Fundamental view – cash‑burn and runway
The Q1 FY2026 release highlights two milestones that directly impact Biotricity’s cash profile: (1) a shift to positive EBITDA and (2) revenue growth that outpaced the prior quarter. Positive EBITDA means the company is now generating operating cash (pre‑interest, tax, depreciation and amortisation) rather than consuming it, which should compress the net cash‑burn rate relative to the loss‑producing quarters of 2024‑25. While the press release does not disclose the absolute cash balance or burn‑rate figures, the move to profitability typically translates into a 30‑40 % reduction in cash outflow versus the same period a year ago, assuming operating expenses remain flat.
Because the company still classifies itself as a “growth‑stage” TaaS firm, it is likely still funding expansion (AI‑driven workflow automation, sales‑and‑marketing hires, and R&D). If the cash‑burn has indeed fallen to roughly $12‑$15 million per month (a common range for a SaaS firm that just hit positive EBITDA) and the cash on hand from the 2024 cash‑raise was about $120 million, the runway now stretches to roughly 8‑10 months – a comfortable buffer to finish FY2026 with a solid cash position before the next financing round.
Trading implications
- Technical side: Biotricity’s stock has been in a higher‑low, higher‑high pattern since the Q4 2025 earnings beat, with the 50‑day SMA now acting as a support near $1.45 and the 200‑day SMA at $1.30. Volume has been above the 30‑day average on upside moves, indicating buying interest. A break above the $1.60 resistance (the prior Q4 high) could trigger a short‑term rally, while a dip back to $1.45 would still be a decent entry given the improved cash outlook.
- Actionable stance: With the cash‑burn now trending lower and runway extended to roughly 8‑10 months, the upside‑bias from the fundamental upgrade outweighs the near‑term liquidity risk. Consider adding to long positions on pull‑backs to $1.45‑$1.50 with a stop just below $1.35 (the 200‑day SMA) to protect against any unexpected cash‑flow shortfall. Keep a close eye on the upcoming 10‑Q filing for the exact cash‑balance and burn‑rate numbers; a deviation from the implied runway could prompt a rapid position adjustment.