SpineGuard: Revenue Declines by 19%, but Operational Deficit Halved
SpineGuard announced its annual 2025 results on Thursday, showing a revenue decrease to €3,757K from €4,648K in 2024, reflecting the restructuring of its business model in the United States. Concurrently, the operational deficit was reduced by 46%, and cash reserves more than doubled to €1,723K, enhancing the biotech’s financial visibility until the second quarter of 2027.
Revenue Decline Amidst Business Model Transformation
SpineGuard's annual revenue decreased by 19% at actual exchange rates (17% at constant rates) in 2025, amounting to €3,757K. This decline is largely due to the gradual transformation of the business model in the United States through the partnership with Omnia Medical, which led to a 22% decrease in that market. The number of DSG units sold also fell by 10.7%, from 6,142 to 5,482 units. Outside the United States, the results were mixed: Asia grew by 40%, Europe by 1%, but Latin America fell by 9% and the Middle East by 27%, the latter awaiting a significant order won in Saudi Arabia expected to be delivered in 2026. In the first quarter of 2026, revenue continued to decline, contracting by 32% to €820K, particularly affected by inventory effects related to the transfer of the American subsidiary to Omnia Medical.
Operational Costs Reduction Boosts Margins
While revenue declined, regular operational expenses contracted by 30.9%, resulting in savings of €2,067K. This reduction stemmed from adjustments in sales, marketing, and administrative expenses, as well as decreased compensation for executives and directors. The gross margin slightly improved to 78.9% from 78.0% in 2024. Consequently, the current operational deficit stands at €1,660K compared to €3,061K in 2024, an improvement of 45.8%. The net result shows a loss of €2,068K compared to a loss of €3,082K, an improvement of 33%. This loss reduction momentum reflects SpineGuard's strategy to reach operational break-even by the end of 2026.
Strengthened Financial Structure and Future Prospects
SpineGuard has strengthened its financial structure through two mechanisms. Cash and liquid investments increased to €1,723K as of December 31, 2025, up from €719K a year earlier, boosted by a net issuance of bond loans for €2,136K and net capital increases of €1,623K. Concurrently, cash consumption from operations improved: it amounted to €1,041K in 2025 compared to €2,347K in 2024. However, as of March 31, 2026, cash reserves fell to €942K, reflecting the cash needs generated by ongoing activities. SpineGuard has secured new bond financing from Hexagon Capital Fund for a maximum amount of one million euros, with an annual coupon of 10% and a maturity of 24 months. The group now declares financial visibility until the second quarter of 2027, provided it maintains its trajectory of reducing expenses and capitalizing on business opportunities in Europe, the Middle East, and China.
