Nanosonics (ASX:NAN) has built its Business on a single, sticky idea: making ultrasound probes safer to reuse. Its trophon device provides automated high-level disinfection of ultrasound probes, and once installed in a hospital or clinic it generates recurring consumable and service Revenue for years. That razor-and-blade model, plus a long-awaited second product finally reaching the market, is what makes the company one of the more closely followed names in ASX healthcare.

The reason to look now is a full-year result that combined steady core growth with a genuine catalyst — regulatory clearance for its new pathogen-detection platform, CORIS — even as the market reaction was cautious.

FY26 in numbers

For the year to June 2026, reported on 25 August 2026, Nanosonics posted revenue of AUD 203.9 million, up 3% on a reported basis and 6% at constant currency. Reported EBIT was AUD 16 million, up 21% year on year, while the underlying trophon business generated EBIT of about AUD 50.6 million. Gross Margin held at a healthy 76.9%, down slightly.

The installed base tells the recurring-revenue story: trophon placements reached a record of more than 4,200 units in the year, lifting the global installed base beyond 39,000 devices. North American Annuity revenue, the largest single income stream, rose to AUD 126.8 million. The company finished the year debt-free with AUD 155.2 million in cash and completed a AUD 20 million buyback, with a further AUD 40 million buyback announced for FY27.

Despite the solid figures, the shares fell around 14% after the result, as investors weighed currency headwinds and the near-term cost of commercialising CORIS.

The CORIS catalyst

The most significant development is CORIS, Nanosonics’ system for detecting residual soil and biofilm inside the channels of flexible endoscopes — a persistent infection-control problem in gastrointestinal endoscopy. During FY26 the company secured FDA 510(k) clearance for CORIS, and it has flagged a commercial launch in the first half of FY27.

CORIS matters because it opens a second large addressable market beyond ultrasound probes and gives Nanosonics a fresh growth avenue after years of the Investment case resting almost entirely on trophon.

Why it matters to investors

Nanosonics offers a rare combination on the ASX: an installed base that compounds, high gross margins, a clean Balance Sheet and a new product entering commercialisation. For FY27 the company has guided to constant-currency revenue of AUD 220–228 million, implying 8–12% growth, with gross margin of 74–76% and continued operating investment.

The key items to watch are the pace of the CORIS launch and early adoption, whether trophon placements keep setting records, and how currency movements flow through reported results.

Risks to weigh

The risks are real. Growth in the mature trophon business is now in the mid-single digits, so the investment case increasingly depends on CORIS delivering — and new medical devices can face slow hospital procurement cycles and adoption hurdles. The stock has historically traded on premium multiples, which leaves little room for execution disappointment, as the post-result share-price fall showed. Currency swings and rising operating costs can also compress reported earnings.

On balance, Nanosonics enters FY27 with a proven core, a strong balance sheet and, for the first time in years, a second product cleared for launch. Whether that makes it one of the ASX’s most interesting healthcare stories now depends on execution rather than promise.