Aroa Biosurgery (ARX) H2 2025 earnings summary

Executive summary

• Achieved FY 2025 revenue of AUD/NZ$84.7 million, up 23% year-over-year and above guidance.

• Recorded first positive normalized EBITDA of AUD/NZ$4.2 million, exceeding guidance and reversing last year's loss.

• Ended the year debt-free with a cash balance of AUD/NZ$22 million and positive operating cash flow in H2.

• Myriad product drove growth, with 38% sales increase and strong clinical outcomes; average account value and customer numbers also increased.

• Focused on expanding market penetration, especially in large complex wounds and lower limb salvage.

Financial highlights

• Product revenue reached AUD/NZ$84 million, up 24% year-over-year; total revenue up 23% to AUD/NZ$84.7 million.

• Gross margin improved to 86%, supported by high-margin Myriad sales.

• Operating expenses increased 9%, reflecting disciplined cost management.

• Achieved positive operating cash flow and break-even net operating cash flow in H2.

• Total cash burn reduced by 50% compared to FY 2024.

Outlook and guidance

• FY 2026 revenue guidance set at AUD/NZ$92–100 million, representing 10–20% growth.

• Myriad expected to grow over 25%; TELA Bio growth forecasted flat to 10%.

• Normalized EBITDA guidance of AUD/NZ$5–8 million.

• Focus remains on profitable growth, deeper account penetration, and expanding within hospital systems.

• Key milestones include Symphony reimbursement in physician offices and new clinical studies.