Aroa Biosurgery Posts NZ$1.7M Operating Cash Flow, Reaffirms NZ$100M Revenue Target
Aroa Biosurgery has reported its third consecutive quarter of positive net cash flow, maintaining a strong cash position and reaffirming its FY26 revenue and EBITDA guidance. The company’s Myriad product sales continue to grow, supported by new clinical evidence.
- Third consecutive quarter of positive net cash flow at NZ$1.7 million
- Cash balance increased to NZ$22.2 million, company remains debt-free
- FY26 revenue guidance reaffirmed at NZ$92-100 million
- Normalised EBITDA guidance of NZ$5-8 million maintained
- Two new peer-reviewed clinical studies published supporting product efficacy
Financial Stability and Growth
Aroa Biosurgery Limited (ASX, ARX) has delivered a solid financial performance for the quarter ended June 30, 2025, marking its third consecutive quarter of positive net cash flow. Operating cash flow stood at NZ$1.7 million, supported by strong customer receipts totaling NZ$22.5 million. The company’s cash reserves grew modestly by NZ$0.2 million to NZ$22.2 million, underscoring a robust liquidity position with no debt obligations.
Reaffirmed Guidance Signals Confidence
Management reaffirmed its full-year FY26 guidance, projecting total revenue between NZ$92 million and NZ$100 million, representing a 10-20% growth on a constant currency basis compared to FY25. Normalised EBITDA is expected to rise significantly, forecasted between NZ$5 million and NZ$8 million, reflecting a 19-90% increase. These targets suggest management’s confidence in sustaining momentum amid a competitive healthcare market.
Product Momentum and Market Engagement
The high-margin Myriad product family continues to drive sales growth, aligning with company expectations. Aroa’s sales and clinical teams actively engaged with the medical community, participating in eight major industry conferences, including the prominent Symposium on Advanced Wound Care (SAWC) in Texas. Presentations at these events highlighted the benefits of Aroa’s proprietary extracellular matrix technology, reinforcing its clinical relevance.
Clinical Validation Strengthens Market Position
Aroa bolstered its clinical credentials with the publication of two new peer-reviewed studies during the quarter. Notably, a large real-world study published in the International Wound Journal demonstrated that Aroa’s Endoform Natural product accelerated healing of venous leg ulcers by approximately eight weeks compared to a leading collagen dressing. This evidence could enhance physician confidence and support broader adoption of Aroa’s regenerative healing solutions.
Looking Ahead
The company remains focused on executing its growth strategy while maintaining financial discipline. With a strong cash position and no debt, Aroa is well-positioned to invest in routine capital expenditure and clinical development. Investors and analysts will be keenly watching upcoming quarterly results and the impact of ongoing clinical validation on market penetration.
Bottom Line?
Aroa Biosurgery’s sustained cash flow and clinical progress set the stage for a pivotal year ahead.
Questions in the middle?
- How will ongoing clinical studies influence adoption rates of Aroa’s products in key markets?
- What are the company’s plans for expanding its sales footprint beyond current geographies?
- How might currency fluctuations or US tariff policies impact FY26 financial outcomes?