CS MEDICA A/S Interim Report Q2

January–March 2026

CS MEDICA A/S (“CS MEDICA”) reports its Q2 results for January–March 2026. The quarter was impacted by delayed production schedules, extended lead times and timing effects related to the MDR transition process. While revenue in Q2 was lower than expected, the underlying commercial demand and pipeline remain intact. Year-to-date performance shows continued improvement in gross profit, reduced losses and the effect of the Company’s ongoing cost discipline and operational consolidation.

Financial Performance — Q2 2025/2026

• Revenue: DKK 0.3 million (Q2 2024/2025: DKK 1.3 million), impacted by delayed production, batch release timing and postponed order execution related to regulatory processes.
• Gross profit: DKK 0.5 million (Q2 2024/2025: DKK 0.3 million). Gross margin was temporarily elevated due to a reversal of prior inventory write-downs following sales of inventory at higher prices than previously anticipated.
• Operating result (EBIT): DKK –2.8 million, improved from DKK –3.1 million in Q2 2024/2025, reflecting continued cost discipline despite lower quarterly revenue.
• Net result: DKK –2.6 million (Q2 2024/2025: DKK –3.0 million), confirming continued improvement in earnings compared to the same quarter last year.

Year-to-Date Performance

For the first half of 2025/2026, revenue increased to DKK 4.0 million, compared to DKK 1.6 million in the same period last year. Gross profit increased to DKK 1.8 million from DKK 0.5 million, while the year-to-date gross margin improved to 45% from 28%.

The improved gross profit reflects continued focus on pricing, margin optimisation and supply chain efficiency, supported by a positive inventory effect in Q2. Operating result improved to DKK –4.1 million from DKK –6.1 million, and net result improved to DKK –3.7 million from DKK –5.9 million, reflecting the effect of the Company’s cost consolidation and disciplined execution.

Cash Flow and Liquidity

Total cash flow for Q2 amounted to DKK –2.3 million, resulting in cash and cash equivalents of DKK 3 thousand at quarter end. Year-to-date total cash flow remained positive at DKK 0.1 million, supported by financing activities during the first half of the financial year.

Operating cash flow remained impacted by working capital timing, delayed deliveries and settlement of payables during the current scaling and transition phase.

Operational and Regulatory Highlights

The MDR transition process continues, although slower than previously expected. Pain Patch and Psoriasis Gel have been approved, while Arthritis Gel and Wound Gel were submitted later than expected and are awaiting approval. Submission of Nasal Night and Nasal Protect is delayed compared to the original timeline.

Management has increased focus on QA/RA execution, documentation flow, regulatory capacity and internal accountability to improve execution predictability and support future order conversion.

Pipeline and Outlook

The commercial pipeline remains solid at DKK 24.8 million, with continued demand across existing and new partners in the EU, MENA and selected non-EU markets. However, regulatory timing effects and extended European production lead times, particularly for tubes, are expected to impact revenue recognition for the remainder of the financial year.

As a result, Management revises the revenue target for 2025/2026 to DKK 8.0 million. The adjustment is driven by timing delays rather than reduced market demand, and the underlying commercial pipeline remains intact.

The delays are expected to postpone the Company’s path towards cash-positive and EBITDA-positive operations. Management remains focused on converting the pipeline into revenue, increasing recurring sales, improving gross margins, reducing production lead times and strengthening QA/RA execution to improve predictability and support future order conversion.

For more information about CS MEDICA, please contact:
Gitte Lund Henriksen, CFO
Phone: + (45) 2774 2280
Email: glh@cs-medica.com
Website: https://www.cs-medica.com/
 

CS MEDICA A/S is a Danish MedTech company developing IPR-secured, cannabinoid-based medical device products and dermaceutical solutions for pain, skin, sleep, autoimmune and stress-related conditions. Built on a shared deep-tech product platform combining pharmaceutical expertise, advanced ingredients, deposition technology and regulatory know-how, CS MEDICA develops scalable, non-addictive, over-the-counter treatment alternatives for human and veterinary health. The Company’s portfolio includes cosmetics and CE-marked products, approved MDR products and products in MDR transition, supported by patents, trademarks and a commercial footprint across more than 25 countries.. For more information, visit cs-medica.com and LinkedIn.

Tags: