SomnoMed Limited

FY'26 revenue increased 3% to $114.5 million, with North America leading the result. EBITDA increased 19% to $10.9 million and EBITDA margin improved from 8.2% to 9.6%. Operating cash flow was $8.3 million before leases and $5.2 million after leases; year-end cash was $17.2 million and net cash was $16.8 million. Capital expenditure totaled $5.7 million, and free cash flow was negative $0.6 million. On a regional basis, Europe contributed $61.9 million, up 1% reported and down 1% constant currency; North America contributed $45.8 million, up 6% reported and 11% constant currency; APAC contributed $6.8 million, down 3% reported and 2% constant currency. For FY'27, the company is targeting high single-digit revenue growth while maintaining EBITDA margins consistent with FY'26, with guidance ranges expected to be shared alongside the AGM in November.

Karen Borg framed FY'26 as the year the company completed a turnaround and built a base for the next growth phase. She emphasized the large sleep apnea market, the expanding role of oral appliance therapy, and SomnoMed’s focus on growth, profitability, and product innovation. Her tone was optimistic but cautious, especially around Europe, Virtus rollout timing, and the need to keep investing while holding margins.

Ye-Fei Guo said FY'26 was a year of solid performance with disciplined cost management. He cited EBITDA up 19% to $10.9 million, EBITDA margin up to 9.6%, operating cash flow after leases up 8% to $5.2 million, and OpEx growth of less than 3%. He also noted cash and cash equivalents of $17.2 million, net cash of $16.8 million, CapEx of $5.7 million, and negative free cash flow of $0.6 million due to planned growth investment. He highlighted that about 95% of revenue is non-AUD, making FX a meaningful sensitivity.

Analysts focused on Europe, Virtus, Rest Assure, and where the business will reinvest while targeting flat EBITDA margins in FY'27. Management said it is already working on a major reimbursement submission in a key European market and reviewing other European market changes, while also trying to help patients navigate access pathways. On Virtus, Karen Borg said early feedback after roughly 6 weeks of patient use has been very positive, but the company is still gathering data before full commercialization. On Rest Assure, she said FDA approval was received for the compliance component, the AHI component is still being worked through after FDA feedback, and a broader Connected Care strategy update is expected around the AGM.