Nanosonics Limited

For the half, revenue was $102.2 million, up 9% year over year, or 8% in constant currency. Gross profit margin was 76.3%, down 2.2 points year over year, and operating expenses rose 4% to $69.5 million. Operating profit was $8.5 million, EBIT was $8.4 million, down 3% reported but up 15% in constant currency, and profit before tax was $10.6 million, down 3% reported but up 13% in constant currency. Cash flow was a modest outflow of about $1.4 million, and the company ended with $159.8 million in cash and no debt. For FY26, management reaffirmed revenue growth guidance of 8% to 12% at constant currency, gross margin guidance of 75% to 77%, and said OpEx discipline would continue while investment in CORIS and other growth priorities remains in place. They also noted that if second-half revenue were recast at about $0.70/USD instead of the assumed $0.65, the revenue range would be approximately 3% lower.

Michael Kavanagh struck an upbeat but disciplined tone, saying the half was “really good and positive” financially and operationally. He emphasized the core trophon engine: installed-base growth, recurring revenue from consumables and service, and a record level of North American upgrades, while noting that trophon2 upgrades can still support future software-led value capture through trophon2 Plus. He also highlighted CORIS progress, including regulatory milestones and the start of Controlled Market Release in the U.K., while reiterating that commercialization is still expected in FY27.

Jason Burriss focused on operating leverage, margin discipline, and balance-sheet strength. He pointed to 38,080 devices in the global installed base, recurring revenue up 9%, total installations up 20% to 2,070 devices, capital revenue of $26.5 million, gross margin of 76.3%, and OpEx growth of just 4% to $69.5 million. He also explained the $0.7 million FX loss from revaluation of non-Australian dollar assets, said cash flow was an outflow of about $1.4 million due to CORIS inventory and buyback timing, and noted the company remains debt-free with $159.8 million in cash and about $4 million executed under the buyback.

Analysts focused on whether second-half growth can accelerate into the midpoint or top end of the 8% to 12% revenue guide, and management said that would depend on continued strong upgrade momentum and the usual second-half lift in service revenue. Questions also centered on the mix of upgrades between trophon2, trophon2 Plus, and trophon3, with management saying the current trophon2-heavy mix reflects budget timing, but the mix should move toward trophon3 over time and that there is no current friction around trophon3 pricing. On CORIS, management said OpEx should rise gradually rather than step sharply in FY27, because resource additions will be supplemental as commercialization ramps.