Nanosonics Grows Revenue 9% as CORIS Prepares for Market Debut

Solid Financial Performance Amid Market Expansion

Nanosonics Limited has delivered a robust first half in FY26, reporting total revenue of $102.2 million, marking a 9% increase compared to the prior corresponding period. This growth was underpinned by both capital sales and recurring revenue streams, reflecting the company’s expanding footprint in the ultrasound probe reprocessing market through its flagship trophon technology.

The company’s installed base of trophon devices reached 38,080 units, a critical mass that continues to drive strong recurring revenue growth from consumables and service contracts. Recurring revenue climbed 9% to $75.7 million, with service and repairs notably up 24%, highlighting increased customer engagement and value extraction from existing installations.

CORIS Commercialisation Progresses

While trophon remains the revenue engine, Nanosonics is advancing its next-generation endoscope reprocessing system, CORIS. The product is currently in a Controlled Market Release phase, a strategic limited launch designed to gather real-world feedback and ensure operational readiness before broader commercialisation. No revenue has yet been recognised from CORIS, but the company is optimistic about its potential to transform endoscope cleaning by automating a traditionally manual, error-prone process.

CORIS aims to address persistent contamination challenges in endoscopy, a field where manual cleaning is complex and often insufficient. By automating cleaning and providing traceability, CORIS could significantly improve patient safety and operational efficiency, positioning Nanosonics for long-term growth in a large and growing market.

Margin and Expense Management

Gross profit margin softened slightly to 76.3%, down 2.2 percentage points due to tariffs, airfreight costs, and product mix changes. Operating expenses increased modestly by 4%, with research and development spend as a percentage of sales decreasing from 18% to 15%, reflecting disciplined investment. Earnings before interest and tax (EBIT) stood at $8.4 million, a 3% decrease on reported basis but up 15% when adjusted for constant currency effects.

The trophon-only business segment showed strong operating leverage, with operating margin rising 20% to $25.6 million and margin percentage expanding to 25%. This segment’s profitability and cash generation provide a solid foundation to fund CORIS commercialisation and other strategic initiatives.

Regional Highlights and Outlook

North America remains the largest and fastest-growing market for Nanosonics, delivering 10% revenue growth and record upgrade activity. Europe, UK, and Asia Pacific regions showed mixed but positive trends, with new installed base growth and recurring revenue gains, albeit with some moderation in capital sales due to market dynamics.

Looking ahead, Nanosonics reiterated its FY26 guidance, forecasting total revenue growth of 8-12% to between $215 million and $223 million, with gross margins expected to hold between 75% and 77%. The company plans to maintain disciplined operating expense management while continuing to invest in CORIS commercialisation and product expansion. A strong cash balance of $159.8 million and a debt-free balance sheet provide flexibility to pursue growth opportunities and shareholder returns, including a share buy-back program.