Monash IVF FY26 Underlying NPAT $16.1m, Below Guidance

Monash IVF (ASX:MVF) Group reported FY26 revenue of $269.5 million, down 0.9 per cent on FY25, with Underlying EBITDA of $53.4 million, down 19.5 per cent at a margin of 19.8 per cent, Underlying EBIT of $28.4 million, down 34.0 per cent, and Underlying NPAT of $16.1 million, down 41.2 per cent. The company said the result was below its June 2026 updated guidance range of $17 million to $18 million and includes the impact of the write-off of $1.4 million, after tax, of prepaid assets. Reported EBITDA was $43.5 million and reported NPAT was $8.3 million. Monash IVF said the Underlying EBITDA decline reflected domestic stimulated cycle volume and market share pressures in 1H26, deferred pricing increases across key East Coast markets, wage and supplier cost inflation and the predominantly fixed nature of its clinical operating cost base. The company notes that Underlying EBITDA, Underlying EBIT, Underlying NPAT and free cash flow are non-IFRS measures and refers readers to its FY26 results presentation and Appendix 4E for reconciliations.

Monash IVF said momentum improved in the second half, with domestic stimulated cycle volume moving from -11.7 per cent in 1H26 to -1.6 per cent in 2H26 and domestic stimulated cycle market share increasing to 20.2 per cent in 2H26, which the company describes as up 1.2 per cent on 1H26. In the International business, stimulated cycles were up 8.3 per cent, revenue up 15 per cent to $21.2 million and EBITDA up 10 per cent to $4.2 million. Net operating cash flow increased to $36.7 million from $12.9 million and free cash flow improved to $12.9 million from negative $4.5 million, while capital expenditure was $23.8 million. Net debt was $101.2 million at 30 June 2026, which the company reports as leverage of 1.9 times, and the group's debt facility was increased to $130 million and extended for three years. A final fully franked dividend of 1.3 cents per share was declared, bringing total FY26 dividends to 2.5 cents per share at a payout ratio the company states as 60 per cent, with a record date of 4 September 2026 and an expected payment date of 15 October 2026. For FY27 the company said it expects financial performance to strengthen through the year and listed reducing capital expenditure by approximately 50 per cent among its priorities.