Aroa lifts after second consecutive quarter of positive cashflows

• AROA lifts after recording its second consecutive quarter of positive cash flows from operations
• Full-year FY25 guidance remains unchanged at NZ$81-$84 million in total revenue
• Sales of AROA’s high-margin Myriad family in March top the highest month on record at US$2m

Special Report:  New-Zealand-based soft-tissue repair company Aroa Biosurgery’s share price made gains after reporting its second consecutive quarter of positive cash flows from operations since listing on the ASX in July 2020 and reconfirming full-year revenue guidance for FY25. 

Aroa Biosurgery (ASX:ARX) attributed cashflows from operations for Q4 FY25 of NZ$1.1m to an increase in receipts from customers to NZ$20.1m, and the absence of large one-off cash expenses during the quarter.

Net cash outflows from investing activities for the quarter were NZ$600,000, primarily reflecting routine capital expenditure.

Aroa has reaffirmed its full-year FY25 guidance, maintaining constant currency revenue expectations (using an NZ/US exchange rate of 64 cents) at NZ$76-79m and a normalised EBITDA profit of NZ$0-2m.

On a reported basis, full-year guidance remains unchanged at NZ$81–84m in total revenue and a normalised EBITDA profit of NZ$2-4m, reflecting the actual NZ$/US$ exchange rate for FY25.

Total cash rose by NZ$100,000 with the company ending the quarter with a cash balance of NZ$22m and remaining debt-free.

Highest recorded sales month for Myriad

Sales of AROA’s high-margin Myriad family continue to grow with March sales results of US$2m the highest month on record. 

Myriad sales rose 11% against the previous quarter and 32% against the previous corresponding period (pcp). 

AROA said results were driven by continued improvements in sales productivity and account penetration for Myriad, which can be used in a wide range of surgical procedures where tissue needs to be rebuilt. 

Myriad Matrix and Myriad Morcells have been assigned permanent unique Level II Healthcare Common Procedure Coding System (HCPCS) codes by the Centers for Medicare & Medicaid Services (CMS) in the US.

AROA said this would streamline the claims and reimbursement process in outpatient and ambulatory centres and, over time, provide insurers with data to demonstrate cost-effectiveness of the products. 

In March, AROA appointed the former director of global strategic marketing at Integra LifeSciences Ruth Powers, as its US-based marketing director to further drive growth and build further sales momentum.

AROA said Powers brings deep experience in the US healthcare sector, particularly in surgical reconstruction, and a strong track record of driving market growth.

During Q4, AROA’s sales and medical affairs teams also engaged with clinicians and industry leaders at 14 major conferences, including the European Wound Management Association 2025 Conference in Barcelona – the world’s largest wound care event. 

Demand for Ovitex products also remains strong with sales to AROA’s US partner, Nasdaq-listed TelaBio, increasing by 17% during the quarter against pcp.  

In March, TelaBio delivered CY24 revenue results of US$69.m, representing growth of 19% on CY23.

Expanding clinical evidence during quarter

Clinical evidence for Aroa’s extracellular matrix (ECM) platform to support sales growth continues to grow with more than 100 peer-reviewed studies now published, with three new case studies published during Q4. 

The case studies were investigator-initiated and illustrate the effectiveness of Aroa’s ECM tech across a range of clinical scenarios.

One study described the first reported use of Myriad to treat skin lesions associated with the autoimmune disease Pemphigus Vulgaris, which results in severe, widespread blistering and erosions to the skin. 

The patient had been impacted by severe blistering affecting ~30% of their body surface area for nine months before the lesions were treated with one application of Myriad Matrix. 

The study found that most of the affected areas had healed within one week and were completely healed in one month. 

In another study, AROA’s Symphony product was used to successfully treat a hard-to-heal diabetic ulcer, where standard wound care had not worked effectively. 

AROA said the investigator tried a new approach that involved chemically removing dead and damaged tissue from the ulcer (debridement) and then applied Symphony at ~12-day intervals. 

Over the 110 days following the initial debridement, the foot ulcer showed significant improvement as it progressed towards closure. 

In the final study, researchers in Singapore published their initial findings using Myriad to treat perianal fistulae, which builds on initial research into using Myriad to treat these challenging chronic wounds. 

The authors showed that placement of Myriad within the contaminated defects led to successful regeneration of tissue. 

Positive outlook for FY26, US tariffs no major concern

On April 2, US President Donald Trump announced his Liberation Day tariffs for most countries, with goods imported from New Zealand attracting a 10% tariff. 

However, due to its commercial arrangements, AROA said it expected “the net impact to be substantially lower”.  

CEO Brian Ward said he was encouraged by the latest quarterly result. 

“AROA has made pleasing progress in Q4, demonstrated by our second consecutive quarter of positive operating cash flows and record sales of Myriad in March 2025 of US$2 million,” he said.  

“With a strong cash balance, we are well positioned to continue to invest in growing both topline and EBITDA.”

AROA will report its full year financial results on May 27. 

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.