Nova Eye Medical reported a 26% increase in FY26 sales to US$23.7 million, delivering positive EBITDA in the second half and guiding for continued growth and profitability in FY27.
- 26% annual sales growth to US$23.7 million
- Positive EBITDA of US$0.14 million in H2 FY26
- Sales excluding China up 29%, surpassing guidance
- FY27 sales guidance US$26-31 million excluding China
- Stable US CMS reimbursement rates support growth
Sales Momentum Accelerates with Fourth Consecutive Year of Strong Growth
Nova Eye Medical Limited (ASX:EYE) closed FY26 with total sales reaching US$23.7 million, marking a 26% uplift on the prior corresponding period and extending a four-year streak of growth exceeding 25% annually. Excluding China, sales surged 29% to US$22.7 million, comfortably beating the company’s upgraded guidance issued just two months ago. The US remains the powerhouse, contributing US$18.6 million and recording a 30% year-on-year increase, with Q4 setting a new quarterly sales record of US$5.5 million. This sustained momentum is underpinned by a compound quarterly growth rate of 8.5% in revenue per sales representative in the US market.
EBITDA Turns Positive as Cash Outflows Narrow
After years of investment, Nova Eye Medical reported a positive EBITDA of US$0.14 million in the second half of FY26, a notable turnaround from a loss of US$0.9 million in the prior corresponding period. The full-year EBITDA loss narrowed to US$1.3 million, an improvement of US$2.2 million compared to FY25. This operational progress was reflected in cash flow, with quarterly cash outflows from operations shrinking to A$0.2 million in Q4 from A$1.1 million in the previous quarter. The company ended the period with A$1.0 million in cash and an unused debt facility of A$2.7 million, providing a liquidity buffer of A$3.7 million to support growth initiatives.
FY27 Guidance Targets Further Growth and Profitability
Looking ahead, Nova Eye Medical forecasts sales excluding China to reach between US$26 million and US$31 million in FY27, reflecting an anticipated 15-36% increase year-on-year. The company plans to sustain positive EBITDA in the coming year, supported by stable reimbursement rates proposed by the US Centers for Medicare and Medicaid Services (CMS) for 2027. The CMS maintained surgeon and facility payment levels for canaloplasty surgeries, which underpin a significant portion of Nova Eye’s US revenue. This regulatory stability bodes well for continued market penetration and revenue growth.
Market Activation and Early Chinese Commercialisation
Nova Eye Medical has intensified its global market activation through surgeon training programs and participation in key ophthalmic conferences across North America and Europe. Notably, the company commenced commercial deliveries of its iTrack™ Advance device in China, with initial procedures performed at leading hospitals. While sales in China declined by 18% in FY26 to US$948,000, this early-stage market entry and ongoing clinical education efforts could lay the groundwork for future expansion in the region.
Positioning in a Growing Interventional Glaucoma Market
The global interventional glaucoma market is estimated at US$944 million, presenting substantial growth opportunities. Nova Eye’s proprietary technologies, including the minimally invasive iTrack™ Advance and the Molteno3® drainage device, target both mild-to-moderate and severe glaucoma segments. With approximately 30,000 to 35,000 glaucoma surgeries conducted monthly in the US alone, and current iTrack™ penetration at around 4%, the company has significant room to grow share. This industry backdrop aligns with the growth trajectories observed in peer companies such as Glaukos Corporation.
Bottom Line?
Nova Eye Medical’s sustained sales growth and operational improvements set the stage for a potentially profitable FY27, but execution in emerging markets like China and maintaining US market momentum will be critical.
Questions in the middle?
- How will Nova Eye Medical address the decline in Chinese sales amid early commercialisation?
- Can the company maintain its positive EBITDA trajectory as it scales globally?
- What impact will competitive dynamics in the US interventional glaucoma market have on growth?