Earnings call transcript: hVIVO posts H1 2026 loss as revenue shifts to H2

hVIVO disclosed a first-half 2026 loss and a 32% decrease in revenue during its earnings call. The company's revenue fell to GBP 16.3 million from GBP 24 million a year ago, while EBITDA turned to a GBP 4.5 million loss. Management explained that the weaker results were due to delayed human challenge trial revenue rather than lost business.

They anticipate a sharp recovery in the second half of 2026, with full-year revenue now projected at GBP 47 million, and a record order book of GBP 72 million. hVIVO's stock was virtually unchanged at $5.88 in early trading, down 0.34% from the previous close of $5.90. The company's Q2 revenue dropped 32% year-over-year, mainly due to human challenge trial revenue being shifted to later periods.

EBITDA shifted to a loss of GBP 4.5 million compared to a profit in the same period last year. hVIVO is expanding into laboratory services, cardiometabolic work, respiratory disease, dermatology, and women's health. The company stated that human challenge trial contracts began to delay into H2 2026, 2027, and 2028. Management noted that H1 revenue was down from GBP 24 million a year earlier, with about GBP 8 million of human challenge trial revenue moved out of the period.

Clinical services remained stable on a like-for-like basis, while laboratory services grew significantly from a smaller base. The company is addressing its dependence on human challenge trials, which now account for less than 50% of 2026 revenue, down from historical levels. Management attributes the shift to a more diversified business model, reducing vulnerability to delays in any single contract type.

Industry conditions have improved, with looser biotech funding, increased large-pharma M&A, and stronger customer decision-making influencing the pipeline's conversion into contracts. Revenue for H1 2026 was GBP 16.3 million, down 32% from GBP 24 million in H1 2025. EBITDA for the same period was a loss of GBP 4.5 million, contrasting with a profit in H1 2025.

Cash was GBP 13 million as of June 30, 2026, down from GBP 14.3 million at the beginning of the year. The order book stands at GBP 72 million, including GBP 65 million in underlying contracts and GBP 7 million from Berlin. Human challenge trial revenue was approximately GBP 4 million in H1 2026, down from roughly GBP 12 million the previous year.

Clinical services revenue reached GBP 9.5 million, including about GBP 1 million from acquisitions. Laboratory services revenue surged by 110% year-over-year. The FY 2026 revenue guidance was lowered to GBP 47 million from the previous range of GBP 50 million-GBP 51 million. The FY 2026 EBITDA guidance projects a low-single-digit loss of GBP 2 million-GBP 3 million, with positive EBITDA expected in H2.

The current ratio of 1.63 indicates adequate short-term liquidity despite cash pressures. InvestingPro analysis suggests hVIVO may be undervalued at current levels, and the stock is currently in oversold territory. Despite a beta of 1.69, indicating higher volatility than the broader market, the stock remains below its 52-week high of $11 and above its low of $4.31, placing it near the lower half of its yearly range.