How Did Compumedics Boost Sales Orders 22% Despite a $1.3M Loss?
Compumedics Limited reported a 2% revenue increase and a 22% jump in sales orders for FY25, driven by strong demand in sleep diagnostics and SaaS platforms, while navigating a net loss impacted by higher financing costs.
- Sales orders up 22% to $63.4 million
- Revenue grows 2% to $51.0 million
- EBITDA rises 9% to $2.9 million
- Net loss widens to $1.3 million due to financing costs
- Strong growth in U.S. and Asia Pacific markets
Solid Revenue Growth Amid Strategic Investments
Compumedics Limited closed FY25 with a modest 2% increase in revenue to $51.0 million, reflecting steady demand across its core markets. The company’s sales orders surged 22% to $63.4 million, underscoring robust customer interest, particularly in sleep diagnostics and software-as-a-service (SaaS) offerings. This growth was fueled by expanding global commercial reach and product innovation, notably in sleep diagnostics, neuro monitoring, and ultrasonic blood flow technologies.
Despite the revenue uptick, Compumedics reported a net loss after tax of $1.3 million, a deterioration from the prior year’s $0.3 million loss. This was primarily driven by increased financing charges, which nearly doubled to $1.3 million amid higher leverage and rising interest rates. Operationally, however, the company improved its earnings before interest, tax, depreciation, and amortisation (EBITDA) by 9% to $2.9 million, with margins expanding to 6%.
Geographic and Segment Highlights
The Americas region, led by the United States, was a standout performer with sales orders more than doubling (+118% year-on-year) to $20.9 million. This surge was driven by strong demand for capital equipment following Philips’ exit from the market and successful adoption of the Somfit sleep monitoring platform. Asia Pacific also delivered significant growth, securing $24.4 million in new distribution agreements in China and booking all three MEG system orders for FY26, highlighting the region’s strategic importance.
Segment-wise, sleep diagnostics capital equipment revenue jumped 39% to $18.2 million, while SaaS platforms Somfit and Nexus 360 grew 40% to $6.0 million. These SaaS offerings are rapidly gaining traction, expected to represent about half of the Sleep segment’s revenue by FY27. Neurology capital equipment remained flat at $14.3 million, supported by steady demand for wireless EEG systems and brain research tools. The DWL blood flow diagnostics segment rebounded to $4.7 million, aided by improving conditions in China.
Strategic Positioning for FY26 and Beyond
Compumedics’ FY25 results reflect a deliberate shift towards higher-margin, recurring revenue streams anchored by SaaS and service contracts. The company’s gross margin improved significantly to 61%, driven by product mix and manufacturing efficiencies. Investments in U.S. sales infrastructure and product development, particularly for the MEG brain imaging systems and AI-enabled diagnostics, position Compumedics for accelerated growth and margin expansion in FY26.
While the net loss and increased financing costs present near-term challenges, the underlying operational momentum and expanding global footprint suggest a positive trajectory. The company’s ability to convert its strong sales order pipeline into revenue and manage costs will be critical to sustaining this growth.
Bottom Line?
Compumedics’ FY25 sets the stage for growth, but financing costs and execution risks remain key watchpoints.
Questions in the middle?
- How will Compumedics manage rising financing costs to return to profitability?
- What is the timeline and margin impact for delivering the $15 million MEG order backlog?
- Can SaaS revenue scale as projected to nearly 50% of Sleep segment sales by FY27?
