Nanosonics (NAN) H1 2026 earnings summary

Executive summary

• Revenue grew 9% year-over-year to $102.2 million (AUD 102 million), driven by installed base expansion, record upgrades, and balanced growth in both capital and recurring revenue streams, especially in North America.

• Operating margin expanded 27% to $8.5 million, supported by disciplined cost control, despite a decline in gross margin due to tariffs and product mix.

• Launched Trophon3 and Trophon2 Plus software upgrades, with positive customer feedback and expanded upgrade opportunities.

• Achieved key regulatory milestones for CORIS, including approvals in Europe, UK, Australia, and first FDA submission, with Controlled Market Release commencing in the UK.

• New headquarters and manufacturing facility secured, move planned for April 2027, and digitalisation initiatives implemented.

Financial highlights

• Total revenue: $102.2 million, up 9% year-over-year (8% at constant currency).

• Gross profit margin: 76.3%, down from 78.5%, impacted by tariffs, airfreight, and product mix.

• Operating expenses rose 4% to $69.5 million, mainly from higher employee costs and sales commissions.

• EBIT was $8.4 million, down 3% reported but up 15% in constant currency.

• Cash balance: $159.8 million, debt-free, with net cash outflow of $1.4 million due to inventory build and share buy-back.

Outlook and guidance

• Full-year FY26 revenue guidance: $215 million–$223 million, representing 8–12% growth at constant currency.

• Gross margin expected at 75–77%; operating expenses forecasted at $147 million–$151 million.

• No CORIS revenue expected while Controlled Market Release is underway.

• Guidance assumes stable tariffs and FX rates; ongoing investment in CORIS and other growth projects.

• If AUD/USD exchange rate averages 0.70 in H2, revenue range would be about 3% lower after hedging.