Aroa Biosurgery Posts NZ$44.6M Sales and Returns to EBITDA Profit
Aroa Biosurgery reported a 14% rise in product sales to NZ$44.6 million for the half-year ended September 2025, driven by strong growth in its Myriad portfolio. The company also posted a normalised EBITDA profit and reaffirmed its FY26 revenue and profit guidance.
- Product sales up 14% to NZ$44.6 million, led by 30% growth in Myriad portfolio
- Normalised EBITDA profit of NZ$1.8 million versus prior period loss
- Reaffirmed FY26 guidance – NZ$92-100 million revenue and NZ$5-8 million EBITDA profit
- US Medicare reimbursement changes expected to benefit Symphony product
- Board changes with Paul Shearer appointed and John Pinion retired
Strong Sales Momentum and Portfolio Growth
Aroa Biosurgery Limited has delivered a solid interim performance for the six months ended 30 September 2025, reporting product sales of NZ$44.6 million, a 14% increase over the prior corresponding period. This growth was primarily driven by the Myriad portfolio, which surged 30% on a constant currency basis, now accounting for 44% of total product sales. The company’s focus on expanding sales productivity and deepening penetration in existing accounts has resulted in an increase to 380 active accounts, up from 328 at the end of FY25, alongside an 8% rise in average account value.
Return to Profitability and Cash Flow Strength
After several periods of losses, Aroa reported a normalised EBITDA profit of NZ$1.8 million, a marked turnaround from the NZ$1.5 million loss in the prior year. This improvement reflects disciplined expense management, with operating expenses rising only modestly despite increased sales and marketing investment. The company also generated positive operating cash flow of NZ$4.0 million, supported by better trade debtor management and steady revenue growth. With NZ$23.4 million in cash and term deposits, Aroa remains debt-free and well positioned to fund ongoing operations and clinical development.
Clinical Evidence and Regulatory Developments
AROA continues to build its clinical evidence base, publishing 10 new peer-reviewed studies during the period, bringing the total to 116. This growing body of research underpins the efficacy of its proprietary extracellular matrix (ECM) technology. Notably, the company anticipates favorable impacts from upcoming US Medicare reimbursement changes effective January 2026, which introduce capped payment rates for skin substitute products including Aroa’s Symphony. The completion of a pivotal randomised controlled trial for Symphony is expected in November 2025, with data publication and CMS coverage anticipated in FY27.
Product Pipeline and Market Opportunities
Beyond Myriad and Symphony, Aroa is advancing its ENIVO tissue apposition system, designed to improve postoperative healing by eliminating dead space. The first clinical study of ENIVO demonstrated promising safety and efficacy results, and the company estimates a market opportunity exceeding US$1 billion. Plans are underway for further clinical studies to support FDA clearance, targeting commercialisation by calendar year 2028.
Corporate and Governance Updates
The Board saw a change with the retirement of Non-Executive Director John Pinion and the appointment of Paul Shearer as an Independent Non-Executive Director, effective 31 October 2025. The company also continues to engage actively with investors and industry stakeholders, participating in major conferences such as the Symposium on Advanced Wound Care in Las Vegas.
Outlook and Guidance
Reaffirming its confidence, Aroa maintains FY26 guidance of NZ$92-100 million in total revenue, representing 10-20% growth on a constant currency basis, and a normalised EBITDA profit range of NZ$5-8 million. The company expects the second half of FY26 to deliver NZ$47-55 million in revenue and NZ$3.5-6.5 million in EBITDA profit, assuming stable exchange rates and no significant disruptions to US medical procedures or supply chains.
Bottom Line?
Aroa Biosurgery’s interim results signal a turning point with sustained sales growth and profitability, but upcoming regulatory milestones and market dynamics will be key to watch.
Questions in the middle?
- How will the US Medicare reimbursement changes concretely impact Symphony’s market uptake and pricing?
- What are the risks to achieving the FY26 revenue and EBITDA guidance amid currency fluctuations and tariffs?
- How will the clinical trial outcomes for ENIVO influence FDA approval timelines and commercial launch?
