PolyNovo Limited reported total NovoSorb product sales of AUD 138 million for FY2026, a 16.7% increase in reported currency and 21.3% in constant currency. Adjusted EBITDA climbed 50% year-over-year to AUD 13.4 million, while operating cash flow rose to AUD 23.1 million from AUD 3.1 million in the prior period. Free cash flow totaled AUD 9.4 million after AUD 13.8 million in capital expenditures.
The company’s cash balance increased to AUD 35.4 million at year-end, up from AUD 33.5 million a year earlier. Gross margins remained at 89% for the full year, with the second-half figure exceeding 90% and July’s margin approaching 95%. Capital expenditures included AUD 12.4 million for the new Port Melbourne manufacturing facility and AUD 1.4 million for R&D lab reconstruction, fully covered by insurance.
U.S. sales reached AUD 102 million, up 15.6% in reported currency and 21.1% in constant currency, marking the first time Americas revenue exceeded AUD 100 million. The company added 200 new hospital accounts in the U.S., bringing the total to over 880, supported by a sales team of 106. Rest of World sales grew 20% to AUD 36 million, accounting for 26% of global revenue. Regional growth rates included 33.9% in Australia, 38.3% in Ireland, 49.9% in Hong Kong, 79% in Turkey, and 52.8% in India.
NovoSorb MTX sales rose 89.6% to AUD 12.6 million, with U.S. MTX revenue reaching AUD 12.2 million, up 92.7% in constant currency. The product is now used in over 330 U.S. accounts, doubling from the prior year. SynPath, which holds a HCPCS code, is slated for a U.S. outpatient market launch in FY2027, prioritizing hospital outpatient departments.
PolyNovo’s shares fell 8.02% to AUD 0.975 following the report, extending a decline from the prior close of AUD 1.06. The stock has traded 41.4% below its 52-week high of AUD 1.665 and 17.8% above its 52-week low of AUD 0.81. The company maintained a current ratio of 1.03 and a beta of 0.5.
The PMA submission for a key product remains targeted for the end of calendar 2027, with FDA review expected to take approximately 12 months. The new Port Melbourne facility, now complete, is projected to phase in around March 2027 and may reduce gross margins by 1% to 1.5% once fully operational. FY2027 R&D spending is anticipated to near 5% of sales, excluding historical trial expenses.
