Daily Roundup

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Resmed Delivers Strong Finish to Fiscal 2026

Resmed Inc wrapped up a solid year with fourth-quarter revenue climbing 9% to $1.5 billion, though growth moderated slightly to 8% when adjusted for currency fluctuations. The healthcare technology company's bottom line told a more nuanced story—GAAP earnings per share inched up just 2% to $2.64, but non-GAAP EPS jumped a healthier 16% to $2.95, suggesting operational improvements beneath the surface.

For the full year, Resmed's top line expanded 10% to $5.7 billion, with gross margins expanding meaningfully. The company returned a substantial $1.0 billion to shareholders through buybacks and dividends during the period, more than 70% higher than the prior year. Looking ahead, management is getting even more generous with shareholders, planning to return more than $1.85 billion during fiscal 2027 while boosting the quarterly dividend by 10% to $0.66 per share. The company also declared a dividend of $0.066 per share for CDI holders, with an ex-date of August 19, 2026 and payment scheduled for September 24, 2026.

Nick Scali Furniture Thrives Despite Retail Headwinds

Furniture retailer Nick Scali Ltd is bucking the retail downturn narrative. The company posted a 31.2% surge in net profit after tax to $75.7 million on revenue that grew a more modest 4.3% to $516.7 million. That's a 22% increase when compared to underlying prior-year figures, suggesting the company is getting leaner and more efficient.

The Australia and New Zealand division showed particular strength, with revenue up 5.1% and gross margins improving by 100 basis points to 66.0%. Meanwhile, the UK operation—still unprofitable for the year—is turning a corner, with gross margins jumping to 60.3%. Operating cash flows surged 33.7% to $154.4 million, a sign the business is generating real cash despite the challenging retail environment.

Nick Scali opened four new stores during the year and plans four more in the coming period. Early signals from FY27 are mixed: Australian written sales orders are tracking flat for the first five weeks, but the UK is firing on all cylinders with a 35% increase. The board declared a fully franked final dividend of 39 cents per share, and the company has $106.6 million in cash on hand.

Avita Medical Hits Record Revenue, Eyes Cash Flow Breakeven

Avita Medical is firing on multiple cylinders. The regenerative medicine company reported record quarterly revenue of $21.7 million in Q2 2026, up 18% year-over-year, with gross margins expanding to 81.9%. The company has now raised its full-year 2026 revenue guidance to between $86 million and $89 million, signaling confidence in its commercial momentum.

Most notably, Avita expects to achieve cash flow breakeven in the fourth quarter of 2026—a significant milestone for a company that's been burning cash as it scales. The improvement is being driven by strong adoption of its RECELL product and contributions from newer offerings like Cohealyx and PermeaDerm. However, the company's 10-Q filing reveals some financial stress beneath the headline numbers: the net loss widened to $18.3 million in Q2, and the balance sheet shows a stockholders' deficit of $27.8 million. The company also flagged potential going concern issues, though management's confidence in reaching cash flow breakeven suggests they believe those concerns are temporary.

NZME Invests in Print Future

New Zealand Media and Entertainment (NZME) is doubling down on its print operations, acquiring printing equipment from Stuff's Petone facility. The investment, expected to total up to $15 million over two years, should deliver around $7 million in annual operating savings once installed by the end of 2028. The new equipment is roughly a third the size of NZME's current plant but significantly more efficient, and should pay back within three years. The acquisition also opens the door for NZME to offer third-party printing services across the North Island.

RocketDNA Extends BMA Contract

Drone services provider RocketDNA Ltd has secured a three-month contract extension with BHP Mitsubishi Alliance, worth approximately $1 million. The extension, running through October 2026, continues one of Australia's largest autonomous drone deployments in the Bowen Basin coal mines. The company's xBot fleet and SiteTube software continue to generate value for the mining operation.