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SEC filingDiaMedica reported a net loss of $32.8M in FY2025, a 34% increase from the prior year, driven by expanded clinical development activities, with free cash flow usage rising to $29.1M.
DiaMedica Therapeutics Inc. reported a net loss of $32.8 million for the fiscal year ended December 31, 2025, compared to a net loss of $24.4 million in the prior year. This represents a year-over-year increase in losses of 34%, primarily attributed to expanded research and development activities. The company continues to invest heavily in its clinical pipeline, particularly in the ongoing ReMEDy2 trial, which has seen global site activation and an expanded clinical team.
The increase in net loss directly contributed to higher cash outflows from operations, which reached $29.1 million in FY2025, up from $22.1 million in FY2024. According to management, this rise in operating cash use resulted primarily from the increased net loss, although it was partially offset by changes in operating assets and liabilities during the period. This indicates some operational efficiency in managing short-term balances despite growing expenses.
Capital expenditures remained negligible at $40,000 for the year, underscoring DiaMedica’s asset-light operating model. The company continues to rely on contract development and manufacturing organizations (CDMOs) rather than investing in internal production capacity. This approach preserves capital but maintains exposure to external supply chain risks.
Free cash flow, calculated as net cash provided by operating activities less capital expenditures, totaled -$29.1 million for FY2025. This reflects the continued pre-revenue, development-stage nature of the business, where investment in clinical programs outpaces any near-term cash generation.
A significant portion of the increased expenses was directed toward R&D, driven by the continuation and expansion of the ReMEDy2 clinical trial. Management notes that cost increases were due to global trial expansion, clinical team growth, and higher non-cash share-based compensation. The company expects R&D expenses to moderately increase in future periods as development programs progress.
General and administrative expenses are expected to remain steady to slightly increase, supporting ongoing dual-program scale-up. Additional capital inflows have come from warrant and stock option exercises, interest income, and government grants, helping sustain operations amid ongoing losses.
As highlighted in risk factors, prior and expected future losses continue to negatively impact shareholders’ equity and working capital. The company remains dependent on external financing to fund its clinical advancement, though current funding sources have allowed continued progress without major structural changes to operations.