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Nanosonics Limited (AU:NAN)
ASX:NAN
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Nanosonics Limited (NAN) AI Stock Analysis

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AU:NAN

Nanosonics Limited

(Sydney:NAN)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
AU$3.00
▲(0.67% Upside)
Action:Reiterated
Date:02/25/26
The score is driven primarily by strong financial performance (high margins, improving profitability, and a low-leverage balance sheet) and a constructive earnings update with reaffirmed guidance and operating leverage. Offsetting these positives are weak technicals (broad downtrend with negative momentum) and a high P/E valuation without dividend support.
Positive Factors
High gross and net margins
Sustained high gross margins (≈78%) and improving net margin (~10%) reflect durable pricing power and a premium consumables business. High margins on consumables underpin cash generation and reinvestment capacity, providing resilience to cost shocks and supporting long-term profitability.
Negative Factors
Gross margin moderation
Margin erosion from tariffs, higher airfreight and adverse mix is structural risk if trade costs or ASP mix persist. Even modest compression from these factors reduces the margin cushion on consumables and capital sales, forcing pricing actions or efficiency gains to maintain profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and net margins
Sustained high gross margins (≈78%) and improving net margin (~10%) reflect durable pricing power and a premium consumables business. High margins on consumables underpin cash generation and reinvestment capacity, providing resilience to cost shocks and supporting long-term profitability.
Read all positive factors

Nanosonics Limited (NAN) vs. iShares MSCI Australia ETF (EWA)

Nanosonics Limited Business Overview & Revenue Model

Company Description
Nanosonics Limited, along with its subsidiaries, functions as a global infection prevention enterprise with operations in Australia and beyond. The company focuses on the production and distribution of its trophon ultrasound probe disinfection sys...
How the Company Makes Money
Nanosonics makes money primarily by selling its trophon ultrasound probe disinfection ecosystem and then earning recurring revenue from ongoing use. Revenue is generated through: (1) Capital equipment sales: one-off sales of trophon disinfection u...

Nanosonics Limited Earnings Call Summary

Earnings Call Date:Feb 23, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call presented a substantially positive operational and financial picture: revenue and recurring revenue grew ~9% YoY, operating margin expanded materially (27%) with tight OpEx control, installed base and installations (20%) increased, and CORIS reached important regulatory and controlled release milestones. Headwinds cited were mostly external or transitional — FX volatility caused reported EBIT/PBT to dip slightly, gross margins were modestly compressed by tariffs, airfreight and product mix, and CORIS commercialization is driving incremental OpEx and near-term inventory investment. Overall, the company reaffirmed FY26 guidance (8–12% revenue growth at constant currency) and conveyed clear execution plans and balance-sheet strength, leaving the balance of information as net positive.
Positive Updates
Revenue Growth
Total revenue of $102.2M for H1 FY26, up 9% year-over-year (8% in constant currency), driven by both recurring and capital streams.
Negative Updates
Gross Margin Moderation
Gross profit margin moderated to 76.3% for the half (down ~2.2 percentage points YoY), driven by U.S. tariffs, increased air freight costs and product mix impacts from capital/upgrades.
Read all updates
Q2-2026 Updates
Negative
Revenue Growth
Total revenue of $102.2M for H1 FY26, up 9% year-over-year (8% in constant currency), driven by both recurring and capital streams.
Read all positive updates
Company Guidance
Nanosonics reaffirmed its FY26 guidance at constant currency, targeting revenue growth of 8–12% (H1 revenue $102.2m, +9% reported / +8% CC) with continued half‑on‑half capital unit growth and ongoing recurring revenue expansion; gross margin guidance is 75–77% (H1 gross margin 76.3%, gross profit ≈$78m), and the outlook assumes tariff rates remain at H1 levels and the August FX hedge rate (USD 0.65) — management noted an H2 AUD/USD of ~0.70 (after hedging) would reduce the revenue range by ~3%. OpEx discipline will continue (H1 OpEx +4% to $69.5m) while investing in priorities, supporting operating margin expansion (H1 operating margin +27% to $8.5m; EBIT $8.4m, -3% reported / +15% CC). The company remains debt‑free with cash $159.8m, modest H1 cash outflow ~$1.4m and ~$4m of buybacks executed, and expects CORIS commercialization activity to ramp into FY27.

