Highlights

• 1H26 earnings of US$39m (+53% yoy) are in line with expectations, representing 48% of our 2026 forecast, with volume growing across all
  geographies. 
   
• Verdye approvals have increased from 35 to 43 countries, while IC-Flow approvals have risen from 40 to 46 countries since end-25. 
   
• UltraGreen has renewed its revenue guidance in anticipation of a better 2H26 revenue vs 1H26. Ultragreen is trading at an attractive PE of 16x 2027F vs
  peers of 27x. Maintain BUY with an unchanged target price of US$1.95.
   

Analysis

• Strong top-line growth, earnings in line. UltraGreen.ai (UltraGreen) reported 1H26 revenue of US$87.2m (+24% yoy) and PATMI of US$39.2m
  (+53% yoy), forming 50% and 48% of our 2026 forecasts respectively. Growth was driven by an 11% yoy increase in Indocyanine Green (ICG) sales
  volume, improved pricing in the US and continued adoption across key markets. Management also guides 2026 revenue of US$175m-185m, with 
  2H26 revenue expected to exceed 1H26, supporting continued growth momentum. 
   
• Market and pipeline expansion support growth. UltraGreen continues to broaden its footprint, with Verdye approvals increasing from 35 to 43
  countries and IC-Flow approvals from 40 to 46 countries since end-25. The company has also secured Denmark’s national tender through 2028. Beyond
  geographical expansion, PerfusionWorks is progressing towards European regulatory approval, while expansion into new indicators such as wound care
  should further broaden ICG adoption and support vial volume growth. 
   

• Sales volumes continued to display momentum. 1H26 sales volumes rose 11% yoy to 589,511 vials, led by EMEA (+24% yoy to 196,165 vials)
  and a lower-base APAC (+45% yoy to 15,730 vials), while the US grew at a more modest 4% yoy to 377,616 vials. This momentum is likely to continue
  as global adoption of ICG in fluorescence-guided surgeries expands, with volumes expected to grow at a 3.1% CAGR through 2030. 
   
• Strong balance sheet supports growth and shareholder returns. UltraGreen ended 1H26 with US$197.6m in cash and short-term liquid
  investments, up 12% from end-25, while remaining debt-free. The group generated US$27.9m of operating cash flow, providing flexibility to fund
  growth initiatives. It also declared a US$0.01/share interim dividend and repurchased around 1m shares, with management expecting to continue
  returning capital through semi-annual dividends and share buybacks.  
   
• Investing ahead of growth. Adjusted EBITDA rose 16% yoy to US$52.5m, although margin moderated 5ppt to 60% as operating expenses increased
  66% yoy to US$28.0m. The higher cost base reflects increased investment in headcount, with employees rising to 112 from 73 in 1H25, increased
  marketing expenditure, and higher listed company expenses. Management expects stronger operating leverage as revenue scales against the enlarged
  cost base.