Nova Eye Medical Posts Record $16.7M Sales, Up 31%, Nears Profitability
Nova Eye Medical delivers record half-year sales with 31% growth
Nova Eye Medical (ASX: EYE) has reported record H1 FY26 revenue of $16.7 million (US$11 million), representing 31% growth in constant currency compared to the prior corresponding period. The result marks the strongest half-year sales performance in company history, with momentum continuing into 2026 as January sales tracked in line with targets. Management reaffirmed FY26 guidance across all three key metrics: sales revenue excluding China of US$21-24 million, breakeven EBITDA in H2 FY26, and improving operating cash flow.
Last twelve months (LTM) global sales reached approximately US$21 million ($32.2 million), up 24% year on year. This growth rate is approximately three times the estimated industry growth rate for glaucoma surgical devices, indicating the company is gaining market share in the sector.
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US market momentum drives six consecutive halves of growth
The United States remains Nova Eye Medical’s primary growth engine, delivering 32% half-on-half sales growth in H1 FY26. The company has now achieved six consecutive halves of US sales expansion at a compound annual growth rate (CAGR) of approximately 40%. This sustained performance demonstrates strong product-market fit in the world’s largest ophthalmic device market.
Rest of world (ROW) sales emerged as a secondary growth driver, recording 148% growth to US$816,000. Germany maintained steady performance with 1% growth to US$877,000. China experienced a 15% decline to US$603,000, though it represents a relatively small portion of group revenue.
Sales excluding China grew 35% to US$10.3 million, underscoring the strength of the company’s core markets.
| Region | H1 FY25 (US$000) | H1 FY26 (US$000) | Growth | H1 FY26 ($000) |
|---|---|---|---|---|
| USA | 6,476 | 8,655 | 32% | 13,178 |
| Germany | 870 | 877 | 1% | 1,350 |
| ROW | 329 | 816 | 148% | 1,256 |
| Sales excl China | 7,675 | 10,348 | 35% | 15,784 |
| China | 710 | 603 | -15% | 928 |
| Group Total | 8,385 | 10,951 | 31% | 16,712 |
Concentrated US growth at 40% CAGR demonstrates sustained surgeon adoption and market penetration. The ROW expansion opens additional addressable markets beyond the company’s established US and German bases.
What is minimally invasive glaucoma surgery and why is it growing?
Minimally invasive glaucoma surgery (MIGS) represents a category of ophthalmic procedures designed to reduce intraocular pressure in glaucoma patients with less surgical trauma than traditional methods. Nova Eye Medical’s technology portfolio addresses this market through two platforms.
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iTrack Advance: A minimally invasive consumable device that restores the eye’s natural drainage pathway to lower intraocular pressure, targeting mild-to-moderate glaucoma cases whilst reducing patient reliance on anti-glaucoma medications.
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Molteno3: A glaucoma drainage device platform designed for severe glaucoma cases, offering enhanced surgical utility, optimised clinical outcomes for long-term pressure control, and a simplified surgical procedure.
According to Marketscope’s Glaucoma Surgical Devices Report (August 2025), the industry is growing, but Nova Eye Medical’s 24% year-on-year LTM growth rate represents approximately three times the estimated industry growth. This outperformance indicates the company is gaining market share within a structural growth category. The dual product portfolio positions Nova Eye across the glaucoma severity spectrum, from mild-moderate (iTrack) to severe (Molteno3) cases.
EBITDA loss narrows by $2 million as margins expand
Nova Eye Medical substantially improved its EBITDA position in H1 FY26, narrowing the loss from $4.2 million to $2.2 million (an improvement of $2.0 million). The company achieved positive EBITDA in December 2025, consistent with previous guidance.
Gross margin expanded to 70% (up from 66%), reflecting improved production efficiency and pricing discipline. Operating expenses as a percentage of revenue continued to decline, demonstrating operational leverage as the business scales. Operating expenditure increased by US$0.7 million compared to H1 FY25, primarily driven by higher variable sales commissions linked to revenue growth, continued clinical data generation investment, expanded clinical training and commercial resources outside the United States, and additional regulatory activity.
