Compumedics posts record revenue as profit turns positive

Compumedics reported record FY26 revenue of AUD $60.3 million and EBITDA of AUD $5.4 million.

Revenue rose 18.5% from FY25, and EBITDA increased 72.1%. Net profit after tax returned to positive territory at AUD $0.2 million, from a loss of AUD $1.3 million a year earlier.

Operating cash inflow rose to AUD $6.6 million from AUD $0.4 million in FY25. Cash and cash equivalents, less the invoice facility and overdraft, improved to AUD $5.6 million from negative AUD $1.0 million the previous year.

A broader revenue mix shaped the year. Revenue from Somfit and Nexus 360 software-as-a-service climbed 70% to AUD $10.2 million, while the magnetoencephalography, or MEG, business contributed AUD $9.7 million, compared with nil in FY25.

FY26 sales orders totalled AUD $62.7 million. Group open orders stood at about AUD $28.3 million on 21 August, including AUD $13.1 million in MEG open orders entering FY27.

Margins and costs

EBITDA margin increased to about 9% of revenue from 6% a year earlier. Gross margin, however, fell to 51% from 55%, which Compumedics attributed to product mix, tariffs and input cost pressures.

Research and development expense also increased because a greater proportion of development spending was recognised in EBITDA during the period rather than capitalised as intangible assets.

Compumedics completed its previously announced AUD $2 million cost-savings programme during FY26. Sales and marketing expenditure fell by AUD $3.4 million to AUD $14.7 million, reflecting tighter spending control, organisational efficiencies and a reset of its US commercial structure.

Sleep and MEG

Growth in connected sleep products remained a notable feature of the year. Adoption of Somfit and Nexus 360 continued across the United States and Asia, lifting combined revenue from those products by 70%.

This growth came before the commercial release of Somfit D in the United States. Manufacturing commitments are in place, and commercial-readiness work is continuing.

MEG also became a more meaningful contributor during the year. With AUD $9.7 million in FY26 revenue and AUD $13.1 million in open orders moving into FY27, the segment now makes up a larger share of the company's sales base.

Compumedics remains focused on moving MEG projects through manufacture, shipment, installation and revenue recognition.

Outlook

Compumedics is targeting further double-digit revenue growth in FY27 and expects EBITDA growth to outpace revenue growth, supported by order-book conversion, MEG activity, recurring software revenue and efforts to improve margins.

The company is also carrying a broader push on pricing, supply-chain efficiencies, product cost reductions and overhead discipline into the new financial year.

Dr David Burton, Executive Chairman and Chief Executive Officer of Compumedics, said the year marked a significant change in the group's financial position.

"FY26 represents a watershed year and a material step forward for Compumedics. We have delivered record revenue of $60.3 million, increased EBITDA by 72%, returned the Company to profitability and generated $6.6 million of operating cash flow. We also delivered the $2 million cost savings program outlined last year, reflecting the discipline introduced across the Group and the reset of our US commercial operations," Burton said.

He said management's focus has shifted to converting the current order book into revenue and cash while lifting margins.

"Somfit and Nexus 360 SaaS revenue grew 70%, MEG contributed $9.7 million of revenue, and Group open orders were approximately $28 million at 21 August. Our focus is now on converting this position into revenue and cash, progressing Somfit D, and improving margins as we target further double-digit revenue growth and EBITDA growth at a faster rate than revenue in FY27," Burton said.