Aroa Biosurgery (ARX) Q2 2025 earnings summary

Executive summary

• Net cash outflow from operations was NZ$1.2 million, a NZ$2.4 million improvement from the previous quarter, with expectations to be operating cash flow positive in H2 FY25.

• Cash balance at quarter-end was NZ$21.6 million, with a 58% reduction in quarterly cash burn and no debt.

• US commercial operations showed strong momentum, with 5% quarter-on-quarter growth in active Myriad accounts to 265 and improved sales productivity.

• Regulatory approvals for Endoform and Myriad Matrix in Argentina and Endoform in Egypt expand international market access.

• Four peer-reviewed studies published, including the largest comparative ECM analysis, supporting product efficacy and differentiation.

Financial highlights

• Cash receipts from customers were NZ$19.9 million for the quarter, up ~35% year-over-year and ~12% sequentially.

• Net cash outflow from operations was NZ$1.2 million, down from NZ$3.6 million in the previous quarter.

• Net cash outflow from investing activities was NZ$0.6 million, mainly for routine capital expenditure.

• Quarterly cash burn decreased by 58% to NZ$2.2 million.

• Ended the quarter with NZ$21.6 million in cash and no debt.

Outlook and guidance

• FY25 product revenue guidance maintained at NZ$80–87 million, representing 21–32% constant currency growth.

• Gross margin expected to exceed 85% in FY25.

• Normalised EBITDA guidance for FY25 is NZ$2–6 million.

• R&D spending to trend toward 10% of sales over the next few years.

• Guidance assumes TELA Bio delivers on CY24 revenue of US$74.5–76.5 million (27–31% YoY growth) and is subject to exchange rate fluctuations.