Aroa Biosurgery (ARX) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 reached $44.9 million (NZ$44.9 million), up 13–15% year-over-year, with gross margin at 85% (down 2% YoY but stable sequentially).

• Normalised EBITDA turned positive at $1.8 million (NZ$1.8 million), reversing a $1.5 million loss in the prior year.

• Cash from operations was $4 million, with period-end cash of $23.4 million and no debt.

• Myriad product revenue grew 30–33% to $19.7 million, while OviTex/OviTex PRS revenue increased 4% to $19.2 million.

• Product portfolio expansion and strong clinical data underpin growth in trauma, chronic wounds, and hernia repair.

Financial highlights

• Product sales grew 14% year-over-year to $44.6 million; gross profit increased 13% to $38.3 million.

• Product gross margin was 85%, down from 87% YoY.

• Operating expenses rose 3% to $39.6 million, mainly due to increased selling/admin costs; R&D expenses dropped to $4.1 million.

• Net cash inflows from operating activities were $4.0 million, with cash and equivalents at $23.4 million.

• Remained debt-free with strong cash runway and low quarterly cash burn.

Outlook and guidance

• FY26 revenue guidance reaffirmed at $92–100 million (NZ$92–100 million), representing 10–20% constant currency growth.

• Normalised EBITDA guidance set at $5–8 million for FY26.

• Guidance assumes stable exchange rates, US tariffs at 15%, and no major disruptions in US medical procedures or manufacturing.

• Management expects new clinical publications to support further commercial uptake in H2 FY26.

• Symphony RCT completion expected by end of November, with data publication to follow.