Hello, welcome everyone to the Nanosonics half year results for FY26. My name is Catherine Strong, and I'm Head of Investor Relations and Corporate Communications here at Nanosonics. As we start the webinar, all participants will be in listen-only mode. We'll have a presentation of the results from Michael Kavanagh, Chief Executive Officer and President, and Jason Burris, Chief Financial Officer. During the presentation, the management team will speak to a selection of the slides lodged with the ASX earlier this morning, which will display via the webinar. If you've joined by conference call only, you may prefer to join by the webinar in addition. The presentation will be followed by a question and answer session. If you wish to ask a question, you'll need to press the star key, followed by the number 1 on your telephone keypad.
I would now like to hand the call over to Michael Kavanagh.
Thank you very much, Catherine, and a very good morning, everybody, and thank you all for joining us. By now, I assume many of you will have seen and had an opportunity to have a quick browse through our first half results, which I believe demonstrates another really good and positive half, both financially and operationally for the organization. There's a lot of detail in all the materials that have been submitted, and before we get into some of those details, there really are a number of key takeaway points, I'd like to highlight first. The first being, the company, it does continue to deliver disciplined growth. You'll have seen revenue increase 9% versus PCP, while operating margin expanded 27%, and that's driven by disciplined cost growth of just 4%.
Our recurring revenue from consumables and service continue to grow, and all of that's underpinned, of course, by continued expansion of our installed base of the Trophon devices. You'll have seen that upgrades now are also becoming quite meaningful to our growth. In fact, in the half, we delivered 20% total unit installation growth in the half, and that reflecting both strong new installed base placements and a record level of upgrades in North America. This performance highlights sustained customer preference for the Trophon solution, and it is worth pointing out that in the first half, the majority of the upgrades were actually to Trophon2, noting that our next generation platform, the Trophon3, was launched midway through the period, and that many of the units in our pipeline were well progressed in the budget approval process. They stuck with the Trophon2.
While this mix, together with large volume deals, moderates the average selling prices in the near term, these Trophon2 installations, they can certainly meaningfully continue to expand our recovering, recurring revenue, opportunity base, and certainly positions us well for software-led value capture over time, because those Trophon2s now have access to Trophon2 Plus, which effectively gives them the opportunity to upgrade with software to the Trophon3 platform. Hence, why many of them decided to go with the Trophon2, based on where they were at in the budget approval process.
The CORIS commercialization, that's progressing as planned, with key milestones during the half being met, and you will have seen our announcement on Friday about the commencement of the controlled market release in the UK, which of course marks a really important milestone, and of course, more to follow in the not-too-distant future. Finally, we reaffirm our guidance for the full year. We expect continued growth in core consumables and services, alongside ongoing growth in capital unit volume. We reaffirm our guidance for the full year.
Before we get into some of the details, I think as a brief reminder, and certainly for those of you who may be new to the story, the Nanosonics, you know, every year, our technologies help protect millions of people globally from the risk of cross-contamination through our leadership in our ultrasound probe reprocessing through our Trophon platform. With 38, just over 38,000 Trophon devices installed worldwide, we now continue to see the power of a large and growing installed base driving recurring revenue, but also capital revenue as well, as we continue now driving upgrades and continue to deliver value to our customers.
At the same time, with our innovative endoscope cleaning device, CORIS, now entering the phase commercialization, we believe that we have a compelling opportunity to extend this, our proven reprocessing and automation expertise into the endoscope reprocessing and hopefully unlock a significant new growth avenue for the business. Moving on to a quick overview of some of the financial highlights. The first half delivered very solid operating performance, generating revenue of AUD 102 million, and that was up 9% compared to PCP or 8% in constant currency. This outcome reflects continued momentum across both our recurring and capital revenue streams. As we predicted and outlined at our full year results in August, gross profit margin percentage, it did moderate a bit down to 76.3% for the half, and that was driven by tariffs.
Also we did have some increased air freight and the product mix between capital and consumables, as we're seeing that capital and, and particularly upgrades, beginning to kick in. Importantly, those impacts, on the, the growth margin were anticipated and managed within our broader financial framework. In doing so, we maintained a, a disciplined approach to cost management, and operating expenses increased by just 4% to AUD 69.5 million. That's also important that we continue to invest to support our ongoing growth strategy across R&D and our key growth priorities for the business. This operating leverage, it translates into a 27% expansion in operating margin for the business, and with operating profit reaching AUD 8.5 million.
