Highlights

  • SomnoMed appointed Karen Borg as sole Chief Executive Officer following Amrita Blickstead's departure.
  • The company commenced a controlled global rollout of Virtus, an oral appliance targeting OSA patients with sleep bruxism.
  • Preliminary FY26 Revenue was $114–115 million, below previous guidance, while EBITDA is expected within the $10–12 million range.
  • SomnoMed reported cash of $17.2 million and net cash of $16.8 million at FY26 preliminary results.

SomnoMed (ASX:SOM) has announced a Leadership transition alongside the controlled global rollout of Virtus, a new oral appliance designed for patients with obstructive sleep apnoea (OSA) and sleep bruxism.

Karen Borg, who has served as Co-Chief Executive Officer since February 2024, has taken sole responsibility as CEO following Amrita Blickstead's departure as Co-CEO and Executive Director.

The update also included preliminary FY26 financial results, with revenue below previous guidance due to currency movements and European reimbursement changes, while EBITDA remained within the company's expected range.

What Was Announced?

On 27 July 2026, SomnoMed released an update covering leadership changes, preliminary unaudited FY26 results and the global rollout of Virtus.

Ms Blickstead's departure was effective immediately, with Ms Borg moving from Co-CEO to sole CEO.

Chief Transformation Officer Greg Knight was promoted to Chief Operating Officer, responsible for manufacturing, regulatory affairs, quality assurance, Research and Development and strategy.

SomnoMed reported preliminary FY26 revenue of $114–115 million, below its previous guidance range of $119–126 million.

The company expects EBITDA to be toward the middle of its $10–12 million guidance range.

Management attributed the revenue shortfall to changes in European reimbursement rules and patient referral pathways, along with approximately 600 basis points of Australian dollar appreciation during the second half of FY26.

The company stated that approximately 95% of revenue is generated in currencies other than the Australian dollar, affecting reported AUD results.

Virtus has entered a controlled market release across North America, Europe and Asia-Pacific. The oral appliance is designed for OSA patients who also experience teeth grinding or clenching.

Why This Matters

For SomnoMed (ASX:SOM), Virtus expands its product range into a patient segment where existing oral appliances may face durability challenges due to sleep bruxism.

A stronger appliance design may support improved patient experience and long-term device use, although commercial adoption will depend on practitioner uptake, pricing and patient demand.

The leadership transition also comes as SomnoMed manages external pressures including European reimbursement changes and foreign exchange movements.

Ms Borg assumes sole leadership responsibility at a time when the company is focused on maintaining EBITDA performance while progressing new product adoption.

Company Background

SomnoMed (ASX:SOM) is a global medical device company focused on oral appliance therapy for obstructive sleep apnoea and snoring.

The company's products provide a non-invasive alternative to continuous positive airway pressure (CPAP) machines and are fitted through dental and sleep medicine practitioners.

SomnoMed operates across North America, Europe and Asia-Pacific and has treated more than one million patients globally.

The company's Business model is based around chronic sleep-disordered breathing conditions requiring ongoing treatment.

Financial Position

SomnoMed's preliminary FY26 results showed revenue of $114–115 million and EBITDA expected toward the middle of the $10–12 million guidance range.

The company reported cash of $17.2 million and net cash of $16.8 million.

Despite revenue being below previous guidance, management indicated EBITDA growth remained within expectations.

The company did not disclose any new Capital raising, Debt Facility or Royalty arrangements as part of the update.

The preliminary figures remain subject to completion of the FY26 audit process.

What Comes Next?

The next major milestone for SomnoMed (ASX:SOM) is the release of audited FY26 results and FY27 guidance expected around 28 August 2026.

Investors will monitor confirmation of FY26 financial performance, management's outlook for revenue growth and expected EBITDA margins.

Beyond financial results, the pace of Virtus adoption will be an important operational focus as the product moves from controlled release toward broader commercial availability.

The company will also monitor whether European reimbursement and referral pathway challenges begin to stabilise.

Risks

SomnoMed (ASX:SOM) remains exposed to currency fluctuations, with approximately 95% of revenue generated in currencies other than the Australian dollar. European reimbursement changes and patient referral disruptions may continue to affect demand. Leadership changes can create execution challenges as new structures are implemented. Virtus adoption remains uncertain during the controlled rollout phase, with competitive pressures from CPAP providers and other oral appliance manufacturers.

Investor Takeaway

SomnoMed's latest update combines a leadership transition, new product rollout and preliminary FY26 financial performance.

The company reported revenue below previous guidance but maintained EBITDA expectations, while Virtus provides a new product opportunity targeting OSA patients with sleep bruxism.

For SomnoMed (ASX:SOM), the upcoming FY27 guidance update will provide further insight into whether reimbursement challenges and currency impacts are easing, while Virtus adoption will determine the longer-term contribution from the new product.