Shares in PolyNovo Ltd (ASX: PNV) are pushing higher on Friday after the medical device company released its half-year results.
In mid-afternoon trade, the PolyNovo share price is up 2.99% to $1.035. Despite today's gain, the stock remains down around 15% so far in 2026.
Here's what the company reported for the 6 months ended 31 December 2025.
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Sales growth led by US and MTX uptake
PolyNovo delivered group sales of $68.2 million for the half, up 26% on the prior corresponding period.
US sales rose 25.3% to $51.7 million, continuing to represent the bulk of revenue. The company added 95 new hospitals during the period, taking its US footprint to more than 800 hospitals.
Rest-of-world sales increased 28.3% to $16.5 million. Growth was recorded across several markets, including Australia, Canada, India, Germany, and Turkey.
NovoSorb MTX, the company's newer product targeting soft tissue reconstruction, recorded group sales of $6.2 million. That represents a growth of 195% compared to the prior year, from a lower base.
Total revenue came in at $75 million, up 25.2% year on year.
Of that, $68.2 million was commercial product sales, while BARDA revenue contributed $2 million during the half. BARDA income was lower than the prior year following the completion of the US pivotal trial for full-thickness burns.
Profit impacted by lower trial revenue
Net profit after tax (NPAT) fell sharply to $0.05 million, down from $3.3 million in the prior corresponding period. The decline reflects lower BARDA revenue and ongoing investment in growth initiatives.
On an adjusted basis, EBITDA came in at $4.7 million, up 82% year on year. Management said underlying operating performance improved despite the reduction in trial-related income.
Operating cash flow was positive at $9 million, compared to an outflow in the prior year. The company ended the half with $29.2 million in cash and cash equivalents.
Capital expenditure for the period totalled $10.8 million, largely related to the completion of a new manufacturing facility in Port Melbourne. Construction of the facility has now been finalised.
Strategic updates and leadership changes
During the half, Bruce Peatey commenced as Chief Executive Officer from 1 December 2025. Amy Demediuk was also appointed company Secretary and General Counsel.
PolyNovo said it remains on track to submit a premarket approval application to the US Food and Drug Administration (FDA) for NovoSorb BTM in full-thickness burns in FY26.
Management highlighted continued investment in its NovoSorb technology platform and geographic expansion, particularly in China and Japan.
Foolish Takeaway
PolyNovo's commercial business continues to grow at a solid rate, led by strength in the US. NovoSorb MTX sales are rising quickly from a smaller base, indicating early progress in newer applications.
Statutory profit was significantly lower due to reduced BARDA revenue compared to the prior period. This highlights how trial-related income previously supported reported earnings.
The share price remains below levels seen earlier this year, even after today's rebound. The focus now shifts to sustaining commercial growth and converting that momentum into consistent profitability in the second half of FY26.
