Key Investment Highlights

• An irreplaceable data moat compounds with scale. Twenty years of proprietary diagnostic testing data from 2,500+ laboratories across 51 countries — including 600m+ longitudinal patient records — is not something a competitor can buy or build quickly. The dataset becomes more valuable with every incremental customer and data point, creating a reinforcing flywheel.
• Essential, irreplaceable value proposition. Every precision medicine brought to market needs its diagnostic testing ecosystem optimised or patient uptake fails. DXRX is the only platform that solves this end-to-end — from real-time lab data through to physician engagement — and 18 of the top 20 pharma companies already rely on it. There is no credible alternative.
• A data moat that is effectively irreplicable. Twenty years of proprietary testing data from 2,500+ laboratories and 600m+ patient records cannot be bought or built by a competitor in any commercially relevant timeframe. A two-sided network effect compounds the advantage: more pharma customers attract more labs, which enrich the data, which attracts more pharma. NRR of 109% confirms customers deepen — not reduce — their reliance over time.
• Consistent, strong organic growth with record forward visibility. Revenue has compounded at 25% over three years with zero M&A. The order book of £36.8m (+48% YoY) covers ~77% of FY2026 consensus, and ARR of £20.3m (+21%) provides a contractually underpinned baseline. Management guides 25% growth for FY2026; this is not an aspiration — it is already largely in the book.
• Clear profitability inflection with significant operating leverage ahead. Cash EBITDA is expected positive for the first time in FY2025 (~£2.5m), the direct payoff from a deliberate ~£8m investment cycle. The fixed cost base is now built. As recurring revenue scales from here, incremental margins are very high — we model Cash EBITDA margins reaching ~10% by FY2027 and ~25% at terminal scale.
• Strong return potential from re-rating and M&A optionality. At 3.7x EV/Revenue the stock is still priced as a consultancy, not a platform. A re-rating to 5x — still below healthcare SaaS peers — alone implies ~230p. Separately, DXRX's unique dataset and customer base make it a highly attractive acquisition target for larger CROs or HealthTech platforms. Our 293p fair value does not require a takeover, but one would represent meaningful upside on top of the base case.
• Limited downside at current levels. The company is debt-free with ~£11m cash and no financing requirement. ~65% recurring revenue and 109% NRR create a contractual earnings floor. Even in a bear case — growth slowing to 15% and margins flat — the stock is not expensive on an EV/Revenue basis. The asymmetry is clear: downside is capped by the recurring revenue base; upside is driven by margin expansion and re-rating.