Saluda Medical (SLD) H1 2026 earnings summary

Executive summary

• Global revenue reached $39.4 million in H1 FY26, up 17% year-over-year, driven by US sales force expansion and increased active implanting physicians, with international revenue up 27% to $11 million and strong demand in Europe and Australia.

• SCS market is well-established but only 6% penetrated, with a $23 billion U.S. total addressable market and dominated by three major players.

• Technology offers real-time, personalized dosing and monitoring, resulting in superior patient outcomes, low explant rates, and 83% of patients maintaining >50% pain reduction at 3 years.

• Net loss increased to $66.8 million, up 25% from the prior year, reflecting higher sales and marketing investments and one-time costs; adjusted EBITDA was negative $56.9 million.

• No dividends were declared or paid during the period.

Financial highlights

• Gross margin improved to 49.4%, a 220 basis point increase year-over-year, with gross profit rising to $19.4 million.

• Operating expenses increased to $88.9 million, with sales and marketing at $46.8 million and R&D at $17.3 million.

• Cash used in operations was $60.3 million, up 4.5% year-over-year, with improved inventory management.

• Cash and cash equivalents at period end were $151.4 million, up from $54.5 million at June 30, 2025.

• Adjusted EBITDA was negative $56.9 million, reflecting increased sales and marketing expenses.

Outlook and guidance

• FY26 revenue guidance reaffirmed at $85 million, up from $81.9 million in IPO prospectus, with H2 FY26 revenue growth expected to accelerate to 24% year-over-year.

• Full-year gross margin, adjusted EBITDA, and cash used in operations expected to exceed or improve on IPO prospectus estimates, despite anticipated margin pressure from Australian reimbursement changes.

• Management expects continued operating losses as commercial operations and product development expand, but existing cash is expected to cover operational needs for at least 12 months.

• Targeting improved full-year adjusted EBITDA and lower cash burn than forecast.