SomnoMed has delivered a standout FY25 with revenue and EBITDA exceeding market expectations, driven by strong regional growth and operational improvements. The company is now expanding capacity and advancing its innovative Rest Assure device.
- FY25 revenue up 21.6% to $111.5 million, beating guidance
- EBITDA jumps to $9.2 million, surpassing forecast range
- Order backlog reduced to negligible levels amid capacity upgrades
- FDA clearance for Rest Assure compliance tracking device
- Plans for 25% manufacturing capacity increase in FY26
Robust Financial Performance
SomnoMed Limited, a leader in oral appliance treatments for sleep apnea, reported a strong finish to FY25 with revenue reaching $111.5 million, marking a 21.6% increase over the prior year and comfortably exceeding market guidance of over $105 million. EBITDA surged to $9.2 million, a dramatic rise from $0.6 million the previous year, reflecting improved operational efficiencies and cost management.
Gross margins held steady at 60%, underscoring the company’s ability to maintain profitability despite investments in growth and capacity. Positive free cash flow of $0.8 million and a net cash position of $16.5 million further highlight SomnoMed’s solid financial footing.
Geographic Growth Drivers
Europe remains SomnoMed’s largest market, contributing 55% of revenue, buoyed by strong performances in France, Germany, and Sweden, as well as national tender wins in the Nordics and UK. North America showed exceptional momentum, accounting for nearly 40% of revenue, driven by improved turnaround times, cost discipline, and heightened market awareness fueled by new entrants promoting related therapies.
Asia Pacific, led by Australia, delivered double-digit growth despite some demand moderation following a price increase. The company’s ability to sustain brand loyalty and medical referrals in this region bodes well for continued expansion.
Operational Advances and Milestones
SomnoMed’s operational improvement program has successfully reduced order backlogs to negligible levels and increased manufacturing capacity to meet rising demand. The company has commenced further facility expansion, targeting at least a 25% capacity increase in FY26 to support future growth.
A key highlight was the FDA clearance obtained in October 2024 for Rest Assure, the first oral device featuring built-in compliance monitoring. This innovation positions SomnoMed at the forefront of sleep apnea treatment technology. Additionally, the company celebrated treating its one millionth patient, a milestone that cements its global leadership in oral appliance therapy.
Looking Ahead
SomnoMed’s outlook for FY26 remains optimistic, with revenue guidance between $119 million and $126 million and EBITDA expected to rise to between $10 million and $12 million. Capital expenditure is projected to increase to $6 million–$8 million to fund capacity expansion and ongoing development of Rest Assure, including a planned US clinical trial to support FDA efficacy submissions.
With a strengthened balance sheet, expanding production capabilities, and a pipeline of innovative products, SomnoMed appears well positioned to capitalize on growing global demand for sleep apnea solutions.
Bottom Line?
SomnoMed’s strong FY25 sets the stage for accelerated growth, but clinical trial outcomes and capacity ramp-up execution will be key to watch.
Questions in the middle?
- How will the upcoming US clinical trial impact Rest Assure’s market adoption and regulatory approval?
- What are the detailed drivers behind the significant EBITDA improvement beyond revenue growth?
- How will SomnoMed manage competitive pressures as new entrants promote related therapies in North America?