EBIT for on a consolidated basis, was AUD 8.4 million. That represents a 3% decline on a reported basis. However, on a constant currency basis, EBIT actually increased 15%. That does demonstrate the strong underlying performance of the business. The constant currency view, of course, takes into consideration the impact of foreign currency movements in the first half, where there was a net loss of AUD 0.7 million versus a gain of AUD 1.3 million in the prior corresponding period. There was a AUD 2 million swing in the realized net foreign effects movements. Similarly, profit before tax, that was AUD 8.4 million, which was an increase of 30%, actually, at constant currency.
I think overall, these results, they, they do highlight the strength and the, the resilience of our overall business model, with revenue growth and disciplined cost management translating into meaningful earnings for the half. It's not just about the financial performance. The first half also saw strong operating progress across innovation, our operations, and digitalization, with each initiative reinforcing the foundations for sustained growth into the future. The slide that you'll see just shows a, a selection of some of the achievements in the, in the half, and from an innovation perspective, as you all know, we advanced the Trophon platform with the launch of the next generation Trophon3 and the Trophon2 software upgrade halfway through the period. That's helping and will continue to help, you know, capital sales growth volume moving forward.
We also achieved important milestones with CORIS, securing our regulatory registrations across Australia, Europe, and the UK, and making important steps towards the phased commercial rollout of, of the, the product. In addition, we submitted our first 510(k) application for expanded scope indications, and again, that further strengthens the long-term growth pathway for CORIS, and that 510(k) is currently under review by the FDA. Operationally, a couple of important achievements as well. In the first half, we secured and signed for a new headquarters site, and that move is planned for around April 2027. This new headquarters, which also includes an expanded manufacturing and, and technical facility, that will significantly strengthen our global operating backbone, really, and position us to scale efficiently as the, as the business continues to grow.
Importantly, in the half as well, we also appointed new leadership talent to lead key parts of the business through our next phase of growth. That includes a new Regional President for North America, Bill Haydon, as well as a new Chief Marketing Officer and Head of Asia Pacific, Kimberly Hill. Finally, we made meaningful progress also across from a digital perspective, so successfully implementing and launching the new ERP system and going live with our cloud-based traceability solutions. These cloud-based solutions, they initiatives, they really enhance visibility, efficiency in customer engagement while creating a strong digital foundation to support future growth. Overall, I think that the progress we made in the first half reflects a business that's executing well.
We're investing with discipline and, also continuing to build capabilities to deliver ongoing scalable possible growth over the long term. I'll hand over now to Jason to go through some of those financials in a little bit more detail. Jason?
Thanks, Michael, and good morning, everyone. On this slide, you can see the continued strength of our core business model. We ended the half with 38,080 devices in the global installed base, up 6% on the prior corresponding period, reflecting sustained momentum in new installed base devices. That expanding footprint is fundamental to how we grow the business and importantly, how we protect patients. Today, that installed base supports the protection of approximately 29 million patients each year. This scale is translating directly into recurring revenue growth. Recurring revenue increased 9% on PCP, driven by solid performance across consumables and service. Core consumables grew in line with the installed base. Ecosystem consumables continued to expand, service and repairs grew strongly at 24%, reflecting deeper customer engagement and the maturity of the fleet.
Spare parts, as you can see, declined 23% on PCP, largely due to customer inventory dynamics and lower replacement requirements, as more customers upgrade to newer generation systems. Moving on to the installations. This highlights the strength of our installation activity in the half, and the quality of the demand we are seeing across our customer base. Total installations increased 20% on the prior period to 2,070 devices, reflecting continued momentum in new placements, and importantly, a record level of upgrade activity in North America. That upgrade cycle is a key driver of our long-term value creation. It refreshes the installed base, extends customer relationships, and supports recurring revenue through consumables, service, and our new connectivity offerings. As Michael mentioned during the half, the majority of these upgrades were to Trophon2 devices.
Remembering that Trophon3 was launched midway through the period, and customer budget approvals to Trophon2 upgrades were already well progressed. Capital revenue growth was 9% on the previous period to AUD 26.5 million in the half. This included several large-scale upgrade agreements, and the capital revenue growth reflects volume-based pricing, which saw a slightly lower average selling price for Trophon. Importantly, these Trophon2 upgrades are expected to underpin software-led value capture over time with the Trophon2 Plus software offering. Turning to the P&L. We continue to demonstrate strong operating leverage, with operating margin growing faster than revenue, reflecting the ongoing discipline in how we manage and scale the business. As Michael already mentioned, total revenue grew 9%, reaching AUD 102.2 million for the half, with growth in both recurring and capital revenue.
