Nanosonics Ltd. shares fell 14.4% to A$3.15 on Tuesday after the company reported flat reported revenue and a decline in earnings before interest and tax for the fiscal year ended June 30, 2026, as costs tied to the launch of its CORIS platform weighed on profitability.
The Australian infection prevention specialist posted reported revenue of A$203.9 million, a 3% increase from the prior year, though constant-currency revenue rose 6% to A$211.5 million. EBIT declined 10% year-over-year to A$16.0 million on a reported basis, while constant-currency EBIT surged 21% to A$21.6 million. Gross profit margin moderated to 76.9% on a reported basis, down 1.3 percentage points, and 76.2% in constant currency, reflecting higher tariffs and freight costs.
Total operating expenses increased 2% on a reported basis to A$141.4 million, with trophon-related costs declining 1% to A$106.8 million. CORIS-related expenses rose 13% to A$34.6 million as the company prepared for the platform’s phased commercial launch. Recurring revenue, which accounted for 73% of total revenue, grew 8% in constant currency to A$149.2 million, while capital revenue increased 4% to A$54.7 million.
CORIS, the company’s next-generation infection prevention platform, secured regulatory clearances in the UK, Europe, and Australia during FY26, with the U.S. FDA granting its first 510(k) approval for expanded indications. A second U.S. submission remains under review. The platform’s launch is scheduled to begin in the first half of fiscal 2027 across the UK, Ireland, and Australia, with the U.S. targeted for the second half. Clinical reference sites are operational in four markets, supporting early adoption.
Guidance for FY27 assumes constant-currency revenue of A$220 million to A$228 million, an 8% to 12% increase from FY26, with CORIS contributing low single-digit millions in initial revenue. Gross profit margin is expected to compress to 74%–76% due to a full year of 12.5% tariffs, higher freight costs, and the CORIS product mix. Operating expenses are projected to rise 10% to 15% to A$156 million–A$163 million, reflecting peak investment in the CORIS rollout.
Nanosonics ended FY26 with A$155.2 million in cash and no borrowings, following a A$20 million share buyback program. The company announced an on-market buyback of up to A$40 million for FY27. The installed base of trophon devices grew 6% to 39,230 units, with 2,230 new placements and 2,000 upgrades, the strongest annual performance in three years.
North America, which accounts for 91% of revenue, saw its installed base expand 6% to 34,210 devices, with record upgrade activity of 1,980 units and 3,880 new placements, the highest annual total on record.
