Emyria Posts 136% Revenue Surge as Empax Clinics Enter National Rollout Phase

Emyria posts 136% revenue surge as Empax clinic network enters national rollout phase

Emyria Limited (ASX: EMD) has delivered record first-half financial performance, with revenue climbing 136% to $1.55 million as its Emyria Empax Clinic National Expansion gains momentum across three Australian states. The mental health treatment provider reported the surge during 1H FY26 (July-December 2025), marking an inflection point where early-stage clinic investment is converting into measurable financial outcomes.

The company’s half-year results, released on 26 February 2026, highlight three critical metrics for investors:

1. Revenue: $1,554,497 (up from $658,199 in 1H FY25)
2. Growth Rate: 136% year-on-year increase
3. Cash Position: $10.5 million as at 31 December 2025

Revenue acceleration was driven by the expansion of Emyria’s Empax clinic network and the commencement of insurer-funded treatments across multiple states. The company achieved dual reimbursement pathway status during the period, with both Medibank private insurance and the Department of Veterans’ Affairs (DVA) now funding eligible patients. This reduces single-source funding risk and validates the commercial model’s sustainability ahead of full network maturity.

The reported loss of $2,374,782 reflects investment in national expansion infrastructure and clinical workforce as the rollout scales. Management noted per-clinic costs are expected to moderate as operational leverage improves with network scaling.

What is psychedelic-assisted therapy and why are insurers backing it?

Psychedelic-assisted therapy combines controlled administration of psychedelic compounds with structured psychological support to treat mental health conditions that have not responded to conventional approaches. Emyria’s programs focus on two primary conditions:

• Treatment-Resistant Depression (TRD): Depression that persists despite multiple standard treatment attempts, including antidepressant medications and psychological therapy
• Post-Traumatic Stress Disorder (PTSD): A mental health condition triggered by experiencing or witnessing a traumatic event, characterised by intrusive memories, avoidance behaviours, and hyperarousal

The treatment model differs from conventional psychiatry by integrating psychedelic compounds (administered under direct medical supervision in controlled clinical settings) with intensive psychotherapy before, during, and after dosing sessions. This approach aims to create neuroplastic changes that allow patients to process traumatic memories and emotional patterns more effectively than standard talk therapy alone.

Private insurers like Medibank and government payers including DVA are funding these treatments based on accumulating evidence of clinical efficacy and durable outcomes. For insurers, the value proposition centres on potential cost-of-care advantages. If a time-limited psychedelic-assisted therapy program can produce sustained remission, it may reduce ongoing expenditure on chronic medication, repeated hospitalisations, and long-term psychological support compared to conventional treatment pathways.

Emyria’s evidence-based model, which generates real-world data through its clinical operations, provides insurers with outcome metrics to assess cost-effectiveness. The company’s long-term clinical outcomes data demonstrates sustained benefits beyond the treatment period, supporting the case for reimbursement coverage expansion.

National clinic expansion and reimbursement milestones

Emyria has established clinic operations or secured sites across Western Australia, Queensland, and Victoria, validating its capital-light, hospital-integrated rollout model. The geographic expansion coincides with significant reimbursement milestones that broaden the addressable patient population.

Medibank Agreement: In October 2025, Medibank expanded its funding agreement to cover Emyria’s TRD and PTSD programs across Empax Clinics in Perth and Brisbane. Following the reporting period, Medibank announced it would extend coverage to include Emyria’s Victorian clinic (commencing Q2 2026), bringing insurer-funded access to a third state.

DVA Government Funding: The Department of Veterans’ Affairs secured funding in November 2025 for eligible veterans to receive psychedelic-assisted therapies for PTSD and TRD. This represented a landmark decision as the first government payer to fund these treatment modalities, establishing dual reimbursement pathways alongside private health insurance.

The capital-light hospital-integrated model enables rapid scaling without heavy capital expenditure requirements. Rather than building standalone facilities, Emyria partners with existing hospital infrastructure, reducing upfront investment while maintaining clinical standards. Government payer access creates a second reimbursement channel alongside private insurance, diversifying revenue sources and reducing dependence on any single funding pathway.

Long-term PTSD outcomes reinforce cost-of-care advantage

Emyria released 12-month post-treatment data in February 2026 demonstrating sustained clinical benefits among PTSD patients treated through its Empax clinics. The outcomes data, current as at 31 December 2025, showed durable remission in approximately 67% of patients at 12 months or longer post-treatment, with ongoing clinically significant benefits reported by approximately 76% of participants.