Gross profit margin was 76.3%. This, as expected, is down 2.2 points on the prior year, reflecting the impacts of tariffs in the US and some headwinds on air freight and product mix impacts. At the same time, we maintained tight operating expense discipline, with OpEx growing just 4%, well below revenue growth, while continuing to invest in our priority areas, including R&D. As major development programs mature, R&D has stepped down as a percentage of revenue, demonstrating increasing efficiency while preserving our commitment to innovation. EBIT was AUD 8.4 million, down 3%. The decline in reporting EBIT reflects FX movements, with a net FX loss this half versus a gain last year. On a constant currency basis, EBIT improved 15%. I'll just take a moment to expand a little on that last point.
In H126, EBIT was impacted by an FX loss of AUD 0.7 million. This relates to the revaluation of non-Australian dollar asset balances, mainly US dollar asset balances as of 31 December 2025. The loss was driven by a strengthening Aussie dollar versus US dollar to 0.67 or approximately 2%. The majority of which is unrealized FX losses. Profit before tax was AUD 10.6 million, down 3%. Again, up at constant currency, +13%. Improving operating leverage. On this slide, we're showing the way in which we're driving operating margin expansion through gross margin and cost control. Gross profit margin grew by 6% to AUD 78 million. At the same time, we maintained tight operating expense discipline, with OpEx growth held to 4%, well below revenue growth, while continuing to invest in our priority growth initiatives.
This combination delivered meaningful operating margin expansion, with operating margin increasing 27% to AUD 8.5 million in the half, demonstrating our ability to scale the business, manage cost pressures, and continue to expand in margins through disciplined execution. We continue to separate out the Trophon Only business, highlighting its strength and scalability. The Trophon Only business delivered operating margin of AUD 25.6 million, representing 20% growth on the prior period. This business also delivered 9% EBIT growth. Importantly, operating margin as a percentage of sales expanded to 25%, up from 22.9%. This demonstrates the operating leverage inherent in the Trophon business model, with high margin recurring revenue continuing to scale efficiently as the installed base grows.
The Trophon business also continues to generate significant cash, providing funding capacity for working capital, ongoing investment in CORIS, and our broader long-term growth strategy, while maintaining strong financial flexibility. With that, just turning briefly to cash and the balance sheet. During the half, cash flow was a modest outflow of about AUD 1.4 million, which reflects our planned investment in inventory as we ramp up for CORIS, continued investment in the CORIS investment in system, and the commencement of our share buyback. It also reflected the timing of receivables, which we've seen already improve in January. We've executed around AUD 4 million of our buyback and expect to resume following the blackout period in the coming days.
Importantly, we remain debt-free with a strong cash balance of AUD 159.8 million, providing flexibility to fund growth initiatives, support CORIS commercialization, and continue disciplined capital management. I'll now hand back to Michael, who'll talk briefly about our growth drivers to the Trophon business, provide an update on CORIS, and take you through our reaffirmed financial guidance for 2026.
Thanks, Jason. We've previously talked about the 7 growth drivers of our Trophon business. On the capital side, you've got new installed base and upgrade sales, and we've now just recently introduced a new capital software upgrade opportunity for all existing and new Trophon2 users with the Trophon2 Plus. That software upgrade brings many of the new benefits of Trophon3 to them via the upgrade. On consumables, we have the core disinfecting consumables and a broader set of ecosystem consumables necessary for the full reprocessing process, such as wipes and clean probe covers, et cetera. Of course, there is the service component, both service contracts or PAYG, for those that don't have a service contract.
Service, as you all know, comes into place, a year after purchase, because there's a 1-year warranty period on the device. Then, of course, we've got the... With the Trophon3 and Trophon2 Plus, we've got new and broader traceability solutions with its connectivity. There's a robust full ecosystem, all growth drivers for the Trophon business. On the next slide, this slide sort of brings them together by illustrating the applicability of each of the growth drivers over the lifetime of a device. Each Trophon device has a typical life span of up to 10 years, or, you know, sometimes 7 to 10 years, and sometimes longer, after which customers, of course, then can upgrade to the latest generation. We're seeing that now with the trophon EPRs being upgraded to T2s and T3s.
