Saluda Medical (ASX:SLD), Inc. told the market on 29 October 2026 that global revenue for the first quarter of its 2027 financial year, the three months to 30 September 2026, was US$23.1m. The company said that was up 26 per cent on the prior corresponding period, although it was lower than the US$27.0m recorded in the June quarter, which it described as its strongest to date. Saluda attributed the sequential decline mainly to seasonality. The figures are unaudited.

Revenue and patient volumes

Saluda develops neuromodulation treatments for chronic neurological conditions and is best known for spinal cord stimulation (SCS), a therapy for chronic pain. In the quarter, US revenue reached US$17.4m, a rise of 34 per cent on the prior corresponding period, while international revenue was US$5.8m, up 7 per cent. The company said growth overseas was led by Australia and Germany, and that it began selling in Austria during the period.

Operational measures in the United States grew faster than revenue. Saluda reported 838 implanted patients, up 55 per cent, and an average of 374 active implanting physicians, up 47 per cent. The company explained the gap between patient growth and revenue growth in two ways: some customers drew down inventory purchased in earlier quarters, and it won more business in higher-volume ambulatory surgery centres, where volume-based pricing lowered the average selling price compared with the first and second quarters of the 2026 financial year.

Paddle lead launch and product progress

A central development was the start of a full US commercial release of the CAP24 paddle lead, which the company said received FDA approval in June 2026. Saluda describes the product as the first and only FDA-approved surgical paddle lead designed for physiologic, dose-controlled closed-loop therapy. It said the paddle segment represented roughly US$670m of 2024 revenue, about 30 per cent of the US SCS market.

The company also reported progress on its sales organisation. About 75 per cent of its representatives are fully trained, and roughly half of viable US territories now have at least one fully trained representative, up from 45 per cent in June 2026. Saluda said hiring in the 2027 financial year will slow as it concentrates on productivity. Separately, Mike Mathias, previously chief commercial officer, became chief executive on 7 September 2026.

Cash position and funding

Cash at 30 September 2026 was US$73.6m, compared with US$116.4m at the end of the June quarter. Operating cash use was US$42.7m in the quarter, against US$28.9m in the prior quarter, and the company said several one-off payments drove the increase. Saluda also said it drew an additional US$25m from an existing debt facility in the fourth quarter of the 2026 financial year.

The company raised US$150m in its initial public offering, which was admitted to the ASX on 3 December 2025. It said use of those funds is in line with the prospectus and that about US$120.2m had been spent by 30 September 2026. On its current plan, Saluda estimates its cash runway extends to approximately June 2027, and it expects lower cash use across the remaining quarters of the financial year.

Guidance and risks

Saluda reaffirmed its guidance for the 2027 financial year: revenue growth of 25 to 35 per cent on the 2026 financial year, a gross margin of 50 to 52 per cent, and an adjusted EBITDA loss of US$95m to US$101m.

The company flagged several risks. Revenue may not track implant growth because of inventory timing and pricing mix. Quarterly ordering in international markets is variable, and some European countries showed weaker buying. The runway to around June 2027 means funding remains a consideration, and the quarterly figures have not been reviewed by the company's independent auditors.

Next steps

Saluda scheduled an investor webinar for 12:30pm AEDT on 29 October 2026, hosted by Mr Mathias and chief financial officer James Erickson.