Aroa has third straight positive cash flow quarter
Aroa reports third consecutive quarter of positive net cash flow since listing in 2020
Cash receipts from customers of NZ$22.5 million, in line with expectations
FY26 guidance reaffirmed with total revenue of NZ$92–100 million and normalised EBITDA of NZ$5–8 million
Cash flow from operations for the June quarter for Aroa Biosurgery (ASX:ARX) was NZ$1.7 million, supported by strong cash receipts of $22.5m during the quarter.
Net cash outflows from investing activities for the quarter were NZ$900,000, primarily reflecting routine capital expenditure.
Net cash flow was NZ$500,000 with total cash on hand increasing by NZ$200,000, after adjusting for the impact of movements in exchange rates and the company ended the quarter with a cash balance of NZ$22.2m.
Aroa remains debt-free with NZ$180,000 paid in directors fees during the quarter to its six non-executive directors.
And in further good news for the company, Aroa reaffirmed full-year FY26 total revenue guidance of NZ$92–100m, representing growth of 10–20% on FY25 on a constant currency basis.
Normalised EBITDA for FY26 of NZ$5–8m represents growth of 19–90% on FY25.
Sustained growth for high-margin Myriad
Sales of Aroa's high-margin Myriad family, which can be used in a wide range of surgical procedures where tissue needs to be rebuilt, saw sustained growth during the quarter consistent with expectations.
Orders for its Ovitex products by Aroa's US partner, Nasdaq-listed TelaBio, are also tracking well.
Recently announced proposals from the Centers for Medicare & Medicaid Services (CMS) may also present positive opportunities for Aroa's Symphony product, enabling reimbursement when used in physician offices from 2026.
Attendance at major conferences and growing clinical evidence
During Q1 FY26 Aroa's sales and clinical teams participated in eight major industry conferences.
Aroa attended the Symposium on Advanced Wound Care (SAWC) Spring 2025 Conference in Texas, which was attended by more than 2,500 healthcare professionals.
At the conference, four poster presentations describing the benefits and efficacy of Aroa ECM technology were delivered.
Aroa also continues building evidence demonstrating the efficacy and value of its extracellular matrix (ECM) technology.
During the quarter, two new peer-reviewed studies were published, including a large real-world study published in April in the industry-leading journal, International Wound Journal.
The study assessed the efficacy of Aroa's Endoform product in treating venous leg ulcers (VLUs) compared to a leading reconstituted collagen dressing.
The study found that VLUs treated with Endoform Natural could heal up to 8 weeks faster than the comparator group.
Furthermore, the chances of the wound healing were significantly improved when Endoform Natural was used as part of treatment.
This article was developed in collaboration with Aroa Biosurgery, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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