PolyNovo FY26 earnings: Record revenue and cash flow

The PolyNovo Ltd (ASX: PNV) share price is in focus today after the medical technology company reported record group revenue of $150 million for FY26, up 16.1%, alongside strong cash flow and expanding sales in the United States and globally.

What did PolyNovo report?

• Group revenue rose 16.1% to $150 million (20.3% growth at constant currency).
• Commercial sales climbed 16.7% to $138.4 million, with US commercial sales up 15.6% to $102.1 million.
• NovoSorb MTX commercial sales nearly doubled, up 89.6% over the year.
• Operating cash flow improved to $24.0 million, including $3.5 million from an insurance claim.
• Free cash flow turned positive at $10.4 million (from negative $10.1 million the previous year).
• Cash and cash equivalents stood at $35.4 million as at 30 June 2026.

What else do investors need to know?

PolyNovo completed construction of its new manufacturing facility this year, helping to increase production output and set the stage for expanded commercial opportunities. Only $1.5 million of the total capital expenditure is outstanding, relating to additional machinery planned for FY27.

The company is continuing to finalise its insurance claim following a fire at its R&D Innovation Centre in late 2025. PolyNovo has received $3.5 million in payments so far, with further amounts expected in the first half of FY27. The finalisation of EBITDA and NPAT figures is pending as full accounts are completed.

What did PolyNovo management say?

Bruce Peatey, Chief Executive Officer of PolyNovo, said:

We’re pleased to have finished the financial year strongly, with record sales recorded in the U.S. in June and manufacturing production output increasing significantly compared to H1, increasing gross margin and profitability for the year and therefore an improved cash position. The competitive environment in the U.S. continues to evolve following significant shifts to the reimbursement landscape, and additionally we’ve experienced seasonal decline to the presentation of major burns across many direct markets. However, the performance of our products is undisputed. The strategy employed to date, leveraging our strength in major trauma and burns to drive clinician confidence elsewhere, is succeeding, as we see total revenue associated with other complex wound indications growing at a faster rate than large burns.

What’s next for PolyNovo?

Looking ahead, PolyNovo says it is well placed to keep delivering sustainable growth into FY27, supported by expanded manufacturing capacity and further product catalysts. The company remains focused on the commercial launch of NovoSorb SynPath and capitalising on growing use of its MTX product.

Management also highlighted ongoing investment in its United States sales team, expanded market presence, and new leadership appointments, following a recently completed strategy review. PolyNovo will detail its full FY26 results and updated strategy in August 2026.

PolyNovo share price snapshot

Over the past 12 months, PolyNovo shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

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The post PolyNovo FY26 earnings: Record revenue and cash flow appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.