SomnoMed (SOM) H2 2025 earnings summary

Executive summary

• FY2025 revenue reached $111.5 million, up 22% year-over-year and exceeding guidance.

• EBITDA rose to $9.2 million from $0.6 million in FY2024, with margin improving from 1% to 8%.

• Positive operating cash flow of $4.8 million and free cash flow of $0.8 million, reversing prior year deficits.

• Manufacturing capacity increased over 50%, eliminating backlogs and improving turnaround times.

• Board and management team refreshed, bringing new sector, manufacturing, and investment experience.

Financial highlights

• Revenue grew 22% to $111.5 million, with double-digit growth across all regions.

• EBITDA of $9.2 million exceeded guidance; underlying EBITDA (including leases) was $6.2 million.

• Gross margin for core device business was 70%; group gross margin held steady at 60%.

• Cash balance at year-end was $17.3 million, up 7% year-over-year.

• Capex was $4 million, within guidance and down from $5.3 million in FY2024.

Outlook and guidance

• FY2026 revenue guidance is $119 million–$126 million, with EBITDA expected at $10 million–$12 million.

• Capex for FY2026 guided at $6 million–$8 million, reflecting investments in Rest Assure and manufacturing expansion.

• Focus for FY2026 is on embedding operational gains, expanding manufacturing, and advancing Rest Assure clinical trials and FDA submission.