Aroa Biosurgery (ARX) Q3 2025 earnings summary

Executive summary

• Achieved first quarter of positive operating cash flow since ASX listing, with NZ$1.2 million in Q2 FY25 and a strong cash balance of NZ$21.9 million at quarter-end.

• Myriad product sales grew 46% year-over-year, now comprising 56% of total sales, supported by strong clinical outcomes and minimal complications.

• Largest prospective study in limb salvage using Myriad completed, showing rapid tissue fill (within 30 days), no infections, and single-application effectiveness in high-risk patients.

• Regulatory approvals expanded for Endoform and Myriad Matrix in Lebanon, Vietnam, and Saudi Arabia.

• Ended the quarter debt-free, with direct sales now representing 56% of sales mix.

Financial highlights

• Cash receipts reached NZ$19.5 million, with a net increase in cash balance to NZ$21.9 million.

• Net cash outflow from investing was NZ$0.8 million, mainly for manufacturing and routine capital expenditure.

• FY25 revenue guidance: NZ$81–84 million (reported), NZ$76–79 million (constant currency); normalised EBITDA NZ$2–4 million (reported), NZ$0–2 million (constant currency).

• Received NZ$1.6 million in tax incentives and refunds, offset by annual insurance premiums.

• Aggregate NZ$178,000 paid to non-executive directors for fees during the quarter.

Outlook and guidance

• Expects to remain cash flow positive and increase profitability, supported by revenue growth and cost control.

• FY25 revenue guidance of NZ$81–84 million (constant currency NZ$76–79 million), normalised EBITDA NZ$2–4 million (constant currency NZ$0–2 million), based on NZ$/US$ exchange rate of 0.60.

• Anticipates sales acceleration as US sales operations mature and clinical data strengthens.

• Plans to add 10–20 sales reps in the next financial year to support growth.

• Management expects continued positive operating cash flows and progress toward profitability by FY25 year-end.