Key Highlights

  • Revenue increased 3% to $203.9 million on a reported basis, or 6% to $211.5 million at constant currency, as the strengthening Australian dollar weighed on reported results.
  • EBIT declined 10% to $16.0 million on a reported basis, though it increased 21% to $21.6 million at constant currency, reflecting the impact of currency movements on reported earnings.
  • trophon-only EBIT increased 5% to $50.6 million on a reported basis, or 16% to $56.5 million at constant currency, underscoring the core franchise's Earnings strength.
  • The company announced a new on-market share buyback of up to $40 million for FY27, alongside completion of a $20 million buyback during FY26, with cash and cash equivalents of $155.2 million and no debt.

Nanosonics Limited (ASX:NAN) released its financial results for the year ended 30 June 2026, reporting Revenue growth alongside a decline in reported earnings that weighed heavily on the company's share price. Shares in Nanosonics fell 18.21 percent to $3.01 on the ASX following the announcement, a decline of $0.67 on the day, as the market responded to the reported EBIT decline and the company's guidance for continued step-up Investment in its CORIS System commercialisation during FY27.

Revenue Growth Offset by Currency Headwinds

Revenue increased 3% to $203.9 million on a reported basis, reflecting the strengthening of the Australian dollar during FY26. On a constant currency basis, revenue increased 6% to $211.5 million, which the company said demonstrated Business momentum supported by growth in total trophon unit sales, expansion of the global installed base, and continued Recurring Revenue performance. Capital revenue increased 4% to $54.7 million, or 8% at constant currency, supported by 9% growth in total device placements to 4,230 units, including record North American upgrades of 1,980 units, up 32% on the prior corresponding period. The global installed base grew 6% to 39,230 devices, with 2,230 new installed base units added during the year.

Recurring revenue rose 2% to $149.2 million, or 6% at constant currency, supported by core consumables, ecosystem products and service revenue. Annuity revenue, which excludes spare parts, grew 8% at constant currency, with the company describing a decline in spare parts revenue as a positive signal of fleet modernisation as customers transition to newer generation trophon systems.

Reported Earnings Decline

Gross Margin came in at 76.9% for FY26, down from 78.2% in FY25, which the company attributed to product mix and currency movements. Operating expenses increased 2%, or 4% at constant currency, to $141.4 million, reflecting continued investment in innovation, operational capability and preparations for CORIS System commercialisation. EBIT declined 10% to $16.0 million on a reported basis, although it increased 21% to $21.6 million at constant currency. Profit before tax similarly fell 10% on a reported basis to $20.1 million, while increasing 15% to $25.8 million at constant currency.

trophon Franchise Remains the Core Earnings Driver

The trophon-only business generated EBIT of $50.6 million, up 5% on the prior corresponding period, or $56.5 million, up 16% at constant currency. The company said this performance demonstrated the core franchise's earnings power, cash generation and continuing growth in operating leverage, providing the financial foundation to fund disciplined investment in CORIS and other future growth platforms while maintaining Balance Sheet strength.

Balance Sheet and Capital Management

Nanosonics returned $20 million of capital to shareholders via a share buyback during FY26, resulting in net cash outflows of $6.4 million; excluding the buyback, the company generated $13.6 million in cash. Cash and cash equivalents stood at $155.2 million as at 30 June 2026, with the company continuing to carry no Debt on its balance sheet. The Board separately announced a new on-market share buyback of up to $40 million for FY27.

CORIS System Progress and FY27 Investment

The company said its CORIS System Controlled Market Release continued to progress well during FY26, with sites active in Australia, the United Kingdom, Ireland and the United States, generating positive customer feedback. Regulatory milestones achieved during the year included approvals in Australia, Europe and the United Kingdom, the first FDA 510(k) clearance in the United States, and submission of a second 510(k) for further endoscope indications. Commercial launch of CORIS is planned across the UK, Ireland and Australia in the first half of FY27, with the US launch to follow.

The company said it plans to make an incremental investment in the CORIS business during FY27 to accelerate market awareness, generate customer pipeline and drive initial adoption, describing this as a near-term step-up in expenditure that management believes represents an attractive use of capital for long-term Shareholder value creation.

FY27 Guidance

Nanosonics has guided to FY27 revenue of $220 million to $228 million at constant currency, representing growth of 8% to 12% on FY26. Gross margin is guided in the range of 74% to 76%, a further step down from FY26 levels, which the company attributed to the impact of a full 12 months of tariffs at a rate of 12.5% and increased freight costs due to higher volumes and geopolitical-related price increases. Operating expenses are guided to increase 10% to 15% to a range of $156 million to $163 million, reflecting the planned step-up in CORIS commercialisation investment. The company noted that its guidance assumes no changes to the global trading environment and continues to reflect a strengthening Australian dollar relative to its largely USD-denominated revenue base.

Conclusion

Nanosonics reported constant-currency growth in both revenue and EBIT during FY26, with its core trophon franchise continuing to demonstrate earnings strength and operating leverage. However, on a reported basis, EBIT declined 10% due to currency headwinds, and the company's shares fell sharply following the results as the market weighed the reported earnings decline alongside FY27 guidance for a further step-up in operating expenses and moderating gross margin tied to CORIS System commercialisation and Tariff impacts. With no debt and a $155.2 million cash position, the company has committed to a further $40 million share buyback in FY27 while continuing to invest in the CORIS System's transition from controlled market release toward commercial launch across the UK, Ireland and Australia in the first half of the year.