PolyNovo Achieves 16% Revenue Increase to $150M as New Manufacturing Plant Nears Operational Status

U.S. Market Expansion Fuels Record Commercial Sales Growth

PolyNovo's U.S. commercial sales reached $102.1 million in FY26, reflecting a 15.6% increase in reported currency and a 21.1% rise on a constant currency basis. The company has significantly expanded its U.S. sales team to over 100 frontline personnel, supported by specialised reimbursement experts and enhanced marketing resources. This commercial infrastructure growth underscores management's confidence in the U.S. market potential and commitment to deeper penetration across various wound care indications.

While major burns and large trauma remain core markets, revenue growth is accelerating faster in other complex wound categories than in traditional large burns applications. CEO Bruce Peatey noted ongoing shifts in the U.S. reimbursement environment and seasonal declines in major burns cases across several direct markets. Nonetheless, leveraging its strength in major trauma and burns to build clinician confidence in additional indications is successfully expanding the addressable market and reducing reliance on any single segment.

NovoSorb MTX Shows Rapid Clinical Uptake and Revenue Expansion

NovoSorb MTX sales surged 89.6% to $12.6 million in FY26 from $6.7 million in FY25 on a reported currency basis, with constant currency growth of 98.9%. This significant year-over-year increase reflects accelerating clinical adoption driven by growing clinician awareness through peer education and expanding clinical evidence. The swift market penetration of NovoSorb MTX into new customer segments and indications is a key contributor to overall revenue growth and showcases the strength of PolyNovo's product pipeline.

The company is preparing to commercially launch NovoSorb SynPath, targeting the outpatient complex wound management segment. Management highlights this next-generation product as a critical market expansion opportunity, with the outpatient sector identified as a strategic focus for future growth. This segment presents distinct reimbursement dynamics and clinical workflows compared to inpatient trauma and burns care, potentially unlocking new distribution channels and customer bases for PolyNovo's technology.

NovoSorb BTM Remains Primary Revenue Driver Backed by Extensive Clinical Evidence

NovoSorb BTM commercial sales reached $125.8 million in FY26, up 12.3% in reported currency and 16.4% on a constant currency basis, solidifying its position as PolyNovo's core product and main revenue source. The company has bolstered the clinical evidence supporting NovoSorb BTM, publishing over 500 clinical articles and abstracts alongside nine textbook chapters in FY26 alone. This prolific clinical publication activity enhances product credibility, market acceptance, and clinician awareness, influencing treatment decisions across multiple regions.

The consistent growth in NovoSorb BTM sales, combined with the rapid adoption of newer products like NovoSorb MTX and the upcoming NovoSorb SynPath launch, demonstrates the company's expanding reach into new clinical applications and patient populations. The extensive clinical evidence and educational content help shape purchasing decisions among hospitals and outpatient facilities, establishing NovoSorb BTM as a standard-of-care choice within its clinician network. This leadership position lays the groundwork for the successful introduction of complementary products targeting adjacent markets.

New Manufacturing Facility Construction Finalised; Validation in Progress

PolyNovo has completed building its new manufacturing facility, with validation activities proceeding according to plan. Capital expenditures are nearly finalised, with $1.5 million outstanding for additional machinery expected in the first half of FY27. The facility completion marks a major operational milestone, enabling increased production capacity to support anticipated sales growth across PolyNovo's portfolio.

The validation phase is essential to ensure compliance with regulatory, quality, and safety standards for medical device production. Upon completion, the facility will offer greater manufacturing flexibility and capacity, alleviating previous supply constraints and enhancing gross margins through higher-volume efficiencies. Management reported a significant boost in production output during the second half of FY26 compared to the first half, resulting in improved gross margin and profitability, highlighting the tangible benefits of the expanded facility as it nears full operational status.

Robust Operating and Free Cash Flow Signals Strong Financial Health

Operating cash flow soared to $24.0 million in FY26 from $3.1 million in FY25, a 674.2% increase. This includes $3.5 million from an insurance claim related to the R&D lab, as previously disclosed. Excluding this one-off recovery, the cash flow improvement reflects genuine operational gains through higher profitability, better working capital management, and cash generation from growing revenues. Free cash flow improved to $10.4 million from a negative $10.1 million in FY25, a 203% rise underscoring the company’s shift to a cash-generative model.

