Nanosonics Ltd’s shares fell 14.4% to A$3.15 on Tuesday after the medical device maker reported FY26 revenue of A$203.9 million, a 3% increase from the prior year but below some analyst projections. The decline erased A$0.53 per share in market value, leaving the stock near the lower end of its 52-week range between A$2.75 and A$4.77.
The company’s reported EBIT came in at A$16.0 million, while constant-currency EBIT rose 21% to A$21.6 million. Gross margin contracted to 76.9% from 78.2% in FY25, reflecting higher costs and operational pressures. Operating expenses totaled A$141.4 million, up 2% reported and 4% on a constant-currency basis, driven by investments in the CORIS platform.
North America remained the primary revenue driver, generating A$186.4 million, up 3% reported and 8% constant currency. APAC revenue declined 14% to A$5.1 million, attributed to weaker capital activity in Japan. The company’s trophon device segment posted a 9% increase in unit placements to 4,230, with cumulative installations reaching 39,230 globally, covering an estimated 31 million patients annually.
Management highlighted FY27 guidance as a key concern. Revenue is projected to grow 8% to 12% in constant currency to A$220 million–A$228 million, while gross margins are expected to narrow further to 74%–76%. Operating expenses are forecast to rise to A$156 million–A$163 million, reflecting continued investment in CORIS, which secured regulatory clearances in the U.K., Europe, and Australia. The U.S. launch is planned for the second half of FY27, with pricing for capital equipment set at three to five times the current trophon level.
Nanosonics also announced a A$20 million share buyback in FY26 and plans an additional A$40 million repurchase in FY27. Cash and equivalents stood at A$155.2 million at year-end, while business cash flow totaled A$13.6 million, excluding buybacks.
CEO Michael Kavanagh described the results as a solid outcome but emphasized the transition to a multi-platform business with CORIS, which targets a persistent gap in endoscope reprocessing. CFO Jason Burriss noted disciplined expense management and a debt-free balance sheet to fund growth initiatives.
