Monash IVF Group (ASX:MVF) reported first-half FY2026 underlying net profit after tax (NPAT) of AUD 10.4 million, landing at the upper end of the company’s November guidance, as the fertility services provider worked through what new CEO and Managing Director Dr Victoria Atkinson described as a period of “stabilization, operational reset, and forward positioning.”
Atkinson, presenting her first half-year results as CEO, was joined by CFO Malik Jainudeen, who announced his resignation after 11 years with the company. Jainudeen will remain with the business while a replacement is recruited.
Market conditions and volumes
For the half, group stimulated cycles were 5,862, down 9.9%, and domestic market share was 19%, down 2.5 percentage points. Management attributed the share decline primarily to softer new patient registrations in New South Wales and Victoria. Frozen embryo transfers were “largely stable,” down 1.1%, which executives described as an indicator of returning patient retention.
On the call, Jainudeen said the conversion from new patient registrations to stimulated cycles was behaving consistently with pre-incident patterns, which he said supported confidence in the pipeline. Executives also noted patient inquiries and leads had been trending upwards in early 2026, though Atkinson cautioned that the lag between inquiries, registrations, and cycles likely pushes meaningful volume recovery into early FY2027.
Financial performance, guidance, and dividend
Revenue for the half was AUD 137.9 million, down 1.8% from the prior comparative period. Atkinson said softer domestic IVF volumes and market share impacts drove the decline, partially offset by price growth in selected markets and momentum in genetics and international operations.
Underlying EBITDA was AUD 30.2 million, down 15% year-on-year, with a margin of 22%. The company said the 3.5 percentage-point margin decline reflected industry softness, domestic market share losses, non-recurring legal and compliance costs, wage inflation, and investment in strengthened clinical governance. Jainudeen quantified several drivers, including:
- AUD 2.8 million EBITDA impact from market share decline
- About AUD 1.6 million impact from not fully covering inflation in the cost base
- AUD 0.3 million decline from day hospitals tied to lower IVF procedures
- About AUD 0.6 million decline in ultrasound earnings, aligned with a 3% scan reduction
The board declared a fully franked interim dividend of AUD 0.012 per share, which Atkinson said reflected confidence in the balance sheet, strength, and cash flow profile. For FY2026, management reiterated expectations for underlying NPAT of AUD 20 million, consistent with full-year guidance.
Jainudeen said net debt was AUD 95 million, with leverage at about 2x EBITDA, and the company anticipated similar levels at June 30. He also noted the debt facility increased from AUD 100 million to AUD 110 million.
Pricing, competition, and margin recovery efforts
Management said pricing actions were uneven across the country in the half. Jainudeen noted the company did not raise prices in most of the East Coast—particularly Victoria, New South Wales, and Queensland—as a short-term response to circumstances during the period, while prices did increase in South Australia and Western Australia.
Asked about FY2027 pricing, Atkinson said management was conducting work in light of competitive pricing movements and expected to bring recommendations to the board “in a couple of months,” adding that “some form” of price increases could be expected into FY2027. Jainudeen said cost inflation pressures were “pretty stable,” with an expectation of roughly 3% to 4% over the next six to 12 months, and suggested initial price increase intentions would “start at 3%-4%,” varying by market due to competitive dynamics.
Executives also discussed competition, with Jainudeen calling Victoria the most competitive market, noting an increase in participants over the last five years. Atkinson said margin recovery efforts would involve both revenue and cost initiatives, including “right-sizing” the cost base to current volumes and improving operating model efficiency, with some benefits expected before the end of FY2026.
Operations, clinical outcomes, and investment cycle
Atkinson highlighted continued clinical outcome improvements, saying pregnancy rates per cycle improved year-on-year. The clinical pregnancy rate per embryo transfer for women under 43 increased 0.6% to 40.7%, and was 49% for women under 35. The company said it remained the number two provider nationally by stimulated cycle market share and the only ART provider with clinics in all mainland state capitals, as well as Asia.
Operationally, management said it was nearing completion of a major infrastructure cycle. The new Brisbane Clinic and Day Hospital is expected to open in Q4 FY2026. Atkinson also said new clinical facilities in Brisbane and Clayton are planned to be delivered and commissioned in Q4, and that FY2026 will mark the closure of the original Clayton IVF and Day Surgery Unit (commissioned in 1991), with a new premium Clayton site identified to work in synergy with the Cremorne flagship surgical facility into FY2027.
Day surgery episodes decreased 4.6% with lower IVF procedures, while gynecology day surgery episodes increased 12.5%, which management said reflected a deliberate expansion of offerings. In diagnostics, ultrasound volumes declined 3.1%, primarily due to sonographer workforce constraints in Sydney; Atkinson cited a multi-year recovery plan and a collaboration with Western Sydney University to expand training capacity, with early signs of improvement expected to support recovery in Q4.
Genetics, international growth, and innovation updates
The company continued to emphasize genetics as a growth driver. Jainudeen said PGT-M cycles (linked to reproductive genetic screening conversion into IVF cycles) rose 25%, with feasibility studies up more than 20% as a lead indicator. Atkinson added that PGTA volumes rose 31% and PGT-M was up 26%, citing increased patient demand and the addition of a clinical geneticist.
Internationally, management reported stimulated cycle growth in Johor Bahru, Bali, and Singapore. Atkinson said stimulated cycles rose 6.4% in Singapore and 26% in Johor Bahru, and revenue per cycle grew 7% in Kuala Lumpur. The company said its focus in Asia is on consolidation and optimization under a unified service model rather than capital-intensive expansion.
On science and innovation, Atkinson said the company expanded embryologist-to-patient communication and piloted a “Matcher” app for patients to participate in electronic witnessing of embryos. She also said the mitochondrial donation research program with Monash University progressed to preclinical research and training following receipt of MRFF grant funding, and that the Felix sperm separation trial with Memphasys was completed with TGA registration secured and plans to progress clinical use. Atkinson said Monash IVF has 56 research studies underway under an enhanced governance and reporting framework led by the chief scientific officer.
Looking ahead, Atkinson said the company expects FY2026 to remain relatively stable, with industry growth returning from FY2027, and that management is working on a 2030 strategic plan focused on clinical safety and outcomes, patient and doctor value propositions, return on invested capital, margin expansion, and organic growth.
About Monash IVF Group (ASX:MVF)
Monash IVF Group Limited provides assisted reproductive and specialist women imaging services in Australia and Malaysia. The company offers diagnostic obstetric, gynecological ultrasound, and fertility treatment services. It also provides tertiary level prenatal diagnostic, and IVF treatment services. Monash IVF Group Limited was incorporated in 2014 and is based in Cremorne, Australia.
