4DMedical shares (ASX: 4DX) staged a sharp technical recovery on Friday, rallying 13.42% to close at A$4.31 and reclaiming its 200-day Simple Moving Average for the first time this month.
Friday’s close at A$4.31 marked a decisive move back above the 200-day SMA, which sits at A$4.02, a level widely tracked in technical analysis as a sign of long term trend health.
The rally represents a recovery of 27% from the mid-September low, clawing back a meaningful portion of the 29% decline that followed the company’s FY26 full-year results in August. Despite Friday’s strength, 4DX shares remain roughly 5% lower on a year-to-date basis, meaning bulls still have ground to recover heading into the final stretch of 2026.
The timing and size of the move into the weekend has drawn focus to the stock’s short interest. As of mid-September, approximately 12.4% of 4DMedical’s total shares were held short, making it one of the more heavily shorted names on the ASX. The combination of a technically significant trigger like a 200-day SMA crossover, and elevated short positioning creates conditions in which short covering can amplify price moves beyond what fundamentals might suggest.
Recent Financials
4DMedical’s FY26 full-year results, released in August, presented markets with a mixed picture that helps explain both the preceding sell-off and the subsequent recovery attempt. Operating revenue came in at between A$7.06 million and A$7.2 million for the full year, representing growth of approximately 21% to 23% year-on-year.
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The company processed 105,970 scans in Q4 alone across 540 sites globally, reflecting genuine commercial traction for its flagship CT:VQ technology, a non-contrast lung imaging platform designed to measure ventilation and perfusion without radiation exposure from traditional nuclear medicine scans.
The revenue growth, however, was accompanied by a significant widening of the net loss, which expanded to A$204.44 million in FY26 compared with A$30.07 million in FY25. The jump was driven by acquisition-related costs, aggressive global research and development expenditure, and the costs associated with scaling commercial operations across multiple geographies simultaneously.
While loss per share actually improved from A$0.14 to A$0.03 due to a larger share base, the headline loss figure was enough to trigger a sharp market reassessment of near-term cash dynamics. Critically, the company reported a cash balance of A$278 million as of June 30, 2026, providing a substantial runway that tempers immediate solvency concerns even as the burn rate remains a focal point for sceptics.
What Next?
4DMedical’s reclaim of the 200-day SMA is a technically significant moment that reflects genuine buyer interest after a bruising two-month drawdown, but with a net loss exceeding A$200 million, a still-modest revenue base, and short interest elevated, there remains plenty for both sides of the bull/bear divide to remain interested.
