Compumedics Limited has reported a robust half-year performance, with revenue climbing 32% to $31 million and a return to profitability, driven by strong MEG system sales and SaaS growth.
- Revenue up 32% to $31 million in H1 FY26
- Profit after tax of $267,000, reversing prior loss
- Record sales orders of $34.9 million, including MEG system growth
- SaaS revenue increased 56%, boosting recurring income
- Ongoing $2 million annual cost reduction program underway
Strong Revenue Growth and Profit Turnaround
Compumedics Limited has delivered a significant turnaround in its financial results for the half-year ended 31 December 2025. The company reported revenue of $31.0 million, a 32% increase on the previous corresponding period, alongside a modest profit after tax of $267,000, reversing a loss of $1.1 million in H1 FY25. This marks a notable recovery driven by improved sales execution and operational discipline.
MEG Systems and SaaS Drive Momentum
A key contributor to the growth was the expansion of the magnetoencephalography (MEG) business, with $6.5 million in invoiced revenue and a record $4.9 million order secured during the period. The company is scaling MEG manufacturing capacity to meet firm customer orders, with further opportunities expected to materialise in the second half of FY26. Additionally, SaaS revenue surged 56% to $4.6 million, reflecting growing demand for recurring, connected platform services that enhance revenue resilience.
Geographic Diversification and US Market Reset
While the US market experienced softer capital equipment sales due to a cyber incident earlier in 2025 and slower purchasing cycles, strong performance in Asia and Europe offset this shortfall. The company has implemented a targeted commercial reset in the US, with pipeline activity strengthening and expectations for improved sales conversion in H2 FY26. This geographic diversification underpins the company’s business resilience amid market variability.
Strategic Initiatives and Cost Discipline
Compumedics is progressing key strategic initiatives, including the upcoming Somfit D product launch targeted for the second half of FY26. Although the launch timeline has extended to ensure manufacturing readiness and quality, it is expected to bolster commercial momentum. The company is also advancing a $2 million per annum cost reduction program aimed at improving operating leverage and supporting margin expansion, with benefits anticipated to build through the remainder of the fiscal year.
Financial Position and Outlook
Despite the positive operational performance, net debt increased to $10.1 million, primarily due to funding for MEG system manufacturing. The company maintains a going concern status, supported by strong order backlog and expected shipment in H2 FY26. No dividends were declared during the period, reflecting a focus on reinvestment and growth. Investors will be watching closely how the company executes on its growth priorities and manages financial leverage in the coming months.
Bottom Line?
Compumedics’ H1 FY26 results signal a promising recovery and growth trajectory, but execution risks remain as it scales MEG production and navigates US market challenges.
Questions in the middle?
- How quickly will MEG system deliveries translate into sustained profitability?
- Can the US market fully recover from the cyber incident impact in H2 FY26?
- Will the Somfit D launch meet expectations and drive significant revenue growth?