Nova Eye Medical’s $9.1M Loss Raises Questions on Path to Profitability
Nova Eye Medical Limited reported a 25% increase in revenue to AUD 29.3 million for FY2025, driven by strong sales in its glaucoma surgical devices segment, yet posted a net loss after tax of AUD 9.1 million. The company raised AUD 6.2 million through a share placement to support growth initiatives.
- 25% revenue growth to AUD 29.3 million in FY2025
- Net loss after tax widened slightly to AUD 9.1 million
- EBITDA improved in second half due to manufacturing and margin gains
- Raised AUD 6.2 million via share placement in early 2025
- AlphaRET segment progressing but no material revenue generated
Revenue Growth Amidst Losses
Nova Eye Medical Limited has delivered a notable 25% increase in revenue for the financial year ended 30 June 2025, reaching AUD 29.3 million. This growth was primarily fueled by robust sales of its glaucoma surgical devices, particularly in the United States, which remains the company’s largest market. Despite this top-line improvement, the company reported a net loss after tax of AUD 9.1 million, a slight increase from the previous year’s AUD 8.8 million loss.
Operational Performance and EBITDA Recovery
The operating loss includes non-cash charges such as inventory provisions, depreciation, and amortisation totaling AUD 3.4 million, alongside interest expenses of AUD 74,000. Notably, the company’s EBITDA showed a marked improvement in the second half of the year, narrowing the loss to AUD 1.3 million compared to AUD 4.2 million in the first half. This turnaround was attributed to manufacturing improvements and enhanced gross margins, signaling operational progress despite ongoing challenges.
AlphaRET Segment and Future Prospects
The AlphaRET segment, responsible for commercialising the proprietary 2RT® ophthalmic laser technology aimed at treating retinal diseases such as age-related macular degeneration, did not generate material revenue during the year. The company continues to focus on servicing its existing customer base and engaging potential funding partners, with the technology holding promise to disrupt current treatment paradigms if successfully commercialised.
Capital Raising and Financial Position
In February 2025, Nova Eye Medical completed a share placement raising net proceeds of AUD 6.2 million at 12 cents per share. These funds are earmarked to support sales and marketing expansion, particularly in the glaucoma surgical devices business. At year-end, the company held AUD 5.1 million in cash and reported net assets of AUD 19.0 million, down from AUD 21.3 million the prior year, reflecting the ongoing investment in growth and development.
Risks and Governance
The company acknowledges several business risks, including foreign exchange volatility due to significant USD cash flows, supply chain disruptions, regulatory compliance challenges; especially with the US FDA; and potential changes in healthcare reimbursement policies. Nova Eye Medical maintains a strong governance framework, with an experienced board and executive team committed to navigating these risks while advancing its strategic objectives.
Bottom Line?
Nova Eye Medical’s FY2025 results highlight growth potential tempered by ongoing losses and execution risks, setting the stage for a critical period of operational and commercial progress.
Questions in the middle?
- When will AlphaRET’s 2RT® laser technology begin generating significant revenue?
- Can Nova Eye sustain improved margins and reduce losses in the coming fiscal year?
- How will foreign exchange and regulatory risks impact future profitability?
