Nova Eye Medical Reports AUD 34.9 Million Revenue and AUD 4.3 Million Net Loss in FY26

Financial Turnaround Highlights FY26 Results

Nova Eye Medical Limited (ASX:EYE) has posted a marked improvement in its FY26 results, with revenues climbing 19% to AUD 34.865 million and net losses shrinking by more than half to AUD 4.333 million. The company’s EBITDA loss narrowed 63% to AUD 2.012 million, signalling progress toward profitability amid sustained sales momentum and tighter cost management.

The company’s financial performance reflects a combination of factors including a 26% increase in US dollar sales, improved gross margins, and enhanced productivity in sales and marketing efforts. Notably, the second half of FY26 saw the Glaucoma Surgical Devices (GSD) segment achieve a positive EBITDA of AUD 172,000, a significant turnaround from prior losses.

Segment Performance: Glaucoma Devices Lead Growth

The GSD segment, which designs and markets devices to reduce intraocular pressure for glaucoma patients, generated AUD 34.865 million in revenue, up from AUD 29.077 million in FY25. The EBITDA loss narrowed sharply to AUD 709,000 from AUD 2.813 million the previous year, driven by strong US sales and manufacturing efficiencies.

US sales remain the dominant contributor, accounting for nearly 79% of total revenue, with Europe and Asia Pacific markets also contributing modestly. The company’s expanding installed base and manufacturing improvements underpin this operational uplift, reflecting a successful execution of growth strategies in its core business.

AlphaRET Segment Remains Pre-Revenue but Strategic

AlphaRET, Nova Eye’s division focused on commercialising the 2RT® ophthalmic laser for intermediate age-related macular degeneration (AMD), reported no material revenues during FY26. The segment’s activities centred on servicing a small installed base, engaging potential funding partners, and planning commercialisation pathways.

Despite the lack of immediate revenue, the 2RT® laser technology holds potential to disrupt current AMD treatment paradigms, although the company has yet to incur significant costs or generate sales from this segment. The cautious approach reflects the early-stage nature of this opportunity and the need for strategic partnerships to advance commercialisation.

Liquidity and Financing Arrangements

Nova Eye ended FY26 with net assets of AUD 14.275 million and cash reserves of AUD 964,000, down from AUD 5.055 million a year earlier. The company maintains a loan facility agreement of AUD 2.75 million with River Street Nominees, a related party controlled by directors Victor Previn and Rahmon Coupe, established post-year-end in August 2026. This unsecured facility replaces a previous secured receivables facility and remains undrawn as of the reporting date.

The company’s going concern status carries material uncertainty, hinging on its ability to generate sufficient cash flows, manage costs, and potentially raise capital. The directors remain confident in meeting these challenges, supported by the company’s track record and operational improvements.

Governance and Remuneration

The board comprises experienced executives and independent directors, including Executive Chairman Victor Previn and Managing Director Tom Spurling. Executive remuneration policies align with company performance, focusing on base salary with discretionary short-term incentives and long-term incentives linked to shareholder value growth.

During FY26, total key management personnel compensation amounted to AUD 729,000, down from AUD 805,000 in FY25, reflecting adjustments in share-based payments. The company did not declare any dividends, consistent with prior periods.

Risks and Future Focus

Key risks identified include foreign exchange volatility given the predominance of USD revenues, supply chain disruptions, regulatory compliance challenges particularly with the US FDA, and changes in health insurance reimbursement impacting demand. Cybersecurity also remains a concern in an increasingly sophisticated threat environment.

Looking ahead, Nova Eye aims to continue developing its ophthalmic device portfolio, focusing on scaling production and expanding sales globally. The company remains tight-lipped on specific future developments, citing competitive sensitivities.