From the day a unit is installed, it begins to generate high-quality, recurring revenue through those core and ecosystem consumables, and those can scale with customer procedure volume. If ultrasound procedure volumes increase, well, then those consumable products increase. Then over time, that's complemented by the service and repair contracts, and that obviously helps customers protect their devices and uptime and, and overall performance of the technology. Of course, then looking ahead, as mentioned, that connectivity and software-based subscriptions can further enhance this model. These offerings, that for the customer, they really support compliance, traceability, and workflow efficiency, while adding another layer, of course, to our recurring revenue. Together, this combination of capital, upgrades, multiple recurring revenue streams, that truly does underpin the, the strength and resilience and scalability of the, the Trophon franchise.
As Jason highlighted, performance of the Trophon-only business itself is an excellent performance in the first half. Moving quickly to CORIS. As I've already mentioned, during the half, we successfully achieved a number of key milestones. We submitted the first 510(k) for expanded scope indications, and that's in the U.S., and we're currently awaiting the FDA's determination on that. We achieved European, U.K., and ANZ regulatory registrations for the device, and the CORIS subsequent to the periods, just recently, we commenced a controlled market release. Looking ahead, the milestones in front of us include additional regulatory submissions with the FDA for even broader scope or expansion of indications. We will be starting further CMRs shortly here in Australia and some more in Europe.
With the U.S., we'll commence after the 510(k), the first 510(k), we'll probably wait and get some preliminary insights as well from the initial CMRs prior to commencing. You know, broader commercialization is then likely to start on a region-by-region basis, based on when the CMRs are completed. As previously indicated, we expect commercialization to start in FY27. Overall, the CORIS is now executing to plan, with clear progress achieved and well-defined steps ahead as we move towards full commercialization. The image that you see there in the slide is actually the first unit at our first CMR site, in the U.K. I can say the customers over there are quite excited.
You can see by the quote, they, they are definitely expecting to see a lot of benefits coming from the device over time. We're quite excited by the start of that first CMR. Finally, I'll just move on to our guidance. As I mentioned at the beginning, we are reaffirming our 26 guidance at constant currency, and that reflects continued confidence in the underlying performance of the business. With that, we expect ongoing capital unit growth, half on half, noting that the capital average selling price we saw in the first half could be expected to continue into H2. That will totally depend on the T2, T3 mix and the size of upgrade deals.
We're very, very happy to look at, you know, there are a number of deals that are quite large, and of course, it's, it's quite customary to do volume-based pricing for deals like that. We're also expecting recurring revenue to continue to grow, all of that together, we expect the overall revenue to be within the 8%-12% as guided back in August. Gross margins, again, we are expected to be in the range of 75%-77%, that guidance assumes tariff rates to remain at the H1 levels. We also will continue our focus on OpEx discipline into the second half, whilst maintaining the investments that we're making, not only in CORIS, but also with other priority growth projects that we're investing in.
Overall, our guidance reflects a balance of continued growth, disciplined cost management, and investment for the long term. It is worth noting, of course, that the guidance is based on FX rates that we provided in August 20, 2025 . That was at the USD of $0.65. We do have, as you all know, an ongoing currency hedging program in place, and we also all know that the Australian dollar has strengthened. If revenue range were recast using an average exchange rate of approximately AUD 0.70 for the second half, then taking hedging into consideration, then the revenue range would be approximately 3% lower.
In summary, I think the first half saw the company deliver a very solid operational and financial performance, and, we're in a strong position, not only for the growth into the second half, but, into the future. With that, I'll now hand back to the operator for any questions.
Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset before you ask your question. Your first question comes from the line of Shane Storey with Canaccord Genuity. Please go ahead.
Good morning, everyone. I'm gonna start with Jason, please. Thanks for the way of, I guess, looking at the revenue guidance under sort of altered FX conditions. Maybe could you help us understand, I mean, and also thanks for the detail around how the FX played into the EBIT. If rates were to stay sort of around current levels, can you give us a feel for how those non-Australian dollar asset balances and, I guess, other sort of effects might play through the EBIT line? Thanks.
Thanks for the question, Shane. Yeah, I think, on the, the constant currency, translations and FX, you'll see that page in the appendix. What we've tried to do is separate out the two different impacts of FX. In the discussion that I just shared with you, we had a 2% movement in that currency from the last balance date, and that cost us around AUD 700,000.
If you then compute that to a rate of around $0.70, you know, that's a 4-4.5% sort of movement. You can, you can do the math and work out that, you know, the impact that we would have on an unrealized FX balance in the second half is more than likely 2-2.5 times what we saw in the first half.
