025, helped by a chunky Phase 3 win in Huntington’s disease.
For context: EBITDA is a profit proxy before interest, tax, depreciation and amortisation. The order book is contracted future work not yet delivered. IXICO is an “iCRO” – an imaging contract research organisation focused on neurology – using its AI platform to analyse MRI/PET scans and now, increasingly, blood-based biomarkers.
Key numbers investors care about
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £6.5m | £5.8m | +13% |
| Gross margin | 48.7% | 47.0% | +1.7pp |
| EBITDA loss | £1.3m | £1.7m | 20% improvement |
| Operating loss (reported) | £2.6m | £2.2m | Down |
| Operating loss (like-for-like accounting) | £1.76m | £2.06m | £0.3m improvement |
| Loss per share | 1.85p | 4.14p | Improved |
| Year-end order book | £13.8m | £15.3m | -9% |
| Order book at 30 Nov 2025 | £17.7m | £15.3m | +16% vs FY24 close |
| Cash (debt-free) | £3.5m | £1.8m | Up |
| Net assets | £11.7m | £9.5m | Up |
What’s driving the improvement
Top-line growth came from new contracts and scope extensions, plus a new revenue stream in validating blood-based diagnostics. Gross margin benefited from operational leverage, partially offset by investment in a larger North American footprint – sensibly positioning for more US trials.
The operating loss optically increased because of an accounting change: the UK R&D credit is now shown below operating profit. On a like-for-like basis, operating loss improved to £1.76 million from £2.06 million. That matters because it shows the core business moving in the right direction despite investing for growth.
Order book momentum: the key bullish signal
Year-end order book was £13.8 million after £6.2 million of new wins, £6.5 million of revenue delivered, and £1.1 million of descopes/FX. The real swing factor came after the period-end: additional wins of £4.7 million helped lift the order book to £17.7 million by 30 November 2025 – a 27% jump in two months and 16% higher than the prior year-end.
Post-period highlights were material: £1.2 million of clinical trial awards on 15 October and a £3.5 million global Phase 3 trial in Huntington’s disease announced on 17 November. In my view, that Phase 3 is strategically valuable – later-stage work is larger and typically higher margin.
Strategy execution: Innovate – Lead – Scale
Management is executing on diversification across diseases, phases and geographies. Notable steps in FY25:
- Expansion into blood-based biomarker diagnostic validation – a fresh revenue vertical for the IXI platform.
- Access and use rights to the Global Alzheimer’s Platform BioHermes dataset – MRI, PET and blood biomarkers across 1,000 participants – strengthening algorithm development and credibility in Alzheimer’s.
- North American expansion to support global trials and enhance site support coverage.
- Partnership activity with large CROs, imaging manufacturers and data management organisations.
The scientific roadmap added novel algorithms, including vascular pathology quantification and neuromelanin imaging for Parkinson’s-related applications. That’s the sort of differentiated tech that can win later-phase and higher-value projects.
Quality of revenue mix and pipeline depth
IXICO supported 23 clients across 37 projects in the year, delivering 31 contract extensions or protocol changes worth £2.7 million. That kind of in-life growth is a healthy sign of client confidence. Customer mix spans large pharma (14% of projects), mid pharma (14%), small pharma/biotech (59%) and non-commercial organisations (13%).
Order book exposure is well spread: 48% Huntington’s disease, 23% Alzheimer’s, 4% Parkinson’s and 25% other rare neurological conditions. About 55% of FY25 revenue came from Phase I/II work. That’s lower margin today but provides a pipeline of trials that can scale if they progress into later phases.
Cash, investment and balance sheet resilience
IXICO ended the year with £3.5 million cash and no debt, bolstered by an oversubscribed £3.7 million net capital raise in Q1. Net assets increased to £11.7 million. Investment stepped up with £1.1 million of non-current asset additions, including a £0.8 million data acquisition to advance vascular biomarker analytics and continued spend on the next-generation IXI platform.
There is an expected increase in amortisation as more projects move onto the new platform in 2026. Management expects operating leverage from revenue growth to offset this over time.
Outlook and management ambitions for FY26
The company is targeting ongoing double-digit revenue growth and a path back to profitability. The near-term ambition is to reach £10 million revenues in the medium term, with a longer-term aspiration of £20 million+. Management says the FY25 commercial momentum has continued into FY26, and the beefed-up order book gives confidence.
Advisory firepower has also been enhanced with the appointment of Professor Michael Weiner and Professor Joanna Wardlaw as advisors in December, supporting IXICO’s push in Alzheimer’s and cerebrovascular disease.
Risks and watch-outs
- Biopharma budgeting remains cautious – tariff uncertainty, reduced investment and lower risk appetite were flagged. That can slow starts or trigger descopes, as seen with £1.1 million of adjustments in FY25.
- Accounting shift masks operating progress – the like-for-like improvement is real, but reported operating loss is larger. Keep an eye on EBITDA and cash flow trends in FY26.
- Amortisation headwind – as the new platform scales, gross margin may see a mechanical drag before growth offsets it.
- Client concentration – two customers contributed 22% and 12% of FY25 revenue. Diversification across AD and PD is underway but concentration risk still matters.
My take: constructive with execution catalysts in place
This is a solid reset year. IXICO has returned to growth, nudged margins higher and – most importantly – reignited contracting momentum after the period-end. The £3.5 million Phase 3 HD award is a statement win, and the push into blood-based biomarker validation broadens the addressable market beyond traditional imaging services.
On the flip side, reported operating losses and the macro backdrop remind us this is still a growth-and-invest phase. The balance sheet is clean, cash is up, and the order book suggests visibility into FY26. If IXICO converts its pipeline in Alzheimer’s and Parkinson’s and continues to land later-phase work, the path to the £10 million revenue target looks achievable.
Net-net: positive momentum, differentiated tech, and a healthier order book. Delivery in FY26 is now about scaling the IXI platform across more trials, maintaining margin discipline, and proving that the new verticals can be repeatable revenue streams.
