• Improved Group operating performance
• Hydrix Ventures portfolio asset reached a positive milestone
• Caution in global markets affecting near-term project commencements

Hydrix Limited (ASX: HYD) released its Appendix 4C for the third quarter ended 31 March 2025 (3QFY25) and provided a market update. The key highlights include:- Hydrix Services ('Services') revenue of $2.1m, down from $2.3m in the prior corresponding period, with $40.0m in potential future project revenue across 15 active client relationships. The cash operating loss was $0.48m, better than the $0.6m loss in the prior corresponding period.- Hydrix Ventures ('Ventures') saw a $0.36m ownership uplift in Gyder Surgical (Hip Navigation System) following FDA 510(k) clearance, which triggered an equity milestone payment. The system was developed by Hydrix Services.- The Group's cash operating loss improved to $0.75m, a material improvement on the $1.35m loss in the prior corresponding period. The company had $0.3m cash on hand on 31 March 2025 and a $2.0m Letter of Comfort from a major shareholder provided in August 2024.The Executive Chairman noted that while the company continued to progress a number of large, well-advanced opportunities, increased caution in global markets as a contributing factor in client decision-making, particularly projects reliant on significant venture capital or internal budget approval, may affect near-term project commencements. However, many sales opportunities remain active, and the company is better positioned to navigate the macro-economic climate after reshaping its cost base over the past year.

The company noted that while increased caution in global markets may affect near-term project commencements, many sales opportunities remain active. Hydrix is better positioned to navigate the macro-economic climate after reshaping its cost base over the past year.