Polarean had a tough first half to June as disruption to US healthcare funding resulted in no additional sales of the company's Xenon MRI systems during the half, notwithstanding a 650% YoY increase in the sales pipeline. The weakness in capital sales was only partially mitigated by a 36% increase in consumables revenue. Cash and net cash ended the half at US$7.3m and the company reiterated its cash runway through 2Q26. Full year revenue guidance was reduced to US$2.5m-US$3.5m (from US$5m-US$6m). Despite the 1H25 performance, given the compelling case for Polarean's technology and assuming this is just a hiatus, we calculate that Polarean has potential upside many times its current market capitalisation based on observable deal metrics and our NPV analysis, while the valuation is so low, it could attract take-over interest, we believe.