These findings support the company’s position that psychedelic-assisted therapy can deliver lower total cost-of-care compared to ongoing standard treatments. Conventional PTSD management often requires long-term medication, regular therapy sessions, and episodic crisis interventions over many years. If a time-limited treatment program produces sustained remission lasting 12 months or longer, it potentially reduces cumulative healthcare expenditure despite higher initial treatment costs.

The durability of outcomes strengthens Emyria’s negotiating position with insurers and government payers when seeking expanded coverage. Real-world evidence demonstrating sustained clinical benefits beyond the treatment period addresses a critical question for payers: whether short-term intervention costs are offset by reduced long-term care requirements.

Demand indicators and growth trajectory heading into 2026

Forward-looking demand indicators suggest sustained momentum entering the second half of FY26. As at 31 January 2026, Emyria had 83 patient screenings already booked for Q3 FY26, providing visibility into near-term revenue trajectory.

The company received industry recognition during the reporting period:

• National Outstanding Clinic of the Year Award (Patients Australia, August 2025): Recognition for leadership, patient-centred care, and clinical impact at national level
• Wesfarmers Wellbeing Platinum Award (WA Innovators of the Year, November 2025): Outstanding innovation advancing medical and social wellbeing

These awards reinforce clinical credibility and patient trust, factors that influence referral patterns from treating psychiatrists and general practitioners. For investors, forward screening bookings serve as a leading indicator of revenue continuation, as screenings precede treatment commencement by several weeks depending on patient assessment and preparation requirements.

Balance sheet positioned for accelerated execution

Emyria completed an $8 million institutional placement in November 2025, strengthening its balance sheet ahead of the Victorian clinic launch and continued network expansion. The cash injection brought the company’s balance to $10.5 million as at 31 December 2025, providing runway to focus on operational execution rather than near-term capital raising.

Management indicated per-clinic costs are expected to moderate as the network scales and operational leverage improves. The capital-light model reduces upfront investment per site, whilst shared corporate infrastructure and standardised clinical protocols spread fixed costs across a growing clinic base. This operational leverage thesis supports margin improvement as the network matures, although early-stage expansion currently weighs on profitability as reflected in the half-year loss.

The strengthened balance sheet enables management to prioritise execution quality over capital efficiency in the near term, supporting investment in clinical workforce, quality systems, and patient intake capacity as the national rollout progresses.

Executive Chairman commentary

Greg Hutchinson, Executive Chairman of Emyria, framed the half-year results as validation of the company’s scalable model:

Greg Hutchinson, Executive Chairman

“The first half of FY26 represents a pivotal step forward for Emyria, with record revenue growth, expanding insurer and government payer support, and national clinic progress all reinforcing the strength and scalability of our model. The extension of Medibank’s agreement, DVA funding, and the release of compelling long-term PTSD outcomes underscore the quality and impact of our evidence-based programs. With a strengthened balance sheet, national recognition for clinical excellence, and strong patient demand heading into CY2026, Emyria is exceptionally well-positioned to accelerate its Empax clinic rollout and continue delivering transformative mental health care across Australia.”

Management’s commentary emphasised the repeatability of the reimbursement model as the national network scales, with Medibank’s Victorian clinic inclusion demonstrating that insurer coverage can be extended to new geographies following the initial proof of concept in Western Australia.

Investment outlook and strategic focus

Multiple near-term catalysts provide ongoing newsflow heading into 2026. The Victorian clinic launch in Q2 2026 adds a third operational state to the network, whilst continued revenue growth and further reimbursement expansion remain strategic priorities. The company’s proprietary real-world dataset, generated through clinical operations, informs an innovation pipeline that adds optionality beyond direct clinic revenue.

Emyria’s dual business model combines direct patient care with data generation capabilities. Clinical operations produce revenue whilst simultaneously generating outcome metrics that can support regulatory submissions, payer negotiations, and treatment protocol refinement. This integrated approach creates data assets that may have value independent of clinic operations, though commercialisation pathways for such data remain at early stages.

The company’s positioning reflects convergence of several sector tailwinds: growing recognition of treatment-resistant mental health conditions as a healthcare priority, regulatory acceptance of psychedelic medicines in controlled clinical settings, and payer willingness to fund novel therapies based on evidence of durable outcomes. Emyria’s capital-light expansion model and dual reimbursement pathways position it to capture demand as these sector dynamics continue developing through 2026.

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