Aroa Biosurgery (ARX) H1 2025 earnings summary

Executive summary

• Achieved NZ$39.2 million total revenue in H1 FY25, with product gross margin of 87% and over 6 million products applied globally, supported by 83+ peer-reviewed publications and a team of 270+ employees.

• Myriad product family drove 45% year-over-year growth to NZ$14.8 million, now 38% of total product sales, with TELA Bio partnership contributing NZ$18.5 million and OviTex sales up 23%.

• Clinical evidence highlights rapid wound healing, low infection rates, and strong outcomes in complex wounds, with 8 new peer-reviewed studies and key clinical trial completions.

• Expanded global reach with regulatory approvals in 50 countries and new distribution in Switzerland, Chile, and South Africa.

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

Financial highlights

• H1 FY25 total revenue reached NZ$39.2 million (constant currency), with product gross margin at 87% and normalised EBITDA loss of NZ$1.5 million.

• Gross profit increased 27% to NZ$34.0 million, and net loss before tax improved to NZ$2.9 million from NZ$6.2 million year-over-year.

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

• Basic and diluted EPS at (0.96) cents, improved from (1.84) cents in H1 FY24.

• Normalised selling and administrative expenses increased 21% to NZ$33.2 million; R&D expenses stable at NZ$5.4 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 and positive operating cash flow expected in H2.

• H2 FY25 forecasted revenue NZ$43–50 million, with product gross margin expected to remain at 86–87%.

• Guidance assumes NZ$/US$ exchange rate of 0.64 and TELA Bio meeting its revenue targets.

• Symphony RCT completion expected to enable reimbursement within 12 months; Enivo platform pursuing FDA clearance and commercialisation.

• TELA Bio completed a $42 million capital raise, supporting future sales growth.