SomnoMed Posts $111.5m Revenue and $9.2m EBITDA in FY25, Beats Guidance
SomnoMed delivered a strong FY25 performance with revenue climbing 22% to $111.5 million and EBITDA turning positive at $9.2 million, boosted by operational improvements and FDA clearance of its Rest Assure device. The company projects further growth in FY26 with expanded manufacturing and ongoing innovation.
- Revenue up 22% to $111.5 million, exceeding guidance
- EBITDA jumps to $9.2 million from $0.6 million prior year
- Positive operating and free cash flow achieved
- FDA clearance for Rest Assure oral device with compliance monitoring
- FY26 guidance raised, revenue $119m-$126m, EBITDA $10m-$12m
Robust Financial Turnaround
SomnoMed Limited has reported a marked improvement in its full year 2025 financial results, posting revenue of $111.5 million, a 22% increase over the previous year and comfortably above its $105 million guidance. The company’s EBITDA surged to $9.2 million, a significant turnaround from just $0.6 million in FY24, reflecting both top-line growth and disciplined cost management. Positive operating cash flow of $4.8 million and free cash flow of $0.8 million further underscore the company’s strengthened financial position.
Operational Excellence and Capacity Expansion
Behind these numbers lies a successful operational reset. SomnoMed expanded its manufacturing capacity by over 50% compared to the previous peak constraints, enabling it to meet growing demand across all regions. Turnaround times improved significantly, with backlog levels now negligible, signaling enhanced efficiency and customer responsiveness. The company also refreshed its leadership and board, bringing in expertise to support its growth ambitions.
Innovation Milestone, FDA Clearance of Rest Assure
A key highlight was the FDA clearance of SomnoMed’s Rest Assure device, the first oral appliance with built-in compliance monitoring. This breakthrough integrates the device with a software platform including patient and physician apps, docking stations, and cloud systems, enabling real-time treatment monitoring akin to CPAP devices. The clearance followed successful US clinical studies and positions SomnoMed at the forefront of technology-driven sleep apnea treatment.
Geographic and Market Growth
Revenue growth was broad-based, with double-digit increases across Europe, North America, and the APAC region. The company’s high-margin core oral device business, combined with managed care partnerships, contributed to a blended gross margin of 60%. SomnoMed’s strategy of investing in managed care services is designed to drive device sales and customer retention, creating a sustainable growth flywheel.
Outlook and Strategic Priorities for FY26
Looking ahead, SomnoMed projects FY26 revenue between $119 million and $126 million, with EBITDA expected to rise to $10 million–$12 million. Capital expenditure is planned at $6 million to $8 million, focusing on further development of Rest Assure and manufacturing site expansion. The company aims to sustain double-digit EBITDA margins by FY27, supported by ongoing innovation, including the commercial launch of Rest Assure and expansion into a second manufacturing site.
Bottom Line?
SomnoMed’s FY25 results mark a pivotal step from recovery to growth, with innovation and operational scale setting the stage for its next chapter.
Questions in the middle?
- How will the commercial launch of Rest Assure impact SomnoMed’s market share and margins?
- What risks remain around legacy tax provisions and one-off costs affecting profitability?
- How effectively can SomnoMed scale manufacturing to meet rising global demand?