Nanosonics Limited Financial Statement Overview

Summary
Strong fundamentals overall: solid revenue growth (8.13%) with very high gross margin (78.25%) and improved net margin (10.39%). Balance sheet is a key strength with minimal leverage (debt-to-equity 0.037) and high equity ratio (77.06%). Cash generation is improving (FCF growth 27.85%; OCF/NI 1.11), though FCF/NI (0.80) suggests some room to improve free cash conversion.
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue207.39M198.93M171.56M167.51M119.73M101.83M
Gross Profit160.05M155.66M133.99M125.66M86.15M74.91M
EBITDA29.06M31.82M21.72M29.50M7.86M15.75M
Net Income20.56M20.68M12.97M19.88M3.74M8.58M
Balance Sheet
Total Assets279.25M272.48M237.34M226.07M193.24M164.57M
Cash, Cash Equivalents and Short-Term Investments159.83M161.29M129.55M112.16M94.51M96.03M
Total Debt9.88M7.69M9.30M10.72M11.71M2.49M
Total Liabilities59.56M62.57M55.14M62.22M54.55M29.01M
Stockholders Equity219.69M209.91M182.20M163.86M138.69M135.57M
Cash Flow
Free Cash Flow24.38M35.26M20.27M19.74M-271.00K5.93M
Operating Cash Flow29.40M43.98M22.78M23.31M6.70M7.32M
Investing Cash Flow-5.00M-8.71M-2.36M-3.54M-6.90M-1.38M
Financing Cash Flow-7.59M-3.30M-3.01M-2.71M-1.97M-1.03M

Nanosonics Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.98
Price Trends
50DMA
3.28
Positive
100DMA
3.37
Positive
200DMA
3.64
Negative
Market Momentum
MACD
0.10
Negative
RSI
65.06
Neutral
STOCH
74.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NAN, the sentiment is Positive. The current price of 2.98 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.28, and below the 200-day MA of 3.64, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 74.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NAN.

Nanosonics Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$1.06B52.299.57%12.52%23.99%
65
Neutral
AU$4.93B26.077.05%2.58%10.92%16.33%
61
Neutral
AU$666.66M72.0311.87%19.36%66.28%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
AU$29.04M-21.67-1.32%6.20%95.19%
46
Neutral
AU$29.36M15.938.71%17.32%
43
Neutral
AU$223.47M-16.67-4.47%-21.29%-167.20%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NAN
Nanosonics Limited
3.54
-0.49
-12.16%
AU:ANN
Ansell
35.00
3.72
11.87%
AU:PNV
Polynovo
1.01
-0.20
-16.18%
AU:PGC
Paragon Care Limited
0.14
-0.27
-66.25%
AU:TRJ
Trajan Group Holdings Ltd
0.20
-0.73
-78.80%
AU:CSX
CleanSpace Holdings Ltd.
0.36
-0.46
-56.10%

Nanosonics Limited Corporate Events

Nanosonics Lists New Shares on ASX from Employee Incentive Scheme
Jun 9, 2026
Nanosonics Limited has applied for quotation on the ASX of 91,445 new ordinary fully paid shares, issued on 9 June 2026 under an employee incentive scheme. The additional shares, which are not subject to transfer restrictions, modestly increase th...
JPMorgan exits substantial holder position in Nanosonics
May 31, 2026
JPMorgan Chase Co. and its affiliates have lodged a notice indicating they have ceased to be a substantial shareholder in Nanosonics, after a series of transactions involving securities lending, collateral movements and proprietary trading. The c...
UBS exits substantial holder position in Nanosonics Limited
May 28, 2026
UBS Group AG and its related bodies corporate have ceased to be substantial shareholders in Nanosonics Limited, according to a notice filed under Australia’s Corporations Law. The change reflects a reduction in UBS’s relevant interest ...
Nanosonics Advances CORIS Commercialisation With Second FDA Filing and Global Pilot Rollout
May 26, 2026
Nanosonics has advanced the phased commercialisation of its CORIS endoscope reprocessing system, filing a second FDA 510(k) application to expand approved indications and reinforcing its strategy to build a broad clinical scope for the platform. T...
UBS Group Ceases to Be Substantial Shareholder in Nanosonics
May 13, 2026
UBS Group AG and its related bodies corporate have notified Nanosonics Limited that they have ceased to be a substantial shareholder in the company as of 11 May 2026. The change, disclosed via a statutory notice, indicates that UBS’s voting ...
UBS Group Exits Substantial Shareholding in Nanosonics Limited
May 11, 2026
UBS Group AG and its related bodies corporate have ceased to be substantial shareholders in Nanosonics Limited as of 7 May 2026, according to a regulatory notice filed under Australian Corporations Law. The change reflects a reduction in UBS&#8217...
Nanosonics Cuts Share Count with On-Market Buy-Back Cancellation
Apr 29, 2026
Nanosonics Limited has reduced its issued capital following the cancellation of 4,575,087 ordinary fully paid shares on 21 February 2026. The cancellation was executed via an on-market share buy-back, indicating active capital management and poten...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 25, 2026