Compumedics Limited (ASX:CMP) returned to profit in FY26 as record revenue, stronger cash generation and a sharp rise in MEG and SaaS sales reshaped its earnings profile. The company enters FY27 with A$28.3 million of open orders, but lower gross margins and uneven US and European execution remain key tests.
- Record A$60.3 million revenue, up 18.5%
- EBITDA rose 74% to A$5.4 million
- OrionMEG generated A$9.7 million in first-year revenue
- Somfit and NEXUS 360 SaaS revenue rose 70%
- A$28.3 million of open orders entering FY27
Record revenue restores profitability
Compumedics has converted years of investment in medical technology platforms into a profitable FY26, with revenue reaching a record A$60.3 million, up 18.5% on the prior year. EBITDA rose 74% to A$5.4 million, while the company reported net profit after tax of A$253,000 compared with a A$1.3 million loss in FY25. Operating cash inflow also improved sharply, rising to A$6.6 million from A$447,000.
The result was not simply a recovery in the existing business. OrionMEG LifeSpan generated A$9.7 million of revenue after contributing nothing in FY25, while Somfit and NEXUS 360 SaaS revenue climbed 70% to A$10.2 million. Recurring revenue from SaaS, consumables and customer care reached A$18.3 million, or 30% of group revenue, compared with 27% a year earlier.
MEG moves from promise to delivery
MEG was the largest single contributor to group revenue growth, supported by deliveries of Orion LifeSpan systems in China and new orders from Beijing Normal University and Shandong Normal University. Seven systems are now contracted, including one contract covering two systems, and the company entered FY27 with approximately A$13.1 million of MEG orders in hand.
The platform remains a lumpy capital-equipment business: revenue is recognised as systems are delivered, installed and invoiced. Compumedics has expanded its South Korean manufacturing facility and says capacity has risen to three MEG systems a year. The first seated-position system was shipped to Tsinghua University, giving customers a choice between seated and supine measurement configurations.
Somfit expands the recurring revenue base
Somfit’s commercial footprint broadened during the year, with sales beginning in eight additional countries and more than 110,000 Somfit studies completed to date, including 47,000 in FY26. The company also says it retained more than 75% of the pharmacy-based home sleep testing segment in Australia and New Zealand.
FDA 510(k) clearance for the single-use Somfit D device is intended to widen the platform’s reach, with a US commercial rollout expected in FY27. Compumedics also reported approximately A$5 million of orders secured to date from pharmaceutical companies and contract research organisations, although the timing and scale of that opportunity remain dependent on customer adoption and execution.
Margin recovery and US execution remain unresolved
The stronger top line came with a less flattering margin mix. Gross margin fell to 51% from 55%, reflecting the greater contribution from lower-margin MEG revenue, tariffs and input-cost pressure. Management delivered a stated A$2 million cost-savings program, reduced sales and marketing expenditure by A$3.4 million to A$14.7 million, and increased R&D expense to A$4.8 million as more development work was expensed.
Geographically, Australia and Asia Pacific led the result with revenue of A$36.5 million, up 63%. US revenue fell to A$16.4 million and Europe and the Middle East declined to A$7.4 million. The company attributed the US performance partly to slower capital-equipment conversion, a cyber incident and the restructuring of its commercial organisation. Its FY27 objective is further double-digit revenue growth with EBITDA growing faster than revenue, but that ambition must be delivered alongside margin repair and continued debt management.
The balance sheet is stronger than a year earlier, with cash of A$6.1 million, reported net cash of A$5.6 million and net assets of A$22.7 million at 30 June 2026. Borrowings remained material at A$13.1 million, while the company’s debt-service and equity covenants were met at 1.43 times and 41.7% respectively. The immediate test is whether the A$28.3 million open-order position, including A$13.1 million of MEG orders, can be converted into revenue and cash without repeating the margin pressure that accompanied FY26’s growth.
Bottom Line?
Compumedics has established a more credible earnings base, but FY27 will show whether MEG deliveries and Somfit adoption can produce repeatable cash generation rather than another step-up shaped by project timing.
Questions in the middle?
- Can Compumedics convert its A$28.3 million open-order position into revenue while restoring gross margin?
- How quickly will Somfit D adoption translate into recurring US SaaS revenue?
- Will the US commercial reset improve capital-equipment conversion without increasing operating costs?