Key Highlights

  • FY26 Revenue increased 3% to AUD 114.5mn.
  • EBITDA rose 19% to AUD 10.9mn, with the Margin improving to 9.6%.
  • Manufacturing capacity increased more than 20% during FY26, while production times fell more than 50%.
  • SomnoMed enters FY27 targeting high single-digit revenue growth and global commercialisation of Virtus.

SomnoMed (ASX:SOM) reported higher FY26 revenue and EBITDA while expanding Manufacturing capacity, reducing production times and progressing the commercial rollout of its oral appliance portfolio.

Revenue reached AUD 114.5mn, up 3% on the previous corresponding period, while EBITDA increased 19% to AUD 10.9mn.

EBITDA Margin Improves Despite Currency Headwinds

SomnoMed's EBITDA margin improved to 9.6% from 8.2% in FY25, reflecting revenue growth, cost management and operational execution.

Operating cash flow after Lease expenses increased to AUD 5.2mn from AUD 4.8mn. Capital Expenditure rose to AUD 5.7mn as the company invested in growth and product development.

Cash at bank was AUD 17.2mn at year end, while Debt fell 48% to AUD 0.4mn.

Currency and Regional Conditions Shape Revenue

SomnoMed said changes in European market dynamics and the appreciation of the Australian dollar affected reported revenue growth during the second half.

Approximately 95% of the company's revenue is generated in non-AUD currencies. On a constant-currency basis, H2 FY26 revenue growth would have been approximately six percentage points higher.

Europe generated AUD 61.9mn of FY26 revenue, up 1% on a reported basis but down 1% on a constant-currency basis.

North America delivered AUD 45.8mn, up 6% on a reported basis and 11% on a constant-currency basis, making it SomnoMed's primary growth region.

Asia Pacific generated AUD 6.8mn, down 3% on a reported basis.

Manufacturing Capacity Expands

SomnoMed increased manufacturing capacity by more than 20% during FY26 and by more than 40% over the last two years.

The expanded capability reduced reliance on overtime, eliminated order Backlog and cut production times by more than 50%.

The additional capacity is intended to support future growth while improving manufacturing efficiency.

Virtus Targets OSA and Sleep Bruxism

SomnoMed continued to develop its product portfolio across different reimbursement structures and clinical needs.

In late July, the company announced the controlled market release of Virtus across North America, Europe and APAC. Virtus is designed for patients with obstructive sleep apnea and co-existing sleep bruxism.

SomnoMed said initial clinician feedback reinforced the clinical need and commercial opportunity for an oral appliance designed for the combined condition.

FY27 Strategy Focuses on Growth

SomnoMed enters FY27 with a focus on restoring higher growth while progressively expanding profitability through product innovation, broader market access and commercial execution.

The company is targeting high single-digit revenue growth in FY27 while maintaining EBITDA margins consistent with FY26.

Key assumptions include continued North American growth, European stabilisation, successful global adoption of Virtus in H2 FY27 and stable EBITDA margins while investing for future growth.

What Could Come Next for SomnoMed (ASX:SOM)?

SomnoMed's FY27 priorities include the global commercialisation of Virtus, deeper market engagement in North America and stabilisation of the European business.

The company is also progressing an in-market US commercial assessment of Rest Assure and refining its broader strategic roadmap, with further detail expected at the Annual General Meeting.