Nanosonics (NAN) H1 2025 earnings summary

Executive summary

• Revenue for the half-year reached $93.6 million, up 18% year-over-year and 4% sequentially, driven by strong growth in both capital and consumables/service revenue, with North America and Europe leading regional performance.

• Operating profit before tax rose to $10.9 million, a 124% increase from the prior year, and net profit after tax was $9.8 million, up 58%.

• Cash and cash equivalents increased to $144.5 million with no debt, supporting ongoing growth strategies and investment flexibility.

• Trophon-only business delivered profit before tax of $25.6 million, with operating leverage improving to 27% of revenue.

• CORIS endoscope cleaning technology is progressing through FDA review, with commercial launch targeted for Q1 FY26.

Financial highlights

• Total revenue was $93.6 million, up 18% year-over-year; capital revenue grew 11% to $24.4 million, and consumables/service revenue rose 20% to $69.2 million.

• Gross profit was $73.4 million, with gross margin at 78.5%, slightly down from 79.7% year-over-year but improved from the previous half.

• Operating expenses totaled $66.7 million, up 10% year-over-year, including investments in ERP, R&D, and US manufacturing.

• Cash flow from operations was $13.8 million, with a cash balance of $144.5 million and no debt.

• Basic EPS increased to 3.22 cents from 2.04 cents; diluted EPS rose to 3.16 cents from 2.02 cents.

Outlook and guidance

• Full-year revenue growth guidance raised to 11–14%, or 13–16% with favorable FX rates; gross margin expected at 78–79%, and operating expenses growth at 8–10%.

• Guidance is subject to macroeconomic, political, and competitive uncertainties, especially in the US.

• No dividends declared or proposed for the interim period.