Saluda Medical (SLD) H1 2026 earnings summary

Executive summary

• Focused on neuromodulation for spinal cord stimulation (SCS), targeting a large, underserved chronic pain market with disruptive technology and strong clinical outcomes.

• SCS market is well-established but only 6% penetrated, with a $23 billion U.S. total addressable market.

• Technology offers real-time, personalized dosing and monitoring, resulting in superior patient outcomes and low explant rates.

• Clinical data shows 83% of patients maintain >50% pain reduction at 3 years, with zero explants due to loss of efficacy.

• Revenue for the six months ended December 31, 2025, was $39.4 million, up 17% year-over-year, driven by growth in US implanting physicians and international performance.

Financial highlights

• First half FY 2026 global revenue reached $39.4 million, up 17% year-over-year, driven by U.S. business and increased active implanting physicians.

• International revenue was $11 million, up 27% year-over-year, with strong demand in Europe and Australia.

• Gross margin improved to 49.4%, a 220 basis point increase, due to lower IPG unit costs and favorable country mix.

• Operating expenses increased to $88.9 million from $69.5 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, mainly due to sales force expansion and one-time G&A expenses.

Outlook and guidance

• Reaffirmed FY 2026 revenue guidance of $85 million, up from $81.9 million in IPO prospectus.

• Second half global growth rate expected at 24%, led by U.S. expansion.

• Full-year gross margin expected to exceed 46% prospectus estimate, despite anticipated second half margin pressure from Australian reimbursement changes.

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

• Management expects continued operating losses as commercial operations and product development expand.