Nanosonics (NAN) H2 2025 earnings summary

Executive summary

• FY25 revenue grew 17% to $198.6 million (AUD 198.6 million), at the top end of upgraded guidance, driven by a 20% increase in recurring revenue and a 6% rise in installed base to 37,000 devices.

• Profit before tax rose 72% to $22.3 million, with EBIT up 95% to $17.8 million, reflecting strong operating leverage and disciplined capital allocation.

• Major milestones included FDA clearance for CORIS, launch of trophon3 and trophon2 Plus, and significant progress in digitalization and sustainability initiatives.

• Installed base reached 37,000 devices, protecting approximately 28 million patients annually.

• Cash and cash equivalents reached $161.6 million, with strong cash flow generation and no debt.

Financial highlights

• Recurring revenue from consumables and service grew 20% to $146.1 million, now representing 73% of total revenue.

• Gross profit margin improved to 78.2%, with all regions contributing to revenue growth: North America 17%, EMEA 22%, APAC 4%.

• Operating expenses increased 10% to $138.7 million, with R&D as a percentage of revenue dropping from 19% to 17%.

• EBIT margin for trophon-only business expanded to 24% of sales.

• Net profit after tax was $20.7 million, up 59% year-over-year.

Outlook and guidance

• FY26 revenue guidance is $215–223 million (8–12% growth), with minimal CORIS revenue expected.

• Gross margin expected between 75–77% due to tariff impacts, with mitigation strategies in place.

• Operating expenses projected to grow 6–9%, below revenue growth.

• Continued investment in innovation, market expansion, and product development, with positive but lower cash flow expected due to CORIS commercialization and property fit-out.

• Tariff impacts expected to be offset by cost sharing, price adjustments, and sourcing strategies.