SomnoMed Limited has reported a return to profitability for the half-year ending December 2025, posting a $792,000 net profit after tax on the back of a 13% revenue increase. Despite the positive turnaround, the company has elected not to pay an interim dividend.
- Half-year profit after tax of $792,000, reversing prior loss
- Revenue increased 13.1% to $60.7 million
- No interim dividend declared
- Strong net assets of $50 million
- Continued investment in R&D and stable capital structure
Profit Turnaround Signals Operational Strength
SomnoMed Limited, a specialist in oral devices for sleep-related breathing disorders, has reported a notable financial turnaround for the six months ended 31 December 2025. The company posted a net profit after tax of $792,000, a significant improvement from a loss of $106,000 in the same period last year. This positive shift was underpinned by a 13.1% increase in revenue, which rose to $60.7 million.
Revenue Growth Across Key Regions
The company’s revenue growth was driven by its core markets spanning Asia Pacific, North America, and Europe. SomnoMed’s segment reporting shows steady sales performance, with the Asia Pacific region contributing $14.3 million in revenue, North America $24.5 million, and Europe $33.7 million. This geographic diversification continues to support the company’s resilience amid varying market conditions.
No Dividend Declared Amid Strategic Focus
Despite the return to profitability, the board has resolved not to pay an interim dividend for this half-year. This decision suggests a strategic emphasis on reinvesting earnings to support ongoing research and development, product innovation, and market expansion. SomnoMed’s commitment to clinical research and maintaining medical manufacturing standards remains a cornerstone of its growth strategy.
Financial Position and Capital Movements
SomnoMed’s balance sheet remains robust, with net assets increasing to $50 million. The company’s issued capital rose modestly due to share movements, including the exercise of zero exercise price options (ZEPOs) and repayments related to the Employee Share Trust. Cash flow from operations remained positive, supporting the company’s liquidity and operational needs.
Outlook and Market Implications
While the half-year results reflect improved operational performance, the company faces ongoing challenges including foreign exchange fluctuations and competitive pressures in the medical device sector. Management’s upcoming investor webinar will be closely watched for insights on future growth initiatives and market conditions. The clean auditor’s review further reinforces confidence in the reported results.
Bottom Line?
SomnoMed’s profit rebound and revenue growth set a positive tone, but investors will watch closely for the next steps in capital allocation and market expansion.
Questions in the middle?
- What are SomnoMed’s plans for returning to dividend payments in future periods?
- How will foreign exchange volatility impact profitability going forward?
- What new product developments or market expansions are planned to sustain growth?