That's very helpful. Thanks. Last question I had was really just, I guess, I suppose to Michael, and in relation to the recurring revenue in the USA, could you give us maybe some further insights just how the other parts of the ecosystem grew, say, excluding just the Sonex-HL consumable in isolation, please?
Yeah. The, the service side of the business, that grew quite strongly, so that was up 24% on PCP. Obviously, you saw the core consumables, they were, they were up about 9% on PCP. The, the ecosystem, that was up about 6% on, on PCP. Included in that recurring revenue in, in the past has always been, spare parts as well, and as, as Jason explained, spare parts came down in the half. That was sort of anticipated, because as, as we have no upgrades to newer machines, but then the requirement for spare parts, you know, Rocks and Ferraros. The spare parts were down about 23%.
Thank you. That's all my questions for now. I'll get back into the queue. Thank you very much. Bye.
Your next question comes from the line of Davin Thillainathan with Goldman Sachs. Please go ahead.
Morning, Michael and Jason. Thanks for taking my questions. I guess just want to understand your revenue guidance range of 8%-12% at a constant currency level. I think in the first half, revenues grew about 8% on a constant currency basis. For us to sort of think about that growth rate potentially stepping up towards the midpoint of that guidance range, could you sort of help us understand what drivers you're looking at for the second half, please?
Yeah, as I say, again, we're reaffirming that we'll be within that guidance. I think to. You know, you saw upgrades come through quite strong, so if we, if we see continued strong momentum in upgrades, that can certainly help get you into the mid-ranges. You know, there's normally a H2 pop up in service revenue as well. That's just associated with the timing of service contracts that happen and when the revenue is realized. Really to get into the mid-ranges or upper ranges of the guidance, it just really means, you know, performance across really the majority of the growth levers as I outlined in the presentation.
Yeah. Thanks. My next question is on the new installed base in the US. I think you did 1,080 units for the half, and that's grown, which is, I guess, good to see. Could you sort of help us understand the ability for you to keep to that level of units into the second half? Just sort of any, sort of other dynamics we should be thinking about from a half on half perspective, please?
Yeah. No, I think, Gavin, we've sort of always got guided in recent years that in the U.S., that, you know, we'd like to think that we can do between 1,800 and 2,000 new installed base on an annual basis. We feel confident in that with the U.S., you know, we've got visibility of what the pipeline looks like. But what you can expect to see is that the number of upgrades, just in capital units, will surpass or begin to surpass the number of new installed base. Importantly, what we're doing is getting growth on both.
Yep. Great. Thanks, thanks, Michael. I'll leave it there.
Thank you.
Your next question comes from the line of Josh Kannourakis with Barrenjoey. Please receive with your question.
Hi, Michael and Jason. Can you hear me okay? Great. Just first question, obviously, quite a bit of activity in terms of both the upgrades and install base in the period. You mentioned called out around the high- higher volume deals that you did. As we look into the second half with some of that visibility, how do you think that breakdown looks in terms of the split, I guess, in terms of some of those higher volume deals versus potentially a bit of a recurrence to some of the more more regular as is, or are the upgrades likely to be just higher? Because I guess it's earlier in the trajectory in some of the original customers.
Yeah. Well, for the upgrades, there's about 9,000 EPR still out there. Many of the hospitals have had adopted the EPR as their standard of care. There's still, you know, great opportunity for some high volume deals, and sometimes they take a bit longer because they're enterprise-wide, there's still, great opportunity for some high volume deals. Indeed, there's a number of them in our pipeline. They're all supplemented with the those deal, you know, for 2, 3, 4, or 5 sort of units as well.
We, we do expect to see more high volume deals coming through in the second half, and so that's why, you know, when we look at our, our capital revenue, even though we don't break those things out from a guidance perspective, you know, we're mentioning that the ASPs that we were achieving in the first half could be similar in the second half because of that mix.
Got it. Then you also mentioned the good point with regard to the, I guess, the, the additional add-ons and ability to upsell those customers over time into the broader ecosystem. How do you think about from a sales process, just, I guess, the life cycle of those clients when you do bring them on? How quickly do you think, you know, you can potentially add some of those additional features and functionality?
Yeah, that's, that's a great question, and I think that, that's a really important point to emphasize, is if somebody has just upgraded to a Trophon2, even if you've got a lower price associated with that because of volumes or trade-ins and things like that, well, the reality of it is we can still add value, further value for that customer through that software upgrade. Now, it's unlikely that they're going to do it immediately, to be honest, we would prefer that our, our sales force are out there driving all those capital upgrades as fast as possible and then go back-... You know, our new regional president over there is certainly looking at these things infrastructurally as to, you know, what sort of structure he puts in to make sure we're driving across the whole seven growth drivers.
