Highlights

  • PolyNovo (ASX:PNV) gained 7.43% as its FY26 trading update showed record group revenue.
  • Group Revenue increased 16.1% to AUD 150.0mn.
  • Commercial sales rose 16.7% to AUD 138.4mn.
  • Free Cash Flow improved to positive AUD 10.4mn, while NovoSorb MTX sales increased 89.6%.

PolyNovo (ASX:PNV) has gained 7.43% as the wound-care company closes FY26 with record revenue and a clear improvement in cash generation. Unaudited group revenue reached AUD 150.0mn, commercial sales increased across the US and international markets, and free cash flow turned positive. The result suggests the Business is beginning to translate its expanding sales footprint into a more mature financial profile, while newer product NovoSorb MTX is scaling quickly.

Revenue Reaches a New High

Group revenue increased 16.1% to AUD 150.0mn, with commercial sales up 16.7% to AUD 138.4mn. US commercial sales reached AUD 102.1mn and Rest of World sales increased to AUD 36.3mn.

MTX Is Becoming a Larger Contributor

NovoSorb MTX commercial sales rose 89.6% to AUD 12.6mn. Growth in a second product line reduces some dependence on the established BTM Franchise and broadens the revenue base.

Cash Conversion Improves

Operating cash flow increased to AUD 24.0mn and free cash flow improved to positive AUD 10.4mn. The company ended the year with AUD 35.4mn in cash and cash equivalents.

Manufacturing and FDA Work Continue

Construction of the additional Manufacturing Facility has been completed and validation is underway. PolyNovo is also targeting completion of its NovoSorb BTM FDA PMA submission before the end of calendar 2026.

What to Watch

Audited FY26 earnings, Margin progression, MTX growth, manufacturing validation and the BTM FDA submission are the main catalysts.

Risks

Revenue growth can be affected by hospital budgets, competition, reimbursement and execution. Regulatory submissions and manufacturing scale-up also carry risk.