• Sales revenue increased 1% (down 2% in constant currency) to $1,176 million
• Underlying net profit decreased 9% to $195 million
• Interim dividend steady at $2.15 per share, a 72% payout of underlying net profit

Cochlear reached a major milestone in June 2025 with the launch of the Cochlear™ Nucleus® Nexa™ System, the world's first and only smart cochlear implant system with upgradeable firmware. The first half result reflects the product registration and contract renewal process for the new system, which took longer than anticipated where the company sought price increases, and which is now largely complete. Sales revenue increased 1% (down 2% in constant currency) to $1,176 million, while underlying net profit decreased 9% to $195 million. The gross margin declined two percentage points to 73%, driven by a higher mix of lower-margin business in the emerging markets. Operating expenses increased 1% (down 2% in constant currency), reflecting growing investment in R&D and activities to support long-term sustainable growth. For FY26, the company expects the business to deliver a strong second half driven by the broad availability of the Nexa System, strong growth in Services and improved momentum for Acoustics. Underlying net profit is expected to be at the lower end of the $435-460 million guidance range provided in August 2025, reflecting the longer than anticipated contracting process for the Nexa Implant System in the first half.

For FY26, the company expects to help over 60,000 people hear with a cochlear or acoustic implant. Underlying net profit is expected to be at the lower end of the $435-460 million guidance range provided in August 2025. The gross margin is expected to be around 73% for FY26. R&D investment is anticipated to be around 13% of sales revenue, and capital expenditure is expected to be $100-120 million.

Cochlear remains confident of the opportunity to grow its markets, with a significant, unmet and addressable clinical need for cochlear and acoustic implants expected to continue to underpin the long-term sustainable growth of the business. The company is well placed to create value for its stakeholders now and over the long term, with a strong balance sheet and rising awareness of the link between cognitive decline and hearing loss.