Aroa Biosurgery (ARX) H1 2025 earnings summary

Executive summary

• Achieved NZ$39.2 million total revenue in H1 FY25, with 25% year-over-year product sales growth, led by Myriad (up 45%) and strong TELA Bio/OviTex performance.

• Over 6 million products applied globally, with regulatory approvals in 50 countries and 83+ peer-reviewed publications.

• Focused on regenerative healing with a robust ECM technology platform and four product families, commercialized mainly in the U.S. and globally.

• Maintains a strong cash position of NZ$21.6 million and remains debt-free.

• Expanded clinical evidence base with new peer-reviewed studies, rapid wound healing, and strong clinical outcomes, especially for complex wounds.

Financial highlights

• H1 FY25 total revenue reached NZ$39.2 million (constant currency), with product gross margin at 87%.

• Normalised EBITDA loss of NZ$1.5 million, improved from NZ$2.7 million loss in H1 FY24.

• Cash receipts from sales rose 27% to NZ$37.7 million; net operating cash outflow reduced by 33% to NZ$4.9 million.

• Selling and administrative expenses increased 21% to NZ$33.2 million, reflecting sales team expansion.

• Cash balance at period end: NZ$21.6 million.

Outlook and guidance

• FY25 revenue guidance maintained at NZ$80–87 million (21–32% growth), with normalised EBITDA profit of NZ$2–6 million.

• H2 FY25 expected revenue of NZ$43–50 million and normalised EBITDA profit of NZ$4–8 million.

• Guidance assumes NZ$/US$ exchange rate of 0.64 and TELA Bio meeting its US$74.5–76.5 million revenue target.

• Positive operating cash flow anticipated for H2 FY25.

• Continued clinical data releases and product launches expected to support growth.