CleanSpace Holdings reported a solid first half of FY26 with 10% revenue growth and improved margins, setting the stage for positive earnings in the second half.
- Revenue up 10% to $10.1 million in H1 FY26
- Gross margin strengthened to 75%, up from 74%
- Operating EBITDA loss narrowed by 23% to -$0.3 million
- Strong regional growth in Europe and North America; Asia Pacific sales declined
- Company forecasts 15% revenue growth and positive EBITDA in H2 FY26
Solid Growth Amid Strategic Expansion
CleanSpace Holdings Limited, the Sydney-based designer and manufacturer of premium respiratory protection solutions, has delivered a steady performance in the first half of FY26. The company reported a 10% increase in revenue to $10.1 million, driven largely by robust sales in Europe and North America. This growth reflects CleanSpace’s ongoing efforts to deepen market penetration and expand its distribution networks in key regions.
Gross margins improved slightly to 75%, up from 74% in the prior corresponding period, underscoring the benefits of continuous operational improvements. Despite a modest operating EBITDA loss of $0.3 million, this represents a 23% improvement year-on-year, highlighting disciplined cost management alongside strategic investments in sales and research and development.
Regional Performance Highlights
Europe remains the standout region, contributing $6.7 million in revenue with a 26% increase over the previous year. Growth was particularly strong in Western Europe and the Nordic countries, where market penetration and distributor execution have accelerated. The DACH region showed moderate gains, while the UK and Ireland experienced softer sales due to regulatory headwinds affecting customer purchasing behaviour.
North America posted an 8% revenue increase to $1.3 million, supported by a growing distribution network and direct engagement with end users in sectors such as mining, fire safety, welding, and construction. The launch of the CS WORK respirator in early 2025 has been a notable success in this market.
Conversely, sales in Asia Pacific and the Rest of World declined by 22%, influenced by the timing of one-off business wins in the prior year and slower pipeline development in Australia. The company remains optimistic about this region, expecting momentum to improve as product certifications are secured and distribution channels mature.
Financial Position and Outlook
CleanSpace’s cash position remains strong at $9.8 million, an 18% increase compared to the prior corresponding period, despite a negative cash flow of $0.7 million driven by the timing of recurring expenses. The company also received a $0.9 million R&D tax refund in February 2026, bolstering its financial flexibility.
Looking ahead, the board has revised its FY26 revenue growth forecast to approximately 15%, reflecting a cautious approach amid macroeconomic uncertainties and timing adjustments in key markets. The company expects to maintain gross margins in the mid-70% range and achieve positive operating EBITDA in the second half of the year, alongside positive cash flow for the full fiscal year. Continued investment in innovation and commercial capability remains a priority to support sustainable growth.
Bottom Line?
CleanSpace’s H1 momentum and disciplined strategy position it well for a profitable second half, but regional challenges warrant close monitoring.
Questions in the middle?
- How will CleanSpace address the regulatory challenges impacting UK and Ireland sales?
- What specific initiatives are planned to accelerate growth in the Asia Pacific region?
- Can the company sustain margin improvements while increasing investment in R&D and sales?