Key Highlights

  • Revenue rose 3% to $114.5 million and adjusted EBITDA rose 19% to $10.9 million, a Margin of 9.6%, with net cash of $16.8 million.
  • Second-half Revenue fell 7% in Australian dollars, which the company attributes to European market changes and a higher Australian dollar.
  • SomnoMed is targeting high single digit revenue growth in FY27 with EBITDA margins consistent with FY26, and a guidance range is due at the AGM.

SomnoMed Limited (ASX:SOM), a provider of oral appliance treatment for obstructive sleep apnea, reported its full-year results for the year ended 30 June 2026 on 28 August 2026, in line with preliminary unaudited results announced on 27 July 2026.

Financial performance

Revenue was $114.5 million, up 3%. EBITDA, as the company defines it, was $10.9 million, up 19% from $9.2 million, with the margin improving 140 basis points to 9.6%. That EBITDA excludes Lease payments of $3.1 million, share and option expenses of $3.6 million, unrealised foreign exchange gains of $1.1 million and one-off costs of $0.7 million. Operating Cash Flow after lease expenses rose to $5.2 million from $4.8 million, and Capital Expenditure rose to $5.7 million from $4.0 million. Cash was $17.2 million, flat on the prior year, and Debt fell 48% to $0.4 million, leaving net cash of $16.8 million.

Second-half effects

The company says a change in European market dynamics and appreciation of the Australian dollar in the second half adversely affected revenue growth. A decline of less than 1% in second-half revenue on a constant currency basis translated into a 7% reported decline in Australian dollars. About 95% of revenue is in non-Australian currencies, and on a constant currency basis second-half growth would have been about six percentage points higher.

Regions

Europe, the largest region, contributed $61.9 million, up 1% reported and down 1% in constant currency. Second-half sales were affected by changes to clinical eligibility, public payer reimbursement criteria and patient referral pathways. North America contributed $45.8 million, up 6% reported and 11% in constant currency, and is described as the primary growth driver. Asia Pacific contributed $6.8 million, down 3%, due to cost-of-living pressures on Demand in non-reimbursed markets.

Operations and products

Manufacturing capacity increased by more than 20% in FY26 and more than 40% over two years, and production times fell by more than 50%. In late July, SomnoMed began a controlled market release of Virtus, a therapy for obstructive sleep apnea with co-existing sleep bruxism, in North America, Europe and Asia Pacific. It is also investigating an in-market US assessment of Rest Assure under its existing compliance-focused FDA clearance in FY27.

Leadership and outlook

Karen Borg became Chief Executive Officer after Amrita Blickstead stepped down as Co-CEO in late July 2026, Greg Knight was promoted to Chief Operating Officer and Nathan Minnich joined as Chief Marketing Officer earlier in the year. For FY27 the company targets high single digit revenue growth with EBITDA margins consistent with FY26, with a guidance range to be issued at the 2026 AGM. Key assumptions include continued North American growth, European stabilisation, global adoption of Virtus in the second half and foreign exchange movements.

Europe reorganisation and growth drivers

In Europe, the company reorganised its commercial, administrative and operational leadership, with senior Leadership spending over a month in-market during FY26 and expanding that in Q1 FY27. It is pursuing larger clinics and dental groups, reimbursement evidence generation and sales force effectiveness. SomnoMed lists consistent CPAP discontinuation rates, rising patient awareness of obstructive sleep apnea driven by GLP-1 medicines, and growth in home-based diagnostics as factors that may increase demand for alternative treatments.

Longer-term ambition

The CEO's stated ambition is a return to double digit revenue growth while progressively expanding EBITDA margins, mainly organically, with selective small-scale acquisitions considered. The company says the broader strategic roadmap will be detailed at the AGM and invites investors and analysts to a briefing on the results.