Nova Eye Medical Narrows EBITDA Loss with 23% Sales Growth and New US Product Feature

Sales Momentum Accelerates in US and China Debut

Nova Eye Medical Limited (ASX:EYE) posted a 23% increase in quarterly sales to US$5.8 million (A$8.2 million), underpinned by a 28% surge in US sales to US$4.5 million and the inaugural shipments of its iTrack™ Advance device into China. Despite January and February weather disruptions, March saw record US monthly revenue, with April off to a strong start that may surpass that record. The company’s US sales force expanded to 12 representatives, delivering an annualised revenue per rep of approximately US$1.6 million, sustaining a 6% compound quarterly growth rate over six quarters. This steady growth in the US market builds on the company’s earlier momentum, including a record US$6.1M Quarter reported in January.

EBITDA Improves Markedly Amid Operational Efficiencies

For the first time, Nova Eye Medical reported positive EBITDA from operations of US$138,000 in the quarter, a substantial turnaround from a US$228,000 loss in the prior year. Including clinical data investments, the EBITDA loss narrowed to US$75,000 (A$107,000), an improvement of US$0.4 million year-on-year. The company highlighted gross margin gains driven by higher selling prices and manufacturing efficiencies, alongside tighter operating expenditure relative to sales. Notably, the four months ending 31 March 2026 showed a positive EBITDA of US$96,000, reinforcing the company’s trajectory toward breakeven or small positive EBITDA expected in the second half of FY26. This progress aligns with the company’s earlier guidance to reach breakeven EBITDA by mid-2026, as reaffirmed in its Q1 Revenue Climbs 20 Percent update.

Strategic Expansion and Product Innovation

February marked the first delivery of iTrack™ Advance units to China following regulatory approval by the NMPA in September 2025. Training and initial sales are underway, with a second order placed in April for delivery in June. This early-stage Chinese market entry adds a new growth vector alongside established US and European operations. Meanwhile, the company enhanced its US iTrack™ Advance device with proprietary iLumin™ technology featuring green illumination. This novel feature improves intraoperative visualisation, particularly in vascularised eyes, by offering stronger contrast than traditional lighting, thereby aiding surgical precision and confidence. This unique enhancement strengthens the device’s competitive positioning in the interventional glaucoma market.

Cashflow and Financial Position Amid Currency Headwinds

Despite near breakeven EBITDA, Nova Eye Medical recorded a quarterly cash outflow from operations of A$1.174 million, an improvement over A$1.4 million in the prior year. The outflow reflects advance payments for marketing and sales activities scheduled later in 2026 and the adverse impact of a weaker US dollar against the Australian dollar on receivables. The company’s US and EU segments remain cash flow positive, generating approximately US$700,000 EBITDA in the quarter. Cash on hand stood at A$1.2 million, supported by A$2.14 million in unused debt facilities, providing a runway of nearly three quarters based on current cash burn. The company continues to manage working capital prudently to support growth initiatives.

Clinical Validation Supports Market Adoption

Adding to its commercial momentum, Nova Eye Medical achieved a significant milestone with the first peer-reviewed publication from its iTrack™ Registry in the American Journal of Ophthalmology. The study, involving 254 patients over an average 20-month follow-up, confirmed substantial reductions in intraocular pressure and medication dependency, with up to 83% success in patients with elevated baseline pressure. These findings bolster surgeon confidence, reimbursement discussions, and global market access, underpinning the company’s sales growth strategy.