AOTI (AOTI) H1 2025 TU earnings summary

Executive summary

• Achieved approximately 18% revenue growth in H1 2025, with Q1 growth at 26% and Q2 impacted by US government initiatives.

• Medicaid Provider ID received in California, expanding access to the largest Medicaid state.

• Growth strategy remains focused on value-based care and expanding market access for TWO2 therapy.

Financial highlights

• H1 2025 revenue expected to be at least $31 million, up from $26.3 million in H1 2024.

• Medicaid segment revenue grew 50%-55% year-over-year, though below prior period's 83.8% due to Arizona billing issues.

• VA segment (54% of H1 revenues) saw weaker Q2 growth due to headcount and efficiency initiatives.

Outlook and guidance

• FY 2025 revenue growth now expected in the mid-teens, with adjusted EBITDA margin in low double digits.

• Board remains confident in medium-term growth, citing transitional nature of current US healthcare headwinds.

• Disruption from the "One Big Beautiful Bill Act" expected to impact H2 2025 and possibly into mid-2026.