Compumedics’ Rapid US Growth and MEG Expansion Pose Execution Challenges Ahead

Record Growth Driven by US and SaaS Momentum

Compumedics Limited (ASX – CMP), a global medical device innovator, has delivered a standout FY25 performance with record sales orders of $63.4 million, marking a 22% increase over the previous year. Revenues also rose modestly to $51.0 million, supported by a significant expansion in gross margin from 52% to 61%, reflecting a favorable product mix and operational efficiencies.

The company’s growth story is anchored by its expanding footprint in the United States, where sales orders surged 118% to $20.9 million. This surge underscores the success of Compumedics’ dedicated US sales team and the accelerating adoption of its Somfit and Nexus 360 SaaS platforms, which now represent 11% of total revenue and are poised to reach approximately half of the Sleep segment revenue by FY27.

Strategic Investments and Market Expansion

Compumedics is investing heavily in the US market, preparing for the FY26 launch of Somfit-D, a disposable home sleep testing device designed to capture pharmacy, clinical, and home testing markets. This product launch is expected to further accelerate recurring revenue streams and deepen market penetration.

Meanwhile, the company’s Magnetoencephalography (MEG) business has made significant inroads in China, securing $20 million in initial orders and successfully installing systems at Tianjin Normal University. With a structured FY26 launch program underway for the US, MEG is positioned to expand into broader clinical and research applications, including pediatric markets, which could substantially increase the global addressable market.

Diversified Revenue Streams and Profitability Gains

Compumedics’ revenue mix is shifting towards higher-margin recurring streams, with SaaS and consumables contributing 26% of total revenue in FY25. The company also reported a 9% increase in EBITDA to $2.9 million, driven by gross margin expansion and disciplined cost control despite ongoing investments in growth initiatives.

Geographically, the company maintains strong positions across Asia Pacific, Europe, and the Middle East, supported by multi-year distribution agreements and partnerships, including a notable $3 million per annum five-year contract with Philips Australia for a pharmacy-based home sleep testing program.

Ambitious Outlook for FY26

Looking ahead, Compumedics has set ambitious FY26 guidance, targeting sales orders exceeding $75 million, revenues above $70 million (a 37% increase year-on-year), and EBITDA of $9 million with a 13% margin. Growth drivers include the global expansion of Somfit and Nexus 360 SaaS platforms, execution of the MEG backlog, relaunch of the Ez-Dop ultrasonic blood flow device, and advancement of the robotic transcranial Doppler platform.

This outlook reflects the company’s commitment to building a scalable global platform in sleep, neuro, and brain health diagnostics, leveraging innovation and recurring revenue models to capture market share in the largest health markets worldwide.