ImpediMed reported a solid Q2 FY26 with $3.9 million in revenue and significant reimbursement gains for its lymphoedema technology, while launching new US Heart Health and Wellness initiatives.
- Q2 FY26 revenue reaches $3.9 million, up 8% quarter-on-quarter
- Annual Recurring Revenue steady at $14.4 million
- Breast Cancer Related Lymphoedema (BCRL) reimbursement coverage expands to 93% nationally
- US Heart Health commercial activities commence leveraging SOZO Pro platform
- Net operating cash outflows improve to $2.9 million with $18.9 million cash balance
Revenue Growth and Market Position
ImpediMed Limited has delivered a robust performance in the second quarter of fiscal year 2026, posting revenue of $3.9 million, an 8% increase from the previous quarter despite headwinds from a stronger Australian dollar. The company’s Annual Recurring Revenue (ARR) remains steady at $14.4 million, underscoring the resilience of its subscription-based business model centered on the SOZO Digital Health Platform.
Installed in 600 leading US hospitals, SOZO continues to gain traction, supported by Master Services Agreements with 27 major Integrated Delivery Networks. These agreements streamline IT approvals and facilitate rapid access to key markets across breast cancer-related lymphoedema (BCRL), heart failure, and body composition monitoring.
Reimbursement Gains Drive BCRL Expansion
One of the standout achievements this quarter is the significant expansion in reimbursement coverage for ImpediMed’s BCRL technology. National coverage now reaches 92.8%, up from 87% in the prior quarter, covering 323 million lives across the United States. The number of states with over 90% coverage has surged from 7 to 39, and those exceeding 95% coverage have nearly doubled. This improved reimbursement landscape is expected to underpin stronger commercialisation efforts and patient access moving forward.
US Heart Health and Wellness Market Launches
ImpediMed has also initiated commercial pilots in the US for its SOZO Pro platform, the only FDA-cleared bioimpedance spectroscopy device suitable for patients with cardiac implantable devices. Early feedback from cardiologists has been positive, and initial sales are on track despite some delays caused by hospital budget constraints. The company is targeting a substantial $1.1 billion addressable market in outpatient heart failure fluid monitoring.
Additionally, the company has launched go-to-market activities in the Wellness and Weight Management segment, identifying over 30,000 potential sites of care across specialty medicine, exercise oncology, weight loss clinics, and sports medicine. With a dedicated US sales team and a strong pipeline, ImpediMed is positioning itself to capture growth in this $220 million market.
Financial Health and Operational Efficiency
Cash flow management remains a focus, with net operating cash outflows improving to $2.9 million in Q2 from $5.9 million in Q1. This improvement was driven by higher customer receipts, a $1.2 million R&D tax incentive, and the absence of one-off payments seen in the prior quarter. The company ended the quarter with a healthy cash balance of $18.9 million, supported by a fully drawn $15 million US loan facility.
Staff costs remain the largest expenditure, reflecting redundancy payments and a slight reduction in headcount from 82 to 79 employees. ImpediMed continues to pursue cost control measures aimed at achieving cash flow break-even in the near term.
Looking Ahead
With 19 conferences planned for the second half of FY26 and ongoing discussions with potential strategic partners, ImpediMed is actively seeking to accelerate growth across its core indications. The company’s ability to convert reimbursement gains into sales momentum, particularly in the US heart health market, will be critical to watch in upcoming quarters.
Bottom Line?
ImpediMed’s expanding reimbursement coverage and new market launches set the stage for growth, but US sales hurdles and cash flow targets remain key watchpoints.
Questions in the middle?
- Will US hospital budget constraints ease to support stronger SOZO Pro sales?
- How quickly can ImpediMed convert improved BCRL reimbursement into sustained revenue growth?
- What strategic partnerships might accelerate expansion in Wellness and Heart Health segments?