Revenio Group's shares fell 18.28% to $12.34 in pre-market trading after the ophthalmic technology company reported a sharp deterioration in Q2 profitability, even as revenue surged on the back of its Visionix acquisition.
Second-quarter net sales rose 48.1% on a reported basis and 50.7% in currency-adjusted terms to EUR 39.6 million, but organic growth in the legacy Revenio business was flat. First-half net sales totalled EUR 66.6 million, up 26.6% from EUR 52.6 million a year earlier. Management maintained full-year 2026 currency-adjusted revenue guidance of EUR 190 million to EUR 205 million.
The headline concern was margin compression. Gross margin fell to 64.7%, down 7.9 percentage points from 72.6% in Q2 2025, as acquisition-related costs weighed on the combined entity. Adjusted EBIT for the quarter was EUR 5.8 million, or 14.6% of net sales, while adjusted EBITDA margin came in at 17%, compared with 24% operational adjusted EBIT for the full prior year. Acquisition-related non-recurring expenses totalled EUR 3.4 million in Q2 and approximately EUR 6.9 million for the first half.
Cash generation also deteriorated. Q2 operating cash flow was negative EUR 2.4 million, including roughly EUR 3 million in acquisition-related payments. Net debt at quarter-end stood at EUR 238 million, comprising a EUR 130 million term loan, a EUR 80 million bridge-to-equity facility, a EUR 17 million vendor loan, and approximately EUR 20 million in revolving credit. The equity ratio was 31.2%, and the net debt-to-adjusted EBITDA ratio was 5.3x. Management said the ratio is targeted to drop to about 3.0x after a compulsory rights issue of EUR 80 million, planned for mid-to-late H2 2026 to repay the bridge facility.
Revenio acquired Visionix in early June, meaning only one month of Visionix results flowed into Q2 figures. Chief Executive Jouni Toijala said Visionix performed in line with expectations at the time of closing and that integration was progressing well, with the combined U.S. sales organization fully integrated at the beginning of August. Secured run-rate synergy savings stood at EUR 5 million toward a total targeted EBITDA uplift of EUR 20 million.
On the product front, Revenio announced it had received the first FDA-cleared AI solution for the U.S. market through its iHealthScreen collaboration for diabetic retinopathy screening, branded DRSplus. It also closed a strategic partnership with EyeCheq to integrate DRSplus into self-service kiosks for autonomous screening. However, clearance for the iCare ILLUME AI product was pushed back to Q3 2027, a delay from the previously indicated end of H1 2027.
Geographic performance was mixed. The U.S. market was described as "surprisingly robust," Europe remained steady, and Asia-Pacific improved gradually despite a distributor change in Australia. The Middle East weakened due to the Iran conflict, which affected Visionix's June results.
Revenio stock is down more than 32% year to date and trades near the low end of its 52-week range, with a low of $11.86 and a high of $25.85. The company targets improving EBITDA margins to 25% by the end of 2029 and has scheduled a Capital Markets Day for September 15, 2026.
