PolyNovo Reports 16% Revenue Increase to $150 Million as New Manufacturing Facility Nears Operational Status

US Market Expansion Fuels Record Commercial Sales

PolyNovo’s US commercial sales reached $102.1 million in FY26, representing 15.6% growth in reported currency and 21.1% on a constant currency basis. The company has significantly expanded its US sales team to over 100 frontline personnel, supported by specialised reimbursement experts and marketing resources. This commercial expansion underscores management’s confidence in the US market and commitment to deeper penetration across multiple wound care indications.

While major burns and large trauma remain core markets, revenue growth is accelerating faster in other complex wound segments compared to traditional large burns. CEO Bruce Peatey highlighted that despite evolving competition and seasonal declines in major burns presentations, leveraging strength in trauma and burns to build clinician confidence in other indications is successfully broadening the addressable market and reducing reliance on any single segment.

Accelerated Clinical Adoption Drives NovoSorb MTX Sales Growth

NovoSorb MTX sales soared 89.6% to $12.6 million in FY26 from $6.7 million in FY25 on a reported basis, with constant currency growth of 98.9%. This rapid increase reflects growing clinical adoption driven by peer-to-peer education and expanding clinical evidence. NovoSorb MTX is successfully penetrating new customer segments and indications, significantly contributing to overall revenue growth and highlighting the strength of PolyNovo’s product pipeline.

The company is preparing to commercially launch NovoSorb SynPath, targeting outpatient complex wound management. Management identifies this next-generation product as a key market expansion opportunity, given the outpatient segment’s substantial addressable market and distinct reimbursement and clinical workflows compared to inpatient trauma and burns, potentially opening new distribution channels and customer categories.

NovoSorb BTM Remains Core Revenue Contributor with Strong Clinical Support

NovoSorb BTM commercial sales reached $125.8 million in FY26, up 12.3% in reported currency and 16.4% on a constant currency basis, maintaining its position as PolyNovo’s primary revenue driver. The company bolstered the clinical evidence base with over 500 clinical articles and abstracts plus nine textbook chapters published in FY26 alone, reinforcing product credibility and market acceptance.

The sustained growth of NovoSorb BTM, alongside accelerating newer products like NovoSorb MTX and the upcoming NovoSorb SynPath launch, demonstrates the expanding clinical applications and patient reach of PolyNovo’s technology platform. The extensive clinical publications influence purchasing decisions across hospital networks and outpatient facilities, establishing NovoSorb BTM as the standard-of-care within clinician networks and laying a foundation for complementary product adoption.

Manufacturing Facility Construction Finalized; Validation in Progress

PolyNovo completed construction of its new manufacturing facility, with validation activities advancing as planned. Capital expenditure is nearly complete, with $1.5 million outstanding for additional machinery expected in H1 FY27. This milestone enhances operational capabilities, enabling increased production to support anticipated sales growth across the product portfolio.

The validation phase ensures compliance with regulatory, quality, and safety standards for medical device production. Upon completion, the facility will provide greater manufacturing flexibility and capacity, alleviating previous supply constraints and improving gross margins through higher-volume efficiencies. Management reported significant production increases in H2 FY26 versus H1 FY26, resulting in improved gross margin and profitability, demonstrating benefits of the expanded facility as it nears full operation.

Robust Operating and Free Cash Flow Reflect Financial Strength

Operating cash flow rose sharply 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 fire. Excluding this one-off recovery, the cash flow improvement reflects stronger operational performance, better working capital management, and cash conversion from growing revenues. Free cash flow improved to $10.4 million from a negative $10.1 million in FY25, a 203% increase, highlighting the company’s shift to a cash-generative model.

Cash and equivalents increased to $35.4 million at 30 June 2026 from $33.5 million a year earlier, despite ongoing capital investments. Strong cash generation provides financial flexibility for working capital, product development, US sales expansion, and strategic initiatives. Completion of major capital expenditure positions PolyNovo for continued cash accumulation in FY27 if current revenue and profitability trends persist.

Insurance Recovery Advances After November 2025 R&D Facility Fire

Following the November 2025 fire at PolyNovo’s standalone R&D Innovation Centre, the company received indemnity confirmation from insurers as announced on 12 February 2026. To date, $3.5 million in progress payments have been received and included in FY26 operating cash flow. Further insurance payments are expected in H1 FY27 as the claim progresses. PolyNovo continues to collaborate with insurers to finalize the claim and recover costs for rebuilding and restoring the R&D facility.

The insurance recovery provides vital financial support for reconstruction and demonstrates adequate coverage for this operational disruption. The R&D Innovation Centre is critical to PolyNovo’s product development and innovation pipeline. Details on total claim value and recovery timeline will be disclosed in the full financial results on 26 August 2026.

International Sales Growth Accelerates Global Market Penetration

Rest of World commercial sales grew 20.0% to $36.3 million in FY26 on a reported basis and 21.9% on a constant currency basis, outpacing US growth. PolyNovo’s international operations in the UK, India, Hong Kong, and Singapore, along with distributor partnerships in additional markets, are gaining momentum and expanding geographic reach.

This international expansion indicates broader clinical adoption beyond the US, with healthcare systems worldwide recognizing the value of PolyNovo’s wound care solutions. As manufacturing capacity expands and clinical evidence grows, international markets represent a significant long-term growth opportunity. Geographic diversification reduces reliance on any single market and offers multiple growth pathways as the company matures.

Executive Leadership Strengthened Ahead of FY27 Growth Phase

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

CEO Bruce Peatey expressed optimism, stating, "With expanded manufacturing capacity, new commercial opportunities, and product catalysts ahead, we believe the Company enters FY27 well positioned to continue delivering sustainable growth." The combination of completed facility investments, expanded US sales force, accelerating adoption of products like NovoSorb MTX, the upcoming NovoSorb SynPath launch, and strengthened leadership creates a strong platform for revenue and profitability growth, transitioning from heavy capital investment to revenue realization.

Full FY26 Financial Results and Profitability Metrics Due 26 August 2026

PolyNovo is finalizing year-end financial close, with EBITDA and NPAT figures not yet finalized. The company plans to release full FY26 financial results and a comprehensive strategy update to the ASX on 26 August 2026. The announcement will detail profitability metrics, financial position, and management’s outlook for the new fiscal year.

Investors will focus on gross margin trends, operating expenses relative to revenue growth, and commentary on competitive and reimbursement environments. The results will clarify the impact of increased US sales investment, manufacturing transition costs, and contributions from newer products. PolyNovo has introduced constant currency reporting to better reflect underlying performance by excluding foreign exchange effects and plans to continue this approach.