Aroa Biosurgery Posts 23% Revenue Growth and Positive EBITDA in FY26

Robust FY26 Growth Driven by Myriad and Clinical Milestones

Aroa Biosurgery Limited (ASX:ARX) has reported a strong financial year ending 31 March 2026, with total revenue climbing 23% to NZ$103.9 million. The standout contributor was the Myriad product line, which surged 54% to nearly NZ$50 million, underscoring its growing commercial traction. This performance helped the company achieve its second consecutive year of positive normalised EBITDA, which more than doubled to NZ$12.6 million, comfortably exceeding guidance.

The company’s US operations remain the core commercial engine, with direct sales now representing 59% of total revenue. Despite maintaining a stable sales force size, Aroa demonstrated increasing operating leverage, reflecting efficiency gains in its US commercial organisation. International expansion also gained momentum, with regulatory clearance in 59 countries and six new distribution agreements signed during the year, pushing ex-US revenue up 33% on a constant currency basis.

Symphony Trial Success and Shifting US Reimbursement Landscape

Aroa’s Symphony product line marked a pivotal clinical milestone by meeting the primary endpoint in a randomised controlled trial for diabetic foot ulcers. This trial provides pivotal evidence supporting Symphony’s efficacy and positions the company favourably as the US skin substitute reimbursement environment undergoes a major reset to a flat-fee Medicare model starting January 2026. The total addressable market post-reset is estimated to exceed US$1 billion, presenting significant growth opportunities.

Management anticipates that randomised controlled trials like Symphony’s will become the future benchmark for reimbursement, signalling a strategic shift in market dynamics. The company plans to capitalise on this by accelerating Symphony’s adoption in FY27, alongside sustaining Myriad’s momentum within integrated hospital networks.

Strong Cash Flow and Balance Sheet Position

Financial discipline remains a cornerstone of Aroa’s strategy. The company ended FY26 with NZ$27 million in cash and term deposits, no debt, and generated positive net cash flow of NZ$5 million. Operating cash inflows improved markedly to NZ$10.5 million from an outflow of NZ$2.6 million in the prior year, driven by better earnings and trade receivables management.

Despite tariff costs of NZ$1.6 million related to US imports, Aroa is pursuing potential refunds following recent US court rulings, with an estimated recoverable amount of approximately NZ$1.37 million. The company continues to invest prudently in clinical development and commercial expansion while maintaining operational discipline.

Governance Changes and Workforce Initiatives

FY26 saw notable changes to the boardroom. John Pinion retired after a decade of service, and John Diddams announced his planned retirement at the upcoming AGM. Paul Shearer joined the board bringing extensive global healthcare and medical device experience, notably from Fisher & Paykel Healthcare. These changes aim to strengthen oversight as Aroa scales.

On the people front, Aroa launched the Grow Together employee share scheme in New Zealand, reflecting a commitment to staff engagement and retention. The company also reported progress on diversity targets, achieving 43% female representation in senior leadership and 20% on the board, with a goal of 40:40:20 gender balance by 2033.

Outlook and FY27 Guidance

Looking ahead, Aroa provided FY27 guidance of NZ$115 million to NZ$125 million in total revenue, representing 13% to 23% growth on a constant currency basis, and normalised EBITDA between NZ$8 million and NZ$11 million. This guidance factors in continued direct sales growth, flat sales to TELA Bio, and an approximate NZ$9 million investment to support Myriad’s expansion and Symphony’s market opportunity.

The company’s strategic priorities include deepening clinical adoption, expanding hospital network penetration, and navigating evolving reimbursement policies. While the US market remains the focus, global distribution growth is expected to contribute meaningfully.

AROA’s financial statements were audited by BDO Auckland, which issued an unqualified opinion. Key audit matters highlighted included revenue recognition related to TELA Bio’s variable consideration, impairment testing of intangible assets, and share-based payment arrangements.