SomnoMed Appoints Karen Borg as Sole CEO and Unveils Virtus Oral Appliance for Sleep Bruxism and OSA

Karen Borg Becomes Sole CEO Following Amrita Blickstead’s Exit

On 27 July 2026, SomnoMed appointed Karen Borg as sole Chief Executive Officer, taking full charge of global operations after Amrita Blickstead stepped down as Co-CEO. Blickstead served alongside Borg since February 2024 and had a total tenure of six years at SomnoMed, including 3.5 years as a Non-Executive Director before her executive role. SomnoMed Chair Guy Russo credited Blickstead with significant contributions to company transformation, financial improvements, senior management development, enhanced customer satisfaction through faster product delivery, and increased manufacturing capacity. Under their leadership, SomnoMed treated over 1 million patients in more than 20 countries. Borg, previously instrumental in driving North American growth via direct regional engagement, is expected to focus on strengthening customer relationships in European markets as sole CEO. The Board expressed strong confidence in Borg’s leadership and the company’s strategic direction.

FY26 Revenue Misses Guidance Amid European Market and Currency Challenges

SomnoMed’s preliminary unaudited FY26 results show revenues of $114–$115 million, falling short of the prior guidance range of $119–$126 million. This shortfall was primarily due to two factors: changes in public reimbursement policies and clinical eligibility criteria in European markets, alongside shifts in patient referral pathways between sleep clinics and dental/community providers, which slowed patient access to oral appliance therapies. Additionally, currency headwinds played a major role, with the Australian dollar appreciating approximately 600 basis points against the euro and US dollar in H2 FY26 compared to the previous year. Since about 95% of SomnoMed’s revenue is generated in non-AUD currencies, these fluctuations significantly impacted reported figures. On a constant currency basis, second-half FY26 revenue growth would have been roughly 6 percentage points higher, indicating underlying operational strength. Despite revenue pressures, SomnoMed achieved double-digit EBITDA growth, with EBITDA expected near the midpoint of the $10–$12 million guidance range, reflecting disciplined cost and capital management.

Virtus Launch Addresses Combined Sleep Bruxism and OSA Market

SomnoMed has initiated a controlled global release of Virtus across North America, Europe, and Asia-Pacific. Virtus is a purpose-built oral appliance designed specifically for patients with obstructive sleep apnea who also experience sleep bruxism—a condition involving teeth grinding or clenching during sleep. Clinical research from 2023 involving 914 adults with OSA found that about 50% also suffer from sleep bruxism, highlighting a significant unmet need within this patient population. Virtus is engineered for enhanced strength and durability to withstand the mechanical forces of bruxism while maintaining patient comfort and ease of use. Early clinician feedback during the controlled launch confirms substantial clinical demand and commercial potential for this specialized therapy. By introducing Virtus, SomnoMed aims to reinforce its competitive position in this underserved segment and strengthen its innovation platform. The SomnoMed brand currently serves over 1 million patients globally, providing a strong foundation for expanding market reach through this new product.

European Market Recovery Strategy Focuses on Direct Engagement and Adaptation

To counteract European market headwinds—including revised reimbursement and referral pathways—SomnoMed has implemented targeted initiatives aimed at accelerating growth recovery in the region. A key element involves direct customer engagement, with CEO Karen Borg spending over a month in key European markets during FY26, replicating the successful hands-on approach used in North America. The company recognises that structural market shifts require proactive relationship management rather than passive acceptance. Borg plans to continue prioritizing European market engagement throughout FY27, underscoring the region’s strategic importance. Management notes that although patient access slowed in H2 FY26, underlying clinical demand and market fundamentals remain strong. The combination of focused commercial activities, stakeholder engagement, and the Virtus product launch positions SomnoMed to regain growth momentum in Europe during the next fiscal year.

FY27 Outlook Projects High Single-Digit Revenue Growth and Stable EBITDA Margins

SomnoMed’s FY27 guidance targets high single-digit revenue growth with EBITDA margins maintained at FY26 levels. Full financial guidance, including detailed EBITDA targets, will be provided alongside FY26 year-end results expected around 28 August 2026. This conservative outlook reflects management’s cautious stance on the timing of European market recovery and ongoing currency exposure. Maintaining EBITDA margins signals confidence in operational efficiencies and disciplined cost management achieved during FY26, which supported double-digit EBITDA growth despite revenue challenges. The company expects to leverage expanded manufacturing capacity and operational improvements to sustain profitability as revenue grows. The combination of European market recovery, Virtus commercialisation, and continued North American performance underpins this modest top-line growth expectation. Investors should anticipate more detailed guidance with the audited FY26 results.

Greg Knight Elevated to Chief Operating Officer with Expanded Responsibilities

Effective 27 July 2026, Greg Knight was promoted from Chief Transformation Officer to Chief Operating Officer, assuming broader responsibilities including manufacturing, regulatory affairs, quality assurance, research and development, and strategic planning. Knight brings over 20 years of global medical device experience, including senior leadership roles at ResMed, a leading respiratory and digital health device manufacturer. His promotion formalises operational leadership within SomnoMed’s executive team and reflects confidence in his ability to drive operational excellence and manufacturing efficiency. Knight’s expanded role complements CEO Karen Borg’s focus on commercial growth and market recovery, dividing executive responsibilities between operational execution and commercial expansion. His expertise supports the company’s manufacturing scale-up, Virtus rollout, and regulatory compliance across multiple regions.

SomnoMed’s Market Leadership and Competitive Strengths in Oral Appliance Therapy

SomnoMed is a leading provider of oral appliance therapies for sleep-related breathing disorders such as obstructive sleep apnea, snoring, and bruxism. Its core offering is a non-invasive oral appliance treatment that is clinically proven and widely adopted. The SomnoMed product line has treated over 1 million patients in more than 20 countries. The company’s revenue model is based on designing, manufacturing, and distributing customised oral appliances, with about 95% of sales denominated in non-Australian dollar currencies, highlighting its strong international presence. SomnoMed’s competitive advantages include extensive clinical research validating product safety and effectiveness, ongoing innovation addressing unmet clinical needs (exemplified by Virtus), adherence to rigorous manufacturing and regulatory standards, and established partnerships with dental and sleep medicine professionals globally. The transition to sole CEO leadership under Karen Borg, alongside Greg Knight’s expanded operational role, signals a commitment to sustaining these advantages through focused commercial and operational execution. The milestone of serving over 1 million patients globally underscores SomnoMed’s solid market acceptance and provides a platform for further growth and product penetration.

Strong Balance Sheet Supports Growth and Strategic Initiatives

Entering FY27, SomnoMed maintains a strong balance sheet with $17.2 million in cash and a net cash position of $16.8 million after liabilities. This financial strength offers capital flexibility to invest in growth initiatives, support Virtus commercialisation, expand manufacturing capacity, and navigate market challenges. Maintaining a positive net cash position amid revenue pressures and European headwinds reflects disciplined financial management and capital efficiency. The enhanced product pipeline, highlighted by Virtus, combined with expanded manufacturing capabilities developed in FY26, positions SomnoMed to capture incremental market opportunities as European conditions stabilise and new product adoption accelerates. The solid balance sheet, experienced operational leadership, and focus on high-margin EBITDA growth underpin management’s strategy to restore European growth while maintaining profitability. Investors should monitor cash deployment during FY27, particularly regarding investments in Virtus commercialisation, manufacturing utilisation, and working capital management.