Somnomed Ltd Ord

Good morning, everybody, and welcome to Somnomet's presentation for the first half of FY26. With me today are Karen Bork and Amrita Blixid, co-CEOs of Somnomet, and Yefei Goh, CFO at Somnomet, who will take you through the results presentation, which was launched with the ASX this morning. Just a bit of housekeeping before we kick off. Today's webinar is being recorded, including the Q&A, and we will post this on Somnimate's website following the completion of the webinar. We invite research analysts to ask questions at the end of the presentation, and you can either do so via the online Q&A function or raise your hand and we will take you off mute so you can ask your question that way. And with that, I will now hand it over to you.

Thank you. Let's begin with our first half results. The first half of FY26 represents a period of disciplined execution and continued growth across our core markets. We delivered a record half-year revenue of $60.7 million, up 13% on the prior corresponding period, reflecting sustained demand across Europe and North America and solid performance overall. EBITDA increased 35% year-on-year to $7.8 million, reflecting a combination of improving operating leverage and the timing of certain operational and personnel investments weighted towards the second half. We generated positive operating cash flow of 2.5 million after lease payments. Free cash flow was negative 0.9 million, reflecting planned investment of 3.4 million in capital expenditure, primarily in manufacturing expansion and R&D. These investments position us to support future growth while improving service levels and operational flexibility. We closed the half with a strong cash balance of $18 million, providing flexibility to fund our investment program while maintaining capital discipline. Overall, first half FY26 reflects improved earnings quality and disciplined capital allocation. We are growing responsibly, investing deliberately and maintaining a strong cash position. This positions us well to execute confidently in the second half of the year. Before I hand it over to Yifei to discuss the financials, I want to briefly highlight the opportunity that continues to drive our strategy. Somnamed operates in a large and under-penetrated global market, with more than 900 million individuals estimated to suffer from obstructive sleep apnea. This scale creates a significant long-term growth opportunity. Our vision is a world where oral appliance therapy becomes the standard of care for sleep apnea treatment. As the global leader in oral appliance therapy, our mission is to set the standard for outcomes, innovation and patient experience, helping to drive transformation of sleep medicine worldwide. We continue to see supportive structural tailwinds, including increasing consumer awareness of sleep being a critical part of good health, ongoing demand for alternatives to CPAP, and continued clinical adoption of oral appliance therapy. Innovation remains part of our long term strategy, including the development of technology enabled solutions such as Rest Assure. With a large global population affected by obstructive sleep apnea and Somnamed's established leadership in oral appliance therapy, the company remains focused on disciplined execution and positioning the business for sustainable growth. I will now hand over to Yifei to go through the financials in more detail.

Thank you Karen and good morning everyone. It is my pleasure to take you through our half year FY26 financial performance. We delivered half year FY26 revenue of $60.7 million representing 13% growth on a reported basis and 8% in constant currency. Growth was driven by continued strength in our largest markets across both Europe and North America. Importantly, unit sales growth in the half exceeded the first half of FY25 levels, noting that the prior period had benefited from backlog clearance. From an earnings perspective, we generated EBITDA of $7.8 million up from $5.8 million in the prior corresponding period. EBITDA margin improved from 11% to 13%. The margin expansion was driven by a combination of improving operating leverage and the timing of certain operational and personnel investments being weighted towards the second half. Given this, we continue to expect full-year EBITDA to be within the guidance range of 10 to 12 million. Capital expenditure for the half was $3.4 million compared to $1.4 million in half one of FY25, reflecting the investment in manufacturing equipment to support capacity expansion and product development. Regional performance reflected continued demand across our key markets. Europe remains our largest region, representing 54% of group revenue and growing 17% over the period supported by reimbursement across most Western European jurisdictions. North America contributed over 40% of group revenue, reflecting sustained demand and increased contribution relative to prior years. The region was up 11% compared to half one FY25. APAC represents approximately 6% of revenue with moderated performance during the half, down 4%, largely driven by increased competition and broader economic headwinds. In the first half, we delivered strong earnings growth supported by revenue expansion and continued cost discipline. Gross margins remained broadly stable at 61.3% compared to 61.6% in the previous corresponding period, demonstrating consistent product economics. Operating leverage continues to improve as we scale revenue across a largely fixed cost base. Importantly, we achieved NPAT profitability in the half, marking a milestone in our earnings progression. As mentioned, certain operational and personnel investments awaited more towards the second half of the year, consistent with our full year planning. And overall, the first half demonstrates improved earnings quality, stable margins and scalability of the core business. Turning to the balance sheet, we closed the half with cash and cash equivalents of $18 million compared to $17.3 million in 30 June 2025. Total assets were 79.9 million and net assets increased to 50 million up from 46.4 million at year end, reflecting earnings improvement and the employee share trust transaction conducted during the period. Borrowings remained minimal at 0.7 million, relating primarily to European government-backed facilities and lease liabilities, reduced to 5.9 million from 7.2 million as of 30 June 2025. Overall, the balance sheet remains well positioned to support continued manufacturing expansion and investment in innovation whilst maintaining financial discipline. From a cash flow perspective, the company delivered positive operating cash flow of $4.1 million before leases and $2.5 million after lease payments which is broadly consistent with the previous corresponding period. Free cash flow was negative 0.9 million compared to positive 1.3 million in the half one of FY25, reflecting increased capital expenditure, primarily related to manufacturing infrastructure and product development initiatives. Capital expenditure totaled 3.4 million up from 1.4 million in half one of FY25. These investments are aligned with our longer term growth priorities, supporting capacity expansion and product development. Overall, we are balancing growth investment with continued operating cash generation and financial discipline. I will now hand over to Amrita for the operational update.