SomnoMed Limited (ASX:SOM) FY25 Guidance Update and Q2 Report
Financial Performance
SomnoMed Limited (ASX:SOM) announced a quarterly revenue of $28.5 million for Q2 FY25, reflecting a 19.8% increase compared to the previous corresponding period. The company’s cash balance as of 31 December 2024 rose to $18.5 million, contributing to a net cash position of $17.5 million after accounting for government-backed loan facilities.
Updated FY25 Guidance
The company updated its FY25 guidance to approximately $105 million in revenue, an EBITDA of between $7 million and $9 million, and a capital expenditure budget of $3 million to $4 million. This revision considers strong first-half growth due to improving production turnaround times and robust overall demand. However, management anticipates a potential slowdown in growth in the latter quarters as the order backlog is cleared.
Operational Highlights
Revenue growth was notable across all geographic regions, particularly in North America, which posted strong results in December 2024. SomnoMed is actively working with a manufacturing consultancy to enhance production capacity and operational efficiency.
Product Development and Appointments
The company received FDA clearance for its Rest Assure® device, marking it as the first oral device with in-built compliance monitoring. Plans for a clinical trial in the US are underway to support an FDA 510k submission. Additionally, Andrew Price was appointed as a Director, bringing over 25 years of experience in the medical devices sector, including senior roles at ResMed.
Related Party Payments
During the quarter, cash outgoings included $0.3 million in payments related to co-CEO salaries and non-executive directors’ fees.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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