Nanosonics' Trophon Core Still Shines Beneath a Costly New Platform

A genuinely excellent Trophon franchise keeps delivering strong margins, even as investment in the slower-than-expected Coris and Chorus rollout weighs on headline numbers.

31 Aug 2026 · 3 min read

Nanosonics, a global infection prevention technology company built around its highly profitable Trophon disinfection franchise, is navigating a costly investment phase for its new Coris and Chorus product platform that has taken longer and cost more than markets expected, with fund managers arguing the core Trophon business alone justifies a reasonable valuation once the startup losses are stripped out.

A slower-than-promised journey masks a genuinely excellent core business

Forager Funds said it owns Nanosonics in its portfolio, acknowledging it has taken longer for the business to get to where it is than people had expected, or probably that management had promised, noting the business was founded in 2000 and didn't generate its first dollar of revenue until 2010.

FDA clearance and a strong balance sheet support the new platform

ECP Asset Management said Nanosonics benefited from a continued positive reaction to the controlled market release of its FDA-approved Coris product, with a strong balance sheet containing over $160 million in net cash and a track record of generating $35 million in free cash flow, its recurring revenue model continuing to attract investor interest. Selector Funds Management said Nanosonics received its first US FDA 510(k) clearance for expanded endoscope indications for its new CORIS system, broadening the range of endoscopes that can be reprocessed and marking a key step in extending infection prevention coverage, with a second FDA 510(k) submission already being prepared to further expand indications. First Samuel said Nanosonics' half-year results were better than the market reaction suggested, with the core reason for remaining constructive being that the Trophon-only franchise continues to look like an excellent business, delivering operating profit of $25.6 million for the first half, up 20 percent, with margin as a share of sales rising to 22.9 percent.

The core reason we remain constructive on Nanosonics is that the Trophon-only franchise continues to look like an excellent business. The Trophon-only business delivered an operating profit of $25.6 million for the 1st half, up 20%, with margin as a share of sales rising to 22.9%.

— First Samuel, Article, March 2026

A consumables-only Chorus rollout model, and a reasonable core valuation

Forager Funds said Nanosonics had climbed to number two in the portfolio, not as exposed to a lot of recent narrative concerns, with the important thing for the business being to execute the Chorus rollout appropriately, having discussed publicly the idea of funding the placement of some Chorus units and making the model consumables-only, similar to how they run their Trophon units. Hayborough Investment Partners, a buy, said Nanosonics has a very strong, impressive installed base with its existing Trophon business, having spent a lot of money over recent years developing the new Chorus product, which has taken longer than the market expected and cost a lot of money, but if you strip back that spending, the core business looks attractive. Investors Mutual Limited, a hold, said backing out the Chorus startup losses leaves the core business trading on a mid-teens EBITDA multiple, pretty reasonable for a franchise of Trophon's quality, with plenty of cash on the balance sheet and a buyback in place.

If you back out the Chorus startup losses, the core business looks to be trading on a sort of mid-teens EBITDA multiple, which is pretty reasonable for a franchise of trophon's quality. They've got a lot of cash on balance sheet. There's a buyback in place. There's plenty to like about it.

— Investors Mutual Limited, Article, April 2026

A pivotal year ahead

Forager Funds said Nanosonics showed progress in its 2026 results but not enough yet to dispel the bear case, with the coming financial year seen as pivotal.

What fund managers say they are watching next is whether FY27 proves pivotal in dispelling the bear case, continued execution of the consumables-only Chorus rollout model, further FDA 510(k) submissions expanding Coris indications, and whether the mid-teens EBITDA multiple ex-Chorus continues attracting value-oriented buyers.