Total investment in clinical data collection during H1 FY26 was US$0.6 million. The first peer-reviewed manuscript associated with this programme was released in January 2026, with further publications expected over time.
Management Commentary
“Positive EBITDA was achieved in December 2025, consistent with Company guidance.”
The path to profitability is becoming clearer. Gross margin expansion and operating leverage demonstrate the business model scales efficiently as revenues grow, with the December result providing evidence of the company’s ability to achieve breakeven EBITDA on a monthly basis.
Seasonality favours stronger second half performance
EBITDA exhibits clear seasonality, with H2 consistently outperforming H1 across historical periods. Surgery volumes, particularly in Europe, are affected by the northern summer holidays from July to September, which suppress procedure numbers during Q1. This pattern suggests H2 FY26 is positioned to deliver stronger EBITDA performance than H1, supporting management’s guidance for breakeven EBITDA in the second half.
Cash position stabilises with positive underlying quarterly inflow
Nova Eye Medical achieved a significant cash milestone in the December 2025 quarter, recording a $0.2 million positive underlying operating cash inflow. This represents a transition point in the company’s financial trajectory.
Cash outflow from operations for H1 FY26 totalled $2.2 million, of which $1.0 million related to investment in working capital (trade receivables plus inventory minus trade payables). The underlying operating cash outflow was therefore $1.2 million, representing a material improvement of $2.4 million compared to H1 FY25.
Cash resources at 31 December 2025:
- Cash at bank: $2.6 million
- Receivables-backed working capital facility: $2.0 million (available)
- Combined liquidity: $4.6 million
Positive quarterly cash generation signals the business is approaching self-sustainability. The combined cash resources and working capital facility provide runway through the path to breakeven, with the trajectory indicating further cash flow improvement in H2 FY26 as revenues continue to scale and operating leverage increases.
FY26 guidance reaffirmed with all targets tracking to plan
Management reaffirmed all three FY26 guidance metrics, with each tracking on or ahead of plan. January 2026 sales lifted LTM sales excluding China to approximately US$20.1 million ($30.9 million), representing 31% year-on-year growth and tracking above the midpoint of the US$21-24 million revenue guidance range.
| Guidance Metric | Target | Status |
|---|---|---|
| Sales revenue (excl China) | US$21-24 million ($32-37 million) | Confirmed – LTM at US$20.1 million (31% growth), tracking above midpoint |
| Breakeven EBITDA in H2 FY26 | Positive EBITDA in second half | Confirmed – Positive December EBITDA achieved, substantial H1 improvement |
| Improving operating cash flow | Ongoing cash flow improvement | Confirmed – $2.4 million improvement, positive Q2 underlying inflow |
All three guidance metrics are on track, providing visibility into the path toward sustainable profitability in H2 FY26. The combination of revenue momentum, margin expansion, and cash flow improvement demonstrates execution discipline across the business.
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Investment case strengthens as Nova Eye approaches profitability
Nova Eye Medical is demonstrating the operational and financial proof points that typically precede a market re-rating. The H1 FY26 results reinforce a transition from growth-stage to profitable growth, with several key investment thesis elements now validated:
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Market share gains: Revenue growth at approximately three times industry rate indicates strong competitive positioning and product-market fit.
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Margin expansion: Gross margin improvement to 70% demonstrates pricing power and production efficiency.
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Path to profitability: December 2025 positive EBITDA and narrowing H1 loss by $2.0 million provides clear evidence of the path to breakeven.
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Cash generation inflection: Positive underlying operating cash inflow in Q2 signals approaching self-sustainability.
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Clinical evidence investment: First peer-reviewed publication supports long-term surgeon adoption and market access.
The combination of 31% Nova Eye Medical sales growth, expanding margins, improving cash generation, and confirmed guidance creates a compelling risk-reward profile. With all three FY26 guidance metrics tracking on or ahead of plan, the company is positioned to deliver its first profitable half-year in H2 FY26 whilst maintaining strong revenue momentum in its core US market and emerging ROW territories.
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