Monash IVF Group has delivered a resilient 1H26 performance amidst challenging market conditions, reporting revenue of $137.9 million (down 1.8% on 1H25) and underlying NPAT of $10.4 million, at the upper end of November 2025 guidance. The result demonstrates operational stability following disruptions in Q4 FY25 and Q1 FY26, with the company declaring an interim dividend of 1.2 cents per share, fully franked, despite softer earnings driven by industry headwinds and elevated cost pressures.
What drove the 1H26 result?
Australian IVF market conditions and market share
The Australian assisted reproductive services (ARS) sector showed early signs of stabilisation in 1H26, with stimulated cycles declining just 0.2% compared to 1H25. However, Monash IVF’s domestic stimulated cycle market share fell 2.5% to 19.0%, with the company citing negative media impacts and state-level performance variability as contributing factors. While market share declined across most states, South Australia delivered growth. The company maintained a frozen embryo transfer market share of 20.6%.
| Metric | 1H26 | 1H25 | Change |
|---|---|---|---|
| Australian stimulated cycles | 5,163 | 5,850 | -11.7% |
| Domestic market share (stimulated) | 19.0% | 21.5% | -2.5% |
| FET market share | 20.6% | 21.5% | -0.9% |
International operations deliver growth
Monash IVF’s international division provided a positive offset to domestic weakness, with average revenue per stimulated cycle increasing 7%. Bali stimulated cycles more than doubled (up 153%), Singapore cycles rose 6.4%, and Johor Bahru increased 26%. The company is focused on driving greater collaboration across its Southeast Asian clinics to optimise operational efficiency and capture regional growth opportunities.
Join thousands of readers who start here
Our best articles, sent straight to your inbox. You can unsubscribe anytime.
Understanding IVF sector dynamics and why FY27 outlook matters for investors
Stimulated cycles refer to IVF treatment cycles where a woman’s ovaries are medically stimulated to produce multiple eggs for retrieval and fertilisation. These cycles represent the core volume driver for IVF providers and are influenced by traditional demand factors including advanced maternal age, rising obesity rates, improving success rates, and favourable government funding. Emerging demand drivers such as genetic carrier screening, egg freezing, and growing LGBTQIA+ and single parent patient segments are expected to support additional growth.
Monash IVF anticipates the Australian ARS sector will return to growth of 2-3% per annum from FY27, with emerging demand drivers potentially adding a further 1-2% growth. The current softness is cyclical rather than structural, with IVF services remaining a non-discretionary healthcare offering underpinned by long-term demographic tailwinds.
Clinical pregnancy rates reach 40.7% as science investments advance
Monash IVF reported a clinical pregnancy rate of 40.7% for women under 43 during January to September 2025, up from 40.1% in CY24. This sustained improvement reflects ongoing investments in scientific innovation and clinical excellence, including 22 interventional research projects and 34 observational studies utilising clinical datasets.
Management Commentary
“Pregnancy rates have increased year on year reflecting continuous scientific innovation and clinical excellence.”
Key innovation initiatives include:
- $15 million mitochondrial donation MRFF grant in partnership with Monash University
- Pre-pilot trial of wearable hormone fertility tracker with Symex Labs at the Cremorne site
- TGA registration of the Felix sperm separation device (effective 22 January 2026)
These investments position Monash IVF to maintain its competitive advantage in clinical outcomes whilst supporting patient attraction and retention.
CEO priorities centre on Victorian transformation and operational excellence
New leadership’s strategic focus areas
Dr Victoria Atkinson has outlined three priority pillars for the business:
- Deliver Sustainable Organic Growth: Reignite volume and margin growth, restore Victorian and NSW portfolio performance, and implement data-led operational excellence initiatives.
- Renew Strategic Priorities: Complete the Brisbane flagship clinic and day hospital in Q4 FY26, deliver the 2030 strategic plan to drive return on invested capital and margin expansion, and enhance premium service innovations.
- Align Medical and Executive Leadership: Amplify medical leadership structure, build a high-performing executive team, and reinforce scientific and clinical governance across the Group.
The new Brisbane flagship clinic and day hospital opening in Q4 FY26 represents a near-term catalyst for capacity expansion and service delivery enhancement.
Enjoyed this article?
We publish high-impact stories like this a few times a week. No spam.
Balance sheet and FY26 guidance
Monash IVF maintained net debt of $94.9 million as at 31 December 2025, with a leverage ratio of 2.0x, well below the banking covenant threshold of 3.5x. The company confirmed full-year FY26 underlying NPAT guidance of $20.0 million remains unchanged. Capital expenditure for FY26 is expected at $16-17 million, with the major infrastructure replacement programme completing in Q4 FY26. The dividend policy of 60-70% payout ratio remains in place, providing ongoing shareholder returns.
| Capital Metrics | 31 Dec 2025 | 30 Jun 2025 |
|---|---|---|
| Net Debt | $94.9m | $89.6m |
| Net Leverage Ratio | 2.0x | 1.7x |
| Interest Cover | 9.3x | 11.3x |
The balance sheet provides headroom for both organic investment and potential M&A activity, whilst guidance confirmation reduces near-term earnings uncertainty for investors. With stabilising sector conditions anticipated in 2H26 and structural growth drivers positioned to return in FY27, Monash IVF’s operational resilience and scientific leadership provide a foundation for medium-term recovery.
Want the Next Healthcare Breakthrough in Your Inbox?
Join 20,000+ investors receiving FREE breaking ASX healthcare news delivered within minutes of release, complete with in-depth analysis. Get market-moving announcements from companies like Monash IVF the moment they drop. Click the “Free Alerts” button at Big News Blast to stay ahead on every major development.