PolyNovo’s FY26 results demonstrate a company shifting from pure growth mode toward sustainable profitability. While NovoSorb Group revenue increased 16.7% to $138.4 million, the real story lies in the dramatically improved cash generation. Operating cash flow surged to $23.1 million from $3.1 million a year earlier, a sevenfold increase, while free cash flow reached $9.4 million compared to negligible cash generation in FY25. The company is now self-funding expansion without requiring further equity dilution.
The 89.6% growth in commercial sales and 252 new hospital accounts underscores accelerating market traction. The United States generated $102.1 million in revenue, up 15.6% year-on-year, while the Rest of World segment grew faster at 20.0% in reported terms and 21.9% in constant currency. This divergence is meaningful: emerging markets and regions outside the US are adopting PolyNovo’s technology at a faster pace, suggesting the company’s addressable market extends well beyond its established home territory.
The strategic repositioning toward complex wounds beyond burns represents the next growth phase. The announcement emphasizes that burns represent core leadership territory but that “growth outside burns demonstrates the expanding clinic.” Complex wounds, traumatic injuries, and related categories represent a substantially larger market opportunity. The rapid addition of 252 new hospital accounts during the year demonstrates that clinicians and hospital systems are increasingly adopting PolyNovo’s technology across these diverse applications.
Regulatory and manufacturing progress de-risks the growth outlook. The finalisation of the Clinical Study Report for PolyNovo’s US pivotal randomised controlled trial, funded by the Biomedical Advanced Research and Development Authority, is a critical step toward US regulatory approval for complex wounds. Completion of the new manufacturing facility removes potential volume constraints, while regulatory clearance in eight new markets opens additional geographic expansion opportunities.
The recent leadership appointments around Dr Marthe D’Ombrain as Chief Scientific Officer, alongside new heads of quality and regulatory affairs, signal preparation for more complex regulatory processes and larger-scale commercial operations. These hires align with the company’s trajectory toward multiple product indications and international markets.
The key metrics to monitor include the timeline to US regulatory approval for complex wounds, sustained growth in hospital account additions, and the company’s ability to maintain strong cash flow conversion as the business scales. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About PolyNovo Limited (ASX: PNV)
PolyNovo Limited designs, manufactures, and sells biodegradable medical devices for surgical and trauma applications, with a primary focus on dermal regeneration matrices and reconstructive surgery products. The company develops innovative biocompatible polymer solutions used in burn treatment, wound management, and emerging applications including hernia repair and pancreatic implants. It operates across multiple international markets including Australia, New Zealand, the United States, and Europe.
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