Nova Eye Medical turns positive EBITDA into a launchpad for further growth

Sales growth accelerates across Nova Eye’s core markets

Nova Eye Medical Limited (ASX:EYE) has paired another strong sales quarter with a more important operational milestone: positive EBITDA. Sales reached US$6.3 million in the three months to 30 September, up 30% from the same quarter a year earlier, while trailing twelve-month sales rose to US$25.1 million.

The growth was led by the United States, where quarterly sales increased 25% to US$5.2 million. Germany contributed US$499,000, while sales across the rest of the world rose 44% to US$444,000. China added US$158,000 in the quarter. The result extends a trajectory that included the company’s April US sales record, which had helped lift its FY26 sales outlook.

Positive cash flow changes the funding equation

Nova Eye generated A$0.5 million of cash from operations, compared with an A$0.8 million outflow in the corresponding quarter. Management attributed the improvement to higher sales. Cash on hand stood at A$2.1 million at quarter end, with a further A$2.0 million available under debt facilities, giving reported liquidity of A$4.1 million.

Quarterly EBITDA was also positive, according to unaudited management accounts, following a positive EBITDA result for the six months to 30 June. Nova Eye said the improvement reflected sales growth and continued cost control, and used the result to reaffirm its expectation of positive EBITDA for the year ending 30 June 2027.

FY27 targets remain intact as US expansion continues

The company maintained its FY27 guidance for sales excluding China of between US$26 million and US$31 million, representing 15% to 37% growth on FY26 sales excluding China of US$22.7 million. It also expects its cash and existing debt facility to cover working capital needs and its stated growth targets.

US sales were below the record set in the June quarter, which Nova Eye linked to the traditional northern hemisphere summer holiday period and fewer surgeries. Even so, annualised revenue per US sales representative rose to US$1.8 million from US$1.6 million a year earlier, additional representatives were recruited during the quarter, and October sales were trending about 30% above October 2025. The company estimates its iTrack Advance currently holds only 3% to 5% of a US market performing 30,000 to 35,000 interventional glaucoma procedures each month.

Related-party facility remains a funding watchpoint

The stronger operating picture sits alongside a financing arrangement that deserves scrutiny. Nova Eye entered an unsecured facility with River Street Nominees, a company controlled by directors Rahmon Coupe and Victor Previn, with a limit of $2.75 million for the first 12 months and $1 million for the following 12 months. The initial advance was $750,000, carries 15% interest on drawn amounts and includes establishment and undrawn line fees.

Nova Eye said the facility’s commercial terms are at arm’s length and that no interest or fees were paid to River Street during the quarter. It is negotiating with independent third parties to replace the arrangement. The company also plans to shift its financial reporting currency to US dollars from the half year ending 31 December, reflecting the fact that more than 90% of revenue and about 85% of operating costs are denominated in US dollars.