SomnoMed (SOM) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY2025 reached $53.7 million, up 19% year-over-year, with double-digit growth across all regions and operational improvements.

• EBITDA improved to $5.8 million from a loss of $1.1 million in H1 FY2024, with EBITDA margin rising from -2% to 11% and positive operating and free cash flow.

• Net loss after tax narrowed significantly to $105,538 from $6.35 million in the previous year.

• Strategic focus on execution, cost management, and manufacturing capacity, including a 40% increase in capacity and reduced turnaround times to under 10 days, has driven business turnaround and customer satisfaction.

• New co-CEOs and key leadership roles appointed, with $22.6 million capital raised and $15 million debt fully repaid.

Financial highlights

• Revenue increased 19% year-over-year to $53.7 million.

• EBITDA rose to $5.8 million, a $6.9 million improvement from the prior year loss.

• Gross margin steady at 62%, with gross margin dollars increasing to $33.1 million.

• Net cash position at 31 December 2024 was $18.5 million, up from $16.1 million at 30 June 2024.

• Positive operating cash flow of $4.1 million and free cash flow of $1.3 million, reversing prior year outflows.

Outlook and guidance

• Upgraded FY2025 guidance: revenue of approximately $105 million and EBITDA of $7–9 million.

• CapEx guidance maintained at $3–4 million.

• Growth expected to moderate in H2 FY2025 as backlog clears.

• The group will continue to produce and sell devices for oral treatment of sleep-related disorders globally.