SomnoMed Reports $30.1M Q4 Revenue, Eyes 25% Capacity Boost in FY26

Strong Financial Momentum

SomnoMed Limited, a leader in oral appliance therapies for sleep-related breathing disorders, has delivered a strong finish to FY25 with Q4 revenue climbing 25.1% to $30.1 million compared to the same period last year. This growth was driven primarily by robust demand in Europe and North America, where price increases and returning customers bolstered sales. Despite a slight slowdown in the APAC region, particularly Australia following a price adjustment, overall brand loyalty and medical referrals remain solid.

Operational Expansion and Efficiency

To meet rising demand, SomnoMed has commenced expanding its manufacturing footprint, aiming to increase capacity by at least 25% in FY26. This expansion follows successful efforts to streamline production, which have effectively eliminated backlog by the end of June 2025. Additionally, the company has initiated a second round of cost optimisation expected to conclude in FY26, with one-off restructuring costs of $1 million anticipated. These measures are designed to enhance resource allocation and operational capability, with savings to be reinvested into growth initiatives.

Milestone Achievement and Clinical Validation

SomnoMed celebrated a significant milestone during the second half of FY25 by surpassing 1 million patients treated worldwide, underscoring its position as a global market leader in oral appliance therapy. Complementing this achievement, the company published clinical data validating its Rest Assure device, which monitors treatment compliance and sleep metrics. The research, led by Professor Peter Cistulli of the University of Sydney, highlights Rest Assure’s potential to revolutionize obstructive sleep apnea treatment by providing nightly clinical data akin to CPAP devices. This validation supports SomnoMed’s ongoing preparations for a US clinical trial and subsequent FDA 510k submission, critical steps for expanding its footprint in the lucrative American market.

Financial Health and Outlook

For the full FY25 year, SomnoMed expects revenue to reach $111.5 million, exceeding market guidance and representing a 21.6% increase year-on-year. EBITDA is forecasted at the upper end of the $7 million to $9 million range, with positive free cash flow of $0.8 million and a strong cash position of $17.3 million as of June 30, 2025. These results reflect disciplined financial management alongside strategic investments in capacity and innovation.

Looking ahead, the company’s focus will remain on scaling production capabilities, completing cost optimisation, and advancing clinical validation efforts to support regulatory approvals. These initiatives are poised to sustain SomnoMed’s growth trajectory and reinforce its leadership in the evolving sleep therapy market.