• Resources rebalanced towards higher-return and sustainable core business activities
• Annualised cost savings of ~$1M in FY26 achieved
• Shifting emphasis of Specialty Orals vertical to radiopharmaceuticals
• Strong pipeline with $3.4M in new contracts signed in Q1FY26

IDT Australia Ltd (ASX: IDT) has provided a Q1 FY26 market update, announcing a strategic realignment to prioritize profitability and long-term shareholder value. As part of the realignment, the company is rebalancing resources towards higher-return and sustainable core business activities, while streamlining underperforming areas. This is expected to deliver annualised cost savings of approximately $1 million in FY26. The company is also shifting the emphasis of its Specialty Orals vertical towards radiopharmaceuticals, supported by recent contract wins and a strong pipeline, while continuing to service clinical-stage innovations in specialty orals. In Q1 FY26, IDT's revenue from its three verticals (API, Specialty Orals, and Advanced Therapies) increased 18.2% year-over-year and 7.6% quarter-on-quarter to $4.3 million. The company's total revenue, including disbursements, was $4.6 million, down 10.1% year-over-year due to lower pass-through disbursements. IDT reported an EBITDA loss of $0.3 million for Q1 FY26. The company has a robust pipeline, with $3.4 million in new contracts signed in Q1 FY26, and remains positive about the near-term outlook for its business.

IDT expects to achieve annualised cost savings of approximately $1 million in FY26 as a result of the strategic realignment.

The near-term outlook for IDT remains positive, underpinned by the level of client enquiries the company continues to receive for its suite of services. IDT signed new work orders worth $3.4 million in the September quarter, with a host of additional opportunities in its pipeline that the company is working towards converting over coming months.