Cash and cash equivalents increased to $35.4 million as of 30 June 2026, up from $33.5 million a year earlier, despite ongoing capital investments in the new manufacturing plant. This strong cash position provides financial flexibility to support working capital, product development, the expanded U.S. sales team, and strategic initiatives. The combination of improved cash flows and completed major capital expenditures positions PolyNovo for continued cash accumulation in FY27, assuming stable revenue and profitability trends.

Insurance Claim Advances Following November 2025 R&D Facility Fire

After a fire at PolyNovo’s standalone R&D Innovation Centre in November 2025, the company received indemnity confirmation from insurers, announced on 12 February 2026. To date, $3.5 million in progress payments have been received and included in FY26 operating cash flow. Additional insurance payments are expected in the first half of FY27 as the claim moves toward resolution. PolyNovo continues to collaborate with insurers to finalise the claim and recover remaining costs related to rebuilding and restoring the R&D facility.

This insurance recovery provides vital financial support for reconstruction and confirms adequate coverage for this significant operational disruption. The R&D Innovation Centre is crucial for PolyNovo’s product development and innovation pipeline, and its restoration is essential to maintaining ongoing product advancement. Details on the total claim value and recovery timeline will be disclosed in the full financial results announcement scheduled for 26 August 2026.

International Sales Growth Accelerates Global Market Expansion

Rest of World commercial sales increased to $36.3 million in FY26, representing 20.0% growth on a reported currency basis and 21.9% on a constant currency basis. This international growth outpaces U.S. growth on a constant currency basis, reflecting momentum in PolyNovo’s distribution networks and direct operations in the UK, India, Hong Kong, and Singapore. Distributor partnerships extend the company’s reach beyond direct markets, creating diverse pathways for global expansion.

The accelerating international revenue growth indicates broader clinical adoption outside the U.S., with healthcare systems worldwide recognising the value of PolyNovo’s wound care solutions. As manufacturing capacity expands and clinical evidence grows through publications and peer education, international markets represent a significant long-term growth avenue. Geographic diversification reduces reliance on any single market and supports multiple growth trajectories as the company matures and penetrates new regions.

Executive Leadership Strengthened to Support FY27 Growth Strategy

PolyNovo’s Board has completed several key executive appointments, with Chair Leon Hoare expressing satisfaction with the new leadership additions. A recent strategy review identified multiple growth opportunities, positioning FY27 as a pivotal year. These leadership enhancements aim to bolster expertise to support expansion into new markets, products, and customer segments during this growth phase.

CEO Bruce Peatey conveyed optimism about the outlook, stating, "With expanded manufacturing capacity, new commercial opportunities, and upcoming product catalysts, we believe the Company enters FY27 well positioned to sustain growth." The combination of completed manufacturing investments, an expanded U.S. sales force, accelerating adoption of products like NovoSorb MTX, the imminent launch of NovoSorb SynPath, and strengthened leadership forms a robust foundation for continued revenue and profitability gains. This signals a transition from heavy capital investment toward leveraging expanded capacity and portfolio breadth for incremental revenue growth.

Full FY26 Financial Results and Profitability Metrics to be Released 26 August 2026

PolyNovo is finalising year-end financial close processes, with EBITDA and net profit after tax (NPAT) figures not yet confirmed. The company plans to release comprehensive FY26 financial results along with a detailed review of key initiatives and FY27 strategy to the ASX on 26 August 2026. This announcement will include profitability data, detailed financial statements, and management’s outlook for the new financial year.

Investors will closely monitor the results for gross margin trends, operating expenses relative to revenue growth, and commentary on competitive and reimbursement environments. The release will clarify the financial impact of increased U.S. sales investments, manufacturing facility transition costs, and contributions from newer products to overall profitability. PolyNovo has adopted constant currency reporting to provide clearer insight into underlying performance by excluding foreign exchange effects and intends to maintain this approach going forward.