Aroa Biosurgery posted a breakout FY26, beating revenue and EBITDA guidance with a 54% surge in Myriad sales. The company plans significant investments in FY27 to accelerate growth and capitalise on new market opportunities.
- FY26 revenue NZ$103.9m, 23% growth
- Myriad sales jump 54%, driving growth
- Normalised EBITDA triples to NZ$12.6m
- Symphony trial meets primary endpoint
- FY27 guidance targets NZ$115-125m revenue
FY26 Financial Outperformance
Aroa Biosurgery (ASX:ARX) delivered a standout FY26 with total revenue reaching NZ$103.9 million, comfortably exceeding the top end of its NZ$92-100 million guidance range. This 23% year-on-year growth was fuelled by a remarkable 54% increase in sales of its Myriad product line, which now accounts for nearly half of total revenue at NZ$49.5 million.
The company’s normalised EBITDA more than tripled to NZ$12.6 million, surpassing guidance by a wide margin and marking the second consecutive year of positive EBITDA. High product gross margins of 85.5% were maintained despite some mix shifts and US tariff costs, underscoring operational efficiency. Aroa ended the year debt-free with NZ$27.1 million in cash and term deposits and generated NZ$5.1 million in net positive cash flow, reinforcing its self-funding growth profile.
Myriad and Symphony Driving Growth
The Myriad portfolio remains the company’s growth engine, with sales driven by complex wound and limb salvage procedures. The product’s single-application use, backed by prospective clinical data from the MASTRR registry, supports its rapid adoption and high margin profile. The direct US sales channel, which sells Myriad, now represents 59% of product revenue and is expanding fastest.
Meanwhile, the Symphony randomised controlled trial (RCT) for diabetic foot ulcers met its primary endpoint, a critical milestone that aligns with the 2026 US CMS reimbursement reform. This trial success positions Symphony as a promising catalyst for medium-term growth in a multi-billion-dollar market undergoing a disruptive pricing reset. Aroa is investing NZ$4 million in commercial infrastructure to capitalise on this opportunity, with the product launch underway. These developments build on the company's earlier clinical momentum documented in the Symphony Trial Shows Promising Healing and Growth Amid Clinical Wins.
Partner Revenue and Operational Expansion
OviTex and OviTex PRS, distributed exclusively by TELA Bio, contributed NZ$42.8 million in FY26 revenue, up 8% on the prior year despite hospital contracting headwinds. This partnership provides Aroa with exposure to the hernia and breast reconstruction markets without incurring sales costs, diversifying its revenue base.
Operationally, Aroa continues to scale its US direct sales infrastructure, with expanded hospital coverage, regional leadership changes, and secured contracts with major Group Purchasing Organisations. The company’s FY27 priority is to accelerate the Myriad sales ramp and increase salesforce productivity, supported by NZ$5 million investment in commercial leadership and infrastructure.
FY27 Outlook and Investment Focus
Looking ahead, Aroa guides for total revenue of NZ$115-125 million in FY27, representing 13-23% growth on a constant currency basis. Direct sales are expected to grow 24-40%, driven by Myriad momentum and Symphony’s market launch, while sales through TELA Bio are forecast to remain flat. Normalised EBITDA is forecast between NZ$8-11 million, reflecting a deliberate NZ$9 million investment in commercial capabilities to underpin accelerated growth.
The company’s strategy emphasises converting Symphony’s reimbursement opportunity into sales, deepening account penetration, and expanding adoption within integrated hospital systems. The steady stream of upcoming clinical data publications, including the Symphony RCT publication and MASTRR interim analyses, will be key to supporting market confidence and sales growth.
Bottom Line?
Aroa’s FY26 results confirm its emerging leadership in regenerative wound care, but FY27’s ambitious growth hinges on successful Symphony commercialisation and sustained Myriad momentum.
Questions in the middle?
- How quickly will Symphony translate RCT success into meaningful US market share under the new CMS reimbursement model?
- Can Aroa sustain Myriad’s rapid sales growth amid increasing competition and evolving clinical evidence demands?
- What impact will ongoing US tariff uncertainties and supply chain factors have on margins and cash flow in FY27?