Your point is extremely valid, that, even if we've got a lower ASP, there's a high opportunity for us to capture back, and some of that, plus more, associated with the software upgrades over time. I think you're, I think you're gonna start seeing an uptick in those. There'll be some in, in the second half, but I think, you know, I'm, I'm anticipating a lot more in FY27.
Great. Then just one for Jason, final one on OpEx. Good cost control there in the period, and you've given obviously the guidance there as well. As we think and we look to the CORIS commercialization, as you mentioned, FY27, maybe you can just give us a little bit of a framework for how we should be thinking about OpEx there. I know obviously that's been a focus for the market, but you've got a, obviously, a pretty established base in terms of infrastructure there already. Any extra context you can give on how we should think about incremental sort of OpEx as we get closer to commercialization would be very helpful. Thanks, guys.
Thanks, Josh. Yeah, look, I, I think it'll continue as, as we are today. You'll, you'll see in our first half results that, you know, the Trophon OpEx was, was +1%, whereas the increase in OpEx was, was driven by, by CORIS, which was, was +16%, half on half. So, you know, what, what we've said previously, it still, still continues today, which is, as we ramp up with CORIS, we will gradually add resources, that will supplement the existing sales teams.
They, they may be people that help us out with installations and project management, things that will come out of the controlled market release that we will learn, that will help us direct, you know, where we need to do the resource investment to roll out CORIS as smoothly and, and as quickly as possible. They will be supplemental, we continue to try and drive the operating leverage, which we've been able to achieve in previous halves, and, and we'll look to continue that, certainly in the Trophon business, as we go through fiscal year 27.
Got it. Just to confirm there, though, Jase, in terms of as we're thinking, it's not a big step up necessarily into 2027, it's a more gradual progression from the half on half that we'll see going forward?
Correct. Correct, yeah. Thanks, Josh.
Okay. That's great. Thanks, guys.
Our next question comes from the line of Taj Wesson with RBC Capital Markets. Please go ahead.
Morning, guys. Thank you for taking my question. I'm just curious as to what makes you confident around the customer is fully understanding the Trophon3 value proposition relative to Trophon2? Extension to that, maybe if you could provide some more color around the composition of upgrades into the second half, so Trophon2, Trophon2 Plus, and Trophon3? Thanks.
If I understand the question, it's, it's more what makes us confident in the customer understanding the Trophon3 product proposition. Really, that comes down to the marketing and, and the sales and, you know, ensuring when we're in front of customers, that's, that's, that's their job, is to, to help everybody understand. Also, remember, a lot of what's in Trophon3 was, you know, driven by customer insights as well. In terms of the composition between T2 and T3 in the second half, we expect that to start moving towards T3 over time. A lot of what's dictating at the moment, the mix on T2, is just based on where, you know, approvals are in budget, budget approval processes with the hospitals. Ultimately, over time, we expect the absolute majority to be moving towards Trophon3.
I will-- one other point I'll make on that is, don't... Not to underestimate, you know, there's over 25,000+ Trophon2s in the market today as well. It's not just about talking to customers who are the original trophon EPR customers, about Trophon3, it's also talking over time to all existing Trophon2 users, because they now have the opportunity to upgrade with that software, the Trophon2 Plus software, to enable them access a lot of the benefits of Trophon3 as well. That's a, a significant opportunity when you think there's 20,000 to over 25,000 of those Trophon2s in, in operation.
Great. Thank you for that. I guess what, what I was just trying to understand is if there is any friction around the pricing of Trophon3 relative to Trophon2, and customers maybe not understanding that, that premium that, that could potentially be unlocked.
We're, we're, we're not seeing, we're not seeing that at the moment, no.
Great, thank you. Then, just around the larger volume deals and, sort of the ASP sort of impacts of that, I was just wondering if that extends to consumables as well, or if there's any concessions provided?
Uh.
as a part of those deals?
Yeah. Yeah.
Okay, great. Thank you. Very clear.
Great, thank you. All right, I think that's the, the last question in. Again, I want to thank everybody for taking... I know it's a busy morning on the markets this morning, but I think, you know, in summary, again, I think we've, the company has delivered a very solid operational and financial performance in the half, and we're in a strong position, reaffirming our guidance for the second half, but not just for the second half, but all the foundations that are in place for the future as well. I look forward to catching up with many of you over the coming days. Thanks very much.