Nova Eye Medical Reports 23% Revenue Growth to A$29.2 Million in FY25
Nova Eye Medical has reported a record A$29.2 million revenue for FY25, driven by strong sales growth and improved profitability in its glaucoma segment. The company targets breakeven EBITDA in the first half of FY26 alongside continued cash flow improvements.
- Record FY25 revenue of A$29.2 million, up 23% year-on-year
- Glaucoma segment achieves positive EBITDA in H2 FY25
- Q4 cash outflow reduced to A$847,000 with A$5.1 million cash on hand
- FY26 sales guidance of US$21-24 million excluding China
- Regulatory progress in China and new drug delivery applications underway
Record Revenue and Profitability Gains
Nova Eye Medical Limited (ASX, EYE), a specialist in ophthalmic treatment technologies, has delivered a milestone financial year with record sales revenue of A$29.2 million for FY25. This represents a robust 23% increase compared to the prior year, underscoring the growing market acceptance of its glaucoma treatment devices. The second half of FY25 was particularly strong, with sales surging 51% year-on-year and the fourth quarter marking the highest quarterly revenue in the company’s history at A$8.8 million.
Improved Operational Performance and Cash Flow
Alongside top-line growth, Nova Eye Medical’s glaucoma segment reported a positive EBITDA of US$65,000 in the second half of FY25, a significant turnaround from the first half. This improvement was driven by a combination of higher sales volumes and better gross margins. The company also managed to reduce its quarterly cash outflow from operations to A$847,000, reflecting tighter cost control and operational efficiencies. Cash reserves stood at A$5.1 million as of 30 June 2025, providing a solid liquidity buffer.
Looking Ahead, FY26 Guidance and Market Opportunities
Nova Eye Medical has set ambitious guidance for FY26, forecasting sales revenue between US$21 million and US$24 million (approximately A$32 million to A$37 million), excluding China. The company aims to achieve breakeven EBITDA in the first half of FY26, signaling confidence in sustained operational improvements and market traction. Additionally, the company is progressing regulatory approval for its iTrack™ Advance device in China, a key growth market, with approval expected later in the calendar year.
Innovation and Strategic Initiatives
Beyond core sales, Nova Eye Medical is exploring new frontiers by leveraging its proprietary iTrack™ microcatheter technology for targeted drug delivery within the eye. This novel application could open new therapeutic avenues pending ongoing pharmaceutical evaluations expected in H1 FY26. The company also secured a $488,000 grant from the Australian Government’s Critical Technologies Challenge Program to develop early eye disease detection technologies, collaborating with Adelaide University on quantum technology and biomedical sensing innovations.
Regulatory and Market Dynamics
On the regulatory front, the US Centers for Medicare and Medicaid Services has proposed reimbursement rates for 2026 that, if finalized, will continue to incentivize the use of Nova Eye Medical’s glaucoma surgical devices. This is a positive signal for maintaining competitive positioning in the US market. Meanwhile, the company’s market share in the US minimally invasive glaucoma surgery (MIGS) segment is projected to grow from 2.4% to 3.4% over the next year, according to an independent analysis by Needham & Company.
Bottom Line?
With record sales behind it and breakeven EBITDA in sight, Nova Eye Medical’s next challenge will be converting regulatory progress and innovation into sustained market growth.
Questions in the middle?
- Will the final US Medicare reimbursement rates maintain incentives for Nova Eye Medical’s devices?
- How soon can regulatory approval in China be secured, and what impact will it have on sales?
- What are the prospects and timelines for commercializing the iTrack™ drug delivery technology?